First-time investors
First-Time Real Estate Investors
A first rental property is a big step. A clear plan, conservative numbers and the right guidance help you avoid the most common mistakes.
Before you buy
Questions to answer first
A first rental should teach you something without putting your finances at risk.
What is your goal?
Monthly cash flow, long-term appreciation, tax benefits or a mix? Different goals favor different properties.
How much can you afford to lose?
Plan for vacancies, repairs and rate changes. Keep cash in reserve.
How will you finance it?
Talk with lenders about down payment and loan requirements for investment property or owner-occupied options.
Who will manage it?
Self-managing saves money and costs time. Property managers charge a fee. Include either cost in your numbers.
Do you understand landlord-tenant rules?
New York has rules for leases, deposits and evictions. Ask an attorney about your responsibilities.
Which property type fits?
A two-family you live in is often an easier first step. See house hacking.
Next step
Test the numbers before you fall in love with a building
Use the calculator with conservative rents, realistic expenses and a repair cushion. If the deal only works under perfect conditions, it is probably not a good deal.
Starting your first investment?
Let us look at your goals and help you find a good first step.