EP049: How to Prepare Yourself for Problems in Real Estate Investing

What if chaos ensues at your rental property? What if you receive a letter from the Board of Health? What will happen if your tenant doesn’t pay their rent? What will you do if your appraisal seems incorrect?

On this episode, Natali and I are discussing our experience with issues that arise in owning buy and hold real estate. We’ll share some of the common problems, as well as the rare situations that we have encountered. We’re talking about how to emotionally prepare for the problems that arise in the business; it’s all here on Investing in Real Estate!

More About This Show
When I first began my real estate journey, I was incredibly anxious. Thinking back on my experience when my house in Florida was in foreclosure, my tendency was to ignore it and hope it went away. I’ve learned since then, you have to run toward your fears. When you’re faced with an issue, be proactive about tackling it. Then it will be resolved and go away.  

We’ve talked previously about how to prepare for issues that may arise financially, but today I’m talking specifically about being emotionally prepared. If you begin your real estate career knowing that there will be obstacles, you will be better off. Issues on your properties should not derail you. In fact, you should expect to experience some problems!

The truth is, there’s always going to be something that comes up. Maybe you’ll receive a notice from the Board of Health, maybe you’ll have an issue with a tenant, or a difficulty at tax time. If you expect to be faced with issues, you won’t be disappointed. Instead, you’ll take care of the problem, and move forward with more experience.

One of the biggest fears for potential investors is the quality of their tenants. Investors worry that their tenants won’t pay rent, and will have to be evicted. In our experience owning buy and hold real estate, we’ve never had an eviction. It’s not as common as you might think.

However, it’s not totally out of the question. You might encounter a bad apple, but that’s why I suggest working with an effective property management team. A respectable team with the proper training and knowledge will know exactly how to handle a bad tenant.

On today’s show, Natali and I will shed light on our experience with the worst tenant we’ve ever had. We’ll also talk specifically about predicaments we’ve encountered with the Board of Health. We’re explaining how to quickly and effectively handle issues that may arise, how to navigate your relationship with your property management team, and how to avoid micromanaging.  

If you're ready to take the first actionable step toward building a passive income,

We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.   

On this episode you’ll learn:

  • How are today’s tenants different from tenants in 2008?
  • Which markets are more favorable for landlords?
  • How often should you expect to hear from the Board of Health?
  • When is busy season for the Board of Health?
  • What should you expect from appraisal results?
  • And much more about buy and hold real estate!  

Episode Resources
EP007: How Brandon Turner from BiggerPockets Bought His 50th Rental Property
EP048: What Are A, B, and C Neighborhoods?
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