Here are the main things you should consider when choosing an investment property. The end goal is to make money and just like you wouldn’t purchase a business without doing research, and investment property should be treated the same.
Determining your cashflow when deciding on an investment property is critical. It’s all about the numbers. Usually, when purchasing an investment property, your emotions should be removed from the transaction. An investment property should be treated like a business, If the numbers make sense, then you probably should do it.

An investment property will offer you two incomes

1. Rental Income — this is the regular income you will earn while you hold the property. This is called the rental yield.
2. Capital Gain — This is the gain of the property you will receive once you sell the property.

Generally speaking, if you have a high rental yielding property, then your capital gain won’t be as much and vice versa. It’s best to try to find a property that matches your financial goals and has a good balance of both.

Location is a critical factor, as a good property in a good location will give you good rental and good capital gains. This will help you hold the property while the property increases in value. This is the ideal strategy.

The main reason you purchase an investment property is that you want to make money. Just like not all businesses make money, not all properties make money. Research is key. This could mean the difference of making a lot of money and no money at all.