Have you ever heard the adage by Warren Buffett and Charlie Munger: “When people are greedy, be afraid. When people are afraid, be greedy?” There is probably no scarier investment vehicle today than real estate.

But a depressed market, high inventory and a tight credit market for prospective homeowners could provide a recipe for real estate investing success. Ready to dive into the real estate market by investing in a rental property? The opportunities are ripe, but don’t make rookie mistakes. Follow these tips and you’ll be on your way to ensuring a successful deal.

(1) Don’t trust the owner’s numbers. Your due diligence should involve consulting with unbiased sources to determine expenses, maintenance fees, leasing fees, and other costs associated with a given property. Check the data provided by the broker or seller. Talk to another apartment owner. Check public records. Confirm all the numbers so you know exactly what kind of expenses to include in the deal. After all, it is sad and cynical, but it is very easy to hide numbers in other entities. It happens every day and I learned that the hard way. Learn from my mistake. Remember, the owner has a vested interest in showing you better profit numbers. If an owner’s number seems too high or too low, ask questions because he will show that he knows what he is doing.

(2) Don’t underestimate property taxes. Consider the correct amount of property tax, not what the current owner had been paying, especially if he is a long-term owner. Your property taxes will be based on the sale price. Check with the county auditor for exact numbers. Once the property is transferred to you, your taxes will always be readjusted if you are paying more than the county tax assessment on your property. It never goes down unless you appeal, but going up is automatic. Make sure a $10,000 tax bill doesn’t skyrocket to $15,000 because that’s a loss of more than $50,000 in value.

(3) Pay special attention to expensive items. Your heating system and roof can be your biggest headaches and most expensive repairs. Know what you are getting into. Have them inspected by HVAC and roofing specialists, respectively, not by an inspector general. However, problems are not a deal breaker. In fact, it can work in your favor and give you the negotiating space to improve the deal. And don’t accept a seller’s offer to do the repairs, but do negotiate for credit so you can do the job yourself. The seller will not have the same motivation as you to insist on a proper repair. The surest way to lose tenants is to have apartments with leaks and no heat. Secure your tenant base by addressing heating and roofing issues at the time of purchase.

(4) Don’t fall in love. Emotionally withdraw from the property. Look at many properties before committing. Don’t go for the one you love and try to make the numbers work. Look at 20 properties, make offers on 10, and hope that one is accepted. If you get one or two accepted offers, you’re probably in the ballpark. If you get more than that, you’re probably offering too much. Do not base your offer on the owner’s asking price. Once you’ve been in business for a while, you’ll realize there are a million reasons why an owner might want a certain amount for a property, regardless of whether or not it’s realistic. Run your own numbers to determine what sale price will work for you.

(5) Always have a reserve fund. Do not use all of your investment capital on the down payment. Set a goal of having a year’s worth of mortgage payments in the bank to beat billing cycles and unplanned maintenance expenses. Your financial analysis is for flat expenses, but even the keel is more of a long-term proposition. Short-term fluctuations are reality.