- Go for the long haul — Owing a property for a short period will not do much in increasing your wealth. Consider investing in a long term to increase the cash flow.
- Earn & Save – You need a good job to be able to make and save some money for a down payment and be able to get financing to invest in properties.
- Buy a property that you love – Make your investment on the property that you love. The more you love the property, the better chances you'll own it for a longer period.
- Skip the prize properties – It is advised to skip the prize properties as they have negative cash flows. Moreover, they are NO prize and these properties are just moderately priced.
- Buy as a personal residence to change to rental – Invest in the properties that make good rental property investment sense and make sure you live in them as a personal residence. When you buy a property as an owner occupant, you get the best financing options. You also get familiar with the issues of the property that can be fixed before you make it a rental.
- Educate yourself for 3-6 months – Talk to other property investors, read books, attend events, reach your local real estate investment club etc. The more knowledge you gain, the higher the chances you will take the right steps to minimize your risks to make safe and smart decisions.
- Buy properties that are in good shape – Fixer-uppers are money pits and aren't easy to sell at a large enough discount to compensate for all the repairs or services required. Make sure you buy properties that are ''tenant ready''. You can also look for properties having a good tenant already.
- Stay away from high vacancy areas or declining cities – Always buy properties in nice, moderate and working class areas. You need to underestimate the rental income you will earn and overestimate the expenses you are likely to pay. Then, you could be proud of your property and be able to gloat to all your friends.
- Start young, but after you are settle in a particular city – You want to start soon, but make sure you are well-settled in a city before you take on this big responsibility. Have fun when you are young, but make sure you start saving your pennies for your first down payment.
- Go long – Long-term ownership means you will have a nice rental property cash flow stream after retirement. And the equity gains will minimize the hassles and issues you have along the way.
If you are a real estate investor, you will feel pain along the way. Sometimes things may not be in your favor, but you will recover and achieve your goal eventually.
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