When you look at a property, you have to work out all the numbers. Figure out what a fixed rate mortgage will run you each month + the monthly cost of rental insurance + the cost of property taxes. Then look at the property itself, inspecting it well or hiring a professional inspector. If you have it inspected by someone else, go with him to see what he finds. Calculate the required money needed to make all repairs (Then add 50% to that figure for the things you will find once you begin repairs. Trust me, you WILL find other things that must be repaired after you start!) Make sure the inspection is thorough, looking at walls, floors, ceilings, doors, windows, roof, chimney, electrical, plumbing, foundation, heating & cooling, appliances, and required updates (like electric, plumbing, fire codes, smoke detectors, emergency lighting, security features, etc.)Once you get all of your figures together, you need to add about $100 per month for maintenance and repairs later. If your property can net this amount of money a month at current market rent values, it will break even. If it can make any more than this, it will be profitable. You need to decide if you are looking for immediate profit from the property or for long term appreciation. If profit, you need to make at least $150-$250 more a month to be really profitable. If appreciation, you want to at least break even. Remember to add in enough room for about 30% vacancies per year. You may need to look for property for several month before you find the right one. Don't fall in love with a property. Look at it strictly from a business standpoint.