Playing Monopoly in Real Life: 3 Tips on Investment Properties

You need to understand that the interest rate that you're getting for this type of loan, an income property loan is going to be slightly higher than it would be if you were getting a home that you will actually live in. So, understand that because it could make or break your numbers. When you're doing your analysis.

Make sure you're looking at a location that's actually desirable to rent in because after all the rent is what you care about. My suggestion would be finding an area that is near freeways, that's near jobs, near a hospital, near schools. That way you have a safety net. You're still going to have an area where people want to be. So, make sure that you're really paying attention to that location.

You want to pay close attention to the utilities. For example, if there's only one water meter, that means that everyone is sharing the same water meter. That means that the tenants cannot pay for their own water bill, and you know, who pays for that? You. That means your utility bill is going to be higher, which means that you're not going to be cash flowing as much because you're going to have more operating expenses.