New Jersey resident Donato Marinelli is an active fundraiser for charitable organizations that support patients with pediatric cancer and heart disease. In his professional life, Donato Marinelli purchases and remodels real estate.

Investing in rental properties is popular among real estate investors. However, rental properties require a sizable upfront investment. To earn a profit, investors must select properties that offer a consistent rate of return.

Rental properties located in areas with many economic opportunities are often in high demand because of the stream of business professionals moving into the region. Likewise, rental properties in areas that offer safety, affordability, and convenient access to large metro areas are also wise investments.

Another measure used to evaluate a rental property’s investment potential is its capitalization rate. This number is calculated by using the property’s purchase price, the expected monthly rental income, and the property’s expected monthly expenses. A high cap rate predicts a high rate of return.