Never skip this, even if the property looks perfect. Hidden issues like mold, outdated wiring, or foundation cracks are deal-breakers [7].
Use property management software to collect rent electronically and track maintenance requests.
Calculate the Net Operating Income divided by the purchase price to understand the property's efficiency in generating income [5, 15]. 📍 Phase 2: Market Selection and Property Search
The work begins once you hold the keys. Treat the property like a professional business.
Monthly rent should ideally be at least 1% of the purchase price [16].
Expect 50% of your rental income to go toward operating expenses (excluding the mortgage) [17].
For your first rental, prioritize properties that are "move-in ready" or require only cosmetic updates. Major structural or system repairs can quickly erase your initial capital [7]. 📝 Phase 3: Due Diligence and Closing
