Connect with a real estate agent who specializes in investments, a reliable contractor, and a tax professional who understands real estate law [9]. 🏠 Phase 4: Setting Up for Success
Before looking at properties, ensure your financial house is in order and your investment goals are defined.
Calculate the Net Operating Income divided by the purchase price to understand the property's efficiency in generating income [5, 15]. 📍 Phase 2: Market Selection and Property Search buying first rental property
Decide between long-term rentals (stability), short-term rentals (higher potential income, more work), or "house hacking" (living in one unit of a multi-family property while renting the others). Apply the "Rules of Thumb":
Use services like Zillow Rental Manager to run credit and background checks. A bad tenant is more expensive than a vacant unit [20]. Connect with a real estate agent who specializes
Expect 50% of your rental income to go toward operating expenses (excluding the mortgage) [17].
Renters are attracted to areas near public transportation, parks, and grocery stores [8]. 📍 Phase 2: Market Selection and Property Search
Location is the one thing you cannot change about a property. Focus on areas with strong economic indicators.