1. Investing in Rental Properties is the Key
Real Estate is expensive, so get your financing in order. Buy a small property to learn from your mistakes.
2. Find A Good Property Manager
Hire a professional to manage your tenants and property. Focus on what you are good at.
3. Do the Math
It has to make sense financially. Does the cash flow justify the risk?
4. Carry Out Your Due Diligence
Regardless of how well you know the Seller (or Buyer), do your research. Make sure the property is properly priced, appropriately zoned for your purposes, and in the condition you expect.
5. Use Cash Flow To Pay Down The Mortgage
Re-mortgage to buy additional properties. Build your portfolio in a systematic, manageable way.
6. Buy Desirable Properties In Areas That Will Increase In Value
Make modest improvements and rent to good tenants.
7. Buy Distressed Houses In Less Desirable Neighbourhoods
Make them liveable and rent them to people who are hard to house. People in poverty need places to live.
8. Buy The Worst House In The Best Neighbourhood You Can Afford
The other properties will raise the value of yours. You do not want the castle in the neighbourhood.
9. Flip Houses In An Improving Market
Buy while property values increase, but quit before the market crashes.
10. Allow Properties To Appreciate In Value
Sometimes this involves keeping the property for a longer time than you initially anticipated. Buy low and sell high.
11. Get The Right People On Your Team
These professionals include a: Realtor, Mortgage Broker, Accountant, Renovation Company, Tradespeople, Investment Counsellor, Insurance Broker, and Management Company, etc.