Buying First Rental Property -

Lenders typically require a 20-25% down payment for investment properties, as they carry higher risk than primary residences.

Decide between long-term rentals (stability), short-term rentals (higher potential income, more work), or "house hacking" (living in one unit of a multi-family property while renting the others). Apply the "Rules of Thumb": buying first rental property

Monthly rent should ideally be at least 1% of the purchase price [16]. Lenders typically require a 20-25% down payment for

Include often-overlooked costs like landlord insurance, property management fees (typically 8-12% of rent), and a "vacancy fund" (5-10% of rent) [5, 10]. Major structural or system repairs can quickly erase

Consider forming an LLC to protect your personal assets from property-related liabilities [1].

For your first rental, prioritize properties that are "move-in ready" or require only cosmetic updates. Major structural or system repairs can quickly erase your initial capital [7]. 📝 Phase 3: Due Diligence and Closing