13) Hope for the best, plan for the worst
When you own a property, it’s essential that you hope for the best but plan for the worst. Between expensive repairs and downturns in the market, you need to have a backup plan and money in savings to help cover life’s unexpected financial difficulties.

15 Tips for Breaking into Real Estate Investing

12) Learn from the experts
If you’re looking at getting started with real estate investing, reach out to the experts in your community. Join a real estate investing club and reach out to experts online. Invite a local broker to lunch and pick their brain for ideas on your tab. If you want to be successful with real estate investing, surround yourself with successful real estate investors.

Also, constantly read new real estate books, blogs, and eBooks about smart real estate investing strategies.

15 Tips for Breaking into Real Estate Investing

11) Buy a one bedroom apartment
There will always be people looking for a one bedroom apartment. College students, bachelors, widows, and single working class people all usually look for a one bedroom unit, since it’s the most affordable housing option. People don’t like to pay for more house than they need.

15 Tips for Breaking into Real Estate Investing

10) Buy local
Unless you plan on hiring a property manager, take the travel distance into consideration when looking for a real estate investment property. Sometimes you can go months without having to make repairs or visit the property, but other times you’ll be at the property every day that week. It’s a lot easier to manage a property that is close to home.

15 Tips for Breaking into Real Estate Investing

9) Know the neighborhood
Don’t buy a property in an area you’re not familiar with. Know the history of the neighborhood, and do your research. Find out how the schools rank, what the crime statistics are, and if there is any noise or air pollution that could affect your ability to rent out the property.

15 Tips for Breaking into Real Estate Investing

8) Pick moderately priced properties
Keep in mind that expensive homes in sought after areas like the ocean front usually have low cash flow returns. You’d be better off investing in a more moderately priced property with a higher cash return.

15 Tips for Breaking into Real Estate Investing

7) Buy in working class areas
Look for properties in working class areas where rental properties don’t last long on the market. For example, if you live in the city, look for a property that would appeal to young graduate students or young workers.

You’re more likely to have your property sit vacant, costing you thousands of dollars if you buy in a neighborhood typically occupied by homeowners. It’s not impossible to rent homes out in nicer neighborhoods, but it’s easier to fill a property with tenants where rental properties have a higher turnaround rate.

15 Tips for Breaking into Real Estate Investing

6) Overestimate your costs
Things perpetually break down and need repairs in properties, and the home repairs inevitably cost more than you think they will. If you’re looking into real estate investing, make sure you have a fairly sizable cash reserve to cover the expected and unexpected costs of property management and repair.

15 Tips for Breaking into Real Estate Investing

5) Don’t buy fixer uppers
Fixer uppers are tempting to purchase as a real estate investment because of their lower price point on the market. When looking for a rental property, though, unless you plan to live in the fixer upper first, it’s much more cost-effective simply to buy a solid, reliable home that needs little to no repairs.

15 Tips for Breaking into Real Estate Investing

4) Go from personal residence to rental
A great way to get your feet wet with real estate investments is to put your personal property up for rent. If you plan to live in a house for a few years before turning it into an investment property, you’ll be better equipped to handle repairs on the house. Living in a property and making changes along the way is a cost-effective, long-term solution for getting started in real estate. You’ll also get better interest rates on the property if it’s your primary residence when you buy it.

15 Tips for Breaking into Real Estate Investing