When it comes to investing in property, there are as many ways to make mistakes as there are ways to make a fortune! Before you decide to sign on the dotted line, read on to learn some of the do’s and don’ts of rental property investing.

DO: Research the Neighborhood of the Rental Property

You’ve heard the expression: ‘location, location, location’. In the world of real estate, location is absolutely everything! A good neighborhood is an indication that the property-in-question will retain its value.

Think logically for a moment – if you were a renter with a family, where would you want to live? Would you want to live in an area with high crime and poor schooling, or a nice neighborhood with low crime and great schools? Yeah, the latter wins every time, do your research!

DON’T: Invest without Physically Visiting the Property

Similar to how most people wouldn’t dream of buying a car without test driving it first, you should refrain from investing in property without physically visiting the lot. If you don’t visit the property, you’ll fail to notice the small, deal-breaking details that the realtor failed to disclose.

DO: Make a Business Plan

Did you know that if you want to achieve any goal in life, all you need is a plan? If your goal is to invest in real estate, you need to make sure that you have a plan that spells out exactly how you are going to make your money back. If you don’t have a plan, I promise you that you will waste time and loose money – both are not beneficial strategies to improving your bank account.

DON’T: Rent Your Property Out to Just Anyone

The difference between a good tenant and a bad tenet is a canyon. Save yourself the stress and make sure you only rent your property out to qualified tenets. A good rule of thumb is your tenet should make at least three times the amount of annual rent in their salary. Additionally, look for signs of good credit history and an overall good demeanor.

DO: Set Your Real Estate Goals

How can you know what you want if you don’t know what to look for? Before you invest in real estate, be sure to sit down and set your investing goals.

DON’T: Settle

Real estate is a huge investment; before you hand over one single penny, make sure that you are paying for what you want. This will save you from future regret and headaches. Remember, the investor that is patient enough to find the right opportunity is often the happiest investor.