Question 1

Do I need 20% down to buy an investment property?

Accepted Answer

Not necessarily. Financing requirements depend on the property, loan program and borrower's financial profile. Speak with a qualified lender before deciding how much capital to commit.

Question 2

Should an investment property always have positive cash flow?

Accepted Answer

No. Some investors prioritize current income while others place greater emphasis on long-term appreciation or other objectives. What matters is understanding the tradeoff before purchasing.

Question 3

Is a condo a good investment?

Accepted Answer

It can be. Condos may offer lower maintenance and a lower entry price, but HOA dues, rental restrictions, assessments and HOA financial health become especially important.

Question 4

Should I buy the property with the highest rent?

Accepted Answer

Not necessarily. Rent is only one side of the equation. Purchase price, expenses, condition, vacancy, maintenance and long-term desirability also matter.

Question 5

Should I buy near highly rated schools?

Accepted Answer

School information can be one factor in evaluating both rental and resale demand. Always verify current school assignments and boundaries because they can change.

Question 6

Should I use a property manager?

Accepted Answer

It depends on how involved you want to be. Some owners enjoy managing their own properties. Others value the time and separation provided by professional management.

Question 7

Can my family use my investment property?

Accepted Answer

Potentially, but personal use can affect financing, insurance and tax treatment. Discuss the intended use with the appropriate professionals before purchasing.

Question 8

Can I Airbnb my investment property?

Accepted Answer

Never assume so. City regulations, HOA rules, insurance and financing can all affect short-term rental use. Verify before buying.

Question 9

How do I know what a property will rent for?

Accepted Answer

We study recent comparable leases, active rental competition, property characteristics, location and current demand rather than relying solely on an automated estimate.

Question 10

How long should I plan to own an investment property?

Accepted Answer

There is no universal answer. Real estate has transaction costs and market cycles, so investors should generally think beyond short-term price movements and discuss their intended holding period before purchasing.

Frequently asked questions