Goal setting when buying investment property is a very important step and the first place you should start.

First determine what you are hoping to get out of investing in real estate. This knowledge will help guide you in knowing what kind of property you want to invest in. Is your objective to increase cash available, grow long term investments and build equity, or both? Is your intent to invest money for a long or short time period? What is your tolerance for risk and what amount of time do you possess?

Goal Setting When Buying Investment Property - Your Five Year Plan

1. What is your five-year plan? Be specific. How much money do you want to be earning in five years from your job? How much income do you want to make from your rental properties? How many rental properties will you have? Answer these questions with numbers.

2. In the next year, what can you do to reach each of the above items (again, be precise and attempt to make the items measurable)?

3. In the next six months, what can you do to get closer to your 12 month objectives?

4. What needs to get done in the next 30 days to get closer to your 6 and 12 month objectives?

5. Frequently, you should go over these goals. We just do it quarterly now although we used to do it monthly. Determine what will work for you and stay with it.

Do some thinking about how the goals you set will affect your real estate investments. If you have not yet set your real estate investing goals, you cannot begin to know what kind of property you are looking for.

Before you begin your property search, be sure to ask yourself these questions:

-Am I going to live in one of these rental units or do I plan on being an absentee landlord?

-Can you take advantage of RRSP’s as part of the first time Home Buyer’s Plan or will you be using some savings for the purchase?

-What is the amount of mortgage you need?

-What is your tolerance for risk?

-What amount of extra time do you have to devote to the residence?

-Are you aware of someone who has construction and renovation experience or is that a skill you have?

-Will you bring on a property manager or take care of it yourself?

-If you need to, are you able to pay for the property each month?

Weigh each of your answers, because each has an effect on the property you select. 
By goal setting when buying investment properties you will much more prepared and make better choices.