Marshall Reddick shares 6 key essentials of evaluating rental markets. I found these tips to be really helpful. I always find that the free marshall reddick real estate network workshops are very helpful to investors.

1. Rents- Attracting a good tenant and keeping the property consistently rented makes for a happy landlord/owner team. Here are some tips to help with that goal:
-Buy in strong rental market. Look at area, local regulations, pricing, job growth, schools, and etc.
- March to August is best season to advertise, right after winter and before school.
- time your lease term so it will not expire on "low" season.

2. Expenses
Ask at least 2 Property Managers for an estimate of typical monthly (or yearly) expenses, which includes property management fees, leasing fees, inspection fees, and rehab management fees. The other expenses are the actual maintenance of the property such as lawn fees, utilities if any, pest control and other expenses needed to keep the rental running smoothly. Ask for documentation of all such expenses in the property management agreement so there are no surprises

3. Repairs- Property managers usually have their own preferred handymen or contractors who will write up any estimated repairs to the owners. For anything but minor repairs, always get another opinion through other source of referrals. Request pictures of the property in its pre- and post-repaired condition, and ask for receipts once the repairs are completed.

4. Cash flow-The goal when buying a rental property is to gain cash flow. It is important to be a specific in calculating expenses against rent to get a more reasonable idea of actual cash flow. The rental property should be self-sustaining

5. Exit Strategy- Try not to purchase more than one rental property in the same location so as to lessen competition and avoid the out-of-pocket expenses resulting from a prolonged vacancy. It is recommended that you buy rental property with the intention of holding it long-term (to allow enough equity and/or cash flow and eventually pay it off).