Real estate is one of the few assets the average Brother can buy with 80% borrowed money at favorable rates. This leverage is what makes it the historical wealth-builder of the middle class.
The 1% rule: a rental property should produce monthly rent equal to at least 1% of purchase price. In hot markets this is impossible; in such cases the play is appreciation, not cashflow, and thou must be honest about the risk.
Run the four returns: cashflow, principal paydown, appreciation, tax benefits. Sum them. Compare to passive index investing. If real estate doth not beat the index plus a risk premium, don't bother.
The Seal of the Chamber
Land cannot be printed. Houses cannot be debased.