The Shocking Real Estate Blunders Entrepreneurs Swear They’ll Never Repeat—But Always Do
You need to crunch numbers on how much cash flow you can reasonably expect. Always be conservative in your estimates. It’s wise to plan for some vacancies. Draw up an expense and maintenance plan as well. All real estate requires some maintenance, so it’s important to project expenses. Compare these figures with your cash flow to make sure you will be profitable.
To avoid this mistake, make sure you plan both for income and expenses. Again, be very conservative in your projections. Some people believe that expense estimates should be doubled both in cost and time to be on the safe side. Repairs and maintenance frequently take more cash and weeks to complete than owners initially expect.
