As a prospective real estate investor, you can choose from two main approaches. One, holding a property until it increases in value, likely renting in in the meantime,  or two, the very different approach of "flipping" - reselling very soon after making some improvements that add value. If you plan on holding, keep these factors in mind when searching for the right investment property.

Consider looking for a house or apartment unit that is close to where you live, so inspecting the property will be simple. Choose a property where there is clear potential for future development, and you will benefit in the long run. For example, investment property goes up in value corresponding to its income...is there space to add storage facilities? Is there room to add washer and dryer units? Is the potential property currently a two unit, but you see a simple way to make a third or fourth unit? These types of improvments increase income, and in turn will raise the value of your investment property. If you have the choice of either buying a newly built or recently remodeled home or a less expensive house in the same neighborhood that needs a cosmetic makeover, buy the bargain property and upgrade it for a better long-term return on your investment.