Real estate investment: Not for everyone

I'm getting a little scared about how it's suddenly becoming relatively easy to buy a condo again. Easy homewonership is part of what started the current economic decline and, while I think real estate is a good way to invest, I don't think it's for everyone. If you are thinking of buying a place as an investment, here are some things to consider first:

1. Can you stomach the risk? The price of investment is not just monetary, it's also the value of your time and knowledge. Check out Deal 4 Real Estate for a good summary of what plans you should make before you start the process.

2. How are you going to get the financing? There are costs associated with buying and selling that might not immeadiately occur to you, and you're going to want to make sure you recoup them when you sell to make a profit. Be realistic about what you can spend and how you are going to spend it. For more info, read Jeff Adams' article, which I found through Real Estate Investors Club

3. Are you going to renovate the property yourself or hire someone else to do it? Doing it yoursef may be more cost-effective, but also more time-consuming. Also, your choice might be different if you are actually going to live in the condo while you own it as an investment. Here's a personal account of having a professional do the work and one of the do-it-yourself route. Different strokes for different folks.