1) Profitable Rental Market - As an investor, it is a no brainer that we are investing in a property to generate revenue. Generally speaking, you can use the rule of thumb that rental properties should rent for at least 1% of their purchase price per month. This means that if you buy a property for $100K, then you are looking to collect at least $1K a month on rent. This purchase is an investment, that means you have to consider the income potential, estimated monthly expenses that you would be responsible for (mortgage,tax,insurance,hoa) and the value of the initial purchase. These 3 factors combined will determine if a property will make a profit or turn into a money pit.