Written by Courtney Dorion   |   Posted on   |   683 views

Buying an investment property, earning income and managing tenants can very profitable if you clearly understand the basics of property investing. Investment properties are quite lucrative for some savvy real estate investors because they understand the basics and use them when making decisions.

Many people don’t realize the equity in their current house can be put to work on their behalf. An investment property is a great way to bring in extra income and being prepared will help you successfully navigate the process.

This article lists the 6 primary factors involved with purchasing investment properties, but you can also read our extensive guide on flipping your house for more information on the fine details.


A down payment of 20% is mandatory (most of the time) when purchasing a secondary property.

If you plan to rent out your second residence, you are going to need to come up with the full 20% down payment to purchase the home. There is an exception to this rule if you live on the property yourself in a separate unit from the rental space which is less than 50% of the total square footage.


When you are buying a home for yourself, things like granite countertops, bay windows and wood floors can play a big role in which home you buy. Most people want features that match their personality and style.

With an investment property it’s the opposite. With investment properties it’s all about having durable finishes that can stand the test of time.

You should ask yourself, how much do you want to put into the property and still be able to recoup those expenses by charging a reasonable rent, or are there condo fees? How much are the annual taxes? What price are other units/homes renting for in the area?

Real estate investment really is just a numbers game and these are the primary factors you need to carefully weigh before putting in an offer.

*All information provided by the Brantford Regional Real Estate Association (BRREA) and ITSO for the highest number of completed transactions since January 1, 2015. All Brantford MLS® House Listings come from the various systems operated by Real Estate Boards and Associations across Canada. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used underlicense. The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.



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