Thinking About Buying My First Rental Property. Is It Really Worth It Today

Starting Out
6moFollow

Thinking About Buying My First Rental Property. Is It Really Worth It Today

Zak Ben
Member since 2026 · 2 posts · 1 vote

Hi everyone,

I’m new here and seriously considering getting into real estate investing, but I have no prior experience in this field. I’ve never worked in real estate before, so I’d really appreciate advice from people who have actual experience.

I’m originally from North Africa and I’m interested in investing in property abroad, in countries that allow foreign buyers — for example, places like Turkey, the UAE, or anywhere with strong rental returns.

From my initial research, I’ve found very mixed opinions. Some people say real estate can generate great income and long-term wealth, while others say it’s no longer as profitable due to high property prices, relatively low rents, and ongoing costs like maintenance, service charges. managements fees.

At the moment, I’m considering buying apartments and renting them out — but only if the numbers actually make sense and the returns are truly worth it.

My main questions are:

* Is rental property still a good investment in today’s market?

* Which countries or markets would you recommend focusing on (UAE, Turkey, Europe, or elsewhere)?

* What kind of rental yields are realistically achievable today?

* What are the biggest mistakes beginners should avoid?

* What risks should I be aware of when investing abroad?

My budget is around $1M–$2M, and I’m planning to buy in cash (no financing or mortgages), especially since I’ll be a foreign investor.

I would really appreciate any honest advice, personal experiences, or lessons learned.

Thanks in advance!

1Reply
209 views

Most Popular Reply

Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
6mo

Investors in Toronto Canada have the same 2% return issue, yet they keep investing.

Question: which of those countries have a real estate market as transparent as the USA's?

[email protected]248-209-6824
Logical Property Management4.9460 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Janice Carter
    Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 607 votes
    6mo

    Zak, welcome to the BP community. If you are interested in investing in real estate, I would strongly recommend starting in your country before going international, especially as a beginner. It is much easier to understand your market, build a reliable team and manage risk.

    2Reply
    • Zak Ben
      OP
      Member since 2026 · 2 posts · 1 vote
      6mo
      Quote from @Janice Carter:

      Zak, welcome to the BP community. If you are interested in investing in real estate, I would strongly recommend starting in your country before going international, especially as a beginner. It is much easier to understand your market, build a reliable team and manage risk.

      Hey Janice,

       
      Thank you for your comment,

      My country in not an option at all because houses and apartments prices are insanely high and the rental return doesn't reach 2%yr.

      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6mo

    Investors in Toronto Canada have the same 2% return issue, yet they keep investing.

    Question: which of those countries have a real estate market as transparent as the USA's?

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    3Reply
    • Hai Loc
      Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
      6mo
      Quote from @Drew Sygit:

      Investors in Toronto Canada have the same 2% return issue, yet they keep investing.

      Question: which of those countries have a real estate market as transparent as the USA's?


       I dunno how many people keep on investing in the current Toronto market. You might be able to get a desperate seller on a pre construction condo where they cant close and scope it up on massive discount and potentially cashflow.. I am seeing closer ratios then ever before like brand new $450,000 condo where you can gross $30k annually.. Not quite 1% rule but is closer.. 

      0Reply
  • Beau Menegay
    Uniontown, OH · Member since 2015 · 36 posts · 7 votes
    6mo

    This is a great question — and honestly, you’re asking the right things most beginners skip.

    Short answer:
    Yes, rental property is still a good investment today… but only if you buy right.
    The days of “buy anything and it works” are gone. Now it’s 100% a numbers game.

    A few real-world thoughts based on what you’re considering:

    1. Is it still worth it today?
    It depends on the deal, not the market. I’m still seeing profitable rentals — but they’re usually:

    • Slightly distressed
    • Mispriced
    • Or require some value-add (light rehab, better management, etc.)

    If you’re buying turnkey at full retail in most markets right now, returns are usually pretty thin.

    2. Countries/markets (UAE, Turkey, etc.)
    This is where I’d be careful.

    A lot of international markets look attractive on paper (high yields, low prices), but you’re taking on risks most people underestimate:

    • Currency risk
    • Legal system differences
    • Tenant laws
    • Property management quality (huge one)
    • Exit liquidity (harder to sell later)

    If you don’t have boots on the ground or someone you trust locally, that can go sideways fast.

    3. Realistic rental yields
    What I actually see working today:

    • Strong markets: ~5–8% net yield
    • Solid value-add deals: ~8–12%
    • Anything advertised at 12%+ usually has hidden risk (location, vacancy, management, etc.)

    A lot of people quote “gross yield” which can be very misleading — always focus on net after expenses.

    4. Biggest beginner mistakes

    • Overestimating rent / underestimating expenses
    • Ignoring vacancy and maintenance
    • Buying based on emotion instead of numbers
    • Going too far away from where they understand the market

    5. Risks investing abroad (big ones)

    • You’re fully dependent on a property manager
    • Harder to verify deals and comps
    • Legal protections can be very different
    • Currency swings can wipe out returns

    If I were in your position with $1M–$2M cash, I’d honestly consider this approach:

    Start with one or two very strong deals in a market you can understand deeply, prove your system, then expand. Not 5–10 doors scattered across different countries right away.

    One practical thing that helped me early on:

    I stopped thinking “is this market good?” and started asking
    “Does this specific deal hit my numbers?”

    That shift changes everything.

    If you want, I can show you how I quickly break down deals to see if they actually make sense — it’s saved me from a lot of bad buys.

    0Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    6mo

    Hi Zak,

    Beware that it's not a once size fits all. Not only do people have different objectives but, at different times, it works in certain parts of the world and it doesn't in others.

    Beware that this site is US-centric so it'll mostly be based on opinions on the US market. I'm originally from Europe but I live in Canada right now. Canada has the closest market to the US in terms of structure and, together, we are very different from the rest of the world. In North America, real estate investing generally works when interest rates are low. Before the recent spike in interest rates, they had been artificially held lower for 15 years by central banks and this is why real estate became the way for many to get to financial freedom and this site was born. Interest rates are now back to normal and this game is over. You need to find "deals now to make it work.

    When I started investing years ago, interest rates were still low but real estate in Canada was already the most unaffordable in the world. This prompted me to start by investing overseas, which I could do because I had the right knowledge and connection. So, unlike most investors, I look at the whole world as my playground and invest in the best places.

    I don't know where is home for you. I wouldn't invest in the UAE or Turkey because I think it's too risky and because of the legal systems there. Also, I suspect that it isn't that profitable anywhere.

    I think Europe is the best place to invest today. One of the reasons is that, in certain countries, foreigners can get mortgages at very low interest rates and real estate values are increasing steadily so it's a no brainer. It's one of the best way to create wealth and I don't understand why you'd want to pay cash, as it'd be much less profitable. If it's because you think it's too risky, I think that you're overestimate the risk, assuming that you invest in the right places of course. If it's because you wouldn't qualify for a traditional mortgage, you can always invest your money and double dip by borrowing against those investments to get a mortgage. If you still don't want to borrow, my favourite place to invest without borrowing is in Latin America, provided that it's in the right places.

    I've replied to hundreds of posts about international real estate investing in the BiggerPockets forums, sharing my knowledge and experience. Feel free to have a look through my profile. I know it's difficult to navigate so, if you don't find what you're looking for, feel free to send me a private message here and I'll help if I can.

    You seem to be in a good position so there are no reasons why you shouldn't be able to make it work. You just need to get the right help and info and reaching out here like you did is an excellent start.

    Hope this helps!

    0Reply
  • Fares Hussain
    Real Estate Broker · UAE, Abu Dhabi · Member since 2026 · 1 post · 0 votes
    1w

    You're asking the right questions, especially about the actual net return rather than the advertised rental yield.

    I work in Abu Dhabi residential real estate, so I can offer a perspective on the UAE market.

    According to Bayut's 2025 Abu Dhabi market report, indicative apartment rental ROI was approximately 7.49% on Al Reem Island, 7.07% on Yas Island, and 4.05% on Saadiyat Island. These are market-level estimates based on listings. The difference also illustrates why a premium location doesn't automatically deliver the highest rental yield.

    Foreign investors can own property in designated Abu Dhabi investment zones.

    With a $1M–$2M cash budget, I would compare completed properties using actual rental contracts rather than projected returns alone. Calculate net yield after service charges, maintenance, management fees and vacancy, using your total acquisition cost as the denominator. Also consider taxes in your country of residence, currency exposure and future resale liquidity.

    One additional point: Abu Dhabi's official H1 2026 market report projects approximately 71,000 additional residential units across the emirate by 2030. Future supply is worth examining carefully, even in a growing market.

    For a first overseas investment, I would personally prioritise transparent cash flow and manageable risk over the highest advertised yield.

    Are you primarily looking for consistent rental income, or is long-term capital appreciation equally important?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free