The Do's and Don'ts of Buying Investment Property
LOUISIANA REALTORS • July 17, 2017
Investing in real estate
can be a great investment. Not only can it grow in value over time, but it can also provide a continuing income source. However, as with any investment, it is important to understand the risks. Unlike the stock market, where you can invest in smaller increments, real estate requires a much more significant investment. Here are few things to make sure that you do, and few to avoid before you buy your first investment property.
Do Make Sure an Investment Property is For You
Owning a second home means even more responsibility, especially when it comes to repairs and maintenance. Handling these tasks yourself can save a lot of money. It’s important to consider the extra time and cost of owning a second property before you commit.
Don’t Try and “Flip” a Property
While this may seem like a fun way to turn a profit, at least for your first investment home, this is not a good idea. The cost of doing a major overhaul on a property can easily get out of hand, making it even more difficult to get your money back from a rental or even a sale.
Do Hire a REALTOR®
Just as you would with your primary residence, seek the knowledge and expertise of a REALTOR®. Understanding market value is crucial when it comes to investing and knowing what areas are growing, and what areas aren’t can position you for a successful investment. REALTORS® also have strong professional networks. Mortgages for investment properties are different than for your primary home, so having access to mortgage brokers, banks, and other professionals can help you get the best deal.
Don’t Underestimate Your Margins
Obviously there will be costs associated with owning this second property and it’s vital to understand them all to ensure that you are earning a return on this investment. HOA fees, insurance, and maintenance will all eat in to your bottom line. It is also a good idea to budget, save, and plan for any major repairs and for vacancies when you won’t have a revenue stream, but will still have these obligations.
Investing in real estate can be fun, exciting, and lucrative. Before you jump in feet first it is important to understand the ins and outs of owning an investment property in terms of everything from responsibilities, liabilities, costs, and management.
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Louisiana REALTORS® wraps up 2025 and looks forward to 2026! Louisiana REALTORS® gathered in Baton Rouge from October 7–8 for the 2025 Fall Governance Meetings, a dynamic two-day event filled with professional development, strategic planning and member engagement. The day before the conference offered the conclusion to the 2025 LR Leadership Program with participants graduated from the yearlong program after a half-day session. The 2025 graduates include: Torri Byrd, Shawn Carter, Bradley Cook, Stefany Deroche, Mignon Richard Díaz, Alfra Dixon, Thaddeus Dixon, Glen Elliott, Yvonne Graham, Charlotte Johnson, Michelle LaBanca, Slagle McGuffee, Ellen Monroe, Matt Noel, Ros Pack, Tiffany Pellerin, Latonia Riggs, Shannon Rodi Nash, Trish Skellham, Rebecca Slone and Charlotte St. Romain. Additionally, a sold-out, full-day AI-Powered Real Estate Professional Certification course led by industry expert Matthew Rathbun blew away attendees and had them leaving the session with such invigoration. The first official day of the conference held focus on professional development and networking. Tuesday opened with an informative session entitled Professional Liability 101 from Rice Insurance Services Center, offering critical insights into E&O and risk management. RPR's session brought a wealth information to attendees and offered a hands-on learning experience for the tools offered online. Targeted sessions like the Local AE Meeting and the YPN Advisory Council Open Meeting provided space for peer exchange and innovation. The day concluded with a festive Opening Reception sponsored by Louisiana YPN, bringing members together to celebrate and connect. The next day offered collaboration and celebration with Closing the Affordability Gap, presented by the Louisiana Housing Corporation, equipping REALTORS® with tools to better serve clients in today’s market. Regional caucuses followed, allowing members from across Louisiana to discuss local issues and share best practices. The Board of Directors Meeting brought the governance portion of the event to a close with strategic decisions for the year ahead. At the Board Meeting, Chris Brock, Northeast REALTORS® of Louisiana; Trish Leleux, Greater Central LA REALTORS® Association; Synde Devillier, Bayou Board of REALTORS®; Scott McCubbin, Bayou Board of REALTORS®; Amber Morrow, Greater Fort Polk Area REALTORS®; and David Moses, Greater Central LA REALTORS® Association; were elected as 2026 At-Large Directors. The grand finale? A spirited LSU Pregame Fan Experience and the highly anticipated Installation Ceremony, where new leadership was formally welcomed in a celebration of community and commitment. Louisiana REALTORS® looks forward to hosting REALTORS® from around the state at the Winter Leadership Conference, March 3-4, 2026, at the Live! Casino & Hotel in Bossier City. We would like to thank our sponsors Greater Baton Rouge Association of REALTORS® (GBRAR) , Zillow , Dax Roy Appraisals, Supra, American Home Shield, Guard Home Warranty fo r their generous support in helping make this conference happen!
Open letter from Nykia Wright, CEO of the National Association of REALTORS®
