5 Questions to ask yourself before investing in real-estate

1. Can I afford to do this? If you think investing is not hard work you are fooling yourself. You need the capital to sustain your projects. Don't put yourself in a position to fail. Have a cushion. Mr. Murphy is alive and well in real estate. Also, good credit is not necessary but it sure helps!

2. What are my long term goals? Cash flow? Appreciation? Tax shelter? You need to evaluate whether you are in a position ( I.E. young ) to take risks and not ruin chances of retirement?

3. How much time do I have available? Being a landlord is time consuming.

4. Is my personal beliefs and value system okay for real estate investing?  Evicting someone or filing foreclosure takes a certain amount of emotional detachment. This is not an endeavor for the kind hearted!

5. If I apply myself and pay my dues, How will I handle the life change?