Buying investment property

In today's real estate market, everyone is looking for a great deal. It's a buyers market, there are hundreds of foreclosures, we have been told, so why can't we seem to find that deal? We have all heard, and some have seen, the late night cable shows offering to sell us for "Only three easy installment of $19.95 and you can have the secrets that only the wealthy know! Make thousands of dollars in your first week of business buying and selling real estate." I could go on and on about the ridiculous claims, but we have all seen them.
When looking for a REAL deal, take some time and list your goals. Ask yourself questions like, 1.)"Do I want to live in an investment property, or do I want that quick flip?" (Flip investments are a totally different animal altogether so do not confuse this post with Flips. We will talk about those at a later date.)
This is extremely important for you to decide. If you can live in the investment property, you will have some advantages that others might not. If you can live there while you are working on it, that's even better! It spreads your risk out and makes your return more solid. (Yes, it will take longer to realize the return, but we all know that the tortoise beat the hare in the race.)
2.)What is my time frame for my return on investment?
If you are working a cash deal, and by the way, I think that is the way to go on investment property, if you had to wait a little bit, no one would be breathing down your neck for payment of a mortgage. If you are working on a line of credit and have other arrangements made with a lender, then you have to make sure that when you close on the property, that you have done all your homework and are ready to move as fast as possible. You do not want to purchase a property in April and have to pay for the heat in the winter time. Ideally, if you could purchase something at the end of January, work on it for three months, then during April or the first of May list it with an agent that you trust. As always, having a good agent on your side can benefit you in both knowing about the deals coming up, and then selling them when you are done.
3.)How much work do I want to do myself, or do I want to hire it all done?
There are no free lunches in this world. You must work for everything you get. When you are starting out, this is the most important thing you can remember. When you are independently wealthy, you should still remember it.
4.)How much money am I willing to spend?
Communicating with your realtor will help them determine what properties that come available will work best for you. There are lots of foreclosures that come available and only last for a few days or even hours! Know how much you are willing to spend and then be willing to walk away. There has never been a deal so great that it will never come around again. With that being said, there are deals that come and go and people kick themselves for years for allowing it to pass. You don't want to be afraid of pulling the trigger on a deal, but conversely, do not be afraid to walk away. Your realtor, if they are any good at all, can advise you when to ..."hold 'em and when to fold 'em"