When it comes to real estate investing, there are three deadly sins that can disrupt your cash flow and ruin your ROI. Those are: overpaying, overleveraging, and mismanaging. We’re discussing each of them today.
Property Management Manatee: Overpaying for Investment Property
A good rule of thumb in real estate investing is to look closely at your numbers, and to be sure they make sense from an objective, and not an emotional, standpoint. If you fall in love with a property, you may overpay for it. That’s not going to create a cash positive situation, so be consistent with your numbers and be sure you get the type of investment you really want.
Property Management Sarasota: Overleveraging Your Purchase
Even when you really like a property, you have to stick to your numbers. Set out a game plan, look at your data, and put it all in a spreadsheet. See what you want to gain from this property purchase. Make sure the property you buy isn’t overleveraged. You cannot let your heart rule your head.
Property Management Manatee: Mismanaging Your Investment Property
Some people can manage a rental property on their own, if they are up to date on all the landlord tenant laws and they have enough time on their hands. If you’re going to manage your own property, you really have to understand the industry and the local market. If you don’t have the time, make sure you work with a qualified and professional property management company.
A property manager can do things quickly to scale, and offer tremendous value for your investment property. It provides peace of mind, and takes away your need to stop and start projects so they don’t interfere with your day job.
These three pitfalls are best avoided. If you have any questions about how to make sure you’re not making these crucial errors, please contact us at Gulf Coast Property Management. We work with investors who own real estate in Manatee and Sarasota counties.