Many real estate investors recognize the opportunity in a downturn market more than in an upswing market.

Investing takes a different mindset than buying a personal home. When  buying a home, research shows people look for location as the number one priority. When purchasing for investment purposes, it is all about the numbers and knowing how to interpret them is critical.

It is best to consult a real estate investment specialist to obtain the most current information. Calculate an accurate income and expenses analysis based on rent roll and budget to determine a property's investment value.

As the economy changes, the real estate market swings. On the westcoast where I live, the last few years have demonstrated gains in the market to be in appreciation rather than cash flow. It is critical to understand the potential upside in today's market and take steps to increase your investment.