Rental investing is back.

A new president will bring a new market . . . change fosters change.

Speaking with several appraisers this past week, the biggest change in the real estate market may indicate that investment in rental properties may begin to be cost-effective. For so long, the purchase price, amount financed and the cash flow on rental income could not justify an investment purchase of rental property.

Now we are close: Investors may be able to break even buying a property with a 25 percent to 30 percent down payment, financing the balance at the current low interest rates and renting at a competitive rate. This is a sign that more investors, conservative investors, may begin to enter the market.

Investors in today's market are conservative and financially sound. Many people are pulling out of the stock market and looking at real estate as the diversification needed in their portfolio. If you are just beginning to look at real estate as an investment, some guidelines for landlords are necessary.

--- Conservative should be the key word. "Cautious and careful" should be the investor motto.

--- Select a property for its location as land appreciates and buildings depreciate. Scarcity creates demand and demand brings a higher chance of future market appreciation. The property you select should be rentable.

In keeping with a conservative approach, an investor should buy properties that he or she can afford to have vacant for at least one year.

--- Properties that are in an excellent location with a good floor plan, freshly painted in neutral colors, and meticulous in condition and cleanliness will rent well and within a reasonable period of time.

--- The rent you receive is second to the quality of your tenant. That is, having a tenant who pays the rent on time and maintains the property should be a priority for an investor. Not all good tenants have excellent credit, but a good tenant can honestly justify a credit problem caused by health issues or job loss.

--- Long-term tenants bring consistent income. Tenants who report problems with the property are helpful to a landlord who takes pride in his/her property.

--- Maintaining your investment in rental property will bring a return when you sell. A real estate investor should look at the investment as long term.

In my opinion, a five-year minimum on holding the investment property is necessary for the return on the investment. Tax advantages are still a part of being a landlord. Your accountant can review with you the depreciation and appropriate write-offs on your taxes. A 1031 or Starker exchange are still viable alternatives when selling in the future and deferring taxes on the return of your investment. A good Realtor can assist you with the guidelines.