More about: Doing your due dilligence

Talk to renters as well as homeowners in the neighborhood. You will find that renters can be more will  honest about the negative aspects of the area because they have no investment in it. If you know exactly what  neighborhood, try to visit it at different times on different days of the week to see your future neighbors in action.

Generally speaking if you are a beginner in the  investment property field then the best  is a residential, single-family dwelling or a condominium. Condos are low maintenance because the condo association is there to help with many of the external repairs, leaving you to worry about the interior.

One positive side about single-family homes is that they tend to attract longer-term renters in the form of families or couples. 

One of the reasons why families, or couples, are generally better tenant than one person is is that they are more likely to have a stable finance and pay the rent on time. As a landlord you want to attract this type of demographic.

When you have decided on  the neighborhood, then look for a property that has appreciation   potential and a good projected cash flow.. Look around for properties that are more expensive than you can afford no only the one withing your budget as the real estate agent can often sell below its listing price.

For appreciation potential, you are looking for a property that, with some light renovations, will attract tenants who are willing to pay out higher rents. This will help you to get more for the house if you decide to  sell in the future.. As far as cash flow you to have to make an informed guess. Take the average rent for the suburb you choose and subtract your expected monthly mortgage payment, property taxes (divided by 12 months), insurance costs (also divided by 12) and a good allowance for maintenance. It s very important not to underestimate the cost of these last or you will pay for it once the deal is done. If all these figures come out even or, better yet, with a little left over, then you know its a good buy.

You will find that in every state you have has good and bad cities, every city has good  and bad neighborhoods and even every neighborhood has good  and not so good properties, but it takes a lot of time and research to line up all three. When you do find your ideal rental property, keep your expectations realistic and make sure that you have a clear idea of what you can afford and what your goals are.