Real estate investments aren't just for big corporate or individuals with ultra deep pockets; you can buy a house and rent it even with a modest income. Before doing that, however, here are a few crucial things you should do:

Evaluate and Plan for Your Financial Goals

Evaluate your real estate investment just as you would with any other kind of business. Don't make the mistake of buying the first property you can afford with the hope that it will give you the returns you desire. You need to have a sound financial analysis that outlines how much you will spend (include everything from the purchase itself to taxes and upkeep) and how you intend to recoup the investment. A market analysis will help you know whether your objectives are realistic. This means you have to consider the recent trend in rental prices in your target neighborhood.

Don't Limit Your Search to Your Area

As a first time investor, and a small one, you may be tempted to limit your search to areas you are familiar with. This may make you concentrate on your local neighborhood or the areas around your place of work. However, the more properties you can view, the more likely you are to land a good deal. Therefore, cast your nets wide, even into areas you're not familiar with. After all, you can always use a property manager to oversee your investment if you do end up with a property far from home.

Strive to Buy the Most Affordable Property

There is a difference between looking for a house to live in and property to rent. Paying slightly over the market rate isn't so bad if the house ticks all your boxes and you can afford it. However, for investment, you really want to pay the lowest rate possible without compromising on things such as the structural soundness of the house. Getting a cheap house is one of the best ways of maximizing your investment. Therefore, use the following tips to find a bargain property:

• Look for foreclosures of auction properties
• If you can afford it, offer cash and the seller may accept a lower offer than other competing bids
• Look for motivated sellers
• Don't focus on decor; you can buy good house with bad decor at a lower price than the same house with good decor, and decor is something you can change cheaply
• Consider buying a fixer upper