Rental properties producing little income.

[Patrick Reagan]

For rental properties generating 1-4% income yearly,what are the main characteristics you look for prior to investing?

[Steve Vaughan]

Originally posted by @Patrick Reagan:

For rental properties generating 1-4% income yearly,what are the main characteristics you look for prior to investing?

1-4% of what? Purchase price? 

In my expensive market (median home value $380k) a consideration I make when buying homes is equity capture. It's not the only consideration, but it helps if I'm buying 15% below FMV and plan to hold. $60k of equity is a lot of years of $400/mo cf. Not the same as receiving cf, but a consideration.

For cash-flow, I purchase plexes and 5+ unit commercial and mixed-use.  Thankfully they are pretty common in my market, but I still need an off-market seller with a problem to buy right.  

Another consideration may be buying in the path of progress.  Follow your market closely.  Know what the zoning and planning and permit office are considering and/or attend council meetings.