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What is an Investment property? According to PFg Finance Brokers, "Investment property: A property purchased for the sole purpose of earning a return on the investment, either in the form of rent or capital gain. The owner does not live in the property." Investment properties have many types. The investor has a main residence and uses the investment property to procure income.

An investment is purchased to make money. It is plain and simple. It is a business and anyone who doesn't run it as a business will not be successful. Be careful before purchasing an investment and check out all the details. Look carefully at what expenses will be incurred to place the property in good running order again.

Bad tenants alone can cause you great harm and thousands of dollars. There are insurance policies available, but sometimes the cost of the policy is the same thing you will pay for evicting of the tenant. Make sure you inspect the property for any existing damage and make a thorough accounting of what the property needs in terms of repairs. Investment properties can make you very rich if it is run properly and if you do a great deal of the work yourself.

Investment properties are general in two types of properties:

1. Residential investments, such as multi-family units and apartment buildings with limited units.
2. Commercial Real Estate such as: Retail, office and Industrial. These may include; malls, retail stores, office buildings,hotels, warehouses, farm land, garages and in certain states apartment buildings with very large apartment buildings.

Multi-family Units:

In some cases a new investor will buy a multi-family unit and occupy an apartment there. This is a new investor with hopes of "Glamour." As we know many people seek to be investors and never succeed, they are what we call "Sunday Investors" because they are only devoting one day a week to what should be a long live devotion. Before investing, study very hard about what you are getting involved in. One bad tenant can cause you to lose all your investment.

They have landlord insurance that covers you from bad tenants and legal fees. For a first time investor, this would be something that should be looked into. It covers your legal fees should you have to evict a bad tenant if you take the legal option. It will cover in case of fire, vandalism loss of income due to a fire, theft and more. It is something everyone should look at when starting their careers.

Multi-family units could be considered to be 2-4 units

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