The really nice thing about figuring out whether you can make money on rental real estate is that there aren't that many expenses to factor in. Generally, all you need to consider is Principal, Interest, Taxes, and Insurance or (PITI).
These are the principal and interest portion of your mortgage payment, the property taxes, and the homeowners' insurance. There may be a monthly condo fee or homeowner's association fee that you need to add in as well. Lastly, you should expect some money to be spent on repairs even if you do them all yourself. Probably 10% of the rent per month is a safe estimate.
All you need to do then is compare whether the rent you will receive (plug in the address for the potential property at www.rentometer.com to find out local rental rates) will exceed PITI + condo fees + expected repairs. If so, then you have a cash flow property on your hands.
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