The best place to find really good and profitable residential real estate investments is in foreclosures. Luckily with the increased rate you now have plenty to choose from and banks that are willing to take unbelievably low amounts of money for those properties. While some foreclosures will be total disasters and must be avoided, you can find some really good residential real estate that is very cheap if you are willing to look.
The first thing you want to make sure of is that before you go forward you have multiple options. If you find a property you really like and want to invest in, take some time to find a second before purchasing the first. Always have a back up as you never know what the inspection, appraisal, or closing process will bring to light. This way you always be ahead of the curve for getting started on another property. If the first one turns out great then you do not have to worry about the second and everything is peaches and cream.
Second, before making any offer to the bank make sure that you have done all the needed research. Once you put in a bid you are going to be committed to that price and any dealings with the bank will go from there. In general it is very tough if you have to go back to the bank with a second lower price based on later discoveries, so try to find out as much as you can about the property before hand.
There are plenty of free websites out there that can help you with this research so take advantage of whatever you can. Also, if you have friends who are realtors they can help you quite a bit. Getting acquainted with appraisers and home inspectors if you intend to do this multiple times is also a very good idea.
The most important thing to remember is to always go with your gut. If you have a bad feeling about a residential real estate property do not be afraid and prepared to walk away. Many times these initial instincts will prove to be correct so listen to what your heart tells you.
