First Rental Property: Buying

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Look for regions with low property taxes, growing job markets, and high-quality school districts.

Renters are attracted to areas near public transportation, parks, and grocery stores [8].

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].

Use services like Zillow Rental Manager to run credit and background checks. A bad tenant is more expensive than a vacant unit [20].

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

Expect 50% of your rental income to go toward operating expenses (excluding the mortgage) [17].

Never skip this, even if the property looks perfect. Hidden issues like mold, outdated wiring, or foundation cracks are deal-breakers [7].