There is seemingly an infinite number of things to consider when acquiring an investment property. Hopefully, this list will insulate you from potential problems while making your
buying experience more profitable.

Location (My rising tide theory): Everyone has read that the three most important aspects of real estate are location, location and location. Great advice, but what does it mean? Well, it does not mean to avoid investing in all properties that are in a "bad" location. If this were true there would be no slumlords. Being a slumlord may not be your way of doing business, but many a shrewd investor has made his fortune "on the wrong side of the tracks." It does mean that buying in a "good" location will help to offset other mistakes ... like paying too much for the property.

However, one of my favorite expressions is, "All boats rise on an incoming tide." To me this means that if my clients purchase property in areas likely to appreciate, locations which have strong up-side potential, they will be more likely to prosper.

Condition (Cute sells!): The property you buy need not be in great condition but the property you sell should be. One proven way to buy low and sell high is to do the work that others are unwilling to do. It's the whole theory behind the "fixer". The point here, however, is just not to improve a property's condition ... improve its cute-factor. Many a cheap present has been gratefully accepted within an alluring box wrapped in fine paper with a beautiful bow.

Maintenance (It's like a teenager's appetite): Maintenance is the cost to maintain a property, not to improve it, just to keep it in a static

condition. There is little that can chew up cash flow as quickly as the constant drain from maintenance. Look for property that will not need continual attention.

Jobs (Even good tenants need a job to pay the rent.): Invest only in an area with a broad economic base.

Motivation: If possible, learn why the seller is selling the property. Upon occasion, this is a real education. The best way, when the occasion arises, is to ask the seller.

Comparable Sales (Know your competition.): A basic part of your research is to have an understanding of just what other people have paid for similar properties in the area. Real estate is a neighborhood business. Know the hood before you are part of it. This goes for rents, too. Learn what tenants are paying in the area.

Professionals (The cheapest education is what you pay for in advance.): Have an uninterested, third party, professional inspect the physical aspects of the property - no brothers-in-law, not yours and not your agents. Consult a real estate attorney, a real estate oriented CPA and a Qualified Intermediary, if applicable. (Note the stress on real estate orientation for the professionals you consult. All attorneys and all CPAs do not know real estate and their use can definitely be counter productive.) Actually, this is good advice for Realtors, too. When buying or selling investment property use the services of a Realtor who spends every waking hour thinking about real estate investments. Would you have your favorite auto mechanic pull your tooth?