Is now a good time to buy an investment property?  The dollars and cents answer is probably yes... with property values and interest rates at an all time low there has never been a better time to buy.  In addition, there is a large demand for quality rental properties given the number of families who are unable to buy because of credit issues. 

The one thing to carefully consider is whether you have the time and skill set to be an effective property manager.  I have often heard real estate investment income referred to as "passive income".  Take it from someone who has owned and managed rental properties for ten years, nothing comes for free.  Getting and keeping good tenants is a constant battle, not to mention the necessity for repairs (always at the most inconvenient time).  That being said, if you are willing to spend some time and energy and treat your property investments like a part time job, it can be a very lucrative long term investment. 

If you plan to investigate purchasing a rental property I strongly suggest finding an experienced local Realtor who not only understands property values in your area of interest, but has local know-how about the rental market (preferably someone who has managed their own rental properties).  Making the right decision on which property to purchase is more than half the battle.

A cash investment in real estate can easily offer Return on Investment numbers exceeding the stock market.  If you think you are good landlord material, get shopping! There is no time like the present to buy your first rental.