8 Things to Consider Before Buying Your First Investment Property

Before investing in a rental property – it is essential to start from sound financial footing. There is a high transaction cost to buying and selling real estate.

If you are not in a good financial position, you may be tempted to sell your investment in a year or two. Further, you may get forced into selling when the timing is not ideal for profit because you need the money.

Single-family vs. Multi-family

One advantage of investing in a single-family property is multiple exit strategies. You can sell it to another investor rent-ready or with a tenant in place.

Multi-family apartments typically get built from the ground up. That makes them great to operate as rental properties. That can translate to lower maintenance costs, more efficient floorplans, and better rent-to-value ratios.

It is crucial to figure out your preferred investing model, define what property fits this model, and find a property that fits these criteria.

How To Pick A Property

Suppose you do not set out with this level of intentionality. In that case, you will be liable to be whipped around the market and spin your wheels looking for deals. That is called analysis paralysis.

Getting a loan on an investment property can be a bit different than a mortgage on your primary residence.


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