landlord 101
Do the math first.
What goes out?
Tax
Insurance
Set aside for repairs
Percentage of income tax that won't be withheld on a W2/1099
Renovation costs (one time or generally non-regularly recurring)
Down payment (if new purchase)
Payment (if financing)
What comes in?
Rent
Deposit (to be held in a non-comingled, non-interest bearing account)
Separate non-refundable pet deposit
For our math to work out, if we aren't clearing 50%, it's not worth it.
That rules out a very large percentage of potential properties.
I have a spreadsheet that calculates all that and can be adjusted for different interest rates, loan terms, down payment amount, and rent.
I can see the potential in several different scenarios in about 5 minutes.
Calculate how long it will take to get back the down payment and any initial renovation costs.
Be sure to keep books in such a way that the property is "in use as a rental" from the beginning, so renovation and repair costs are deductible.