Set a budget and invest X dollars in books, audio files, attend real estate investment club events and maybe some home study courses.

Which is why I recommend that investors use smaller contractors who don't have office space, big advertising budgets, fancy trucks, etc.

And it looks like you're budgeting 3% for maintenance and nothing for capex -- that seems risky to me.

Your trash budget seems low, and why are you paying $400/year for advertising?

I know people that started off initially with a $500 per month mailer budget, and it took them awhile to land their first deal, but every time they did they rolled the profits right back into marketing and now this person is closing on about 3-5 properties per month.

To be a good investor you need to: Be self-motivated to work hard (this can be proven by earning a good income)Have basic accounting skills and ability to follow the money (this can be proven by setting and staying within your monthly budget)Live below your means (this can be proven by setting aside a little $ each month for investing)Be responsible and keep up with things (this can be proven by paying your bills on time)Lastly but certainly not least, delay gratification (this can be proven by not cannibalizing your investment savings when circumstances of life tempt you to do so).

This $398 value is not in our budget.

Also, for whatever reason I was a bit lax in my initial assessment on the amount of work needed at this house, so that went well over budget.

You'll be budgeted for a rehab in the coming years.

The rehab came within budget (~$7K)..