Don’t assume a cheap deal is a win-win: Although low prices are always attractive to you, the buyer, don’t forget to keep other factors in mind such as location and building type. If the property is in a less-than-desirable location, you may have trouble finding the right renters or any renters at all. Look for properties in busy areas or cities where demand will never waver.

Don’t forget the extra costs: Always factor in a 3-6% closing-cost fee and keep in mind that you’ll also need funds to maintain the building. Try to plan ahead and figure out what your profit margin will likely be and determine whether buying the property in question is worth your time and investment. Too many times do first-time landlords purchase properties without thinking on a long-term scale. Cover all of your bases by taking all costs into consideration.

Be reasonable about your profit expectations: When you become a landlord, you become a collector. If tenants lose their jobs or stop paying for any other reason, it may take several weeks to evict them. Don’t simply assume that money will keep coming in. It may take time to find the right tenants and even then, there could always be a disruption in payment. Be prepared for this, just in case.

Owning a rental is different than owning a home: Some tenants may be more demanding as to what’s acceptable in terms of maintenance and repairs. State laws (which vary by state) may also impose strict rules and regulations, dishing out even more work for your plate. Although property managers can help out with a lot of this, hiring one will cost you. Be mentally and financially prepared for the task of becoming a landlord so that there are no surprises later down the road.