My sister called me up about a month ago because she and her husband are thinking about purchasing an investment property to rent out. She lives in the Northern Virginia area which is a great place to invest in real estate. Forbes states that FairFax and Loudoun County VA, top the list of American’s richest counties which they based on median household income data from the 2006 census. You can check out Forbes top picks here.

Also in VA, my sister was telling me about these new immigration laws being passed where law makers are cracking down on illegal immigrants in the Northern VA area. Now the housing market is not only being affected by the mortgage and real estate crisis but that area is being affected by the amount of illegal immigrants being deported and taken from their homes. To learn more about this topic, read an article in the WorldNetDaily. Real estate that was either owned by a friend or family member that used the financial support of an illegal immigrant or real estate investors who were renting to that market of people but now have vacant properties which they cannot afford are finding themselves in foreclosure. So, do I think it’s a great time for her to invest in an investment property, ABSOLUTELY. Now is the time folks. If you can afford an investment property at this juncture in your life, go for it.

Here is her situation, does this sound like you?
A) She can afford an investment property
B) It’s a buyers market so there is a lot to choose from given the real estate “market” conditions (as explained above)
C) She already has a tenant lined up!

Okay, so maybe “C” does not sound like you but, given those 3 circumstances make it a win-win situation for her. And if you have 2 out of the 3, it’s still not a bad idea.

Now onto the steps of choosing the right place. That’s when I get hit with the other questions. Such as, How much should I offer? Would you offer asking price? My answer to those questions are all relative to the condition of the real estate, neighborhood, fair market value (FMV) of home, owner’s expenses to maintain on property and the amount of rent she can receive from tenants. Those are the basic factors I’m looking at but there are some investors who do a very intense calculation before purchasing an investment property to hold. Of course, how much you offer also depends on how much you can afford. If you know the information I’ve just stated, it can give you a good idea of the home you want and how much you will offer.