... I dont want to spend a fortune on my first loco but I dont want to go cheap either. What should I look for?... Thanks
You've gotten some great answers so far, but in answer to your specific question of what should I look for, these are the basics of what to look for.
All wheel drive, all wheel pick-up. These will pull better, and with all wheel pick-up, no stalling on turnout frogs etc. Get DCC equipped, (and sound if you want it). Later on once you've gained experience, you can look at getting DCC ready locos and do you own installs, the majority of which, should be plug & Play.
At very least dual flywheels, 3 pole motor. At best dual flywheels and 5-7 pole motor, skew wound. The flywheels smooth out the motor, and can add to the coasting ability of the engine. The higher the number of poles in a motor, the smoother and slower it can run. A 5 pole motor is pretty much standard, but there are makers that use 3 pole motors. The skew wound motors also cog less, (that is jump from pole to pole as the motor turns) than a non-skew wound motor. On the better brands, this info is listed under features.
Adequate weight, or if on the light side, room to add more weight. Generally the heavier the loco, the more it can pull. I have a few single diesels, that can pull 100 or more cars easily behind them. I have one that has had 256 cars behind it.
While details are not my big thing on diesels, make sure the details it does offer are good enough for what you want. The fewer that need to be added, the better. Also unless you don't care what the number is, try to make sure that the engine number is correct for the diesel. (There are on line rosters that will show you what the numbers are for what diesels.)