It's easy to get into a rush as you're running numbers, because every deal is the "deal of a lifetime". This rush is part of what makes it so enticing for investors to get into the investment real estate world. Sadly, it's also the very thing that takes many of them back out so quickly.
See, what happens in a rush is that you stop thinking and start allowing your emotions to dictate your responses. Bad idea. If you aren't educated and level-headed, multiple unexpected costs will kill you every time. Most properties will have numerous simple repairs when you purchase them. Some simple time calculating extra costs will go a long way to save your cash reserves and help you maintain strong cash flow.
Take the time to factor in costs for things like appliances, turning utilities on and off, dewinterizing, changing locks, blinds, lawncare, and so on. Budgeting ahead of time for these simple things will ease the pressure later.
(Unsure of what else to calculate into your numbers? Ask your property manager. If they're worth anything, you'll have some good information.)
Tuesday's Tip: Stop emoting. Start figuring in the little things.
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