Did you know that billionaire Andrew Carnegie said that 90% of millionaires are created through real estate investments? It's quite apparent in today's world that you need to leap into real estate to make it big financially. 

But what if you are a newbie at it, and worried about making a mistake. You can't make your first foray into buying a real estate investment property perfectly, but you can avoid some typical missteps. Keep reading for some tips on buying a rental property.

1. Pay Off All Your Debt First

If you have student loans or you have to send a child to college shortly, consider paying off your debts and saving up for any major expenses first, BEFORE buying a rental property. You don't want the added pressure on your finances, and you don't want to end up foreclosing on a property because you couldn't afford it yet.

2. Find the Right Location

The best real estate investment property has to be the one that sits in the perfect location with regard to you. For example, if you live in South Carolina, but the market is too hot for you there, you might invest in North Carolina because it's cheaper and close enough that you can travel there if necessary.

3. Find a Team of Reliable Contractors

Not the handy sort? That's understandable. You don't have to be.

But you do need to find a good team of reliable contractors (plumbers, electricians, and more), so you don't have to get your hands dirty, but your tenants are still satisfied and happy. 

4. Secure a Downpayment

You would usually need at least 20% as a downpayment to invest in your first real estate investment property. You might be able to reduce this in the future, but for now, plan for a 20% downpayment, which you can either save up, or you can take out a loan for.

5. Invest In Landlord Insurance

Do not forget about landlord insurance, as you need to protect yourself and your loved ones from liability in case something goes wrong at one of your rental properties. It's better to have it and be protected (and never use it), than to not have it, and end up in big trouble. 

6. Calculate Your Margins

Set up a goal of 10% return on your real estate investment properties. Factor in all your expected expenses, such as property tax, landlord insurance, maintenance, and more, and make sure you still end up getting a 10% return on your investment.

7. Factor in Unexpected Costs

Murphy's law is the rule of the land when it comes to real estate investments, so always factor in a bit extra to account for unexpected expenses, such as a leaky roof, or a cracked foundation. 

Get Your First Real Estate Investment Property and the Rest Is Downhill

The first step is always the hardest, and the same applies when getting your first real estate investment property. Don't let that deter you though. It's well worth the effort you would put in.

If you are searching for a reliable property management services company to manage your real estate investment portfolio, look no further. Carolina Property Management is here to help. Contact them today and get started on your real estate journey in good hands.