Investments can be a great way to get ahead, and more and more people are jumping into the investment property buying market. However, this decision should not be taken lightly. If certain tricks of the trade are ignored, you may find yourself deeper in debt than before. There is a lot to be gained from buying property, whether it be flipping it or holding and renting it out. That being said, first-time investors should consider buying long as it is generally safer than a short-term Forex strategy.

First, take a look at the numbers. You want to make sure that the monthly rental income will cover all the expenses of the property, such as property taxes, insurance, financing, repairs and maintenance, and everything else. When looking at the numbers, remember to be conservative with any estimates you make and always include a 10% vacancy rate. If the property appears to be cash flow positive on a monthly basis, you may proceed with the due diligence process.

The second thing to consider when buying a property is the location. Location is everything, and the general rule of thumb is to buy rental properties in the best neighborhoods you can afford. The neighborhood will determine the type of tenant you can expect, as well as the amount of rent you can be charged. Another aspect of the neighborhood relates to the repair of the upper parts and the degree to which the necessary improvements are made. Avoid upgrading a property so much that it is so much better than the surrounding houses on the block. Keep home comfortable and easy to use. People will choose the neighborhood for a reason, so make sure the house is arranged to fit.

Another tip is when looking at potential homes to buy, look at the property for what it could be, rather than what it is. Spot the property’s potential and keep renovations to a reasonable level. Make sure the vision is reasonable for the work that needs to be done and the price of the materials needed. Remember that hiring professionals to do the work can help ensure things are done right the first time, saving money for things that may need fixing later. Hiring professionals should not be taken lightly either. Be sure to check all references to ensure that all of your contractors have the experience and qualifications to do the job properly and in full compliance with municipal codes.

Once all the hard work is done and the house is ready for a tenant, make sure a screening process is used. Run a credit check, call past owners and references, and verify income and employment. After all the sweat and money that went into the property, it’s only natural to want to keep the bums from destroying it.

The bottom line is that buying a property requires a fair amount of due diligence. Do the homework that goes into being a great real estate investor, and also read up on landlord and tenant rights. It is one of the most important steps to protect the investment. Study the eviction processes and understand all the laws to help keep your profits flowing for the long term.