Once you feel that you located an investment property worth pursuing, prudent real estate investing procedure also require you to find out several things about the property in addition to the analysis of income and expenses. Of course, the bottom line, i.e. cash flow and profitability, are the most essential, but these eight items can impact an income property’s cash flow and profitability.

1. Age of the Property

Older rental property can mean repairs or appliance replacement expenses may be expected in the near future and should be taken into consideration in the price you are willing to pay for the property.

2. Rental History

Has the property enjoyed a high occupancy level over the past few years? What happened to its occupancy or rent level during the period of economic slowdown?

3. Neighborhood

What kind of properties surround the building you are considering acquiring? Is the rental income property you want to purchase the only well-kept building on the street? Remember, renting apartments in deteriorating areas can be difficult and often lead to climbing vacancies.

4. Building Condition

You must never purchase real estate investment property without considering the physical condition of the building. Your contract to purchase must give you the option of having a roof and termite inspection made by a licensed inspector. Be sure to do a walkthrough of all the apartments. Are they well maintained? This will not only tell you what repairs you may be facing, but will also give you an indication of the type of tenants that are renting the apartments.

5. Lot and Building Sizes

Along with the present zoning on the property, the lot and building size of the property gives you an indication as to whether or not the property is being put to highest and best use. Can you add additional rental units on the property at some future date?

6. Amenities

Amenities affect how your property can compete with other rentals in the area. Bear in mind, however, that major amenities such as tennis courts and swimming pools generally cannot be justified on smaller complexes.

7. Parking

Be sure that the investment property provides at least one parking space for each apartment plus a proportionate number of guest parking spaces (one and one-half to two parking spaces per unit are desirable). Check local zoning codes. If the apartment doesn’t provide adequate parking, you better reconsider your purchase.

8. Other

Some of the other considerations include sewers, property access, proximity to bus stops and shopping. Is the property serviced by sewers that are connected and are all assessments paid for? Can the property be accessed easily; does it have easy access to freeways and major highways and byways? Are there adequate shopping facilities nearby?

As stated, these basic details concerning the property you want to purchase will add to your evaluation of the investment. There are not directly related to the income and operating expenses that contribute to the bottom line, but they will influence the bottom line, and therefore real estate investors would be wise to consider them when purchasing any investment real estate.

Condos have become a much-needed form of housing for millions of mostly retirement-age American citizens. Why? Because these people no longer need to live in a large, virtually empty home, requiring a lot of upkeep and expenses, and condos become a rational answer to their problems. Maintenance requirements are limited to within the four walls of their apartment, and major exterior maintenance is paid for out of the monthly maintenance fee paid by each apartment owner.

To take advantage of this emerging market, many real estate investors are simply converting existing apartment buildings to condos. When converted properly, apartments converted to condos can give an investor a substantial profit on his invested capital in a very short period and thus provide an excellent real estate investing opportunity.

Okay, but hold on. Before you think about converting an apartment building to condominiums, there are some things you need to know about converting.

Foremost, you must assess and understand your real estate market. You want to be sure that there will be a demand for your condominiums, and you want to know at what size and resale price.

Secondly, you must determine how much it will cost for the conversion, considering such things as interim financing costs, renovation costs, and promotional costs.

Yes, condo conversations can provide you with a very profitable real estate investing opportunity. Just be cautious. Do your homework and run the numbers. It’s like the proverbial saying goes, “measure twice and cut once.”

Monday on “Your World w/Neil Cavuto” (Fox News, Oct 6, 2008) Donald Trump announced that he is not slowing down his real estate investing activity during our slumping economy. On the contrary, Trump made it clear there are good real estate opportunities to be had at “fire sale” prices that real estate investors should capture.

So how are you reacting to this financial chaos? Are you investing, or has this uncertain financial market got you frozen in your tracks? If you are frozen, you might be missing one of the best opportunities to invest in real estate that we’ve had in a long time. Consider this:

1. There are numerous “fire sale” deals available for real estate property throughout the United States
2. Interest rates are still generally favorable
3. Our economy will survive, so it’s just a matter of time before your investment in real estate is worth more than you pay for it by virtue of a greater demand for it

This is not the time to bury your money under a mattress. Yes, it’s comforting to be able to put your hands on it quickly, and perhaps like Donald Duck’s eccentric Uncle Scrooge, be able to roll around in it, but it will cost you big time. Inflation alone will devalue your money; your money won’t be worth as much next year as this year.

Here’s a better suggestion.

First, develop an investing plan. Then locate a real estate professional in your area that understands income-producing property and has a track record for investment property sales and build a relationship. Let him or her know what your investment objectives are and have them start looking for profitable investment opportunities.

If you know enough about the nuances of real estate investing and have a good understanding of your local real estate market, great. Then start kicking the bushes yourself.

The point is not to neglect doing something. This slumping financial market is unnerving, certainly, but our economy will survive and bounce back and what you invest into today will make you money tomorrow. If you have the financial means to invest in real estate without jeopardizing your welfare, then this is not the time to run for cover and hide. Instead, follow in the tracks of the Donald, during this slumping economy, look for, pursue, and seize investment opportunities with abandon.