That is the ideal scenario but sometimes the communication doesn't happen or things get broken unexpectedly.

Securing a strong deal upfront is crucial, and adding a buffer for unexpected costs is a smart move.

Some deals may look good on paper but can quickly turn into a nightmare if you don't account for unexpected things.

Operating Expenses (30-35% of Income)Rule of Thumb: Allocate 30-35% of your rental income to cover operating expenses such as property management fees, maintenance, repairs, utilities, and insurance.Why: Properly budgeting for these expenses will keep your properties well-maintained and avoid unexpected financial strain.3.

How many times have you “suffered” from a slip and fall accident in a store aisle? 

The real test comes when the unexpected happens: market shifts, economic downturns, or unforeseen challenges.

On the other hand, if anything unexpected happens, you want someone who is going to watch out for your investment. 

Continue acquiring properties in promising markets to build your portfolio while keeping an eye on interest rates to potentially refinance your high-interest loan for better cash flow.Save capital to maintain liquidity, allowing you to act quickly when market conditions improve or unexpected expenses arise.

You can add a vacancy allowance in your calculations when you vet the property but you never know when something unexpected may pop up.

You are also at the mercy of a perfect pay history and to service companies that if a payment is ever late even by accident.