#RealEstateInvesting #RealEstateInvestingForBeginners

Are you thinking of getting into real estate investing?

Then you've come to the right place.

In today's real estate video, we are going to discuss the 6 most common rookie real estate investing mistakes that you should avoid at all costs.

Mistake #1

Many beginner real estate investors treat listings as their future home and not as an investment property.

When you look for a profitable rental property, remember that this is an income property where your tenants will live and not your future home.

So, focus your investment property search on the traits that make for a lucrative traditional or Airbnb rental property.

Mistake #2

Another rookie real estate investing mistake is to buy an expensive, luxury real estate property hoping that it will to bring you a higher rental income.

It's true that bigger, more luxurious properties rent out for a higher rate, but they also cost more to purchase and to maintain.

Eventually, cheap homes are optimal rental properties, especially for beginner investors.

Although the rental income is lower, the cash on cash return and the cap rate are usually higher, because the cash investment and the recurring expenses are also lower.

To find out what is a good cash on cash return in 2021, check out our video: [ Ссылка ].

Mistake #3

Buying a real estate investing property that you liked without conducting detailed rental property analysis is a major mistake that can costly you dearly.

To learn how to perform investment property analysis, read here: [ Ссылка ].

When buying an investment property, your decision should be based on real estate data and analytics.

You need to analyze the investment potential of both the real estate market and the property you're considering buying.

Use rental comps to evaluate what rental income, rental expenses, and profit to expect.

Or alternatively use real estate investment analysis tools like Mashvisor to turn 3 months of research into 15 minutes.

To learn how our tools help you make profitable real estate investing decisions, read here: [ Ссылка ].

Mistake #4

Another real estate investing mistake that beginner investors commit is to not walk a property before buying it.

You can’t buy a property without seeing it in person.

Listing images and virtual tours can be misleading, so you need to visit the property as well as to get a professional home inspection before investing in a rental property.

In this way you can spot potential risks in the neighborhood and the property.

Mistake #5

Buying an investment property without a real estate agent can turn into a great rookie mistake.

If this is your first real estate transaction, you need an agent.

Real estate agents are able to get the best price, negotiate favorable terms, close quickly, and help with legal aspects.

Mistake #6

After you've bought a rental property, you need to avoid the rookie real estate investing mistake of setting the rental price too high or too low.

Asking for a rent above the market average will increase your vacancy rate and eat into your profit.

Asking for a rent below the market average will deprive you of the extra cash flow you can be getting.

You need to study the rental market and set the rental rate close to the average.

To learn where to find reliable rental comps in 2021, read here: [ Ссылка ].

If you're thinking of getting into real estate investing, make sure to avoid these 6 rookie mistakes.

To start searching for lucrative real estate investment properties across the US market, check out Mashvisor: [ Ссылка ].

свернуть