8 Things You Should Know Before Buying Your First Investment Property

Buying your first investment property can seem daunting.  

However, getting started in real estate investing can be a great way to move forward in your path to financial freedom. 

Real estate investing can provide its owners with anything between a little extra cash flow, a safety cushion of equity, or generational wealth. But, of course, it all depends on your goals, how you structure them, and what you put into them. 

Before investing in a rental property – it is essential to start from sound financial footing.  

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. Being able to sell when it is ideal is why it is vital to get a reserve fund, minimize your consumer debt, and get your finances in order before purchasing an investment property. 

When deciding on your investment strategy for your first property, you will have to choose between buying a single-family residence (SFR) or a multi-family building. While many people see purchasing a single-family as a steppingstone into multi-family, that is not necessarily the case. 

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