Should you invest in a penthouse or in a studio? A three-story colonial or a two-bedroom ranch? The first time out, it’s probably best to invest in something on the small side. Unless you’re buying a move-in condition property and have a reliable tenant waiting in the wings, there’ll probably be a period of time before your investment starts generating income. During that period, you’ll have to make loan payments on the investment property from your regular income. Since smaller payments are easier to manage in such situations, most new investors prefer to start with a small property. Next decision: locale. City or country? Nearby or away.
