So, you think you want to be a real estate investor?

As an agent, roughly 50 percent of my client base is made up of them, so I write a lot about investors and wannabe investors. I tell anyone interested to first learn as much as they can about it. And then, have an honest conversation with yourself.

Are you sure you’ve done enough research? Have you adjusted your spending? Or spoken with a lender? Are you familiar with the applicable metrics? Do you have realistic expectations when it comes to your market?

All of these things are imperative to consider. I’m not trying to make investing seem off-putting, but I am trying to help you get a handle on what it is and is not.

And here’s something fundamentally more important than anything else when it comes to investing: time is money.

The obsession with metrics (cash on cash, cap rate, 1%, 2%, etc.) often overwhelms investors, blinding them to the reality that the biggest enemy is time. Put simply, if you walk away from a deal to hit a certain metric, you just might lose big.

Related: 5 Ways to Know You’re Not Ready to Invest in Real Estate

man resting chin on hand looking as though he's deep in thought

Let’s say you walk away from an early spring deal on a $300K property. You wanted the price to be $5K to $10K lower than what the seller was ready to let it go for.

But realistically, in a hot market, there’s a good chance that by summer, you would’ve recouped that cost in appreciation. In Denver, for example, we’ve seen 6 to 8 percent increases year over year, and you would’ve almost definitely experienced as much in the next 365 days.

In fact, for a house priced right, you could be looking to gain an average of $18,000 to $24,000 by next year—that is, unless you choose to walk away because the seller is unwilling to meet your standards.

The same situation speaks to the critical nature of knowing your market. And it’s really important to know where you’re at in life, too.

I created an all-female investing group here in Colorado. I have two investors that gravitate toward properties in the Midwest (Oklahoma and Ohio, specifically). While appreciation isn’t as strong there, they are cash flowing $500 per month on long-term renters. This is appealing to them because they are closer to retirement and need that money.

Alternatively, in a market like Denver or Colorado Springs, real estate prices have skyrocketed. Rents have increased to be sure, yet making $500 in cash flow is difficult—if not unrealistic—with a long-term rental.

Related: 7 Tips for Getting a House in a Hot Market (Like Denver!)

woman behind window smiling drinking coffee in cafe

But if an investor planned on holding a property for the next five years, it goes to stand that it would appreciate. And eventually, it just may cash flow because rents will surpass the mortgage. In the meantime, you may have to pay $100 to $200 out of pocket, but someone else is paying the bulk of your mortgage and/or cutting down your rent significantly.

Is chasing appreciation a fool’s errand? Maybe. But you can look at a city’s health and make some assumptions.

For instance, even though buyers are getting a little more power in Denver, the city still has all the hallmarks of a place with increasing home values: lots of out-of-state money flowing in, diversity of industry (i.e., healthcare, tourism, tech, and marijuana), and a very educated workforce.

I know, I know. To even suggest an investment that doesn’t cash flow is heresy, but similar to most money endeavors (ahem, the stock market), getting in early is the key to long-term financial success.

What doesn’t work so well is walking away over and over again because you fear you haven’t found the perfect deal.

Have you walked away from an imperfect deal and regretted it?

Comment below.

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In today’s highly competitive, low cap rate environment, it’s vital to get the underwriting correct. For example, at a 5 percent cap rate, every dollar you miss in net operating income translates to $20 in price.

So, if you underwrite $10,000 in income you shouldn’t have, you just lost $200K in value. Pretty serious stuff!

Larger multifamily deals and the added complexity of the transaction create more opportunities to get tricked or to miss something.

In smaller deals, it’s pretty simple. You’re really just looking at the stated rents and applying a vacancy factor.

On bigger deals, to truly get a handle on income you’ll need to understand the interplay between market rents, loss to lease, concessions, bad debt expense, and marketing expense. Then, there are a handful of other income line items, as well.

Maybe you come across a deal where rent increases appear to be red hot over the past three or four months and vacancy is tightening. But along with that, you see a spike in concessions, bad debt expense, and marketing expense. Maybe utility reimbursements dip, as well.

If you’re focused on the rents, you may underwrite those numbers and lean on your property manager to get expenses more in-line with a typical property. Then, you acquire the property and watch your rents decline.

Sure seems like those sly foxes on the other side of the transaction bought up rents and lowered credit standards to drive income for the sale. And you fell for the shenanigans! Bummer.

Before I continue, here’s a quick word on brokers. This article is not about broker bashing. Brokers are generally hardworking, good people trying to do their job. And it’s the broker’s job to get the highest price for his or her client.

The good brokers do an excellent job of presenting their properties in the best possible light. In this game, there’s no one to go crying to if you get it wrong. (Well, maybe your mommy.) But unfortunately, you have no one to blame but yourself if you overpay and lose money.

Getting upset at a broker for convincing you to pay too much would be like me giving my two-year-old paint and then getting upset when the cat is purple. (Side note to my wife: That’s on me, honey. I’m sorry.)

Here are a few areas where a less experienced buyer may be convinced to pay a higher price than they should.

Gross Potential Rent Shenanigans

One of the most common things we see is a sudden increase in market rents before a sale. Problem is, they aren’t actually collecting any more rent. It usually looks something like this:

The seller raises their market rent by $100K, but the actual rent charged hasn’t changed, so loss to lease goes up $100K and the gross potential rent is unchanged.

However, it isn’t easy or intuitive to see that on a raw rent roll. You’ve got to break down the rent roll and do some analysis to find out what is going on.

It would be easier to see the market rents and assume they’re achievable—especially when the broker cherry picks the very best comps.

When you ask about the loss to lease, the reply might be, “All you have to do is burn off the loss to lease and you’ve got a real winner!”

Sure, there are deals that are slightly undermanaged. Nonetheless, do you really think the seller is just leaving $100K in rent ($1.5 to $2 million in value) on the table?


Related: How Do You Know Who You Can Trust?

Value-Add Shenanigans

Many value-add deals come from a seller who has done a number of units already to prove the concept. At my company, we look into it further. When we do, we’ll often see the offering memorandum (OM) suggest that the units that have already been renovated still have meat on the bone because the current owner didn’t maximize the renovation.

Sometimes we’re told all we’ll have to do is make a few small updates in order to achieve a large bump in rents. So, you’re telling me adding USB ports and smart thermostats to a fully renovated unit will get another $75 in rent premium? Sign me up!


On the non-renovated units, we’ll also see the broker suggest a laughably high premium. They point to a few far superior deals in the market that are more recently built with better layouts and amenities and say that there is $300 in “headroom” to achieve with a renovation. Then, we break down the rent roll and discover that the actual premium they’ve achieved thus far is $80…


Pensive young entrepreneur looking at laptop screen and drinking coffee at table in cafe

To set our expected renovation premiums, we look to three different data sets. The first and most accurate numbers will come from the renovation premiums the current owner has achieved. Even if you plan to do a few things differently, the market won’t drastically improve with a few new finishes.

After that, we look at similar vintage, recently renovated comps with the same ceiling height as the subject. I think a lot of investors overlook the importance of ceiling height. A unit with eight-foot ceilings will just never feel like a premium unit even with a great renovation.

Ideally, we’d like to be able to underwrite to the lower end of the rent spectrum relative to these comps. And if we execute a great reno, the additional rent is gravy.

Last, we take a look at deals at least 10 to 15 years newer than ours. These deals are just designed better. They have better amenities and floor plans.

No matter how good your renovation is, these deals will always look and feel a little better. We want to make sure our rents remain a good $100 or more below these properties so we maintain the value proposition to renters wanting a nice unit at a fair price.

Related: Warning: How to Handle a Real Estate Investment Gone Bad!

Negotiating Shenanigans

It’s great to have a good relationship with brokers. It can definitely help you in a competitive bidding process. But let’s not forget who the broker is working for.

It’s not uncommon to hear something to this effect: “If you can come up another $500K, the deal is yours.”

What they’re not telling you is that you’re already the highest bidder, and they’re just trying to squeeze out a little more for their client. The broker is trying to give you the old “sugar-me-do.” (Bonus points for the first person to identify that reference in the comments.)

We’ve bought a number of deals where we thought we might need to come up, decided to stand pat, and then had the deal awarded to us.


To be fair, we’ve lost more deals than we’ve won when they tell us we need to come up. But the takeaway here is to commit to your number and don’t fall for the temptation to stretch juuuust a little more than your max.

When stepping up into larger multifamily deals, you’re going to be dealing with more sophisticated real estate professionals. There is an implied understanding that if you’re playing in that space, you’re capable of swimming with the sharks.

To be sure, most people I’ve come across are honest, good people. But they’re pros for a reason. Expect them to do everything they can to get a better deal than you. They expect you to do the same. And at the end of the transaction, when the dust settles, only you are responsible for the deal you’ve got.

Have you encountered these situations? What others types of shenanigans have you come across?

Let me know in a comment below.

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Nuveen Real Estate, a global real estate investment manager owned by TIAA, is planning a significant expansion of its multifamily real estate business in the U.S. Nuveen announced this week that it launching what it calls the “U.S. Cities Multifamily Fund,” a real estate investment vehicle that just closed on its first investment round, which raised $550 million to invest in multifamily real estate.

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I have spent my career advising on insurance options. And for the past 15 years, I have worked exclusively with real estate investors.

Something I have discovered throughout this journey may shock you. Of all my clients, whether they are beginners, experienced investors with high-value assets, or even groups with portfolios in the high millions, only one in 10 have the best insurance policy for their situation!

Can you believe it?

As investors, we do so much research to achieve our goals. We learn how to build pro formas, calculate ROI, and master several other new-to-us skills. But as a whole, we are undereducated when it comes to insurance.

One thing I love about my job is that I can help steer investors toward the best policies for them and provide the information they need to lower their overall insurance costs.

Why Do So Many Investors Get Their Insurance Policy Wrong?

I’ll go ahead and state upfront that it isn’t because anyone’s dumb. In fact, investors tend to be very smart people. But we’re not perfect.

Frankly, most people don’t really want to spend the time to educate themselves about insurance. The very word makes a lot of people recoil—whether it’s a result of bad experiences or a feeling of unnecessary dread.

I get it. My people (insurance agents) don’t always have the best public image. But while we admittedly don’t spend our days rescuing kittens from trees, most of us really want to do good for our clients.

I want to correct our bad image!

So, I’m writing this article to clear up any misconceptions. More importantly, I want to help you determine whether your policy is right for you.

I’ll use plain English, too, with the hope that this information will foster a better understanding of insurance policies by avoiding the dry, miserable tone of most insurance content out there—for both of our sakes.

Here goes.

a couple going over business documents in a living room with an agent

Mistake #1: Assuming Home and Auto Is the Be-All and End-All

New investors are more susceptible to this mistake—and that totally makes sense. Most people’s first encounter with insurance is when they’re seeking out home or auto coverage.

This often leads to the mistake of using a homeowners policy for a rental property, which can spell serious trouble if you don’t live in the rental property or meet the other criteria necessary for the policy to be effective.

But the truth is that you have a wide array of options beyond this choice. A landlord policy is most important for real estate investors.

I’ve spoken before about the essential types of coverage for rental properties. Getting familiar with the basics doesn’t take long and can save you a lot of money in the long run—both in premiums and in the protections you’ll receive.

Related: Which Types of Insurance Coverage Should I Have on My First Rental Property?

Mistake #2: Fear of Commercial Insurance

If you frequent real estate investing forums like I do, you will see tons of conversations about how to avoid commercial insurance, whether you can use your homeowners insurance instead (more on that below), and how many properties you can have before you have to “go commercial.”

All of this panic and fear is completely unnecessary. In fact, the right commercial insurance doesn’t have to be costly.

I understand the reason for all of this hullabaloo though; it’s the many misconceptions around commercial insurance policies. Big-box companies, the type with adorable animal mascots or memorable jingles, will not offer great commercial policies. But often these companies are the ones investors, and in fact most people, are familiar with.

I’m here to tell you that you have alternatives. Commercial insurance from the right provider, set up by the right agent, can even be cheaper than homeowners insurance or other options.

So, how can real estate investors remedy this mistake?

The first step is acknowledging that there is a world beyond the big-box companies. There are groups and providers with experience who cater to investors just like you and can advise you on your best options. Those who operate across state lines will have an especially wide variety of choices that can be tailored to even the most unique situations.

There are also smaller providers who have a great deal of policy options, but if you go this route, you’ll have to do your homework on what (if any) experience they have with real estate investors.

close up of small toy home with hands shielding both sides of it implying insurance coverage

How to Evaluate Whether Your Insurance Policy is Right for You

Fortunately, anyone can figure out whether their insurance policy is truly the best one for them. The process consists of four simple steps. 

Step 1: Determine What You Want the Insurance Company to Cover in the Event of Property Damage

Ask yourself truthfully: if your property were damaged tomorrow, would you want the insurance company to do 100 percent of the work, or would you be willing to do some of the repairs yourself? If you own property out-of-state, you might want them to handle everything. But if you invest locally and possess the skills necessary to make the repairs, you might answer differently.

Step 2: Determine What You’re Willing to Spend Out-of-Pocket

If you had a hard time picking a percentage in Step 1, this should help you out. Decide what you would be willing to spend out-of-pocket for claims of the following amounts:

Write them down; get it on paper.

Related: Investors: Be Smart About Your Property Insurance

Step 3: See How Your Policy Squares Up With What You Really Want

Check to see if your current policy lines up with the ideals you wrote down in the first two steps. If not, see if your insurance agent can help you make the necessary adjustments. If not, it’s time to start looking for a new one.

Step 4: Audit Your Coverages Line by Line

Standard landlord policies may not provide all of the coverages you truly need—unless you ask for them.

As a refresher, the bare minimum you need are:

  • General Liability Coverage
  • Building Coverage
  • Loss of Rents/Business Income Coverage

Here’s the bottom line: anyone can figure out if their insurance policy is right for them, and it only takes an hour or less. This assessment can not only help ensure you have the bare minimum you need but also provide an opportunity to trim the fat if you have excessive coverage. You would be absolutely amazed at the number of real estate investors I see who have coverages on their policy—that they’re paying for—that are completely irrelevant to the property being insured.

So, while auditing line-by-line may not be your idea of a wild Friday night, it can save you thousands. I find it’s well worth the time.

The wrong policy can cost you thousands, either through lack of appropriate coverage or premiums that are far too high for what you actually need. Carve out 30 to 60 minutes and run through these four steps. And of course, you when in doubt, speak to a qualified insurance agent who has experience serving real estate investors.

How confident are you that you have an appropriate insurance policy? Any specific questions for me?

Ask away in the comment section. 

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In a competitive real estate market, trying to find and close a good deal on an investment property can be nearly impossible. If you’re looking for a way to obtain properties without competing with dozens of other people, you might need to think outside the box.

4 Ways to Buy an Off-Market Property

It’s a great time to be a seller. If you’re selling a house in today’s market, you’re likely benefitting from significant price appreciation, high levels of demand, and a sense of enormous leverage. But on the flip side, it’s difficult to be a buyer. Inventory is scarce in many markets, and prices seem a bit inflated.

But do you know what’s even more difficult? Being an investor on the lookout for smart investments. You make your money when you buy, which means overpaying in a seller-friendly market will doom an investment from the start.

If you’re looking to invest in property in today’s market, you can’t afford to be browsing listings on Zillow—or even listings that just hit the MLS. You need to find potential deals that haven’t even hit the market.

For those who have never looked into this option, the notion of buying an off-marketing property seems foreign. But it’s not as impossible as it seems. Here are some strategies and techniques you can use.

Related: The Easiest Way to Find “Off Market” Deals: Pocket Listings

1. Mass Mailings

You don’t know until you ask. This is the unofficial mantra of many investors who pursue off-market properties.

While it’s not free—it’ll cost you both time and money—sending out mass mailings to homeowners is one method of finding and qualifying leads. You simply find a neighborhood or area of town that you’re interested in and mail letters/flyers to the homeowners to let them know that you’re interested in possibly purchasing their home. Less than 5 percent of homeowners will respond (and only a fraction of these will actually be interested in what you have to say), but it can occasionally produce a good opportunity.

The key is to work with the right printing partner to make the material costs as cheap as possible. You’ll also need to design and write your letters well. You want to grab the homeowner’s attention without coming across as desperate or gimmicky. Professionalism is key.

2. Inside Information From Real Estate Agent

It’s tempting to invest in real estate without the help of a real estate agent. After all, a 3 percent commission could cost you tens of thousands of dollars over the years. But when it comes to buying off-market properties, an agent is worth her weight in gold.

Real estate agents have their fingers on the pulse of the local market. They have connections that allow them to know when listings will reach market (before it’s actually public knowledge). This can give you a significant leg up.

3. Telltale Signs of Neglect

One popular strategy among real estate investors is to drive around and physically look for houses that show signs of neglect or disrepair. In many cases, the homeowner is overwhelmed and would be happy to sell the property before it becomes even more of a burden. While you’ll have to practice some discipline in how you approach these individuals, driving for dollars can produce great results.

Related: 6 Insider Hacks for Finding Profitable Off-Market Real Estate Deals

4. Seek Out Receptive Sellers

Condition of the property isn’t the only telltale factor. You can also look at ownership details and past listing activity to find owners who are more likely to consider an offer.

“Offering to buy a house that sold in the last couple of years likely isn’t going to get much interest from an owner who’s enjoying the space,” realtor Devon Thorsby writes. “You are most likely to receive interest from homeowners who previously listed their home with an agent but took it off market before it sold.”

Little details like these are what you need to seek out. Think like a homeowner and consider any factors that may indicate a willingness to sell. You’ll need as much leverage as possible.

Think Outside the Box

These aren’t the only methods for purchasing an off-market property as an investment, but these are the preferred strategies that savvy investors use to find good deals in seller-friendly markets. Give them some thought and consider implementing some of the principles discussed in this article.

What are some methods that have worked for you?

Weigh in with a comment!

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Homeownership investment pioneer Unison closed out 2018 with an impressive 370% growth in revenue and $2.42 billion in co-invested real estate, the company reported. Could the company’s stellar year be a sign that shared homeownership investment will be the new “it” way to access your equity?

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Facebook can be an absolute game changer for your business. With it, you can share information and spread ideas—literally across the world.

Social networks like Facebook allow you to connect with like-minded people, those who are interested in similar topics or participate in the same activities as you. And these connections can create massive value for you and your business, too.

But what’s the very best part about the ‘Book?

It’s free!

Just by spending four to five hours a week using Facebook for your business, you can experience tremendous success with NO added expense. It’s all about sharing knowledge, creating connections, and helping others in your community by posting applicable content.

If you don’t already think about Facebook this way, here are five features of the networking site that can positively impact your business—at zero cost to you.

5 Facebook Features to Use in Your Favor

Facebook Live

Live videos have completely transformed the way you are able to communicate with an audience. You can walk a property, share a crazy story, or get communities excited about whatever’s happening at the moment by showing them in real-time! You can even add someone else onto a video and interview them live.

Share Photos

Add photos to your posts! Don’t just publish blocks of text on your page, post pictures along with it. Yes, some great quotes or leadership ideas do get traction, but not nearly at the same interaction rate as photos or links accompanied by photos.

The best photos tell a story or share an experience. Make sure images are well lit, clear, and professional-looking.

For pictures accompanying text, ensure there’s a purpose and congruence. Considering using stock photography or pictures from events.

Related: How to Create an Effective Business Social Networking Profile

woman using smart phone

Join Groups

If you become a member of groups, the posts you make on Facebook can do double duty. Did you post a link or photo on your page? Now share it to the group’s page.

For instance, when I have an available rental home, I will post a few pictures and a brief description on our turnkey site, and then share it to local groups relevant to rentals and sales.

Or if my company has an event coming up, I would first post it to the business page, and then share it with applicable groups. (Note: Tailor the copy to your audience. You may have to slightly change posts for it to make sense to certain groups.)

But don’t use groups to push people hard to do something. That’s not what people want out of social networking.

The best posts that get the most activity conjure up feelings, emotional responses. Make your viewers think, “That is SO awesome!” Or, “I want to rent that house!” Or, “I want to add that property to my rental portfolio!”

If the audience has a visceral response to the post, they are likely to respond and interact with you because of it.

Ask Great Questions

When you ask questions, you create an opportunity for people to share their opinions and connect with the community. Think about the context of your page, and ask questions that make sense relative to what is happening within your business or on a group page.

On my business page, the most successful post ever asked, “What is your favorite quote?”

It was a grand slam! Almost everyone has a go-to quote, and lots of people love to read them!

It was amazing seeing so many people interact and talk about quotes and things that inspired them. And these interactions make people feel more connected to the community!

Make sure you, as the manager or administrator, are consistent with the tone, style, and approach to communicating on your own page or within groups. What is the culture like? Are people helping others? Is there bickering, or are people kind?

All of these things matter!

thumbs up or like graphic painted in blue and white on brick wall

Schedule Posts

Scheduling is important for a few reasons. Facebook now allows you to schedule an entire week of social media in advance. Select specific times for posts to publish based on traffic metrics (find these in the “Insights” section of Facebook).

This stream of scheduled content can have a massive impact by proving to your audience that you can be relied on for steady, high-quality posts.

Change your scheduling periodically. See what happens. Check Facebook “Insights” to find out what’s working and what’s not.

Related: Developing an Online Social Media Voice Through Automation

Final Thoughts on Using Facebook to Grow Your Business

Although traditional methods of digital advertising are also terrific, Facebook is a great way to expand your reach, sell more houses, buy more deals, and get connected to both real-life and virtual communities you care about. Review old posts and monitor what gets the most activity.

Take note of what people really engage with and comment on. Then, get after replicating those kinds of posts—and therefore those kinds of results!

What kind of social media strategies do you use in your business?

Comment below.

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Think you want to be a real estate agent?

Here’s a crazy stat: 80 percent of real estate agents fail. But that’s probably because they had no idea what they were getting into. It can be a great job—and one that’s lucrative—but is it a good fit for you?

To be successful in this entrepreneurial venture entails a lot—both on the surface and behind the scenes. It requires a certain personality type, as well as a whole lot of work!

Related: Traits of a Great Real Estate Agent

Why Don’t Expectations Align with Reality in Realty?

Real estate agents do a lot. Much of it can be fun, exciting, rewarding, and even glamorous—just like the shows on HGTV would have you believe.

But the fact is the television representation of what it’s like to be in the business is extremely misleading. For instance, have you considered it’s primarily a sales position? And are you aware that a good amount of the work you do is unpaid?

In this video, learn what it really takes from someone in the biz.

If you’re thinking of a career in real estate, what other questions do you have? If you’re currently an agent, what advice would you offer those considering becoming one?

Weigh in with a comment!

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More seniors are opting to age in place rather than relocate later in life, and it has contributed to the supply shortage that’s hampering the housing market. According to a study by Freddie Mac, seniors born after 1931 are staying in their homes longer than previous generations, and they are gumming up the works – and it’s a trend that’s not likely to slow down any time soon.

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Being a hands-on landlord is not the dream gig it is made out to be. It can be hell, and it can be a lot less profitable than many real estate gurus make it out to be — especially when you factor in your time.

There are definitely many benefits to owning real estate and investing in income-producing rental property. There can be great cash flow, high returns, equity appreciation, pride of ownership, and protection against inflation. Yet, for all the reasons below, being a self-managing landlord can be more of a nightmare than a dream come true when multiple properties are involved.

Here are five reasons land lording can be a real drag.

1. Time Commitment

If you are going to self-manage your own rental property portfolio, you can go ahead and kiss your time goodbye. Forget occasionally going on vacation, taking the weekends off, booking dates that you can stick to, or getting plenty of sleep. Be ready for the phone to ring with incoming tenant- and prospective-renter inquiries. You will have to be on call 24/7/365.

Related: The 4 Types of Horrible Tenants (& How to Deal With Their Shenanigans)

2. There Are Too Many Roles to Master

Being a property manager involves mastering a whole team of full-time job roles, including:

  • Customer service representative
  • Marketer, designer, and copywriter
  • Leasing agent and tenant screening professional
  • Bookkeeper
  • Handyman
  • Property inspector
  • Property manager

3. Mental Drain

Being busy is one thing. Though in this job, you’ll also have to deal with a lot of stress. It doesn’t matter how good your properties are or how nice of a landlord you are. You will eventually get some tenants who are very demanding. You’ll get tenants with drama. Everyone has a story for why they can’t pay the rent — and it can be draining.

4. You Can’t be Objective

When you are that close to selecting investments, supervising rehabs and improvements, accepting tenants and managing your properties, some emotions can come into play. When you allow your emotions to influence your decisions to buy, lease, renovate, manage, and sell, you run into risking financial results. It’s often better to just stick to looking at the numbers, without even seeing the property. One thing I always work to avoid is falling in love with a property. This can severely cloud judgement. 

Related: 10 Security Deposit Tips, Tricks & Hacks for Landlords

 5. It’s Risky

From the physical dangers of being on job sites and dealing with tenants — to collecting rents and dealing with angry tenants and dogs — to the financial liability involved in being too close, being a DIY landlord is risky.

The Alternatives

Fortunately, there are alternatives. There are ways to get all the benefits of investing in rental properties without having to be the on-call landlord yourself. These include: investing in funds, choosing turnkey rental property investments, private lending, outsourcing the management, and partnering up with others who will do all the work.


One of the biggest mistakes I made was starting out personally managing my own properties. It taught me a lot about managing a property. I’ve also found it to be way more profitable to have a professional team to handle most of the day-to-day property management. My advice? Be an investor, not a landlord.

We’re republishing this article to help out our newer readers.

What do you think?

Have you had headaches or success with managing multiple properties? Share your experience below!

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