Setting criteria for buying a rental property

[Joshua Ferguson]

Hello all,

I’m brand new here and was wondering what your way of setting criteria for buying a rental property was. 

I’m currently trying to set my own up, however I’m kind of confused on where to start. I’m looking to buy a 3 bed, 1+ bath, single family home with around 900-1500 sq feet. 

Most of these style homes in my area (Troy, Ohio) rent in the $600-$900 range. So do I use that in the 2% rule to get the maximum purchase price? ($30,000-$40,000ish) 

Or should I be more focused on other aspects? 

Thanks!!