We are closing out 2025. With Christmas being just around the corner here are "The 12 Days of Real Estate Investing". 12 tips/factors to keep in mind wherever you buy a property at.

Whether you’re buying your first rental or adding to your portfolio, these are 12 things I look at before buying any property. They’re not rocket science, but they’re the difference between a deal that is worth it's weight in gold and one that keeps you up at night.

🎄 Day 1: Location

The oldest saying in real estate still holds up — location drives everything. But “location” doesn’t only mean the city or ZIP code. It’s the micro pocket: the block, the street, the school district, or even which side of a main road you’re on. These things matter. When certain pockets shift within a few minutes you need to be educated on the specific location.

Part of it is preference and what kind of area you are wanting to target. I tend to lean toward areas that have the fundamentals, that means — good schools, jobs nearby, HWY access and easy access to amenities. You don’t need the hottest ZIP code to build equity or see wealth; you just need a neighborhood that’s stable and desirable enough that tenants want to stay put.

🎁 Day 2: Condition

Every investor has a different tolerance for projects. Some want move-in ready; others like value-add opportunities. Either way, understanding condition is more than a walk through. It's doing your proper due diligence. That means inspections, having bids, and budgeting worst case on borderline mechanicals.

What will the maintenance look like in year one? Are systems aging out? Are you inheriting someone else’s shortcuts? A property that looks “fine” today can quickly turn into $10,000 of repairs you didn’t budget for. Always assume I’ll spend more than the estimate — because I usually do.

🌟 Day 3: Neighbors

This one gets overlooked constantly. Even though a neighbor is "distant" who lives next door or across the street will directly affect your experience — and your tenants’ too.

A quiet, well-kept block makes everything easier: rent collection, turnover, even resale value. On the flip side, one neglected yard or noisy neighbor can drag down curb appeal fast. When I first view I drive the block, walk it if I can, and talk to a few residents (if they are outside). You can’t fix or change a bad neighbor, but you can avoid buying next to one.

🎄 Day 4: Trees

Sounds small or something you can kick the can down the road. Trees can be both beautiful and expensive. Mature trees add character and shade, but big roots and overhanging limbs can mean foundation cracks, roof damage, sewer damage and ongoing maintenance.

A quick glance at the canopy, the gutters, and the proximity to the house tells you a lot. I love curb appeal, but I also love knowing that one storm won’t lead to a insurance claim or fallen limbs.

🎁 Day 5: Crime

Crime starts with looking at the stats, heat map. Beyond that it is dependent on the street. Pay attention to lighting, activity after dark, and what residents say about the area. You can spot a block that’s improving versus one that’s sliding backward. You can update a property but you can’t overcome an unsafe block.

You can check local data, talk to property managers, and sometimes even call the local precinct. Don't skip this, crime can lead to higher holding costs and longer DOM.

🌟 Day 6: Financing

The right financing structure can make or break a deal. Beyond the rate, I think about flexibility: does this loan support my long-term plan? Can I refinance easily later?

Traditional conventional loans work for many, but creative financing — DSCR, portfolio, or seller-financed — can open doors, especially for investors. The key is matching the loan type to the property’s purpose. A short-term flip and a long-term hold should not have the same debt strategy.

🎄 Day 7: Exit Strategy

Before you buy a property you need to think about how you'll exit out of i. Will I hold it for ten years, refinance in two, pivot to MTR or sell after a value-add renovation? Having two or three exit paths gives you flexibility when the market shifts. Won't leave you high and dry.

If you have less ways to exit your risk increases, it turns more into a gamble than a investment.

🎁 Day 8: How Long It’s Been Listed

The number of days on market tells a story, gives you as picture. A listing that’s been sitting often means opportunity — or a red flag. The key is figuring out which one.

Sometimes, it’s simply overpriced or overlooked. Other times, there’s an underlying issue. I always check price history, inspection reports, and how long similar homes took to sell. A long listing period can be your best negotiation leverage — especially in slower months when sellers are motivated to close (like the Winter).

🌟 Day 9: Area Class

Every investor talks about A, B, and C-class areas, but few define what that actually means to them. I look at it through the lens of management and stability.

• A-Class: low turnover, high price points, minimal cash flow but long-term appreciation.
• B-Class: solid middle-ground; good balance of rent and reliability.
• C-Class: higher yields, more turnover, more active management.
• D or Below - Class: highest returns but can have the highest turnover, vacancy costs, and risk.

Understanding what property the one you are reviewing is key. If you are going into a D class deal expecting a B class result you will be disappointed. The class will also change the numbers, percentages you are assuming.

🎄 Day 10: Adequate Reserves

Cash flow looks great on paper until something breaks. Adequate reserves — real, liquid money set aside — are what keeps your investment journey afloat.

I would encourage you to plan for at least three to six months of expenses, including vacancy and maintenance. It’s not exciting, but it’s what keeps you out of panic mode when a furnace dies or a tenant moves unexpectedly. Real estate builds wealth slowly; reserves make sure it stays that way.

🎁 Day 11: What Will It Really Rent For?

Every investor has heard the phrase “trust but verify.” Nowhere does that matter more than in rent projections.

It’s easy to overestimate what a property will rent for, especially when you’re excited about the deal. I would get a rental estimate from your property management, see what is available for rent within the zip/block and factor in time of the year. I also factor in the condition of my property versus others. A $1,600 comp doesn’t help much if your place needs $10K in updates to match it.

Understanding true market rent isn’t just about cash flow — it’s about setting expectations for the kind of tenant you’ll attract and how stable that income will be.

🌟 Day 12: Team in Place

Real estate looks like a solo sport from the outside, but it’s absolutely a team game.

Your lender, agent, contractor, property manager, and accountant all shape your outcomes. The best investors I know don’t try to do everything alone — they build a team they trust and stick with them.

Having the right people in place is like having your “12th day of Christmas” — the gift that keeps on giving. When you’ve got the right support system, the entire process becomes smoother, faster, and scalable.

🎁 Wrapping It All Up

Buying an investment property isn’t just about spotting a deal — it’s about understanding the fundamentals behind it. These 12 factors might sound simple, but they cover facets of why a deal can sink or swim.

As we head into the new year, take a few minutes to run through this list on your next opportunity. Whether you’re buying your first rental or scaling your portfolio, the fundamentals don’t change — only the address.

If you ever want to talk through a deal, or just want another set of eyes on a property you’re evaluating, I’m always happy to share what I’m seeing out there. No pressure, just perspective.

I am your go to Kansas City agent. Merry Christmas!!