Assuming you are considering rental property investing as a way to make money, then the next step is to establish a set of objectives. If you know what you want in terms of investment properties – you should try to focus your efforts on the best options within the market that fit.

Typical investment objectives should include:

• Type of Property – residential, commercial/office/retail, vacant land
• Types of Tenancies  – single/freestanding building, multi-tenanted
• ROI and CAP rate expectations
• Growth/Appreciation expectations
• Capital Available to be invested  (aka – down payment)
• Risk Issues – personal liability/financial guarantees/level of acceptable risk
• Locational Preferences – core district, new/growth area, transitional area
• Quality of the Buildings – older, newer, potential rehab and improvement costs
• Management – self manage vs. professional management
• Hold Strategy – buy & hold, buy/renovate/sell, buy & flip

This list should help you paint a pretty good picture of what sort of rental property best ‘fits the bill’. As with everything in the business world, compromises must and will be made. But this will allow you to search the rental property market from the outset, with a defined set of objectives.  

Just a final note as you investigate your market of choice – all markets are local and operate based on their own local set of dynamics. Your investment objectives should be based in reality, to the market you are looking to invest in. It never hurts to review recent rental property sales, to see how likely you are to succeed – based on the set of objectives which you’ve established.     

Again, seek out experienced commercial realtors to match your investment objectives to the rental property market in your area.