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When considering a rental property you need to apply the first rule of real estate. If you have got that right then you need to look at more details. First is the COST. Several costs are key in the beginning and if you are not careful your personal finances will be in trouble.
The first rule is simple, but lets make sure we understand that well. If you overpay for the property you will owe your lender more than you should and that can add up to a large sum. Even if you paid in cash you have basically wasted that extra money you could have done something better with. That is simple, make sure you do not overpay.
Understanding the total cost are more complicated and we are covering that later. There are several resources available to you to get an idea of the rental income you can expect in the neighbourhood your property is located at:
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Check out the local newspaper's realestate section (best is the weekend)
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Drive around the neighbourhood; look for "FOR RENT" signs; call and ask what is the rent
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Ask your real estate agent to run the rental listings for your location
Rule of Thumb
Avoid potential trouble:
Rental income should at minimum cover the mortgage; if more even better
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