How To Buy & Manage Your First Investment Property
Learn How to Buy Your First Investment Property
Wanting to know how to buy your first investment property? If you’re new to these kinds of purchases, it can be both exciting and intimidating. Fortunately, as our experts understand, you can handle everything properly if you know how to approach it.
Finding the Right Investment Property: The Market
Calling the housing market hot is an understatement. The median sale price for residential properties in the US was just over $408,000 at the end of 2021 and home prices across the country year-over-year (YOY) still exceeded 20%, in 2022, according to CoreLogic. In the Greater Scranton market, median home sale prices have been trending up at a YOY rate of 15.1% from 2025 to 2026.
By and large, prices have trended upward, and it isn’t uncommon for buyers to spend over list price, with some homes selling for many thousands above the list price.
However, the price can vary throughout a particular area. Each neighborhood comes with its own vibe and price point. As a result, where you buy matters, both from a cost and desirability standpoint.
When searching for how to buy your first investment property, be sure to partner with one of our real estate professionals. They’ll help navigate the particulars of purchasing a home in Northeastern Pennsylvania.
Features of Desirable Properties
When looking for investment properties, you need features that appeal to renters. Open floor plans are preferred in some areas. A parking space might be a necessity in downtown areas.
Since traffic can be challenging, finding a location near convenient roadways or close to critical amenities like stores or medical centers (or even pizza!) is also essential. That way, renters won’t have to go far to get what they need.
If you’re looking at family-sized residential investment properties, then choosing one with exceptional school ratings is a smart move. That’ll make the home more attractive to parents, increasing its potential value.
The same goes for homes with large yards. Whether it’s parents or renters with dogs, having outdoor space is high on the list. If the yard isn’t in great shape, making some outdoor improvements may be all it takes to elevate its curb appeal.
You can connect with local contractors to install a new fence if it’s allowed by your homeowners association and/or the local municipality. Ensure your contractor is licensed, insured, and checks for underground utility lines. Next, read reviews online. Then, reach out to discuss your needs and get a quote. While the average price can vary (and it usually does in this market with distribution and supply issues), the size, materials, and location play a role, so get several estimates in advance to ensure you’re in the ballpark.
Managing the Investment Property: Form an LLC
Before knowing how to buy your first investment property, make sure you’ve set up a limited liability company to operate under. This will help protect you from personal liability, as well as give tax benefits to you. You can accomplish this relatively simply by using a formation service. Once you find the right property, you’ll need to determine how to manage it. Usually, you have two choices.
First, you can operate as the landlord, and as such, you’re responsible for all activities relating to the lease property. Along with advertising the property, you’ll screen tenants, collect rent, handle maintenance calls, and more. In some cases, that also means enforcing the lease — a task that often lacks enjoyment and may not always go as planned — and handling evictions, if needed. It’s a full plate, but it allows you to keep all of the profits.
Second, you can hire a property manager. By using this approach, you’ll end up with less profit in exchange for support in handling the property. The property manager will handle practically everything, including screening tenants, accepting payments, and tackling repair requests. They’re also an ally for lease enforcement, ensuring you don’t have to address violations directly unless an eviction becomes necessary.
The best options depends on how hands-on you’d like to be. While you’re always involved, a property manager reduces your burden in exchange for a fee, giving you access to their support and expertise. If you’re confident in your capabilities, hiring a property manager may be unnecessary, as many investors manage their own properties.
[This content is compliments of Fix It Dads.]
