Before hitting the brakes on your down payment, make sure you:

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- Optimize your credit history.

- Get pre-approved with at least three lenders to better negotiate rates and terms.

- Make a clear list of "must-haves vs. nice-to-haves": location, bedrooms, lifestyle.

- Schedule a professional inspection and appraisal to negotiate if any defects are detected.

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Lifestyle Flexibility and Management

Active vs. passive income and time commitment.

• Short-term rentals demand active management due to frequent guest turnover and marketing efforts but offer flexibility for personal use of the property.
• Long-term leases require less day-to-day involvement, making them ideal for investors seeking passive income.
• Property management services can help balance workload for either model but come at an additional cost.

Which Option Suits Different Types of Investors?

Case examples for new investors, retirees, and portfolio diversifiers.

• New investors may prefer long-term leases for their stability and lower risk.
• Retirees seeking passive income might benefit from long-term rentals or diversified portfolios like Delaware Statutory Trusts (DSTs).
• Experienced investors looking for high returns or seasonal flexibility might opt for short-term rentals in tourist-heavy areas.