Convenience location is the key factor of rental property and can give you easier access to your property.

Investment properties are generally rented out unless you're in the enviable position of not needing the rental income so when calculating what you can afford to buy, you will need to factor in contingencies for the property being empty for short periods, whether for repairs or for finding new tenants.

Rental income helps generate the cash flow to pay the mortgage (if any) but don't forget to include this income when you declared your income tax as this money will count towards your total income for the year if your rental collection has contributed positive gearing after deducted all the associated expenses of your rental property.

If the property you are interested in is currently being rented, ask about its history of tenancy. Have there been periods where it hasn't been occupied? If so, find out why as past problems of getting tenants may mean you could also inherit them.

If you hold your investment property for long enough, you will hopefully each the stage where your losses are turning into gains. This occurs for two reasons. Firstly, the rent you are charging will probably rise as it keeps pace with the market value for rents. Secondly, you and your tenants are steadily whittling the mortgage away and once your rental income exceeds your mortgage repayments you are no longer negatively geared. You may instead be neutrally geared or positively geared.