Single family homes are one of the most viable options for the first time investor. They tend to maintain their pricing better over other types of properties. When you plan to sell a single family home, your pool of potential buyers includes both investors and people looking to buy a home for their own family.

Opportunities to make big, quick profits in residential real estate tend to come and go in cycles. When a local market is hot, families may find it possible to buy a house at an attractive price, fix it up, and watch its value rise in just a few years.

You can be successful in real estate investing by simply using investment guidelines when purchasing a personal residence. Even if you never buy another house, you can make money at least this once as a real estate investor.

When investing in real estate, it is highly desirable to achieve positive cash flow on a month-to-month basis. This is true even if you are counting on property value appreciation to supply the bulk of your desired return on investment. If you are losing money month-to-month, you may find all of your eventual profits eaten up by the monthly drain on your income. This will be particularly true if there is a downturn in property values for a few years.