With the real estate status we have today, there is a shortage of properties or low inventory available and there are many buyers willing to invest. Houses that require significant repair and upgrade but are no located in hot spots may be wise investments, but there are bidding wars going on among those who recognize their potential. So whether you are considering buying a home and sell it a few years from now, or a multi-unit complex for rental, you need to consider important factors before venturing in a real estate investment.


1.            You need to plan putting a big down payment. Since more mortgage insurance is not available for real estate investment properties, you need to prepare a twenty percent down payment in order to get traditional financing. Putting higher down payment can give you a better rate.


2.            Be handy in managing and fixing things. It is important to have extra money for handling unexpected repairs. Getting a landlord involves a lot of challenges, so if you have the time to manage the property, then much better.


3.            You have to keep in mind that your income will vary. If you are ready to accept the risks of real estate investments, you have to ensure that everything on the property is working or functioning as intended to prevent tenants from shopping around to find another place for rent just because of inefficiency or things neglected like broken pipelines or leaks on the ceilings.


4.            It is crucial to consider property taxes. It is because property taxes increase depending on the type of the property and the length of time it is kept, most especially if previous owners had homestead exemption in placed.


5.            Take it slow but sure. Beware of investing on a larger property at this site if you're barely new in dealing with real estate investments.  Try to look for properties requiring modest repairs first, and once you acquired the necessary skills in managing a real estate property, then you can proceed with a larger scale improvement.


6. Be wise in choosing your partners. It is important that you have clear terms and conditions or agreement of your partnership, and you should be comfortable and open to your business partner as well.If you want to learn more about real estate, you can visit



7. It is a good idea considering real estate investment trusts. REITs refer to private or public held companies using investors' money to purchase and lease real estate.