Newbie Question #4: Number one Mistake

[Elisha Keller]

As I've been on BP I've been reading as much as possible--even the ones that sounded scary. I want to learn the worst things about being a landlord as well as the positives. The question for the day:

What was your number one mistake with your first property? What was something you've done right since your first property?

[Aly W.]

Definitely have reserves; things can and will go wrong no matter how much renovation you've done or how well you've screened your tenants.

@Mark Graffagnino, great advice about not rehabbing above the level of your end user.

Be wary of Section 8 tenants though. You may well get the rent like clockwork every month, but most S8 tenants have no fear of losing their voucher and (in my experience) are extremely demanding and entitled. The aggravation level of dealing with them isn't worth it, IMHO.

@Paul Timmins, you are absolutely right. I keep my rents slightly below market rate and get a larger selection of tenants to choose from. Better to charge slightly less per month and not lose a month's rent waiting for the highest amount.