I'm thinking about my first rental property
Direct rental property is the highest-control, highest-tax-benefit, highest-workload form of real estate investing. This path screens whether it fits before getting into mechanics.
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1Read
Should you buy a rental property? Five honest questions
Five honest yes/no questions. If you can't answer yes to all five, REITs are the right alternative.
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2Read
How to evaluate a rental property — five numbers
The five numbers — purchase price, gross rent, op-ex, NOI, and the two yields. Most beginners miss 20–30% of true op-ex.
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3Read
Financing an investment property
20–25% down, rate ~0.5–0.75 points above primary, DSCR loans for high-DTI borrowers and large portfolios.
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4Read
Single-family rentals (SFR)
Where to actually buy. Stable Midwest/Southeast markets vs. moderated Sun Belt growth. Markets with price-to-rent above 25 — usually don't make the math work.
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5Read
Self-manage vs. hire a property manager
Self-manage (save 8–12% but spend 5–15 hr/mo) vs. hire a PM. Both can work; mixing them up wastes both.
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6Read
Depreciation — the biggest tax benefit of direct ownership
The biggest tax benefit of direct ownership. A $300K building generates ~$10,900/yr in deductions.
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7Read
Twelve mistakes that destroy direct-property returns
The twelve mistakes that destroy returns. The expensive errors are predictable.
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