Real Estate Investing with Coach Carson #401: 5 Mistakes That Create Negative Cash Flow Rentals
Apr 14, 2025
Discover how small miscalculations can transform a seemingly profitable rental into a financial sinkhole. Learn about five critical mistakes that investors commonly make, from overlooking expenses to poor tenant screening. The discussion includes the pitfalls of buying outdated properties and the risks associated with financing. With practical strategies, listeners can enhance their property management skills and maintain positive cash flow, even in a challenging market.
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Include All Expenses
- Account for all expenses when analyzing rental properties, including vacancy, management, maintenance, and capital expenses.
- Forgetting these can turn a seemingly profitable deal into a significant loss.
Mill House Mistake
- Chad Carson bought a cheap mill house for $30,000, only to lose $13,500 over seven years due to unexpected repairs and ultimately selling at a loss.
- Older properties often have hidden costs that negate the benefit of a lower purchase price.
Optimize Financing
- Use a 30-year mortgage for lower monthly payments, increasing cash flow and flexibility.
- Consider creative financing options like seller financing or private lenders for potentially better terms.