Buying your first investment property can seem daunting. However, getting started in real estate investing can be a great way to move forward in your path to financial freedom.
Real estate investing is not for everyone, and there are some pros and cons to investing in real estate and as with all investing, do your research first!
Pros– Cashflow– Effective use of leverage– Appreciation– Potential Tax BenefitsCons– Not hands off– Low Liquidity– Could lose value
One advantage of investing in a single-family property is multiple exit strategies. You can sell it to another investor rent-ready or with a tenant in place.Multi-family apartments typically get built from the ground up. That makes them great to operate as rental properties.
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.
When finding a primary residence, your search may begin and end with a real estate agent. However, when looking for an investment property, more options are to consider.
When purchasing your first investment property, deciding whether to hire a property manager or self-manage is a significant decision. There are pros and cons for both sides here. In the end, it will depend on how active of a role you want to play in managing your investment.