You can find amazing deals in locations that are transitioning or regenerating and so obtain the highest returns. But get to know the area well beforehand. Invest in an area and niche in which you are familiar with.

Drive around and check out the property during the day, weekends, and nights to see what the neighbourhood is like. In some cases this may be more important than the condition of the property.

Real estate investment works on creating cash flow. Your income must always exceed your outgoing expenses.

The traditional approach is to buy a property with some cash at hand for a down payment and then hold on to that property long-term.

Go after the least attractive homes in the best neighbourhoods. That’s where the money is. But do your maths first. How much will the home be worth once you’ve invested in fixes and repairs? Get an experienced contractor and architect to carry out an on-site inspection of the property.

Estimate the costs and would-be value. Do not bite off more than you can chew. Success comes when you can solve problems and get the figures right. Choose the right passive rental property income to balance out any risk. Look for properties with high rental demand, even during downturns.

Look for either vacant homes or homes that are behind on their mortgages. Find distressed owners who sell for personal reasons. This could be for a divorce settlement or a need to liquidate that property to have some cash flow that might be urgently needed. A property in distress is the best investment you can make.

This is the most common option for making money in real estate. People always need a place to live.

When investing in long-term residential rentals, look for a good area with a lot of apartment buildings, as there will be more demand since tenants will always be looking for another place to move to. You will be able to meet that demand and rent out your property with fewer advertising costs.

Any space is appropriate for such rentals: a single home, an apartment, or even a room in a large property. You set the terms, the price, the length of stay and best of all you can make use of the property when it is not booked. The options are endless and the terms are completely up to you.

Post your property on sites like Airbnb VRBO, and HomeAway to find short-term tenants for vacation or business stays. Evaluate your potential rental property and compare rental rates.

Your property can be constantly booked and the monthly revenue is by far more than that of a long-term lease.

Always ensure that the zoning laws and boundaries in the area allow you to rent out your property to guests short term.

Have enough funds as unexpected expenses always occur. This will also help you weather any tough economic times.

An increasing number of students live off-campus, and pay a fair amount for convenient, quality rentals near their campus, public transit and amenities. Find a rental near a campus which is affordable for a student’s budget. They will rent for the four years they are at university, and their parents will usually guarantee their rent. An increased demand means increased rents, which is a great perk.

When looking for the right rental property to purchase, you can opt for a lower rate of return by investing in a turnkey property. These properties are furnished and ready to move into. They are ideal for short-term rentals and can be rented out seasonally. The initial costs are higher but then so is the cash flow. This is because all utilities and furniture are in place. The advantage of this option is that you can use the property yourself as and when you please.

Commercial real estate is one of the most profitable areas and worth serious consideration. People need office and retail space to run their businesses. These properties are bread and butter in the real estate niche.

Such properties produce higher returns much faster from the start. You can also add value to the property and increase the income through renovations and upgrades. Eventually, you can find ways to expand in shopping centres and large scale buildings.

Equally important is the fact that such tenants are looking for long-term rentals as is the case with a retailer, or a major retail chain. This will provide you with years of steady rent payments and well-structured rental leases.

Using a mortgage for your first rental property, you should weigh up all your financing options. Should you choose a 15 or 30-year mortgage, a fixed or adjustable rate? Compare rates and offers to find what suits you best.

With regards to commercial loans, you will have to have a persuasive business plan, strong credit ratings, and a detailed plan showing everything, from who does the repair work and maintenance, to how you will make this property cash flow-positive.

The right mortgage will keep your costs low and reduce insecurity. Since you will be paying for the extra expenses, it’s always wise to consult a professional.

Be familiar with the specific rent guidelines in the municipality where you are purchasing. Knowing up front how much you can charge for rent helps you determine your investment. Join a local landlord association and get advice on what to do and what to avoid.

Build a marketing plan. A vacant rental property can quickly use up your cash flow. It’s crucial to find quality tenants as soon as possible. The best places to advertise your rental properties are through major online real estate marketplaces.

Screen prospective tenants thoroughly. Have a lease with all the details to avoid possible arguments and confusion. The lease must include due date of payments and lease termination fees. It should also state what the tenant is obliged to do and who pays what maintenance expenses.