When should I buy an investment property?

Does the property cash-flow? That is the most important question. If the property brings in more than the mortgage, taxes, and insurance that is a huge plus. Then the question is what will the maintenance cost be over the next few years? A good inspector can help you note concerns. If those questions check out and you decide to purchase the property the three most important rules at that point is #1. renter selection #2. renter selection #3. renter selection! Spell everything out on the front end so there is no question as to the expectation from you and from your tenant.

It is important that you feel confident with any investment decision. Before investing in an investment property, it is essential to have a clear understanding of the current real estate market, as well as your personal financial situation. It is also wise to research potential rental markets, as this will help you make informed decisions about where and when to invest. Additionally, it may be beneficial to review your credit score and debt-to-income ratio before considering a purchase and ensure that you are financially capable of taking on a mortgage for an investment property. Finally, it would be prudent to speak with a financial advisor who can provide you with further insight into the risks and benefits of investing in an investment property.

I would wait until your primary residence has at least 50% equity. That being said you may have a very robust nest egg, or high income, where that might not be an issue. I would consult a CPA for assistance with budgeting. You can also "pre-qualify" (no credit pull) for a loan and see what they say about your lovability and how you may improve it ex: paying down debts, boosting credit score etc.