Hello!  I have some cash that I need to invest.  I could invest in the stock market but not looking to lose my shirt in a downturn, and the stock market is due for a correction if you ask me.  I am thinking of investing in real estate/landlording in my general metro area.  I have been looking at the Baltimore area east of the inner harbor, and have been bowled over by the charm and general adorableness of the area.  I have spent hours driving around the area, and I've gone to open houses and looked at some houses with an agent.  I'm looking in the "safe" areas of Canton, Patterson Park, Upper Fells, and Butchers Hill locations popular with young professionals and healthcare employees.  Based on the prices I'm seeing over there, you don't meet the rough 1% of cost:rental rate if you're not careful, and you don't meet the 2% ratio regardless.  My goal is to provide the initial 20% down payment and closing costs, then allow the renters to pay off the mortgage.  Whatever rent is left over (after expenses) would go into paying off the mortgage as fast as possible.  I would conserve reserves for upkeep and surprises.  

My question to those of you who have invested in Baltimore is:  Is this goal possible?  Can I make this work even though I'd be working with narrow margins?  Have you been able to keep your place consistently rented out?  What steps do you take to analyze a potential investment property, specifically in Baltimore? Thank you so much for your thoughts.  I am really excited to find this forum!