Lately I've had a few people ask me about real estate as an investment.
One the one hand, it seems a sure thing - buy a property, rent it out, and wait for the value to appreciate while someone else pays your mortgage.
And in a perfect world this would make the ideal investment, however, we all know this isn't a perfect world so I have put together a few things I have learned over the years.

• Are you ready to be a landlord and superintendent? Are you prepared to take care of the property, find tenants, collect rent, fix a leaky faucet? Would you be comfortable asking, sometimes more than once, for the rent when not paid on time? Are you able to make quick repairs to any malfunctions that may occur on the property? Alternatively, you could hire a property management company to act on your behalf for a fee, usually a percentage of the rent.
  
• Are you planning to keep the property long-term, say 10 years or more? There has been some talk of a possible US-style crash in the Canadian housing market.
  While no one can know for sure, this becomes less of an issue if you plan to hold the property for the long-term, are able to carry it when not rented and therefore not forced to sell in a down market.
  
• Do you have a large enough down payment? As of April 19th, 2010, Canadian Finance Minister Jim Flaherty imposed a 20% down payment on all 'non-owner occupied residences'.
  Additionally, potential investors will need to qualify for a 5-year fixed mortgage, even if choosing to go with a non-fixed, shorter term.
  This means that you would have to qualify for a 5-year term at, say, 5%, when you are actually opting for the 1-year term at, say 2.
  5%.
  Those that would otherwise qualify for the shorter term may be declined at the higher rate.
  
• Have you checked out the rental market in that area (rental rates, vacancies, etc.
  )? You may be thinking of buying in an area which already has high vacancies in apartment buildings, condos, or other houses for rent.
  This may affect your ability to rent your property, or possibly reduce the amount you could rent it for, potentially making the investment unprofitable.
  
• Have you calculated the potential profits? Include expected rental income, mortgage payments, insurance, property and rental income taxes, utilities (if included), maintenance fees (if any), property management fees, and any repairs or upgrades.
  You should know this ahead of time because the market may not be able to bear the rental income you might need to make it a profitable venture.
  Do the math!
• Can you cover the mortgage and other expenses if you cannot rent the property or the tenants do not pay on time? This is a big one as it may force you to sell during a down market where you may sell for less than what you originally paid for the property.
  Be sure you have the cash flow from other sources to avoid getting into this situation.
  
• Keep emotion out of it! As women, we tend to purchase based on emotion, especially when it comes to real estate.
  However, investing is about risk versus reward, and real estate is no different.
  Be sure you are investing with the probability of making a profit, and not just because it is a place you fell in love with.
  

Obviously, the more research you do, and the better informed you are, the better chances for success.
Real estate can be a great investment - just ask Donald Trump! But be sure to look before you leap to reduce the likelihood of any potential obstacles to a profitable experience.