Review a small list of comparable properties that have been leased within the past 6 months to determine how much an actual tenant would be willing to pay. 

I love going to different homes, seeing the vast differences in quality and layout, comparing them to the local market, and putting it all together to make a "big picture".My largest challenge so far is developing an effective marketing system. 

It is probably a high C in a comparable neighborhood. the cap rate would need to be over 10 for that right?

Hi,I have a not-completely-hypothetical example for advice.Would you rather purchase a single family at $50k which will need $20k of repair to rent at 900/month, or a converted house that is currently in ok shape, wit...

Comparable rents in the area are $450-650. 

@Jessica Chow Congrats on the rental, pulling the trigger on the first one is challenging.Do you have an estoppel agreement from the tenant and have you compared that to the lease provided by the current owner along with whatever background info they collected from the application?

Even with a straight rent, you may not see a steady monthly cheque, but will receive an amount up-front, some mid-season and the remainder when the crop has been taken off.Owning and renting farmland on the Prairies can be profitable, but you need to know what is being farmed in the area; the suitability of the land you are purchasing to the various crops; the amount of the land which can actually be planted and what the going rate is for comparable land.  

In other words, a lot of calculations must be performed and compared. 

There are no comparable homes in the neighborhood and it sits as one of the most expensive homes in the neighborhood  (although price per sq ft is slightly lower than the smaller homes) which scares me a bit if there is to be a market correction in the next few years.

Just find a comparable home after reno.