An investment property is real estate purchased with the intention of generating income or appreciation rather than serving as a primary residence.

Investment real estate can provide:

• Passive income through rent

• Long-term property appreciation

• Tax benefits such as depreciation and deductions for mortgage interest, property taxes, and expenses

• Portfolio diversification and inflation protection

Key factors include:

• Location: Growth potential, demand, and neighborhood stability

• Cash flow: Monthly rent minus expenses

• Cap rate and ROI: Return compared to purchase price

• Market trends: Local job growth, population trends, and infrastructure development

No. Most investment properties are non-owner-occupied, meaning you purchase and rent it out. However, some financing programs may allow owner-occupied multifamily homes (e.g., living in one unit and renting the others).

Common financing options include:

• Conventional investment loans (20–25% down)

• DSCR loans (based on property income, not personal income)

• No-doc or bank statement loans (for self-employed borrowers)

• Hard money or private loans (for short-term flips or rapid closings)

• Commercial or portfolio loans (for multifamily or mixed-use properties)

Investment properties typically require 20–30% down, depending on loan type and credit profile. Owner-occupied multifamily homes may allow lower down payments.

Yes. Many lenders allow projected or existing rental income to be used when calculating your ability to qualify, especially with DSCR or investment property loans.