There are those who-say the key to investing in real estate is "location, location, location". Buy in the right location and the value will go up year after year. Or in other words appreciate in value.

That's ok for the kind of investor that doesn't mind tying his/her money up and just earning a rate of return over time.

I say the key to investing in real estate is by forcing appreciation. Buying below market;
Or buying with no money to seller and using creative financing.

1. Then refinancing to recoup your investment plus a profit that is tax free because it is borrowed money. Structuring it so that the rental income covers the monthly mortgage payment, taxes, and insurance. While still leaving a small positive cash flow.

2. Putting right back on the market and selling at or slightly below retail.

Now that is hundreds and sometimes thousands of percent rate of return. Take that same money and go do it again! I have done it and so can you. You'll find more details and examples of some of my personal deals in my book

  "The Realty of Real Estate Investing"