1. Not realizing that every mistake, even a little one will cost you money.
2. Not doing basic number analysis on the property. Check prior sales prices on that property and others around it.
3. Not looking at the neighborhood. The type of people that live in those houses are they type that will live in your rental. How does that make you feel?
4. Not getting up to date tax numbers, utility bills, possible prior rent numbers, rent numbers in surround area. Don't forget, you get to pay the utilities when its empty!
5. Not thinking about why people would want to live in that area - jobs, crime, distance from jobs, distance from amenities & attractions.
6. Forgetting you have to pay for the inspection, appraisal, asbestos test, lead test, etc. Add that into your purchase numbers.
7. Not understanding the basics of how to buy a house, not reading over your paperwork. Read it, even if you don't understand every single thing. I have an agent I work with, but I still find little things that could really cause some problems.
8. Thinking this is an easy get rich thing. Sometimes people score big on a property, but I believe it is rare.
9. Thinking you are safe because you have insurance. No understanding your insurance policy. America is sue happy, I always remember that!
10. Thinking everyone has your best interest in mind. My motto is trust, but verify!
11. Thinking you'll never have any major problems.
I've made some of these, and have learned by watching others make some. I've realized this isn't for the faint of heart! Lots of good info from everyone! Thanks for the shares!
