The overused phrase, “location, location, location” is one of the oldest turning records in the real estate business. And I’ll apologize in advance for those who are simply tired of hearing it. But real estate investors do know how important location really is. In various communities across the country take it easythere are established, desirable neighborhoods that are known to provide long term value.

Historic perhaps but at minimum an area that has gained the status of “solid investment.” Quality homes in a sought-after area. In such neighborhoods real estate investors are always on the watch for a home as it becomes listed to try and make the first bid if the price is right.

Rarely though is the price “right” due simply to the reputation of the area. The demand will almost always be there and is a haven for long term investors. So what happens if an ideal property does hit the market? Maybe you’ve found out that a home owner is in the middle of a foreclosure and needs to sell super-fast? If you’ve been watching the neighborhood for years and know the area intimately, should you make an offer? After all, you know how excited you’ll be once you see that listing or discover a foreclosure filing. But hold on, don’t let your mood swings alter your math.

Regardless of the opportunity, whether it’s a tear down to build a brand new rental property or a home where very little is needed in terms of repair, keep your emotions in check and follow the same procedure as you would evaluating any other opportunity. You can make an offer, have it accepted then have an inspection period that allows you to perform your inspections and walk from the deal if it turns out to be sour. But whatever you do, don’t let the excitement of the “diamond in the rough” cloud your judgment.