What are the best tips for buying your first investment property?

To that end, 15 Forbes Biz Council members with experience in real estate gave their best tips for buying your first investment property. Forbes Biz Council members offer tips for people buying their first investment property. Photos courtesy of the individual members. 1. Do Your Own Research

Should you invest in a property?

Your ROI can help you determinewhether you should invest in a property. It can also give you an idea of a real estate investment’s profitability. Let’s say you buy a $200,000 property that you rent out for $1,000 a month. Your total potential annual income is $1,000 × 12 months, which equals $12,000.

What is an investment property?

An investment property is real estate purchased to generate passive income (earn a return on the investment) through rental income or appreciation. Investment properties are typically purchased by a single investor or a pair or group of real estate investors. There are several types of investment properties investors can buy to earn passive income.