1. Location

Location is the first thing people look at when doing real estate investing. If you live in a high-crime area, then you may not want to buy property there. You should consider where you plan to live after purchasing the home. Do you want to move away from crime? Are you looking for a neighborhood with good schools? These are just some questions to ask yourself before making a purchase.

2. Price

The price of a house is determined by many factors. First, you have to decide what type of home you want. Is it a single-family home, townhouse, condo, etc.? Next, you need to determine how much money you can afford to spend. Once you know these two things, you can start shopping around for homes. Make sure you do your research and find out about the neighborhoods in your desired location. Find out if there are any foreclosures in the area. Also, make sure you get pre-approved for a mortgage.

3. Down Payment

A down payment is the amount of cash you put down on a property. Most banks require 20% down, but you may qualify for less depending on your credit score. When you apply for a loan, they will calculate your monthly payments based on the total cost of the home (including interest) divided by the number of months left until you pay off the entire balance. So, if you put $10,000 down on a home worth $100,000, you would pay $500 per month.

4. Closing Costs

Closing costs are fees paid at the time of closing. There are several different types of closing costs. The most common ones are points, escrow, title insurance, recording fees, and taxes. Points are basically prepaid finance charges. Escrow is money held in trust for you by the seller's agent. Title insurance covers the buyer in case something goes wrong with the title. Recording fees cover the legal work done to officially document the transfer of ownership. Taxes are fees charged by local authorities.

5. Maintenance

Maintenance is the upkeep of the home. This includes paying for repairs, replacing appliances, and cleaning. You should budget for maintenance expenses each month.

6. Property Tax

Property tax is the fee homeowners pay to their municipality. It varies from place to place but generally ranges between 1%-3%.

7. Insurance

Insurance is protection against loss or damage to personal items inside the home. You should always Insure your belongings.

Real Estate Investing Important Tips to Keep in Mind