0% intro APR for 15 months on purchases and b… Quicksilver Rewards Calculators How we make money
VOATLAS
How to Buy an Investment Property

How to · Property

How to Buy an Investment Property

A straightforward approach to managing the costs of a $240,000 out-of-state rental property during the quieter autumn months.

VoAtlas editorial Updated · 3 min read
Typical price $240,000 before closing costs
Deposit at 5% $12,000 what you need saved

How we got that: 5% of $240,000. Plenty of loans go lower — 3% on a conventional, 3.5% on an FHA, nothing down on a VA — and plenty of buyers put more in to shrink the monthly payment. Closing costs land on top, usually another 2–5%. Your actual rate and payment depend on the lender, your credit and the day you lock.

You want a place where the street is quiet and the commute is manageable. Maybe it is a two-bedroom unit near a college or a starter home for a young family. These properties bring in steady rent, but you need to know who is living there before you sign anything.

The move here is to wait until autumn. Investors thin out then, and sellers get a bit more realistic about their pricing. You need to account for your down payment, property taxes, insurance, and the closing costs that usually run about 3% to 5% of the total price.

That 0% intro APR period is a strict deadline, not free money. If you have a remaining balance after those 15 months, you will start paying interest on the leftover amount at the regular rate, which can get expensive fast.

The steps

  1. 01

    Run your local rent numbers

    Check exactly what similar units rent for on the same street. Do not guess. If the rent does not cover your mortgage, insurance, and taxes with room to spare for repairs, the deal is not worth your time.

  2. 02

    Set aside your cash reserves

    You need a down payment plus extra for closing costs. Have your maintenance fund ready before you buy. Never spend your last dollar on the purchase.

  3. 03

    Use the Discover it® Cash Back card

    You can use this card for some initial move-in expenses, like new appliances or minor repairs. It offers 0% intro APR for 15 months on purchases and balance transfers. This gives you a window to manage cash flow without adding interest costs immediately.

  4. 04

    Track the 15-month window

    Since you have 15 months of 0% interest, map out your payments to clear the balance before the clock runs out. If you put $16,000.00 toward your expenses each month, you will be done right as the intro period ends.

  5. 05

    Screen your tenants strictly

    An empty unit is better than a bad tenant. Run credit checks and verify employment for every adult living in the home. It is your biggest asset, so protect it.

  6. 06

    Check the card terms before you commit

    Every figure we publish for the Discover it® Cash Back carries the date a person verified it against Discover and a link to where they checked. Intro windows and APRs change without notice, so confirm the current terms before applying.

    See Discover it® Cash Back terms →

Common questions

Should I buy a property in a different state?

Only if you have a local contact you trust. You need someone to handle emergencies or manage the property if you cannot be there yourself.

How much should I keep for repairs?

Plan to set aside at least 1% of the property value every year. Things break, and you need the cash on hand to fix them quickly so you do not lose rent.

What happens if I cannot rent it out?

You must be able to cover the mortgage and taxes on your own. If you rely entirely on rent to make the payment, you are one bad month away from trouble.

Why is autumn better for buying?

Most families want to move during the summer before the school year starts. By autumn, there is less competition from other buyers, which gives you more room to negotiate.