An investment property should be evaluated as a business decision. Begin with a clear strategy and test assumptions before becoming attached to a particular address.
Define the strategy
Clarify whether the goal is ongoing income, appreciation, renovation and resale, owner occupancy with rental units, or another outcome. Each creates different priorities and risks.
Estimate the complete cost
Consider acquisition, financing, immediate work, reserves, taxes, insurance, utilities, maintenance, professional services, vacancies, and management—not only the purchase price.
Test income assumptions
Use supportable rent and occupancy estimates. Review leases, payment history, legal unit status, and applicable local requirements during due diligence.
Plan for unfavorable scenarios
Model repairs, vacancy, slower rent growth, higher financing costs, and a longer holding period. A plan that only works under ideal conditions deserves more scrutiny.
Build the right advisory team
A broker can help with market context, but legal, tax, lending, inspection, insurance, and property-management questions belong with professionals qualified in those areas.