No type of investment can offer a guaranteed profit or protect principal, historically real estate has been one of the safest assets for investors. Investing in real estate offers several benefits not associated with other types of investments. Some of these include leverage, tax advantages and increased control over the investment.
No investment is without some type of risk and real estate carries the risk of loss, lack of income, risk of vacancies and in a downturn in a real estate market you can lose equity in your investment.
You should always do your due diligence and research as you would with any type of investment. Below are some tools that can help you with your research.