Think you’ve just stumbled on the perfect real estate deal? Not so fast! The truth is that some rental properties may look good on paper but are actually much more trouble than they’re worth. Today, we’re going to show you seven warning signs to look out for before closing on your next property!
Welcome back to the Real Estate Rookie podcast! In this episode, Ashley and Tony are breaking down seven of the most common (and costly) red flags that can quickly turn a rookie investor’s “dream deal” into a financial nightmare. Whether you’re doing a BRRRR (buy, rehab, rent, refinance, repeat), flipping houses, or even house hacking, you won’t want to make these critical mistakes that could drain your time, energy, and money.
You’ll learn the keys to proper real estate analysis, like calculating “hidden” costs and lowering your risk by accounting for the worst-case scenario. We’ll also show you how to avoid getting in over your head with a renovation project and why you should never bank on appreciation—especially at the expense of cash flow. If your property doesn’t have any of these red flags, chances are you’ve got a great deal!
In This Episode We Cover
Seven red flags to watch out for when buying a rental property
Why buying the “cheap” property could cost you way more in the long run
Taking on renovation projects that align with your skill level
How to stress-test a deal so you still profit in a worst-case scenario
Why you should never sacrifice cash flow for potential appreciation
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-639
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