A borrower should conduct a significant amount of research, in terms of online advertisements and speaking to brokers. Securing the appropriate loan is as important as finding the best investment real estate since there are a plethora of offers available. You can figure your cash-on-cash return based on how much of your own money you put into the deal. Just divide the cash flow by your investment. Due diligence means taking the time to research and verify the benefits and risks related to the investment. Purchasing a property investment can be a lucrative business option and many consider it as an integral part of a diversified portfolio.