How to know if a property is good for rental?

[Ava G.]

We are thinking of buying a condominium at a highly urbanized district in the Philippines which would rent at about $1000+ a month. It's just a walking distance from huge malls / parks / commercial buildings. This location is also near the central business district of Manila (about 15-20 mins drive).

The neighborhood is composed of expats and urban professionals who have mid-high range salaries. I've also looked at other rental properties in that area (condo units also) and they're renting at about $1000-1700 a month for the same unit type.

However, I'm very new REI and I'm not sure if this is too expensive. With salaries in that range, will people just buy their own units rather than rent? Is it better to buy a cheaper rental property (still a good location but not as "prime" as being in the center of the urban hub), thus cheaper rent, and therefore, more prospect renters?

(The US and PH market may be different but in general but I think there'd be a general rule when it comes to what constitues a good rental property.)

[Nickson Rio]

Hi @Ava G., Have you try to talk to a rental manager usually RE agents of that condo. Most of the condos had their property management team and they cater marketing and finding tenants. In your case, you're market will be high income earner individual and foreigners. For High Income Earner local, you might need to offer a LEASE with OPTION to buy or RENT-TO-OWN so he/she might not think of getting a housing loan. For the Foreigners/Expat, they can't actually own a property in Philippines for 100% so chances of them buying a property is low.