How do I make money with an investment property?

Typically with an investment property you want to be sitting on about 70%-80% LTV (loan to value). So for this property you would want the appraised value to be about 525k-550k. Also go on to the MLS and look at all of the actives in the subdivision and make sure that the houses are actually selling, and also that there are no other homes for a better price. And yes any loss or interest you incur is tax deductible.