4 Investment Mistakes to AVOID

Hey, everybody, it’s Janine Sasso, your local Chicagoland realtor. And in today’s episode, I will be sharing with you my four investment pitfalls to avoid. So my first tip goes to people that have a high mortgage and their rent is barely covering it. One of the best advice we can give you is to keep about 10% of your annual rent in a separate account. This way you ensure if your tenant is unable to pay the mortgage, that you have a steady way of making payments without falling behind. Tip number two is for frequent vacancies. One of the best tips we can give you is to make sure you screen your tenant 100%. We want to avoid quick turnovers.

We want to make sure your tenant is financially able. So you want to make sure that you verify the sources that they give you. My next pitfall is when people are starting to chase too high of our wise, which is our return on investment. What you should be looking for is something in the mid-single digits. I have had clients where were wanting double digits returns every single time, but the investment strategy that is most commonly successful is a slow and steady approach over the long term.

If you do find a good deal, that’s great. But making this an expectation is probably not realistic. So make sure you have a game plan that is feasible for you and your investment. And that ties in with my fourth step, which is looking at it from a long term perspective. Having your rental gain equity over the course of time will be in your benefit regardless of where home prices are heading. Normally, our rents remain fairly stable regardless of market condition, so I hope you really enjoyed those for tips on the investment side. If you have any other questions, you can always email me and I’d be happy to cover that in next week’s episode.

Podcast: Play in new window | Download

Subscribe: RSS