Most folks overestimate the cost to prepare a space for MTR, but you'll figure out cost-savings and improvements with every iteration.

This is way more conservative than a lot of people I talk to and has definitely meant that I lost out on opportunities, but it gives me bigger peace of mind and in shifting markets I feel better prepared to adapt if need be. 

Before I jump into the cash required to operate which isn't given enough attention by most investors there are additional fee related questions a borrower should ask any prospective lender: Are the 3 points inclusive of loan doc prep? Are

Its not only important to know what the current regulations are but to also prepare for potential changes to those regulations that may coming down the pipeline.

Learn the ins and outs of fit and finish, proper preparation, proper installation, rough in locations & MEP details... thinking 10 steps ahead on everything.

If we are purchasing properties when the market is a highly appreciated seller’s market, we need to realize we may be in DUMB DEBT and should be prepared for the risk of suffering the consequences if and when the economy turns for the worst and goes into a recession as this will likely cause values to drop.

Here are two quick points to add:Be prepared to walk away.

As note buyers, we like to pay it off out of proceeds or be prepared too if the lender exercises their option to call it due for transfer.

Be prepared to navigate through potential tenant issues and lease terms. 

@Robert BishopTo prepare for your first real estate investment, build a strong financial foundation with a credit score of 700+ and an emergency fund.