The slowdown in real estate has sent some investors fleeing from the market, but I don't know if that makes sense to me. There are some big money to be made-even in a down cycle. With prices more affordable the chances of having positive cash flow are better. There are some rich opportunites for investors: real estate sellers are more open to negotiate and lower their home prices because of the inventory levels, low interest rates are standard now.

1. Timing is everything. Our prices in the Chicago land, Northwest suburbs, are lower at this time of year. A billionaire J. Paul Getty, once said: "Buy when everyone else is selling and hold until everyone else is buying".

2. Get financially ready. Have some cash reserves for the unknowns about vacant property. Identify the risk levels and what you want. Imagine, your renter profile.

3. Buy and Hold. This strategy can help give the property an opportunity to appreciate over time. Have a market analysis for over a reasonable period of time and see the cycle from 2 years back, 1 year back and the past six months.

4. Finding the best deal. High inventory of unsold properties mean lower prices, people offering solutions to your objections for a property from the owner, ie carpet allowance, maintenance issues you want addressed before the closing.

5. Have an exit strategy. Buying at this time of year, fixing during the winter and having the leases expire at a good time of year makes sense. Instead of a 1 year lease, what about a year and a half? Or consider that this mini step is good and have a 1031 exchange to move the investment up. Do talk to your tax advisor about the implications of rental income, exit strategies or placing in a self-directed IRA as a long term investment.

When markets are soft is the right time to invest. Home prices are down and more affordable, but the rental leases are a greater value in the market.