5 Tips for new investors looking to get started!

[Alan Asriants]

Here are a few tips I like to share with my clients and anyone looking to get started in real estate investing:

1. Location Matters

This is by far the most important aspect of real estate investing. Where you invest will determine how well your property appreciates, how much rent can grow, and—most importantly—what kind of tenants you attract. A better location typically means less risk for the investor.

Unlike many other investment types, real estate is one where investing more usually means less risk. Think of it like stocks: the S&P 500 is a Class A location, while your brother-in-law’s startup tech company is a Class D location. You could make money in both, but your odds are much better with the S&P 500.

As a local investor and agent, I’ve personally shifted away from the city and focused more on the suburbs. In my opinion, the suburbs are still undervalued and offer a pool of high-quality prospective tenants. Plus, landlord-tenant laws tend to be more favorable for landlords. I think Bensalem still has a reasonable entry point, gives you solid bang for your buck, and attracts stronger applicants.

2. Don’t Chase Cash Flow

If your goal is strictly cash flow, you might be better off starting a business. A business can generate more immediate cash and can be sold later for a lump sum. Real estate investing, by contrast, is meant to be passive. Especially with today’s prices and interest rates, real estate isn’t a cash flow goldmine. Most investors profit more from appreciation and tax benefits than from monthly income. Cash flow just helps keep the lights on.

That said, don’t buy a property where you’re stuck paying $500/month out of pocket. That’s not a good investment either.

What’s the point of chasing $500/month in cash flow if it eats up hours of your day, forces you to chase tenants for rent, deal with constant repairs, and fully rehab the property after every turnover? Wouldn’t it make more sense to earn $100/month with far fewer headaches? Sure, you’ll have to put out fires now and then, but your time ROI is much higher with solid properties in quality locations.

Here’s an example: a buddy of mine recently asked if he should take a new job that paid more. First thing I asked: “How much more will you be working?” He was making $100k/year working from home about 25–30 hours a week. The new job paid $120k, but it was much stricter. Long story short: the extra $20k wasn’t worth it. He ended up working double the hours, including weekends, and was under a lot more stress. Within a year, he went back to his old job.

3. Property Type Matters

Let’s say you find a property in a great location and the price seems too good to be true. Be cautious. Don’t be blinded by the numbers—look at functionality and flow. Some properties look great on paper but fall apart in person: odd layouts, low ceilings, old electrical, plaster walls, uneven floors—all of these can tank your resale and rental value.

If a home doesn’t feel right when you walk through it, that’s a red flag. I never buy anything I couldn’t see myself living in. Walk away and let that be someone else’s headache—unless the deal is good enough to justify a major rehab and build serious equity.

4. Think Long Term

People often ask if I would invest in an “up-and-coming” area. The answer depends on what they mean by that. Some neighborhoods have been “up-and-coming” for decades with no real change. This is investing, not gambling. If you want to gamble, buy a piece of land and sit on it—you avoid tenants, maintenance, and other headaches.

I always recommend investing in solid areas with a proven track record. That gives you the best odds of long-term success. Delayed gratification pays off much more than chasing big short-term returns. Slow and steady wins the race.

5. House Hack

If you’ve never bought a property before, consider buying one as your primary residence, living in it, then renting it out later. Many people jump into real estate investing without owning their first home. Primary residence mortgages offer lower down payments and better interest rates. It’s a lot easier to save 5% down than 25%.

This strategy also allows you to buy in better locations, which are usually more expensive. Buy a property to live in—whether it’s a duplex or single-family home—stay in it for a few years, and when you’re ready to move on, keep it as a rental and buy your next one the same way.

If you can acquire just 2–3 properties over five years using this strategy, you’ll be in a great financial position. This is a realistic plan. With smart budgeting, saving up 5% for another property within a year or two is very possible. Saving up 25%? Much harder.

Quality beats quantity.

If you need any help or want to chat more, feel free to reach out anytime!