Updated 23 October, 2022

Financial checklist

Steps and tips to guide you in your real estate investment.


It is necessary to consider some important elements before entering the world of real estate investment.

Get pre-approved for a mortgage loan.

It all depends on your income, liabilities, credit history and your monthly saving capacity. The rule of thumb is that the loan installments do not exceed 25% of your monthly income.

Set some goals

Having clarity on what's really important to you can make the decision process easier and help you avoid analysis paralysis by narrowing down the sea of options out there for investing. Some things to consider before embarking on your investment journey:


Set a monthly expenditure threshold that makes sense for you (and your pocket) and be true to it.

Risk tolerance/performance

This is not absolute, but sometimes lower yielding properties tend to be safer investments and higher yielding properties come with more risk. Both are options for you, as long as you define why you are investing and what you hope to achieve. Are you looking for more monthly cash flow, more stability, or something in between?


It is the increase in value of your investment property over time. If higher monthly cash flow isn't as important and you're more interested in building equity over time, you can focus on properties with higher appreciation potential. Knowing this will help you narrow down your choices.


The estimated rate of return on an investment property. The cap rate is calculated by dividing the net operating cash flow in the first year by the purchase price of the property.

Learn the investor's language

We are constantly learning. Whether you are a beginner or not, you must have already read or heard several terms that you may have never heard before. We want to make your life easier, that's why we've created the Capi Glossary.

Calculate the costs associated with your investment

From closing costs to unexpected vacancies to renovations and repairs, it's very likely that your operating costs will be higher than you initially expected. This doesn't mean you made a bad investment, but rather that your expectations about potential operating expenses may have been underestimated from the start. Some costs are easy to predict. These include basic operating expenses, closing costs and other assumptions stated in your financial papers, such as property taxes, management fees and insurance.

Other expenses are impossible to foresee and simply come along with the risks of owning a rental property. We suggest you keep a minimum contingency fund of about 1-2% of the purchase price.

The property you buy doesn't have to be in a place where you would live.

We know that it is difficult not to judge a building based on the appearance of its façade. It is one of the most common mistakes when choosing a property, especially if you are just starting out on this path. Remember that investing in a property does not mean you are choosing a place to live. Instead, ask yourself what kind of tenants would be interested in that place. Perhaps a group of students, a family looking for nearby schools, or maybe someone who needs to live near the airport; different needs for different people. Investing is not about meeting personal preferences, but whether the property will bring you the kind of return you are looking for.

The neighborhood is just as important as the construction.

Location is one of the most important factors to consider when investing.

  • Is it close to a future subway station?

  • How are the schools and what kind of services are in the area?

  • Does it have a diversified economy?

Find out what you should invest in today.

Build your wealth with real estate investments that fit your profile.

Start now