When you pay cash for a $400,000 home and rent it out, your rate of return will likely be less than 6%.You could invest in stocks and earn 7% or better.You could put the money in a high-interest savings account and earn up to 5%.I don't understand why anyone would pay cash for real estate, erasing many benefits that increase the rate of return, while exposing themselves to the risk of loss (turnover costs, bad tenants, capex, etc.). 

Look at factors like proximity to jobs, schools, transportation hubs, etc.

Instead of paying down someone else’s mortgage, you’re setting yourself up for bigger and better deals down the road.Your first deal is going to depend on a lot of factors—how important is location?

Is it fairly priced for the size, location, quality, and other factors?

It also matters where the home is located, and what the weather, type of tenants it attracts/has been attracting, etc. other factors are.

The major factor to standing out in any market is design.

That should really be the deciding factor...is it necessary and a large enough project to include the permit process?

Your accountant should be able to factor that into your total cost. 

To do this, they have a team consisting of an inspector, a makelaar, and renovation professionals.However, as Ken M. mentioned, having someone trustworthy there to manage everything would also be a key factor.

That’s a huge advantage.Totally agree on property management being a make-or-break factor.