Contractors live in fear of this because it sticks on their record forever when a new potential customer looks them up. 

After that ordeal, I swore I’d never use them again.I've been using Stessa, and while it’s great for generating reports and tracking income and expenses in a user-friendly way, it’s far from perfect.

Lower-income renters tend to generate significantly higher maintenance and turnover costs.

I’m beginning my journey into real estate investing with the goal like many of you of generating passive income and discovering financial freedom without having to rely on a “day-job” for much longer, so I can travel more and spend more time with my young kids/family.

A property may look good on paper in terms of appreciation but might not generate enough cash flow to cover expenses and build long-term wealth.Not Having a Backup Plan:If something goes wrong in any phase, such as a longer vacancy period or higher renovation costs, it can disrupt the whole strategy.

All to create a fantastic learning experience, and give professional customer service.

Are they handling most of the interior design and finish selection, i.e. picking out the white oak flooring and designing the custom built-ins in the study?

How much money do you plan to generate from this rental and do you plan to get more in the future?

The condo includes high-quality granite countertops, custom cabinetry and wood floors.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.