Lenders view rental properties as higher risk than primary residences, so the requirements are stricter.

: Most conventional loans require a 20–25% down payment for an investment property.

: Are you prioritizing monthly cash flow (income now) or long-term appreciation (wealth later)? Most experts suggest aiming for a property that at least breaks even after all expenses.

Before looking at listings, define what "success" looks like for you.

: Lenders often require proof that you have 6 months of mortgage payments saved as a safety net for vacancies or unexpected repairs.

Buying a rental property is a proven path to building long-term wealth, but it requires a solid foundation of planning and financial readiness before you ever sign a deed. 1. Set Your Foundation and Strategy

: Real estate is a "team sport." You’ll want a lender experienced in investment properties, a real estate agent who understands rental demand, and eventually, a reliable contractor. 2. Get Your Finances "Rental Ready"

: Aim for a credit score of 720 or higher to secure the best interest rates. While some lenders accept 620, the higher rates will eat into your monthly profits.