Investors have many reasons to use rental properties as an investment. Personally, rental properties are my retirement strategy. Some use it to diversify assets or place their money in a tangible asset. Others want a second home and a way to offset costs. Consider the reason for your purchase and make sure it aligns with long-term goals.

Have a plan and know your plan ahead of time. What if this plan needs to change? What if the market is down when you want to sell? Can you hold onto the property for a few more years?

Be cautious of investing in real estate to try for short term gains. It may take many years to see any profit. We all hear stories of a friend of a friend who “flipped” a house and made $100,000 in 30 days. Most of these stories are just that, stories. Most professional flippers I know lost money on their first couple of flips.