Questions to Ask Before Buying an Investment Property

A first investment property is a business decision. Before you commit, work through questions like these.

What is the purpose of this property, and how long do you intend to hold it? How will you handle vacancies, repairs, and unexpected expenses? What are the realistic operating costs, including taxes, insurance, and management? How will financing terms affect your monthly obligations? Who will manage the property, and what will that cost? What is your plan if the property underperforms?

Real estate involves risk and does not guarantee appreciation, income, tax savings, or financial returns. Consult appropriately licensed professionals regarding your individual circumstances.