New investors are usually concerned with keeping costs down. They want to see their profit margins go up and really...who can blame them? They got into real estate investment with hopes of making some money on the side, and the best strategy seems like it’s to spring for cheaper properties and keep costs low. Maybe they even decide they can landlord it themselves.
After all, do they even really need a property manager? What’s so hard about it?
And then, a few months in, they realize they’re losing their mind trying to do it all, nothing’s going like they wanted it to, and they aren’t even seeing the profits they want (or need), and it sure as heck isn’t passive income. What happened?
For starters, there’s an old adage that seems to always hold true for real estate, even if investors don’t always see it at first.