How to Prepare for Your First Investment Property Purchase

Buying your first investment property is an exciting milestone—but it can also feel overwhelming. From financing to finding the right deal, there are many moving pieces. The good news? With the right prep work, your first purchase can be the foundation for a profitable real estate portfolio.

Step 1: Define Your Goals

Before you start shopping, get clear on what you want:

• Cash flow or appreciation?

• Short-term rental or long-term hold?

• Active management or passive income?

  
  

These answers will guide your strategy and help you choose the right property type and location.

Step 2: Understand Your Finances

Speak to a mortgage broker who specializes in investment properties. You’ll want to understand:

• How much you can borrow

• Required down payment (typically 20%+ for rentals)

• What your monthly obligations will look like

  
  

Also factor in closing costs, repairs, and reserves.

Step 3: Analyze Deals Thoroughly

Don’t rely on “gut feeling.” Use metrics like:

• Cash flow

• Cap rate

• Cash-on-cash return

  
  

Run conservative estimates to protect yourself from surprises and make sure you’re buying based on numbers, not emotions.

Step 4: Build Your Team

You’ll need a strong group of professionals:

• Investor-focused realtor

• Mortgage broker

• Lawyer

• Home inspector

• Property manager (if you’re not self-managing)

  
  

Surrounding yourself with experts increases your chances of success and reduces risk.

Step 5: Start Small but Smart

You don’t need to buy a massive multiplex to be a successful investor. A single-family home or duplex in a solid rental market can be a great start. Focus on learning, refining your systems, and building confidence.

Final Thoughts

Your first property doesn’t need to be perfect—it just needs to be profitable and aligned with your goals. With clear planning, the right team, and a focus on fundamentals, you’ll be well on your way to becoming a confident and capable real estate investor.

At Greenell Capital, we help new investors make smart first moves. Whether you’re securing financing, running the numbers, or building a long-term plan, we’re here to support every step of the journey.