Financing: Lenders generally lend up to 65 percent of the value of the property for investment purposes as they consider it a high risk one. If you hold equity in some concern , you can borrow from those sources to maximize your mortgage and financing as you are allowed to use mortgage interest paid on your investment property to reduce the amount of income and hence tax paid on your investment property.

Location: Investments close to major shopping, transportation, schools and amenities will attract prospective tenants. Tenants having one vehicle will require these types of amenities to be located close to the property. Higher rent is guaranteed in these locations.

Maintenance free investment: A high-rise condominium will allow you the most flexibility and least amount of effort and maintenance during the tenancy than other type of property. The second choice is in townhouse as most of the exterior maintenance, such as snow shoveling and lawn and garden maintenance will be taken care of by the condo corporation.

Appreciation of property: Different properties appreciate at different rates, all the factors being equal. If a high-rise condo has an appreciation of 10% in a year, a townhouse may appreciate 12 to 14% and a freehold property may increase 15% or further. This larger appreciation would be offset by the fact that more maintenance may be needed by you.

Expenses: You should consider all the expenses while buying and selling real estate investment property. These may include the principal and interest costs associated with the mortgage or financing on the property, the annual taxes and any monthly maintenance fees if the property is a condominium.

Tenants: You should not overlook the quality of tenant. A tenant who has the ability to pay the rent and a good history of paying the rent is always preferred. The second most important consideration is to make sure that your tenant will take care of the property for you in your absence.

Tenant Inquiry: You need to decide to inquire the type of tenant by yourself or use a real estate agent. It has been seen that the quality of the tenants are usually better if a real estate agent is employed.

Broadly speaking, your personal situation, financial ability and degree of involvement in your real estate investment property will ultimately decide the type of property that you will purchase.