Now that you have the home you worked so hard for, you might feel ready to continue your real estate adventure with an investment property. If so, there are many pros and cons to consider and in this episode of Beginner to Buyer host Nadeska Alexis will cover them all. Nadeska is joined by homebuyer Matt Sustaita who successfully navigated the expensive San Francisco real estate market and is now, with his wife, enjoying the process of making their home just right for their growing family. Since they know they won’t stay in this home forever due to schools in the area not being up to par when their children hit that age, Matt spends time browsing real estate apps. Through this research he and his wife can take time to evaluate a future purchase based on the changing needs of the family and their priorities in terms of space, neighborhood, and price. While they haven’t made the decision to move yet, they do know they will be keeping their current home once they upgrade and using it for a rental property. This comes with its own challenges and Matt and his wife are already thinking about what they might be willing to spend to have someone manage the property for them and the role their Home Lending Advisor will play. To discuss more of the pros and cons of an investment property Nadeska speaks with Chase expert Alexis Hart McDowell. Alexis helps break down the concept of your Risk Tolerance Level and how to evaluate your own. Using this understanding she explains the different reasons you might choose an investment property— as a vacation home, a source of rental income, or to house extended family members— and how your risk tolerance might shape decisions about each. Nadeska and Alexis talk about the different types of investment properties such as multifamily units and vacant land commercial properties and how to get familiar with local laws around renting. From there, they dig into how budgeting for an investment property might be different than for your primary home. From insurance changes to the possibility of hiring a property manager or lawyer for guidance as a new landlord, they break down everything you’ll want to consider. Alexis also emphasizes some of the potential challenges to owning a rental property such as the risk that a property might go unrented and not generate income for some time, or how to navigate complicated tenant/landlord laws. If you are considering purchasing an investment property, be sure to listen to this episode of Beginner to Buyer to be more prepared and feel more confident in the search and process. You can read the full transcript on the Chase Website