I'm glad you asked. I already have a rental and I have been pondering this.
IMO, I expect lots of foreclosures. I also would assume that most of these people would prefer renting a house versus an apartment. Most have kids and besides, they can plant a garden.
In addition, during uncertain times people will not want to invest in buying a home.
Since this isn't your primary residence, you will not be able to get the best interest rate. I think the most important thing to consider is the monthly expense. Including maintenance, vacancy and marketing. Do you have this amount of cash in 6 months reserve?
I also expect market rents to go down and more properties becoming available for rent. Instead of foreclosure, some may choose to move in with mom and dad and to rent their property.
On the upside, this is obviously a great opportunity for a RE investor. That's if you have the guts and are willing to take the risk. If there is a recovery, you will become a billionaire.
I have decided to hold onto my rental despite the knowledge that property values are going to decrease. I have hope that I will be able to always rent the property since it's in a good location. If we go into a depression and I am forced to sale, then I will loose.