10 ways to make real money

Housing prices are down, but rents have held up better. You won't make a killing as a landlord, but you can get steady income and a good chance of solid appreciation.

How to invest: Look in areas where values have dropped sharply yet appear to be near the bottom and have long-term growth prospect. Call local realtors to make sure prices are stabilizing. Seek out places that were growing before the recession and have something compelling to offer -- say, a top university or a developing industry. Make sure your monthly rental income will be enough to cover your loan payments plus a 20% cushion. Two examples: In Melbourne, Fla., two-bedroom condos sell for as little as $65,000. If you put down 25%, your monthly costs will be about $600; rents run about $850, says realtor Bobby Freeman. For single-family homes, look at Modesto, Calif., where prices have fallen more than 60% but are forecast to rise 34% over the next five years.

What could go wrong: One destructive renter or a decline in a locale's quality of life could wipe out your return.

NEXT: Homebuilders