[jackcosgrove]

Buy a couple duplex properties in an inexpensive midwestern or southern state. You'll have to save up some money to do this, and depending on that amount your margins may be nonexistent. Being a landlord is a lot less work than running a business and far less speculative, and the profit margins show it. But you asked about income, not profit.

[lumberjack]

Why go for less populated areas? It seems to me that that would increase the risk since it will is easier for a small town to start dropping in population as opposed to a big town. Also land is cheaper and there is more room for development so less people need to rent.

[jackcosgrove]

Not small towns, but medium sized cities. Margins are higher in places like Columbus, Ohio compared to Los Angeles because property is cheaper.

Here is a heat map for rental returns. http://www.realtytrac.com/content/news-and-opinion/best-and-...