Financial advisors typically recommend paying off high-interest personal debt (like credit cards or student loans) to improve your debt-to-income ratio.
Buying your first investment property is a multi-step process that combines financial discipline, rigorous market research, and objective analysis. Unlike buying a personal home, an investment purchase is a business decision driven by data rather than emotion. 1. Build a Solid Financial Foundation
Before scouting properties, you must ensure your finances can handle the risks of real estate.
While you might buy a primary home with 3% down, investment properties often require 20% to 25% because mortgage insurance is generally unavailable for rentals.