How to buy rental property, an article from MarketWatch.com, reports that buying rental property in a down market can be a lucrative investment but there are some factors you should consider before you take that step.  First, find out where renters want to live.  Location is very important when purchasing a rental property.  Ask a real-estate agent to show you properties that have an established rental track record going back two or three years, during which vacancies were limited to no more than three months at a time.  Next, be certain to do the math.  Before you buy, figure out whether the rents will cover your expenses and leave room for profit.  Finally, choose tenants carefully.  Don't approve tenants until you have checked their credit and criminal histories and talked to references and employers.
http://www.marketwatch.com/news/story/how-buy-rental-property-take/story.aspx?guid=76C1B0B0-6D43-440C-8830-57A55EC29011

Additional articles that you may find of interest:

Buyers market puts added pressure on sellers
http://www.koaa.com/aaaa_featured_stories/x471791590/Buyers-market-puts-added-pressure-on-sellers

For this broker, foreclosures spell boom
http://money.cnn.com/2008/06/11/news/economy/mcilvaine/index.htm?postversion=2008061107

States Move To Cut, Cap Property Taxes
http://online.wsj.com/article/SB121314342927062677.html?mod=RealEstateMain_1

Some Buy a New Home to Bail on the Old
http://online.wsj.com/article/SB121314811278463077.html?mod=RealEstateMain_1

Realty Viewpoint: When Free Ads Aren't A Bargain For Consumers
http://realtytimes.com/rtpages/20080611_realtyviewpoint.htm

Congrats Letters Make Big Impressions
http://www.realtor.org/RMODaily.nsf/pages/News2008061005