what is the goal?
Here are some questions to think about.
Why do you want to buy an income property?
What kind of return are you looking to get?
How much work do you want to put into getting that return? Do you want a “turn key” investment or are you willing to do some remodeling to increase your return?
How important is vacancy to you?
Which description best fits what you are interested in below?
You are wanting a two on a lot, meaning two houses on one lot. You would get to live in one, and you would collect rent from the other one offsetting a good portion or maybe all of your mortgage.
You are looking for a situation where the property pays for itself. The tenants rent covers all expenses and the property value raises over time and your mortgage is paid down. In 30 years this asset will have paid for itself and you will will still be making income every month.
You are looking for a return every month. Cash flow is important to you. Properties with good cash flow are harder to come by and usually require some development. If this is your goal, the next question is what kind of return are you looking for? What is your minimally acceptable investment return?
You are a 1031 exchange and value & future earnings potential are important.
Are you interested in only value-add opportunities, where properties are undervalued but require remodeling and prepositioning in order to make a larger return. This type of property development allows you to increase your property value significantly, however this takes experience, additional cash for remodeling and time.
You don’t have to know all the answers. I can help you understand what types of properties are right for each strategy and goal.