Real estate has produced some of the world's wealthiest people, but there are also many horror stories.
Consider these 10 tips before purchasing investment property:
1. Make sure that this is for YOU
Running a rental property is not for everyone for many reasons. You have to deal with the tenants, vendors, insurance agents, etc. Are you ready to take on this commitment, or
would you need an experienced management company to take this on for you?
2. Do not purchase real estate if you are already in debt
3. Have at least 20% of the down payment because investment properties have a more stringent approval requirement
4. Beware of high interest rates
5. Calculate your margins
You should set a goal of 10% on return
6. Do not buy a fixer-upper
7. Calculate operating expenses
8. Determine your return
9. Find the right location
10. Risk vs Reward