Rental yield compares a year's rent with the price you paid. It is a useful first filter, but it is not the whole picture.
Count the costs
Subtract maintenance, property tax, repairs and the months a home may stand empty. Add the loan interest if you borrowed.
Look at demand
Homes near offices, colleges and metro stations tend to find tenants faster. Our locality guides show yield and metro access area by area.
Be realistic
Price growth is never guaranteed. Buy a home you would be comfortable holding even if rent rises slowly.
