Purchasing residential real estate and renting it out can be a sound investment. However, finding the perfect property to start your portfolio is a challenge. With considerable money at stake, it may feel overwhelming. If you’re unsure how to start, the below tips will make the process more manageable. 

How to Buy Your First Investment Property 

1. Look for a Turnkey Place

Unless you are a contractor, purchasing a fixer-upper will demand a considerable amount of cash, which will slash your margins from day one. While remodeling properties can be incredibly lucrative, you should start with turnkey places. This allows you to learn the business gradually, rather than trying to figure it all out at once. 

2. Account for Ongoing Expenses 

If you plan on purchasing residential real estate, remember that the mortgage is not your only expense.  When determining how much you can afford from month to month, account for property taxes, insurance, significant repairs, periodic maintenance, and property management fees. 

3. Keep Emotions Away

You should follow your heart when shopping for your “forever home.” However, when picking out investment real estate, the balance sheet matters the most. Don’t let emotions cloud your judgment regarding the property’s potential. Focus on whether the purchase will make financial sense in both the short and long term, as well as how it will benefit your portfolio overall.

When you’re ready to invest in real estate, turn to Move Realty. Based in Cottleville, MO, this agency has many knowledgeable Realtors® who are proud to serve clients throughout St. Louis, St. Charles, and Lincoln counties. Their team will help you find the perfect property and guide you through every stage of the transaction until it is yours. To talk to a Realtor about your vision, call (636) 336-6216. Visit the website for more information about their services.