How does rental property investment analysis work?

Rental property investment analysis is a simple process, but if not taken into consideration, can be devastating to your finances. In order to properly assess rental property investment, three basics must be analyzed. Firstly, and most importantly, potential income. How much money, realistically, will you make off the rental? This can be decided by evaluating the location, condition, and likely tenants' salary and what they're willing to pay for the housing or lot offered. Second, one must take into account the expenses involved. Is the rental property in such poor condition that the investment won't realistically pay for, and eventually exceed, the initial expense incurred? Finally, decide what the rate of return will be. Will upkeep prevent lucrative income? Is the property too small or otherwise inadequate to be worth a reasonable monthly payment that will quickly see you on your way to financial gains? Basically, you want to know your expenses, the income you can expect, and how long your own level of patience in seeing a profitable return.