If you are thinking about diving into the sometimes murky waters of investment property
ownership, it is a good idea to bring some goggles. Better vision is always, well just better.
1. Do not get emotional. Let’s repeat that – do not get emotional. This is not your dream home
that you will be living in for the next several years. This is a business decision, pure and
simple. Put your investment cap on and think logically so you can choose a great property at
the best possible price.
2. Do some research. Target your rental clients and figure out the best location to buy based on
where they want to live or need to live. Your chosen property also needs to make sense when
considering your profit level and market appeal.
3. Make sure you have enough money to make a down payment. That typically means at least
20% on your first investment property because you cannot utilize mortgage insurance like
with a primary residence.
4. Buy a low-cost home for your first investment. Get your feet wet before diving in, Stay in the
safe-swim zone for a while. Your budget and retirement savings will thank you.
5. Do the math before you buy. Calculate the expenses and make some conservative profit
forecasts prior to signing on the dotted line. Even if you do not hit half of the estimated
profit, you will not lose money, which is an important goal to reach.
Real estate investing can be an extremely profitable dive, as long as you have the proper
equipment, and a little bit of luck.