Real estate investments can be very lucrative, if you know where to buy them and when to buy. One way of making money out of real estate is by renting out the property. A lot of people make good money out of rental properties, although a lot of people miscalculate and make bad investments, ending up in foreclosure. Here are a few simple suggestions that will help you make the most of buying a house for the purpose of renting it out:

1. Is the house a good rental spot? - For example, if you're interested in looking at Peoria real estate properties, look for Peoria homes for sale in neighborhoods that are considered good rental areas. If you're more interested in beachfront locations, check out the other houses in the area and ask around if it's typically what people would consider to be a rental destination. Sometimes, your best bet would be places near schools because these are ideal locations for families who want to rent while the children are still studying and who plan to move out when the children have gone to college.

2. How much is the usual rental rate in the area? - Consider how much mortgage you are going to be paying for the property and how much people usually pay for rent in the area. Will this be enough to cover a considerable percentage of the mortgage? Many people choose to rent out a second home because it's easier to pay the mortgage with the property earning money.

3. Ask your real estate agent for suggestions - Your real estate agent would probably have a good idea about houses that you could buy and turn into rental properties. Just be careful to find a professional real estate agent with strong work ethics. Good real estate agents will do their best to find a great match for you.

4. Do you really know what it will take to become a landlord in the area? - Different states have different laws governing landlord-tenant relationships. It's best to get familiar with these laws early on, before you buy any property so that you know what to expect and whether it's something financially feasible for you. You don't just become a landlord by buying a house and renting this out. There's a whole lot more to it than that.

5. Set up a buffer fund. - In case you run into any issues with the mortgage, it's best to set up a buffer fun so that you won't default on your payments. There may be times when your rental property may not be occupied, so you have to make allowances for that. If you own a beachfront property, there will be lean months, so you have to prepare for these as well. It's always best to prepare for these kinds of eventualities.

6. What type of rental property do you want to buy? - Get to know the kind of rental property you want to buy. If you're planning to buy a regular home in the suburbs, get acquainted with the location and how much maintenance costs there. If you want to buy a beachfront or oceanfront property, get to know how much the insurance costs will be, how much it would take to properly maintain the property, and the likes.