If you are considering purchasing a vacation rental home as an investment, then you will want to consider the potential rental income that a property can produce. A good place to start when searching for the best investment from a cash flow perspective, is to look at the rental performance reported in the MLS. This number is calculated by dividing the gross annual rental income by the purchase price. When comparing similar properties, the higher the percentage, the better the return on your investment will typically be. There are many other factors to consider, such as mortgage payments, association fees, the cost of insurance, property taxes, maintenance, utilities, and management fees to do a full analysis, but looking at the cash flow potential of a property can often help you when comparing properties in different neighborhoods and price ranges.