Questions about rental properties.

[Mosaud1998]

I might have started a thread like this before but I can't find it. I am looking to get into rental properties. This would be my first property. I don't own a house or whatnot. I'm still a young buck (25 years young?) . I'm not too worried about down payment since Dad said he wants to get into the rental property gig also. So, we'll split the down payment.

I've been wanting to get into rental properties but I didn't have a lot of money saved, did not want to pay stupid high rates, and was still going to college. Mortgage rates seem to be coming down a bit but you can always refinance. I graduated college 8 months ago and paid the loan off so the only loan I have is the BMW which I am not worried about at all.

A couple of questions, how would I be able to determine the best location for a house/townhouse to put on rent? Do renters care about how good the local schools are? Should we buy a house or townhouse to put on rent?

Any input would be helpful. I have not gone through a bank yet to see how much I can get approved for. Also, do I have to put 20% down? Is there a benefit in putting less down (other than the fact that you'll have more money saved)?

I don't want to be a "slave" my whole life (working under someone else) and I want some side income coming in that I can use as "fun" income. If that makes sense.