EP138: Don’t Make This Mistake in Real Estate Investing
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Recently, I heard from an investor who wanted to share the details about his first rental property. It was a townhome that he had previously lived in. He still owed on his mortgage, and had to pay HOA dues every month.
When I ran the numbers, I found that this investor was not accounting for taxes, vacancies or repairs. I love to be conservative in my ROI formula, so I’m never surprised with extra expenses. His cash flow from his rent was basically spent when I helped him better calculate his ROI.
This townhome was not a good investment. He kept it because of an emotional attachment, which is the ultimate mistake in real estate. The property should not matter. You should not be sentimental about your investments.
It’s not about the house; it’s all about the numbers. Don’t fall in love with real estate. Instead, fall in love with ROI because that’s what will bring you financial freedom.
On today’s show, I’ll share another example of an investor who became emotionally attached to their investment and actually LOST money! I’ll speak more extensively on the importance of ROI, and more.
If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. 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:
- What is an ideal ROI on a rental property?
- What are the drawbacks of an HOA?
- How do you make your money work for you today?
- What is the “allure of the first property?”
- And much more!