Real estate is one of the best investments you can make. If you don't have a lot of money to spend but you still want to purchase land or a home, you want to shop wisely for the best deal for your money. Cheap real estate can yield you a decent return in the future if you learn the market a bit and know the best type of property to buy. Here are some things to look out for when buying cheap real estate.

Mobile homes and land

Unless a manufactured or mobile home comes with the property, you are not truly investing in real estate when you buy one. The reason for this lies in the fact that mobile homes do not come on a fixed foundation and fall in the lines of owning a recreational vehicle rather than a home. While you may benefit from this cheaper form of home ownership, if you are buying a manufactured home so you can resell it in the future, make sure you place it on some property so the land can be the real value for your investment. Keep in mind that a mobile home that has to be moved to land will cost you even more in relocation fees.

Land with a well

Buying land to build a house on can be a relatively cheap investment if you don't need a lot of acreage. If you can, try to buy land that has already had a well dug for the property, since having a well and septic system installed for a future home can cost you thousands of dollars, sometimes even more than the cost of the land itself. If you can avoid the cost and time of putting in these things, your land investment can yield you a better return whether you intend to build a home on it or not.

Fixer upper with potential

Buying an auction or foreclosed home that needs a lot of work can be a great investment for your money if you know how to do some handiwork on your own. A fixer upper that does not need new electric or plumbing is your best bet since aesthetics such as paint or carpet are cheaper in general and much easier to complete. Buy a fixer upper home that needs a simple makeover instead of a complete overhaul no matter how cheap or tempting the buy may be for the latter and save yourself a potential financial disaster that is too costly to finish.