All investors know the risk of real estate investing such as choosing the wrong area or picking a wrong house. How do you protect yourself/Business?

Research I think is one key area - you really need to be able to justify the investment by a considered appreciation of the actual risks and benefits, in my opinion - ie, make an informed decision.

You need to do your research, as Brian mentioned. If possible, you also need to diversify, owning several different properties rather than just one.

You can check the local property appraiser sites for what sales have been and the price range of a neighborhood. Buy the lowest price in the area and you won't get hurt with that value. Talk to the neighbors too!
IRene

Don't be in a hurry to buy the wrong house. You will earn more money finding a great deal than you will ever earn from spending money to fix it up. If you do intend to fix it up, get some hard numbers on the repair costs, do all the work yourself, and be sure you know what will add value to the property. Adding square footage adds value. Adding a garage adds value. Adding more finished bedrooms or adding an additional bathroom adds value. Making the place prettier....may make it easier to sell, but adds little or no additional value.

That’s really good advice Dru. It’s important to have a cushion when owning a house because many things can go wrong. Plus, the price of contractors are atrocious in my area.

A commercial real estate agent told me in my area, since the contractors charge such outrageous prices because there is a shortage, it is actually cheaper to rent!

I would have to agree with the above posters in that the best thing you can do is research the area. We did that before we bought our house. And it was well worth it.

I think just do the research as much as you can.
I also use the personal finance software to keep track of my real estate investment. It will help you a lot with your calculation.
Currently I'm using personal finance software by ****** Group.
You could get it from http://www.******group.com/index.html

Just try to check it. It may suit you