“5 More Costly Real Estate Investing Mistakes to Avoid” is our last in a series of blog posts on real estate investing. To read more, download our entire eBook, “The Real Estate Investor’s Checklist.”
In our previous blog post, we discussed some of the most common real estate investing mistakes. Here are several more smart investors try to avoid.
Usually investors run out of cash for two reasons: Underestimating repair costs or underestimating future capital expenses on a rental property. Either way can prove to be a large mistake.
Letting Emotions Drive Your Decisions
The hardest thing about investing is managing your own fear and expectations. It is easy to become overly enthusiastic or pessimistic. These emotions should always be balanced with cold, hard, and objective analysis.
Finding contractors who will do good work, finish on time, and clean up after themselves is often a daunting task, but one that will pay off in the end.
Bad contractors quickly become expensive, eating away most, if not all, of your profits.
Planning as You Go
Inexperienced investors buy a house because they think it is a good deal and then try to figure
out what to do with it. Successful investors first create a plan and then find an investment property
to fit that plan.
Not Using a Tax Professional
Laws change often, impacting your write-offs and reporting methods. However, if you do your
taxes correctly, you are likely to enjoy some tax benefits.
Finding an experienced CPA is critical. A good CPA who specializes in real estate will be up on all
of the latest information, much more than one who only has one or two real estate investors as
clients.
This is the end of our series of blog posts on real estate investing. You can download our entire eBook here: “The Real Estate Investor’s Checklist.”