It is almost always exciting to think about the potential that any property investment holds, particularly when you’re new to the business. While buying your first rental property is almost certain to be a lucrative maneuver, it’s important to proceed with care.
The good news is that all of the most common property investment mistakes have been made before, and with careful, in-depth research, you’ll find it easier to avoid them. Our real estate pros have been in your shoes: begin your quest for knowledge by using their investment tips to your advantage.
1. Still renting? Buy your own home before you invest in a rental.
There are tons of reasons to rent instead of buying your own home. But purchasing your own residence before you invest in rental property gives you real-world experience while easing your way into the financial side of things. When you buy your own home first, you’re likely to get better interest rates plus you’ll need a far lower down payment. There are tax write-offs to consider, too. When you’re ready, upgrade to a new home and use the old one as a rental, or continue to live in your home and invest in a second rental property.Continue reading