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You may be experienced in many other investment plans and programs, such as IRAs, and 401 Ks, but when it comes to selecting a good investment property, you do not have a clue as to how to go about it. It is not enough just to find the least expensive property. You also need to be aware of tax ramifications, vacancy rates and tax flow.

Here are some tips to get help you in selecting a good investment property:

1. Location – Choose a property in an area you are familiar with. You should know something about the neighborhood with all its advantages and disadvantages. A property in a location where it will be easy for you to check up on it, such on a route to and from your place of work makes it easy to keep an eye on everything, without being overly obvious about it.

2. Related to location is the general economic climate of the area. Look for such criteria as employment rates, schools, libraries and cultural activity. Is the property in like condition to its neighbors

3. In simple terms, do all the required due diligence on the property before making the decision that this is the property to begin your career in real estate investment.

4. Cash flow – You should be reasonably certain that the property will provide all three types of real estate investment income: direct revenue from rents and leases. Expected equity growth through property appreciation and debt pay down, and tax incentives and benefits from owning investment property.

5. Vacancy rates – you will want stable tenants who want to stay on the property because it meets their needs. If at all possible, a personal relation with tenants helps to create longevity. At least provide a friendly yet professional attitude when dealing with your tenants

6. Repairs, renovations and maintenance – It is helpful to select a property which is somewhat undervalued due to cosmetic repairs and minor renovation projects. Be sure to allow sufficient funds in your preliminary budget figures to enable you to complete necessary projects on your new property.

By using the above tips and criteria you will be successful in selecting a good investment property.

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