Define Your Goals
Set A Budget
Consider The Location
Prepare For Potential Challenges
Are you looking for passive income? Long-term wealth? Do you want a place you can rent out and occasionally use for vacationing? Your goal will ultimately determine the best investment strategy to pursue.
How much can you afford to pay for the property? What about maintenance, repairs and other monthly costs? Have a good idea of the financials — both upfront and for the long haul — before making any moves.
Real estate is all about location. You’ll want to choose where you purchase carefully. It's important to research market data like prices, rents and booking rates. You should also consider how often you’ll need to be at the property. Will you need to pop by for repairs, or can you hire a property management company to do the work for you?
There will likely be hurdles along the way, so do your best to anticipate them. What if a tenant stops paying rent or a short-term rental guest damages your property? What if the property needs a big repair and you don’t have the cash? Create contingency plans for any issues you can think of.