What to consider when investing in real estate

Blog March 2024

Real estate investing is a high-risk high-reward endeavor. Due to this, you need to know what to consider when investing in real estate to achieve maximum results.

Advantages of investing in Real Estate

If you’re asking yourself why choose real estate investing, consider this – real estate is among the most stable types of assets to invest in, which is very important in a market as volatile as investments. Stability is among the main benefits of investing in real estate, making it one of the most reliable assets to own. Another benefit of investing in real estate is how incredibly profitable it can be. Even allowing room for the risks, the rewards are incredible. And the stability of real estate investments due to their value makes them secure. In short, while there are many types of assets to invest in, real estate is one of the safest options. But how to proceed and ensure safety as well as success? Look at some of these key factors to consider when investing in real estate in order to have the upper hand in this game.

What to consider when investing in Real Estate?

There are many things to consider when investing in real estate that can make it or break it. But no need to worry, here is everything to know about real estate investing that can ensure success. Discover all the benefits of investing in real estate and everything you need to know about real estate investments to achieve optimal results. Here’s a quick list of what to consider when investing in real estate:

  • Purpose of your real estate investment
  • The relevant laws and taxes
  • Property type and condition
  • Location of the property
  • Property value
  • Your current capital
  • Expected ROI (Return on Investment)


The first thing to consider when investing in real estate is your purpose. Of course, the main purpose and prime benefit of investing in real estate is building capital, but here we are talking about the more narrow goal you have for a specific property. The purpose behind acquiring a property is crucial in deciding what kind of building you need to purchase. Decide what your goal is – flipping or renting? If you intend to rent your real estate investment, decide how many units you are looking for in a property. You also need to know what is the target demographic of your potential resell or rental and how much will your target audience be able to pay or if they will want to pay the sum you’ll ask for in return for the property. These are all important questions in real estate investing.

Real Estate laws and taxes

Real estate investing in the US can be tricky due to the differences in laws in various states. The legality of the issue is a key factor to consider when investing in real estate. Being unaware of the laws will not serve as an excuse and you will be held accountable regardless. For this reason, you need to check the legality of what you intend to do. We recommend hiring an experienced lawyer in the field to give you a hand. Do not try evading laws or taxes. The risks are just not worth the losses you will suffer if you are caught. Plus, look at it this way – the variety of the US legal system comes with advantages. The benefit of investing in real estate in the US market is that if the laws of a given state are not well-suited to your goals, you can simply try investing in another state. In short, follow the process and you will see results with your real estate investments

Property type and condition

Among the many benefits of investing in real estate is that you get to choose every minute detail of your project including the property type and condition. This plays a significant role in real estate investing – controlling as many factors as possible gives you the opportunity to control the prices you will ask for the property in the future. The type is a very important aspect to consider when investing in real estate as your profit directly depends on it. If you want to generate instant profit, a turnkey rental property. If you want to have control over the process, you can get a property that needs some work and finish it according to your needs and goals.

Property location

One of the advantages of investing in real estate is that you can resell or rent for much higher gains merely by choosing a location wisely and in advance. In most cities, especially the biggest ones, a property in a central area will be more costly. But if you purchase land or property in a suburban area, you will get more space for the same price as well as more enticing views of nature instead of the standard urban view. The expansion of urban areas is another thing to consider when investing in real estate. Cities expand and so a location that is on the outskirts right now will be included in the city in the decades to come. This can also be a good selling point in the future if you plan on reselling the property.

Property value

Another thing to consider when investing in real estate is the value. Out of all the things to know about real estate, the value of the potential purchase is a top priority. Always have the property’s value estimated in advance or do it yourself if you can. The point is, consider this aspect beforehand and take it into account when making a final decision. There’s no real point to purchasing a property that will require hundreds of thousands of dollars to restore and renovate. Make a real estate investing decision wisely and based on the knowledge you acquire in advance – weigh the tradeoffs and consider your potential gains.

Current capital

Another thing to consider when investing in real estate is your current purchasing power. You need to be realistic about this and your goals – set the limits and understand that you will also need some budget for any additional work that the property may require. The budget constraints are certainly not among the many benefits of investing in real estate, but every business is bound to have some cons. The good news is that you can always increase your capital by engaging in real estate investing and end up with some profit that can then be added to your next real estate investment. This way, you can slowly increase your purchasing power and end up with more capital each time!

Expected ROI

A crucial aspect to consider when investing in real estate is the expected return on investment. It is essentially the main benefit of real estate investing and the goal of this entire endeavor – to make significant returns on your real estate investment. One of the main advantages of investing in real estate is the great potential for sizeable returns in the market. But you need to understand the market and take into account when you will achieve these returns or if you can achieve a desirable outcome with a specific property. Consider the size of the profit you expect to generate from your investment and figure out if the risk is worth it.

Real Estate investing simplified

Moral of the story – you need to be cautious and rethink the same problem over and over again to avoid making mistakes. This can be very taxing and time-consuming. But you can still benefit from real estate investments with us!

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Any questions

What is affordable housing?

Affordable housing refers to housing units designed to be accessible to low- and moderate-income families, typically costing no more than 30% of their gross income.

The definition of “affordable” typically varies depending on location and income levels but generally encompasses rent or purchase prices that don’t exceed a certain percentage of a household’s income.

What is Section 8 housing in the US?

Section 8 is a federal rental assistance program in the US run by the Department of Housing and Urban Development (HUD) that helps low-income families and individuals afford decent and safe housing in the private market. 

The program provides eligible households housing choice vouchers that cover a portion of the rent directly to the landlord, with the tenant paying the remaining amount. Property owners who participate in Section 8 agree to rent units to qualified individuals and families at a rate approved by the program.

How can I invest in Section 8 housing?

There are several ways to invest in Section 8 housing:

  1. Direct ownership: You can purchase a property approved for Section 8 and rent it to a qualified tenant using a voucher and receive rent subsidized by the government.
  2. Real estate investment trusts (REITs): REITs pool investor funds to purchase and manage income-producing real estate, including affordable housing.
  3. Limited partnerships: Limited Liability Companies (LLCs) offer another option for investors to pool resources and invest in affordable housing projects.
What is the difference between multi-family and single-family properties?

Single-family property: This refers to a standalone house or unit designed for and rented to one household.

Multi-family property: This refers to a property containing multiple dwelling units, such as a duplex, apartment building, or condominium complex. Multi-family properties offer the potential for higher rental income but typically require different management strategies and considerations compared to single-family homes.

What is the difference between buying and flipping houses?

Buying and holding: This involves purchasing a property to keep it as a long-term investment, generating rental income and potentially appreciating in value over time.

Flipping: This involves buying a property, renovating it to increase its value, and then selling it quickly for a profit. This is a more hands-on strategy with higher risks and rewards compared to buying and holding.

How much do I need to start investing in affordable housing real estate?

The minimum investment required varies depending on the chosen method. Direct ownership typically requires a higher initial investment for the property purchase, and renovation up to Section 8 standards, while other options like REITs might have lower minimum investment amounts.

Do I need to be a US citizen to invest and own the property?

No, US citizenship is not a mandatory requirement for investing in affordable housing in the US. However, specific restrictions or regulations might apply depending on the investment method and your residency status.

It’s crucial to consult with a professional to understand the legal and tax implications for non-citizens.

Do I need to pay US tax as an overseas investor?

This depends on the type of investment, your residency status, and any applicable tax treaties between your home country and the US.

Consulting with a tax professional specializing in international investments is highly recommended.