3 Things to Consider Before Purchasing a Real Estate Investment Property

Investing in real estate can be a great way to build wealth, but it's essential to do your homework before purchasing a property. Here are three key things to consider before making your investment:

1. Location, Location, Location

The success of your investment largely depends on the property’s location. Look for areas with strong rental demand, good schools, access to amenities, and potential for future growth. Research local trends and the area's long-term development plans to ensure you're choosing a location with strong potential for appreciation.

2. Property Condition and Maintenance Costs

Just like when purchasing a primary residence property, consider things like the age of the roof, HVAC, windows, etc. Make note of regular maintenance items as well as their costs so that you can factor these expenses into your cash flow and ROI projections. 

3. Cash Flow and Financing Options

You can evaluate a property’s potential cash flow by calculating expected rental income versus monthly expenses (mortgage, taxes, insurance, maintenance, etc.). The loan products you choose can have a massive impact on your monthly expenses. Imagine Home Lending offers a mortgage loan specifically for investment properties. To learn more about Imagine Home Lending’s Investment Loan options, visit www.imagineinvestmentloans.com. 

Final Thoughts

Purchasing an investment property is a big decision. By focusing on location, the property’s condition, and choosing the right mortgage loan product, you can make an informed choice that sets you up for success. Do your due diligence and plan for both expected and unexpected costs to ensure your investment yields the returns you’re aiming for.