Today's Market is bringing out many novice investors wowed byt the low prices.  Prices in Chandler, Gilbert, & Queen Creek have dropped by about 52% since the peak in 2006.  Many novice investors will look at the price and think, I can just buy this at such a great price and rent it, not considering the repairs that the home may need or vacancie rates.

Here are some of the key rules for noivce investors:  These rules will serve you well when followed.

Number one: Due diligence is never optional. You've got to understand the local market - and that includes not just where prices are headed, but specific market demand for rental real estate in this price segment, and even the local government's plans for the area where you're thinking of buying. How much needs to be spent to make the property rentalable, what is the area's vacancy rate.

Number two: Buy with a written plan -  just like the large professional investors use, with an entry strategy and an exit strategy. How long are you going to hold onto the property, how much will it earn you during your period of holding?

And what's the endgame - a sale to another investor? 1031 Exchange into a larger property, two smaller properties,etc? Conversion to condos? Tear it down and build something that's closer to the underlying real estate's highest and best use?  When it is written dowm you can analyze it better.

Number three: Calculate the actual costs of the property in advance - not just the bargain basement price, but how much you'll need to fix it and feed it - the management costs, rental commissions, vacancy costs, taxes, to name just a few.

Not know these things up front, will cause frustation, financial strain, and other surprises. And there are no good surprises in real estate.  For information on buying investment property, and our property management information and rate, please call today at 480-355-8546 or visit me at http://www.locatearizonahomes.com/resources-landlords.asp