• Stellar Properties

5 Stellar TIPS for Purchasing an Investment Property

Updated: Nov 13, 2020

from Jennifer Fox, Associate Broker and Property Management/Investment Expert



1) Understand the Financials

  • Determine how you will fund your purchase (conventional loan, cash deal, IRA-funded, etc.).

  • Understand remodel or ongoing maintenance costs.

  • Determine financial line items important to your financial analysis (IE: market rent, appreciation projection, RE taxes, utilities, maintenance, etc.).

2) Research the Rental Market 

  • Understand the current market conditions of both rentals and sales.

  • Research rental rates and trends in the area(s) of investment consideration.

  • Consider areas for investment outside your personal experience and location.


3) Evaluate Investment Options

  • Review the pros and cons of purchasing a condo/townhome versus a single-family home.

  • Review different areas for their rental potential, infrastructure growth, commuting options, schools and property taxes.

  • Consider cash flow, appreciation, tax ramifications, future objectives for the property, strategic property location and purpose (i.e., housing for your college student).


4) Move in Ready or Not?

  • Determine your interest in buying a “turn-key” property versus a “fixer upper."


5) Consider Hiring a Property Management Company

  • Hire a professional property management company to support your investment and to provide advice, research, property preparation, marketing, vetting, lease execution, 24/7 emergency service, tenant relations and more.


For more information, strategy or further exploration into your options, contact Jennifer Fox, associate broker, 303-442-2448 or jen@foxpropertymgmt.com.

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