People are worried about making their mortgage payments and where the housing market is going, so why even think about a second house as an investment?

As was mentioned in When to Buy a House, right now is the opportunity of a lifetime to buy real estate. Home prices are low, and one of the most important factors is that interest rates on mortgages are still very low. Interest rates will probably not go any lower than they are over the next 5-10 years.

There is a lot of money to be made in real estate, even though the news has scared the pants off of home-owners and investors alike. It's a matter of value-investing; when you know an asset has more value than its actual price, you buy it. You know that over time that investment is going to appreciate at a faster rate than other investments.

Before you go out looking for an investment property, make sure your own mortgage payments are under control. If payments are getting difficult, try to either sell your house and downsize or buy a new house and rent out the old one. To have that investment property, you must be comfortably paying for your home. If you want to learn more on personal finances check out the article Get Personal Finances In Order.

-> Investing in a property is great because you can increase your net worth, have someone else pay your mortgage payments (maybe even making a profit with their payments), and get a very good return when you decide to sell it (especially if you spruce the place up during your ownership).

What you need:

• Financial Planner/ CPA (accountant)- to discuss the tax advantages and advise on certain financial aspects of the deal (whether you want to form an LLC, S-corp, Partnership, etc.)
• Find a good real estate agent to find you a home with a lot of income and appreciation potential
• Have a plan of how you will find tenants (through your real estate broker, yourself with a sign or ads, or a property management company)
• Someone to handle small repairs around the property
• Keep track of all the money spent and all of the rent income (although your CPA will tell you that and help you)

Make sure your investment generates a positive cash flow!
-The NUMBER 1 Rule of Buying an Investment Property


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