CRUNCH THE NUMBERS
Make sure you understand all the financials involved. Consider the mortgage, property taxes, insurance, maintenance, and possible vacancy periods. Will the rental income cover these costs—and ideally generate profit? A solid rule of thumb is the 1% rule: monthly rent should be around 1% of the purchase price.
What to Know Before Buying an Investment Property Smart Moves:
By Alana Lauren
FINANCING AND DOWN PAYMENTS
Investment properties typically require a larger down payment than primary residences—often 20% or more—and lenders may have stricter qualification criteria. Be sure your credit and financials are in good shape before applying.
MANAGE IT LIKE A BUSINESS
Being a landlord involves more than just collecting rent. You’ll need to handle tenant screening, maintenance requests, and legal obligations. If that doesn’t appeal to you, consider hiring a property management company.
steady rental income, long- term appreciation, or a quick turnaround with resale profits? Your objectives will influence the type of property, location, and financing you choose.
Purchasing an investment property can be a smart way to build wealth and generate income—but it’s not a decision to make lightly. Whether you’re eyeing a long-term rental, a short-term vacation home, or a fixer-upper to flip, careful planning is key.
KNOW THE RISKS
Like any investment, real estate comes with risks. Market fluctuations, unexpected repairs, and problem tenants can all impact your return. Be prepared with an emergency fund and a solid understanding of landlord responsibilities. With careful research and a strategic approach, investing in property can be a rewarding venture—offering both income and long-term security.
LOCATION IS EVERYTHING
One of the most important factors in real estate is location. Look for areas with strong rental demand, low vacancy rates, and future growth potential. Proximity to schools, public transportation, and amenities can make a property more desirable for tenants and increase its value over time.
START WITH A PLAN
Before you begin the hunt, define your investment goals and find a real estate agent to work with. Are you looking for
AUGUST 25 / OTM / 8
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