Should I buy an investment property?
Renting is the true core of real estate investing. That’s because historically there has been very little real price appreciation in houses. Renting generates a steady monthly paycheck, like a classic dividend-paying utility stock. Any price appreciation is a bonus.
But investing in a rental home isn’t like buying a low-cost index fund. Choosing the right property, maintaining it, dealing with tenants—all that takes work.
1. What goals are you striving for with your real estate investment?
- Long term appreciation
- Short term appreciation or gain
- Cash flow
- Combination of cash flow and appreciation
2. How much risk do you want to take on–what’s your tolerance level?
- High tolerance
- Medium tolerance
- Low tolerance
- No tolerance
Take a look at these key questions to ask and think about before purchasing an investment property. Visit these pages below for specific things to think about for each category related to your investment property.