Over time, real estate will almost always appreciate - making it a solid, steady and reliable investment for those patient enough to wait out a sluggish market, strong enough to endure unreliable tenants, or smart enough to buy in the right place at the right time. However, there are risks involved that can diminish your investment return.

If you're considering in investing in real estate, keep reading for a breakdown of possible real estate risks and how to avoid them.

Risk 1 - The Property Won't Appreciate in Value

If you're thinking about flipping a property (that is, buying, fixing up, and immediately selling) within the year, this is a huge risk - particularly if you're buying in a saturated or slow, downturned housing market. It's true that when prices are low, a good deal can be found, but that also means you're going to have to work extra hard to sell.

When the housing market is either depreciating or appreciating at a slow rate, consider holding off on selling until the market picks up again. In the meantime, if you can't carry the property alone, you can opt to rent it - even if at a lower-than-market rate.

Risk 2 - The Tenants Won't Come

If you're purchasing a home with the intention of renting it, look for an area that will appeal to potential tenants. Try to get close to an urban or town center, near public transit and within walking distance of local amenities.

An empty property is a property that's losing money, so attract tenants with perks like in-unit washer-dryers, included hydro, free wireless Internet or a signing bonus.

Risk 3 - The Tenants Are More Trouble Than They're Worth

It's true that an empty property is one that's not returning on its investment, but troublesome tenants can also cause big problems. Unpaid rent can lead you down a long and expensive path to eviction procedures, while damage to the property could cost you thousands of dollars.

Minimize this risk by either screening tenants through a property management company or doing thorough screenings yourself. Ask for references, both employment and personal, proof of income, and permission to do a credit check - which can show you the tenant's history and ability to pay bills on time. A credit check will typically cost you about $40, but it's worth it in the long run.

Risk 4 - Disaster Strikes

A natural disaster and fire are real risks for real estate investors. Your best protection against unforeseen disaster is insurance. In addition, you can also purchase mortgage insurance (different from private mortgage insurance) that can help with your payments should you die or become ill or injured.