Purchasing a piece of real estate that's not yours is a big decision, and one that requires a lot of planning and preparation. While the process is similar to purchasing a primary residence, there are several key differences.

First, an buying an investment property is not meant to be your primary residence. It's a business. If you're planning on renting it out, you'll want to make sure you have the necessary legal rights to do so. Additionally, the laws regarding letting out your own property can be different from state to state. For instance, a tenant's "right to privacy" prohibits unannounced visits without 24 hours' notice.

On the plus side, a rental property can be a good source of consistent cash flow. Plus, rental properties can qualify for tax deductions, making it an all-around good deal. Having a good rental property can also help build equity in your home. You'll be able to sell your property at some point, and that could provide a nice return on your investment.

A good way to get started is to find a real estate agent. They can help you locate a profitable property. Their services can include property management, as well. Getting a property manager can alleviate much of the stress and hassle of handling your own rental property, while still giving you the benefit of their experience and connections.

Another consideration is financing. When you're purchasing an investment property, you'll want to shop around for the best possible rates. Loans for investment properties tend to be more expensive than those for primary residences, so make sure you don't go overboard. In some cases, lenders can charge up to 0.50% to 0.75% more than a typical mortgage.

Finally, maintenance is a big expense to consider. While you might not have the capital to do it yourself, you can hire a company to take care of most of the heavy lifting. Depending on the size of your investment property, you might even be able to make money by fixing it up.

The biggest drawback of buying an investment property is that it's a long-term commitment. This means you'll need to take into account how much it's going to cost you to own it, as well as how much you can realistically afford. However, if you're diligent about paying your mortgage, your loan is likely to be paid off in a short period of time.

There are several ways to maximize your investment. You can try to sell it, but it's not always an easy task. Similarly, you can rent it out, but you'll need to find a good tenant. Keep in mind that it's not as simple as it sounds, and that you'll need to run a background check on all potential tenants.

There's no guarantee you'll have a booming rental business, but with the right strategy, you can make your property a solid financial investment.