MOTHERHOODLIFEBALANCE

Buying an Investment Property – 8 Thing You Need to Know to Avoid Stress

You’re thinking about diving in and buying an investment property. Congratulations! There are so many great things that can come from an investment like this. Let’s take a look at 8 things you need to consider as you think about your first or next investment property.

Pros

– Cashflow – Effective use of leverage – Appreciation – Potential Tax Benefits

Cons

– Not hands off – Low Liquidity – Could lose value

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.

How To Pick A Property

Many investment styles can work. Real estate investing is not a one size fits all sort of process. It is crucial to figure out your preferred investing model, define what property fits this model, and find a property that fits these criteria.

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