How to Buy a Rental Property Without Screwing It Up: A Straight-Talk 6-Step Guide
Buying a rental property can be one of the best financial moves you ever make… or one of the worst, if you don’t know what you’re doing. Every day I work with landlords and future landlords who are fired up about getting into real estate—but so many of them skip the stuff that actually matters. You know, the parts after you find the deal and before it turns into a disaster.
So here’s the truth: buying the property is the easy part. What happens next? That’s what determines if you end up building wealth or building stress. This guide isn’t about sourcing deals or financing. This is about the real prep that goes into buying a rental that will actually perform.
Step 1: Define Your Real Estate Goals (and Be Honest About What You Can Handle)
First things first: why are you doing this? What do you want out of this investment? Are you chasing monthly cash flow, building net worth, buying your freedom, or just trying not to lose your shirt?
Now, what are you bringing to the table? Do you have time to be hands-on? Any actual skills in maintenance, leasing, or management? Do you have money but no time? Sweat equity but no cash?
Be honest. Someone who’s handy and has extra time can take on a fixer-upper. But if you’re working a full-time job and don’t know a wrench from a socket, you should be looking at turnkeys or professionally managed units. Pick the property that matches your lifestyle—not just your budget.
Step 2: Evaluate Properties Like a Pro (Not Just on Zillow)
Once you know your criteria, it’s time to dig into listings that match it. And I mean really dig in. That means touring the property. Not just scrolling through photos. Not just driving by.
You need to know the condition, the rent roll, the vacancy history, and what value you could add. Can you raise rents? Cut expenses? Add a unit or split utilities? That’s where your return gets built.
And yes, run the numbers. Past income is just one piece. You’re forecasting future performance, and that means you factor in what you are going to do with this place. Don’t get lazy. And don’t fall in love with the deal until the math makes sense.
Step 3: Get It Under Contract—with the Right Contingencies
So you found a good one? Great. Get that contract signed—but make sure it protects you. Here are three big contingencies you absolutely need:
Inspection: Building, radon, pests—get all the inspections that make sense.
Financing: If your lender backs out, you should be able to back out too.
Lease Control: Make sure the seller can’t sign new leases or extend current ones without your written permission.
This last one is a big one. When you buy a rental in Pennsylvania, you’re also buying the leases. If the seller signs some low-rent lease right before closing, guess what? That’s your problem now. Lock it down.
Step 4: Dig In During Due Diligence
Due diligence is the step where you verify everything. Get those inspections done, and ask for every piece of tenant info you can think of: current leases, security deposits, who’s paid up and who’s behind, whether pets are allowed, and whether anyone’s hiding an unauthorized cousin in the basement.
Ask annoying questions. Get clarity. You’re not being a pain—you’re being a smart investor. You’re about to take on a building with existing residents and possibly years of deferred maintenance. Now is the time to get the full picture.
Step 5: Build Your Transition Plan (Before You Close)
Before you ever sit at the closing table, you should have a pretty good idea of what you’re going to do with this place on Day One.
Start with a list of the known issues—repairs, rule violations, rent adjustments, anything—and make a timeline. You’re the new boss now. You don’t get to just wing it.
Maybe utilities need to be split. Maybe rents are way under market. Maybe there’s one unit that’s a straight-up biohazard. Whatever it is, write it down and plan how you’re going to fix it. That’s how you create value.
Step 6: Close the Deal and Take Control
Closing day is exciting. You sign papers, you get the keys, you walk away a property owner. But don’t get drunk on the good vibes just yet—you’ve got stuff to do.
Make sure you:
Get security deposits (either on the settlement sheet or in a check)
Get the keys
Get every lease and tenant contact info
Then, introduce yourself to the tenants—right away. In writing and, if possible, in person. Let them know who you are, how to pay rent, how to request maintenance, and that you have their lease and deposit.
Keep the tone friendly but professional. You want to set the tone without starting a war. Let them know it’s a new chapter and you’re here to run the place well.
Final Thoughts
Buying rental property is a power move—but only if you do it right. This guide is the no-fluff, boots-on-the-ground structure I use with my own clients to help them buy smart and manage like pros.
I’m PM Jen, the—landlord educator, real estate investor, and your favorite straight-talker in the buy-and-hold game. Hold It With PM Jen exists to help real estate investors protect their assets, grow their cash flow, and stop spinning their wheels.
Our mission is simple: help you hold properties smarter, longer, and with way less bullshit. Whether you're new to real estate or knee-deep in it, I’m here to help you hold strong and grow big.