An investor / buyer wants to know two things:
Is the rental price high enough to get close to the buyer’s mortgage payment?
1) Search in the MLS for a lower priced home for sale.
2) Now search the same neighborhood for closed rental homes.
Go to mortgage calculator in Google and find out the approximate monthly payment on the purchase. Is the mortgage payment and expected rent income close to breakeven? Because that is what you are looking for.
Example:
If a house is for sale in a subdivision and it’s $300,000, the monthly principal and interest is $2,000. Add the taxes and insurance of probably $200. The investor is going to be paying $2200 per month.
Now search residential lease in the same subdivision with closed status and same bedrooms, bathrooms and similar sq ft. If the rented price is $2200 or more, this is a very good investment as it will be a break-even for the buyer and he can ride the appreciation over the years.
Now, if in another neighborhood the house is for sale at $300,000 and the rented prices are $1200, this is not a good investment.
Do this comparison in several neighborhoods to find the right house for you to recommend to your client.
Write a sales contract on the property and go to settlement.
List the property for rent, get a tenant and sign a lease for your investor.