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6 Biggest Mistake When Analyzing Rentals

Youu2019ve got a property, and youu2019re ready to rent it out. But before you start accepting applications and signing leases, make sure youu2019ve thought about these common mistakes people make when analyzing rentals.

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6 Biggest Mistake When Analyzing Rentals

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  1. 6 Biggest Mistake When Analyzing Rentals

  2. 1. Not Doing Any Analysis You need to take the time to understand the market and look at the rental income you are expecting vs. the cost of the property. Remember, if you're not making money on your investment, then what's the point? Schedule your free call to get started with us now and we will show you where the real money is made on your investments.

  3. 2. Not Budgeting For Property Management Costs Property management is an essential part of running a successful real estate business. Make sure you have some budget for this expense so that it doesn't become a surprise later down the road!

  4. 3. Relying Too Heavily On The Broker’s Pro Forma Brokers will often provide a "pro forma" with their listing—but don't fall into this trap! Brokers are interested in getting as much commission as possible, which means they will often include unrealistic estimates for how much rent they think you can charge and how much profit will be made on repairs. It's important to get an independent analysis done by someone who has no stake in your decision-making process.

  5. 4. Overestimating The Rental Income You Can Charge I recommend coming up with a conservative estimate based on similar properties in the area, then adjusting it up or down if needed based on market conditions at that time.

  6. 5. Underestimating Repairs To Get In rent Ready These repairs are expensive, and you may not have enough money in your budget for them. If you don't include these costs in your analysis, then you will be under-financed and unable to get the property ready for rent.

  7. 6. Forgetting To Include Closing Costs In Negotiations These costs can vary widely depending on where you live and what type of loan you're using. Still, they're often a significant portion of your total expenses when buying or leasing a property—and they need to be factored into your budgeting process if you want any hope of staying within your means!

  8. Follow us to find out more about the mistakes made when analyzing rentals. Learn From One Of The Brightest Multifamily Investors Ever - The Best Selling Real Estate Author And Mentor https://achieveinvestmentgroup.com/

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