I will also emphasize the importance of keeping at least 5% of your gross rent income and allocate it toward emergency situations each month. 

What I learned from the rental was the due diligence importance of finding the right tenants.

Every lender has guidelines; that’s why it’s important to perform due diligence with lenders, just as they do with borrowers. 

What is more important to you @Nithin Kumar...the cash flow, or the appreciation?

@Stuart Udis I understand the importance of having the funds for repairs, vecancy and any issue that may happen.

The letter also states the total non-rent items currently owed by the tenant, such as accumulated late fees or repair charges.Also very important, the tenant states they have no unresolved issues with their current landlord, except as listed in a space provided, and they have no current plans to cancel their lease under the Service Members Civil Relief Act or for any other reason. 

Your team is the most important thing you can acquire first before any investment your purchase. 

Verifying last 2 years of rental history very important!

It's important to know what market rents are for what you are analyzing, many properties are super under rented and you have to get them to market rates. 

It's important to stay informed about developments in the areas you're considering, as well as any potential changes in regulations or economic conditions.