Whether or not a specific real estate investment is right for you depends on many factors, including your present stage of life; your current and expected income; your tax situation; your current and future financial obligations; your preferences regarding hands-on versus arm's length management; and your personal comfort level with risk.

Equally important are your investment objectives. Are you looking for a higher return than you are getting in other investments? Tax benefits? Leveraging your investment to create a strong equity position in a property? Cash flow? Turning your own income into an investment with long-term capital gains? Future appreciation in value? Additional retirement income?

It is also important to discuss these issues with your real estate advisor and tax advisor.