When Buying Investment property there are things you need to consider.

First, consider what kind of expertise you bring to the table. For example, contractors can renovate a property; lawyers might write up leases.
“Everyone brings a certain amount of sweat equity,” picking the right professional for the job to help you can go along way then trying to save a few bucks thinking you can do it yourself.

One such example might be, those thinking about becoming landlords should do some soul searching before deciding whether they can handle the job, said Thomas Lucier, a Florida-based real estate investor and author of “The No-Nonsense Real Estate Investor’s Kit.” Nine out of 10 people aren’t suited for the business of managing tenants or the constant upkeep that the property will require.

And for an investor with a modestly sized piece of real estate, hiring a separate property manager can eat deeply into the bottom line, After all, income-producing real estate isn’t just an investment — it’s a small business.

You’ll want to tap the knowledge of a local real estate professional for help in finding and evaluating an investment property. Most people see the opportunity to exclude a realtor is a great way to save some money right off the top. Excluding a realtor can cost you big. They can tell you things, drawing upon thier experience that simply doing research won’t net you.

More to watch for
Overpaying for the property
Good research is the key to avoiding this mistake. “You make your profit when you buy, in most cases, because you buy below market value,” Lucier said. Some investors can profit by buying properties that need a little work. Properties that have positive cash flow without any required repairs may have other areas for improvement, which make mismanaged properties attractive investments.
Overlooking rules and regulations
Rules abound in the housing sector, from federal fair housing regulations to laws that spell out how lead paint is to be disclosed. The fines for noncompliance can be hefty, so do your homework. Also, be aware of a property’s building code issues.
Not screening for good tenants
Check tenants’ credit and their employment to make sure they can afford the monthly payments. Also, the longer a tenant stays the better. Every time a renter moves out and a new one moves in, it costs about two-and-a-half months’ worth of rent — “whether in marketing, down time and/or repairs to the property,” McLean said. The figure assumes that there isn’t severe damage to the premises.
Taking on too much, too soon
You may want to start small, perhaps with a duplex, to decide whether this type of investment works for you, Lucier said. Also, don’t go overboard on improvements. Major spending in areas that won’t provide a decent rate of return on investment cuts into your bottom line. Entering into a bad partnership is another. Really check out the background of the other before, not after.

Many investors partner with others to afford a purchase, but you’d better be comfortable with the arrangement, Fisher said. Sometimes a partnership teams up a novice with a real estate professional who has knowledge of the business. Especially for the newcomer in this scenario, review a real estate investor’s past performance before agreeing to work together.