Questions I should be asking to determine if investment property is appropriate for me:
How does this fit with my portfolio? It is not a "passive" investment in the sense of set it and forget it.
Are you willing to put in sweat equity?
How much time am I willing to devote to management? Or, how much am I willing and/or able to pay to have outside management?
Is my local market a good choice?
Do I want to be a long distance landlord?
If I am financing the property, how does that look different than primary residence or vacation home?
What are the insurance needs?
What are the tax pros and cons?
Am I ready to handle sticky situations late rental payments, evictions, damages?