Property investment can look very simple and easy from the outside looking in. You buy a house and make money off of renters inside, what could be better. But before you get ahead of yourself, there are some common mistakes to avoid that so many property investors make.
Let’s take a look at a few.
Lacking a plan
If you’re just getting into property investment, please do not forget a plan. We would like to advise you against going into your first investment property blindly. Make sure the house you buy is a good deal and meets a good standard for a rental property. Make sure the property doesn’t have any major issues, if one comes up, how will you deal with it. Sit down and make a plan!
Thinking with their heart
Again, a plan would help here. Don’t buy a property because you like it. You will not be living here. Buy the right property for your renters. Detach yourself emotionally from the house because if the deal doesn’t workout, it should just be on to the next!
They go in it alone
Buying the property itself is a very important deal and bringing in a professional is probably a good idea, not only for the purchase of the home but also for the management in the years to come.
They don’t consider all of the financial aspects
So many things go into financing and purchasing a home to rent out. It is different than buying a home to live in yourself. Again, bringing in a professional to help you through this process is a great idea, as there are certain things that must happen for a rental property.
Skipping inspections
When purchasing a home, never skip the home inspections. You don’t want to get stuck with a mess you didn’t make.
It takes a while to get good at becoming a smart and savvy property investor. To get there takes practice, so take all of our advice but also ask for help! If you think you’d like to try property investing and would like some assistance through the process, give us a call and we can discuss your options. Or if you would just like some advice, we can try to help with the best of our abilities. We look forward to working with you and helping you learn the ropes.