The right idea is going to be the bread and butter.1) Ideal location2) Quality properties over quantity of properties3) 1.25x DSCR4) Intention to hold no less than 8, but ideally 12+ years.5) Sufficient cap reserves6) Mechanisms to enhance cash flow(via alt investing or house strategies).7) Liability protection through no PG loans(if possible), LLC formation, property management and being a diligent landlord.8) Invest deeper, before wider.Now if you're talking where to invest, different information.

@Nawal Osman  I would say Arapaho is a very tiny town and not normally on most investors radar.Focus on areas of growth....Texas might be better...the bigger cities around DFW, Houston, San Antonio.Austin is super expensive right now.Also some of the mid-size cities in between this triangle.

Cash flow is only one TINY way rentals make you money.

I did drive by some tiny pockets of grouped nice homes, but I guess I'm unfamiliar with the area.How do you identify these "up and coming" areas in our city.

My wife and I set a goal to do 1 new property a year, the thing is we want to vet the market and make sure we are looking at this from a QUALITY, not QUANTITY perspective. 

I moved from that tiny town in rural southern WA to Seattle and went to college and studied real estate before attempting to buy another property.

I am not suggesting my path is the right one for you, but rather pointing out that quantity of doors is not as important as cash flow. 

Two months of housing inventory and hardly anything being built below $500k equals more renters.Property taxes are a known quantity and can easily be forecasted into one's proforma.Foundation estimates are FREE.

That is definitely not a law that is good for businesses especially small business that can’t afford automation technology .If someone owns a home that is paid off or a tiny mortgage and enough to pay living expenses they have little incentive to move especially with Prop 13 keeping their taxes low .

Leverage your quantity of business regardless of what you own.Diversification.