Set clear investment goals (cash flow, appreciation, tax benefits, long-term hold)
Choose a strategy (buy-and-hold, fix-and-flip, BRRRR, short-term rentals, long-term rentals, commercial, REITs/indirect)
Determine your budget and funding sources (cash, conventional loans, FHA/VA, hard money, private money, partners)
Build a credit and financing plan (check credit, shop lenders, understand down payment and closing costs)
Calculate key numbers (cash-on-cash return, cap rate, DSCR, break-even occupancy, renovation budget, reserves)
Create a criteria checklist (location, property type, condition, tenant demand, rent comps, price per square foot)
Research markets and neighborhoods (job growth, rent trends, vacancy rates, crime, school ratings, development plans)
Find deals (MLS, off-market listings, wholesalers, auctions, property managers, networking)
Run due diligence (title search, liens, survey, zoning/permits, HOA documents, rent roll, leases, inspection)
Verify income and expenses (rent comps, utility/insurance/taxes, maintenance, management fees, vacancy, capex)
Model financing and sensitivity (rate changes, vacancy scenarios, cost overruns, refinance assumptions)
Ensure legal and compliance readiness (landlord-tenant laws, licensing, inspections, fair housing)
Evaluate risk and add reserves (repairs, vacancies, insurance deductibles, property taxes, emergency fund)
Decide on property management approach (self-manage or hire a property manager/agent)
Close the deal (review closing statement, finalize financing, secure insurance, set up escrow/accounts)
Prepare for operations (set rent, handle tenant screening, document leases, establish maintenance workflow)
Track performance (monthly statements, cash flow, occupancy, expenses, tenant turnover, renovation progress)
Plan your exit or hold strategy (refinance, sell, 1031 exchange, long-term retention)
Reinvest and scale (repeat the process, improve underwriting, secure better financing, build systems)
Consider alternatives if you lack capital (REITs, real estate crowdfunding, syndications, mortgage REITs, note investing)