Investing in Residential Real Estate

Avoid These 3 Mistakes When Investing in Residential Real Estate

Residential real estate investment in Dallas can do a lot for your monthly cash flow and for your investment portfolio. However, if you aren’t careful, this investment dream can quickly turn into a nightmare that costs you more money than it’s making you. Fortunately, you can pretty easily avoid that nightmare if you follow these tips.

Failure to Do Your Homework

You set out to buy investment properties in Dallas, and almost immediately saw a great neighborhood with good schools and low property taxes. You snapped it up as quickly as possible, but you didn’t think to check on whether the area was due for a tax assessment or not. Now you own a property in an area with astronomically high property taxes, and you’re having trouble renting it at a price that will cover your expenses.

If you fail to plan, you’re planning to fail. Always do as much research as possible before you buy investment properties in Dallas, Fort Worth, or anywhere else, for that matter.

The DIY Trap

Once you purchase your residential real estate investment in Dallas, you notice that it needs a little bit of work, here and there. Instead of hiring a property management company, you do it yourself to save money. The more you do this, the more time you’ll spend on jobs and tasks that would be better done by professionals. Your time is worth money; spend it wisely.

Underestimating Maintenance and Other Expenses

Finally, a lot of investors have issues with underestimating the cost of keeping a house in good condition. If you only factor in the mortgage, taxes, and your property management company’s monthly fee, you could end up losing money very quickly. Take some time and figure out how much it will actually cost you to keep the property well maintained, and you’ll be less likely to regret your purchase later on.