The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.You should focus on increasing earnings and learning how to manage your budget.

Second biggest mistake is failing to realize these construction loans allow draws on improvements meaning cash expenditures are required before the first draw can be issued.

When you look at a property make a list of all major capital expenditures roof hvac etc.

everything has a lifespan and if you do not evenly allocate for those expenditures, you have not allocated for all expenses.  

You have the mortgage, taxes, insurance, maintenance, capital expenditures (roof, flooring, etc.), and also need to consider the cost of vacancies or bad tenants.I also recommend you charge market rate, for yourself and the tenant.

The study could also identify the opportunity to capture additional benefits such as dispositions, and repair and maintenance expenditures.

Also asking them how they calculate DSCR and whether its on Pro Forma or trailing 12 financials or tax returns.A lot of times you'll see properties that don't make DSCR on tax returns because the owner might have booked capital expenditures or major maintenance to repairs and maintenance. 

That's why I posted, to provide people with real advice based on my experiences so they can avoid making the same mistakes.Providing greater buffer space for capital expenditures and controls is a good risk management strategy.

What is your expected reserve for maintenance and CapEx expenditures? 

Use a tiered approval process to give them control over larger expenditures while enabling quick resolution of smaller issues.2.Proactive Maintenance: Implement preventative maintenance programs to reduce costly emergency repairs and extend the lifespan of property systems.3.Monthly Reporting: Deliver detailed monthly financial statements that outline expenses, rental income, and ROI performance.By handling their funds with care and providing transparency,  trust is built with owners, ensuring they feel confident in the relationship.Making Tenants Feel HeardHappy tenants are the foundation of long-term occupancy and reduced turnover.