Purchasing an income property can be one of the soundest investments you make.
Real estate can have an extraordinary short and long term effect on your personal investment portfolio, and with a property making money on a monthly basis, many investors like the regular activity they can see as the property can behave very much like a steady business.
Real estate is a tangible asset.
That fact makes purchasing some - whether it's your first home or an income property - a different kind of investment than shares in a publicly traded company.
As an investor, you need to research and assess a potential property for purchase no differently than if you were considering buying an operating business and its assets.
Assuming that a building will deliver a guaranteed return is dangerous.
When doing your homework, take some of these tips into consideration:

• What physical condition is the property in? Getting a thorough property inspection is a given.
  The determination of the state of key areas of any building like roof and foundation are essential in determining the return on your investment and whether there are any other items you may have to address financially.
  
• How rentable is the property? Historically, how has the current owner fared with renting the units? Is the unit in an end of the city that attracts potential tenants naturally? Location matters, and knowing the chances of getting the new tenants you require when units become available helps with determining the operational involvement that will be required.
  
• Meet the tenants if at all possible.
  What kind of relationship has the current landlord had with the tenants? Are the leases legal? Are they month to month?
• Know the rules: Get acquainted with the Landlord and Tenant's Act in your province or state or municipal construction codes in the event of a renovation.
  Know your rights, and know the rights of your tenants.
  This also assist you with knowing what potential liabilities you are exposed to.
  
• Don't assume.
  Deciding to manage the property yourself isn't necessarily the best decision in an effort to save money.
  Working with a property management company can be a seamless, stress free, and more cost effective method of growing the property's potential - not to mention reducing your stress.
  Also, keep your expectations reasonable in terms of earnings from the building.
  Having a positive cash flow should be the goal, but all in due time.
  

We'd love to hear your comments or other tips you've employed when purchasing income property.
View Synercapital's commercial and residential listings or contact us for more information on any of our listed properties.