Compare rates of return from other investment vehicles to see how they stack up against the real estate buy you are considering. Take a look at guaranteed investments and see what kind of returns they offer. Consider the prime interest rate. In general, a prudent investor will be looking for a double-digit (10% or better) rate of return – but there are really no hard and fast rules. Consider what is important to you for the future and purchase your investment real estate with this in mind. Also, have your agents show you comparable properties in the neighbourhood to assess cap rates and overall levels of profitability.