1) Make sure you can afford to take on the costs of an investment property. Anticipate the months you may have to make the mortgage payment or fix things in the house.
2) Make sure you research the area for current market trends and look at the recent comparable houses in the area. You want to pay fair market value.
3) Make sure you get prequalified for the loan. You only want to go looking at houses that fall into your budget.
4) Make sure you seek the advice of a lawyer or competent real estate agent to help guide you thru all the legal contracts.
5) Make sure you have inspections done on the property. You want to make sure you understand what you are getting into as far as repairs and maintenance.
1) Don’t over estimate the value of rental properties. You’ll need to be prepared for the home to be vacant with a loss of income and have to make mortgage payments yourself.
2) Don’t be swayed into buying a home, trust your instincts, and treat it is strictly a business decision.
3) Don’t rely on the sellers documents. Always make sure you have independent inspections and title reports done yourself.
4) Don’t be in a rush to find an investment property. It may take some time and if your rush it you could make a poor decision.
5) Don’t get emotionally invested in the process. You are not going to live in the house, so be prepared to walk away if need be. There is always another house.