When investing in real estate, here are several tips to help you. Realize that cash flow projections are based on longterm averages, not monthly. House hacking is a great way to begin investing. There are good, but not perfect, deals. Excellent management will get you a solid ROI once you purchase a property. Zone in on the fundamentals like the protection of your assets. Let slumlords handle the slums. Keep a cash reserve; it’s not necessary for it to be a large one.
- Be prepared for unexpected, atypical expenses such as costly repairs or tenants who don’t pay.
- There is no such thing as a perfect deal, but you can find one that is good.
- Avoid investing in slum properties because you will have to deal with all kinds of problems and issues.
“I lost a boatload of money. Some of these bad deals still cost me to this day.”