Finding the right location to invest

[Ashley Budyak]

When looking for a market/sub-market to invest, I know that you want cost of living to be > cost to rent. How much greater should it be? And when comparing the two should I just be looking at the average payments per month or other factors as well? What would be an example of a market that would be idea to invest in and one that is less idea (doesn't have to be real, just looking for an example).

Also, if a neighborhood is say 80% home owners and 20% renters is that a red flag on a reason not to invest in that area?