When you’re looking for a property, one of the most important things is to do a good job analyzing the numbers. A good rule of thumb is to make sure the gross rent potential is at least 1-2% of the cost of the property. So for a property that costs $150,000 it should be able to generate $1500 per month. Using this rule of thumb will help to make sure that a property can perform well even if the rents are lowered. There will still be room for profit potential. Keep in mind that these numbers would be for a two-flat or more. The good thing is making a conservative estimate is always the best way to go, so when things are not ideal it doesn’t kill the deal. If the numbers don’t work it doesn’t make a difference how pretty it is or how trendy the neighborhood is. A lot of people get fooled by thinking the best deals are in trendy neighborhoods but that’s not necessarily the case.