Buying Your First Investment Property: 8 Things You Need to Know 

Things You Need to Know When Buying First Investment

There are a few things I wish I knew when I invested in my first rental property. I learned how to estimate the cash flow, repair costs, and identify a marketable product.Real estate investing is not for everyone, and there are some pros and cons to investing in real estate.

Single-family vs Multi-family

When deciding on your investment strategy for your first property, you will have to choose between buying a single-family residence 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.

How To Pick A Property

Many investment styles can work. Real estate investing is not a one size fits all sort of process. Suppose you do not set out with this level of intentionality. In that case, you will be liable to be whipped around the market and spin your wheels looking for deals. That is called analysis paralysis.

1.  Loans

Getting a loan on an investment property can be a bit different than a mortgage on your primary residence. 1. Conforming Loans 2. Portfolio Lenders 3. Hard Money Loans

2.Building your Team

Please do not go out to the world and ask people if they will be on your investing team. Relationships with the people you will work with for investing in real estate should be more organic than this.

3. Acquisitions

When purchasing your first investment property, deciding whether to hire a property manager or self-manage is a significant decision. It will depend on how active of a role you want to play in managing your investment.

4. Accountant

it is a good idea to have an accountant that understands real estate investing and can help you project, plan for, and position yourself to take maximum advantage of the tax consequences of your investments.

5. Tracking Income and Expenses

To report taxes at the end of the year, you need accurate income and expense records. These records will also be handy for comparing property performance to your projections and allow you to make adjustments to your investing strategy.

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