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\n <\/div>\n \n Investing in Real Estate? Consult With a Top Agent<\/h3>\n
Hire an investor-friendly real estate agent who can help you get access to off-market properties at a discount and assess potential rental income based on market trends. HomeLight can connect you with investment property specialists at no cost.<\/p>\n \n
1. Set clear investment goals<\/h2>\n
Before buying an investment property, it’s important to clarify what you\u2019re hoping to achieve. Are you looking for immediate monthly cash flow, long-term appreciation, or a mix of both? Are you investing for retirement, your children\u2019s future, or to eventually replace your income?<\/p>\n
Johnson is the co-owner of Five Pillars Offers<\/a> in Lexington, Kentucky, a real estate solutions team that purchases investment properties. He and his wife hold some of their units as long-term rentals; others are repaired and resold or \u201cflipped<\/a>.\u201d<\/p>\n When someone is buying their first investment property, Johnson says the biggest mistake he sees beginners make is overestimating monthly cash flow.<\/p>\n \u201cRent minus the mortgage payment does not equal cash flow,\u201d he explains. \u201cYou must plan for maintenance and repairs with 10%-20% of your rental income.\u201d<\/p>\n Your strategy influences every decision you make \u2014 from the neighborhood you buy in and how you finance it, to what you need to hold back from rent payments. If you don\u2019t have a clear end goal and realistic expectations, you\u2019re more likely to get stuck with a property that doesn\u2019t perform the way you hoped.<\/p>\n","protected":false},"excerpt":{"rendered":" Learn how to buy investment property in 6 practical steps \u2014 from setting goals to managing costs \u2014 with expert tips from a 74-home rental investor.<\/p>\n","protected":false},"author":298,"featured_media":57016,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,638,626],"tags":[],"class_list":["post-57013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-house-hunting","category-real-estate-investing"],"acf":[],"yoast_head":"\n