As a real estate investor, when evaluating a potential purchase, you’re looking for data totally unrelated how you would consider buying a home you’re going to occupy. Yet at the same time, there are some things to consider that both types of properties would need to meet. What are some of theseprimary and rental considerations items that are the same and which are different?

 The Same Things

The initial consideration is price. For either type of property, be it a rental or a primary residence, you want to get the best deal. By comparing recent sales of similar properties in the area you can get a good idea on what to offer. Working with your real estate agent, you can also look for similar properties in the area that are currently listed and compare those to your potential purchase.

You also want an ideal neighborhood. For a primary residence, you want to live in a nice area with well-kept homes, perhaps good schools with shopping and entertainment easy to get to. With a rental, you also want a good neighborhood but for different reasons. You want an area where rentals are in demand and low vacancy rates.

The Different Things

For a home you’re going to occupy, you’re going to be a bit more picky compared to a rental. Perhaps you absolutely need at least three bedrooms and two full baths. A large backyard perhaps, upscale appliances and wood floors. Maybe a pool. Buying an owner occupied unit means the home needs to meet your own personal tastes.

For a rental property, you’re concerned not as much with how many bedrooms or whether there’s a fireplace, but you want to make sure the property cash flows each month and has a history of minimal vacancy and in good physical condition. An investment property is just that—an investment. And should be viewed as such.