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Let's face it, with the real estate market as fragile as it is these days, anyone looking to enter the business of renting has ominous decisions to make in order to turn that property into profit. Every aspiring landlord has to start somewhere, so here are a few of the options - along with some risks and rewards - to consider when buying property with intent to rent: apartments and townhouses, the n-plex, and the single family home.

Apartment buildings and townhouses are viable options when trying to maximize profits in minimal space. This space may be limited by scarcity of land or a high price on the land that is available. The pros of such a setup are somewhat obvious. More units equal more tenants, more tenants equal more rents collected, and profits rise. Typically apartment buildings and townhouses also have the size and means to support a handyman or in-house maintenance. This takes some of the burden of repairs (and a tenant's unhappy wrath) off of the owner. As many landlords could testify, this is worth whatever cost to renovate or build an apartment building or townhouse. But with every pro, there is a con. In this case, the reality of many different people and personalities in a limited space has the inevitability of crossing one another. Lack of privacy, personal property disputes, pets, and children, residents with alcohol or drug related problems and noise complaints are just a few of the possible pitfalls. Though the owner may not necessarily have to deal with these, a reputation for an unpleasant living space is a real estate killer.

The n-plex usually refers to a duplex, but variations such as the 3-plex, 4-plex, and so on do exist. This is considered by many to be one of the higher risk rental options. It stems from the effort of the land owner to either diversify or increase income from a simple dwelling. This option also allows for a bit more personal space for the tenants, as a duplex customarily offers a yard or some outdoor space as well as a garage and more square footage in the home itself. However, the success of an n-plex rests heavily on the compatibility of the (considerably fewer) tenants. If one tenant has a bad experience, the space may be harder to fill, and that is a vacant space the landlord then has to maintain out of pocket. The n-plex has a strange place in the crux of markets. On one hand, people may like the extra space at a little lower cost. On the other, if they are ready for that much space, why not just go and get a single-family home and not have to share the headaches?

Finally, the single-family home may seem like an eggs-all-in-one-basket investment, but there is your intended market to consider. Think of the people looking for such a domicile: either successful singles looking to branch out, couples who are looking to start a life together (typically combining two incomes), and families needing more space, again with the big possibility of two incomes. Though you may be collecting only one rent, it is somewhat more likely to be a sure thing. Rent for such a place can usually be higher when considering it offers privacy, control of the surroundings, and less maintenance. It is also common for single-family homes to be subject to less stringent local ordinances and land use laws.

Of course, location, location, location is the motto in all real estate, and you have to consider where your property lies to figure out the best use to maximize income.