Real Estate Investing

Introduction
So! You're ready to progress beyond home ownership, and build your empire. Where to start? Well, here, not to put too fine a point on it. This tutorial will be basic, but will get you started with some basic concepts.
Step 1: The Property
Ok, sorry to start with a hard question, but here it is: How much can you afford? Keep in mind that there will be some months when you have to carry the property while it's vacant, so only buy as much as you can afford to cover. That said, the better the property, the better the quality of tenant you'll attract, so determine a price range that's affordable but can still support a property you can feel comfortable with.
Once you have a price range, determine what your comfort is with "fixer-uppers." You can create equity through renovating a delapidated shell, but you can also lose your shirt if you're not familiar with the process. If you've never been involved with renovating properties before, opt for a property that requires minimal repairs.
Find a good realtor, preferably by referral from someone you trust, but if not, you can always find one at realtor.com.
Once you've found a realtor, discuss potential neighborhoods with them, bearing your price range in mind. Take a close look at average rents in any given area, and make sure your monthly expenses will always be substantially lower than your expected rent.

Step 2: The Search
Ok, you've got a few vacant properties on your hands that you want to fill, now what?
Advertising is critical. Start with Craigslist because it's free, but don't stop there. Run an ad in your local newspaper(s), and make sure your rent is comparable to other similar properties in the area.
As prospective tenants view the property and apply, there are several screening methods that should always, I repeat, always be applied: a) Require a $20 application fee at the door, b) spend that $20 on a credit report, c) verify the tenants' employment and income with their supervisor, d) verify their payment history with their landlord, e) visit them at their current leased property to inspect the condition in which they maintain it. These methods will discourage tenants who have something to hide, and help screen out the bad apples.
A final word of advice: follow your instinct. If you don't feel comfortable with a prospective tenant, trust your gut. Usually there's a sound basis for that feeling, even if you can't immediately place it.

Step 3: The Lease
A legally strenuous lease is critical if anything goes wrong with the tenant or property, and you can probably guess just how often that is. Make sure that your lease includes state-specific legal language, and of course all of the desired terms regarding maintenance, pets, etc.
You may also need certain disclosures, depending on your state. A commonly required disclosure in many states explains lead-based paint hazards, for example. Be aware of what the local laws require of you.
There are a lot of websites offering some of these docs; I use this one for Real Estate Forms, but there are many others. Whatever site you use, make sure you understand and comply with all applicable laws.

Step 4: Management
Congratulations! The hard part is done. Good properties and tenants require only minimal attention, and with luck you won't hear from them very often. However, you'll still need certain contacts in your rolodex, most notably contractors and eviction specialists. Stay on good terms with several handymen, and several of each type of mechanical contractor (electrician, plumber, etc.), as even the best properties need basic maintenance and repairs periodically. If you are unable to perform evictions yourself, or are unfamiliar with local eviction laws, keep an eviction attorney or specialist near at hand as well, because no screening process is ever perfect, and sometimes tenants stop paying unexpectedly.

There are many finer points, and caveats, and minutiae, that you can explore as you need them, but within this tutorial is everything you really need to succeed in property management. Thank you for lending me your eyes, and good luck! It's not such a scary field after all.