Buying an investment property is attractive to some because it offers a way to generate passive income.

However, Business Insider cautions that it's expensive to get started.

Also, your property will continue to cost you money over time.

The first step is to know whether you want to flip the house or rent it out.

The investment strategy you choose will have an effect on the type of property that you'll look to buy.

Run the numbers. Apply common rules of thumb like "The Rule of 72," "The 1% Rule," and "The 50% Rule."

Finally, make sure you're ready to take on such a large commitment.

Real estate investing is not for the faint-hearted or the disorganized!

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