There are many things that can affect your profit margin when investing in real estate. Being knowledgeable about all aspects of making money in real estate and learning to recognize all of the costs that you could incur with any given real estate investment will help you to choose good investment properties and avoid those that are more trouble than they are worth.
By now you probably already know how to calculate how much gross profit a property can potentially earn. To do this all you have to do is take the market value of the home and subtract your purchase price to see how much profit the property could potentially make you. But this is only a skeleton glimpse into the potential of the property, making money in real estate requires that you know every hidden cost, no matter how small, that could reduce your profit margin.