First Rental - How to Overcome Mental Hurdle

[Andy Levin]

Hi,

I’m considering making my first offer on a rental property that is out of state in a college town. Cash flow would be about $200-400 per month. The house is in great condition and has nice upgrades.

I’m struggling with the fear of not renting the house and having to eat the mortgage, taxes, insurance, and property management fees. Any advice as to how I can overcome this mental hurdle?

[Steve Rozenberg]

@Andy Levin never go into a deal that you can not carry the worst case scenario of vacancy or maintenance. I know I did this when i first started and it was very scary. I bought about 35 homes and did not have any reserves or cash available. I assumed the cashflow would carry me. Big mistake.. always go into a deal with reserves and contingencies