Real Estate Rookie 7 Signs a Deal Is Too Risky (Even If It Looks Good on Paper)
10 snips
Nov 12, 2025 Navigating the real estate market can be risky if you don't spot the warning signs. Learn the seven red flags that can turn a seemingly perfect deal into a costly mistake. Discover the importance of stress-testing income scenarios and budgeting for unexpected costs. Hear about the dangers of relying on bad comps and quick property appreciation. Plus, tips on matching renovation projects to your skills and avoiding properties that drain your resources. Protect your investment by being aware of these critical pitfalls!
AI Snips
Chapters
Transcript
Episode notes
Include Hidden Costs In Cash-Flow
- Account for vacancies, repairs, and CapEx when calculating cash flow, not just fixed expenses.
- Build reserves rather than assuming you'll cover big items later.
Stress-Test And Budget Realistically
- Stress-test deals at best, middle, and worst income scenarios before buying.
- Budget startup and furnishing costs and choose comparable properties that truly match yours.
Verify Comparables Thoroughly
- Verify comps for location, school district, days on market, and matching features rather than just price.
- Use appraisals and a detailed comparables spreadsheet to validate assumptions.