The Top 10 Reasons to Invest in Multifamily Real Estate

We all know we should be investing in real estate, so what is holding you back?

Our team has put together the “Top 10 Reasons to Invest in Multifamily” as a guide for you.

 

 

We highlight some of the many benefits that come with investing in multifamily real estate gathered from our years of experience.

 

 

 

Click HERE to see the full report

 

 

Feel free to reach out to the team if you’d like to learn more, or find more information on how to invest HERE.

Webinar on Multifamily Execution and Adaption – A Case Study

Now available: If you’re considering investing in multifamily properties, this webinar will illustrate how our strategy and execution make our investments a success.

We show you the numbers and explain how we’ve delivered value creation in our first fund.

 

A replay of the live event can be found HERE

 

 

As always, please feel free to reach out to the team if you have any questions or would like to discuss further or book a call with the team HERE

We’d be happy to talk about our investment offering, and how you can benefit from real estate exposure in your investment portfolio that provides you with a completely passive stream of income.

Inside Large Scale Multifamily Investment Strategies

In our latest Webinar, we shared insights into five large scale multifamily investment strategies

If you were unable to attend, or wanted to access the presentation and watch a video replay, the links can be found below.

The full presentation slide deck can be found HERE

A replay of the live event can be found HERE

 

There are a wide range of strategies investors follow when investing in apartment complexes. In this webinar we run through several different approaches investors can take when assessing a multifamily investment.

From new properties to old, we will break down the pros and cons of each and give insight that prospective investors can use to understand a sponsor’s approach and make an informed investment decision.

We cover 5 different strategies investors use when approaching large scale multifamily investments:

> Ground Up Development

> Core

> Momentum

> Government Subsidized Housing

> Value Add

 

As always, please feel free to reach out to the team if you have any questions or would like to discuss further or book a call with the team HERE

We’d be happy to talk about our investment offering, and how you can benefit from real estate exposure in your investment portfolio that provides you with a completely passive stream of income.

Webinar: Why Multifamily Investments? Slide Deck and Replay Available

In our latest Webinar, we shared insights on the many aspects of investing in multifamily properties.

We thought it would be useful to our readers who were not able to attend to read through the presentation.

 

The full presentation slide deck can be found HERE

A replay of the live event can be found HERE

In this webinar, we cover:

What is Multifamily?

Classes of Multifamily

Benefits of Multifamily

How to pick the right investment

 

As always, please feel free to reach out to the team if you have any questions or would like to discuss further or book a call with the team HERE

 

Yankee Capital Partners Announces the Launch of the YCP Value Fund II

Lynnfield based real estate investment firm kicks off 2021 with plans to acquire their next multifamily property

 

Lynnfield, MA, February 24, 2021 – Yankee Capital Partners (YCP), the multifamily real estate investment firm, today announced the launch of their new fund, the YCP Value Fund II. The firm specializes in acquiring and optimizing B Class multifamily housing in markets selected with a data-driven approach. This new round of funding comes on the heels of proven success of this investment strategy in 2019 and 2020, setting the company on a trajectory for rapid growth in 2021.  This ‘value add’ strategy allows YCP to deliver strong investment returns and value to their accredited investor clients.  The new fund will also create opportunities for further investment in several emerging and high opportunity markets, including Texas and the Carolinas.  

“The Value Fund II is an exciting milestone for YCP and builds on the momentum the team has built so far,” said Ravee Dave, Founder, and CEO of YCP.

“We’re delighted to offer accredited investors access to commercial real estate, in particular multifamily assets, that are usually only available to institutional investors.  Our clients enjoy participating in the income and appreciation of a real, stabilized property, and we look forward to increasing our investor base with this new fund.”

 Upgrading the properties’ exterior and interiors are at the forefront of the YCP strategy. 

“We really set ourselves apart in that we have in-house construction expertise and are able to implement our value add strategy and improve these properties at a lower cost than our competitors to the benefit of our investors.  We continue to build on our construction and investment track record and can now welcome new investors to our next project,” said Edward Sarkisyan, Yankee Capital Partners’ COO. 

With growing interest in the sector, the YCP Value Fund II is already gaining traction with investors and the advisors who serve them.  Together, the YCP team and their investors recognize the need for access to diversification away from the traditional stock and bond markets while enjoying strong, risk-adjusted returns.  The team looks forward to further expansion and funding in 2021. 

 

About Yankee Capital Partners 

Yankee Capital Partners is a real estate investment company located in Lynnfield, Massachusetts.  YCP pools investor funds to acquire and reposition multifamily properties through a value add strategy, delivering strong returns and cash flow to its investors.  With a seasoned team of real estate investment and construction project management professionals, YCP is uniquely positioned to capture maximum value in each of its deals. 

https://yankee-capital.com/

 

A Comprehensive Guide To Help You Capitalize on Fractional Investing

Fractional investing refers to the partial purchase rather than the whole purchase of a property. In this case, like-minded stockholders pool their capital together and invest in highly-valued properties. The fractional investing technique is practical for investors who want to acquire assets on a bigger scale and assurance of a worthwhile investment.

When used smartly, fractional investing could unlock 8-figure deals. The power of fractional investment improves financial fortunes by combining new common stock under the predetermined ratio scale.

Learn more about what you can make out of fractional investing and how such a method can change the game of property investment.

Fractional Investing in Stocks

Fractional shares and stock investing is an incredible way of making money. Stocks are lawful documents that represent ownership or investment in a company. That is why business people and other investors can utilize stocks to own a percentage of a company.

Fractional investing is common in the stock market and can be replicated in the real estate market. So how does stock investing work? A share or stock is paper security representing partial/fractional ownership in a corporation or company.

Fractional share investing is when investors pool their resources to purchase partial shares of a company or asset. Rather than owning one or more full shares, the investor owns a fraction or portion of one.

Comprehensive guide to fractional investing

Fractional Investing in Real Estate

Fractional real estate investing is a trendy business model that is starting to gain traction. Imagine owning a 10% stake in a high-value investment property and share in the risk of ownership with other unrelated parties. The market dynamics are changing as more people become willing to embrace the sharing economy.

Thanks to the opportunities that come with this type of investing, many people have discovered fractional investing’s hidden potential and see their financial returns markedly improve.

The potential to realize substantial capital appreciation and double or even triple their investments has further increased fractional investing popularity.

But most individual investors still face the same age-old question: Is it better to be an active or passive real estate investor?

  • Active Investing: Active real estate means that you are in charge and make most of the decisions. At the very least, you’re making buy-sell decisions, creating budgets, determining renovation plans, and working with the property manager.
  • Passive Investing: If you don’t like the idea of being a landlord or don’t have the expertise and experience to turn a profit, active real estate investing may not be for you. Therefore, it’s essential to be extremely cautious and learn how to invest wisely. Many investors prefer the passive real estate investing approach.

Fractional Investing in Commercial Real Estate – Syndication

Fractional investing in commercial real estate is referred to as syndication. It describes the pairing of investors and a sponsor to acquire a property.

Real estate syndication allows you to invest in high-value properties and prime areas that are not within your price range. That’s the most intriguing aspect of fractional real estate investing. It opens up new possibilities to own a share of multimillion-dollar properties without being a millionaire.

Syndication fractional investing is a collaboration of interest between:

  • A group of investors that offer capital to acquire properties
  • The real estate professionals who have high knowledge and experience in operating and acquiring profitable and good performing properties.

Real estate syndication opens opportunities for investors interested in putting a capital prime location and the best properties that are impossible to get along with.

Key Advantages of Fractional Ownership

  1. Expands capital for property upgrades: Vacation homes are types of properties that need proper monitoring and management. Thus, sharing the cost with other property owners can help you make more upgrades. Fractional ownership expands your options and lets you execute the necessary improvements since you have enough budget and resources.
  2. Shared cost: Investing in a property is a practical option if you are looking for an outlet to grow your money. However, if you do not have the cost, it’ll be hard for you to manage the property and pay your expenses. Shared cost is a top advantage because owners can split the carrying price for maintenance issues and other essentials.
  3. Less property vacancy: Since you are part of the pool, other owners and their families can rent the place even when you’re not there. You can also check online for exclusive platforms to upload your listing for free and attract renters.
  4. Shared duties for rentals: Investors have one common goal: to have higher revenue. Management tasks can be divided among the owners to speed up the growth and worth of the property. Others may be in charge of guest relations, while some investors are in charge of talking to prospective renters.
  5. Ability to buy better property in a better community: Entering a fractional ownership agreement increases property investors’ chance to get a bigger house to purchase in the most desirable spot. In real estate, the essential rule that all investors must bear in mind is location.

Fractional investing guide

Disadvantages of Fractional Ownership

  1. HOA or local restrictions: Some HOAs limit the privilege to a singular or two owners. This can be a challenge if you have a full group of investors interested in a certain property.
  2. Clashing plans for vacation homes: You may be a pool of like-mind investors, yet clashing plans are inevitable between the team. Make sure to finalize everything with a lawyer before the agreement is effective to avoid circumstances.
  3. Hard to sell: Fractional investing is not for buyers who can only work with friends and family. The majority of the buyers are hesitant to use fraction investing to partner with someone they barely know.

Is Fractional Investing Right for You?

Fractional real estate investment is a great way to build and accumulate wealth. However, not all investment strategies are the same. It’s crucial to understand each investment strategy’s pros and cons to ensure you choose one that will set you up for success.

That’s where we come in. Our core mission is to leverage our industry experience to provide valuable information to existing and potential investors. We will become familiar with your investment goals to ensure you make the right investment decisions.

Want to start your journey in multifamily real estate investing? Call Yankee Capital today at (781) 400-8778 to speak to our experts and become an investor.

Best Real Estate Asset Management Practices

Real estate asset management is imperative for any property investor. Some asset holders tend to leave this aspect at the back of their minds as they feel like other things are more important when growing the business than having structured and proper management — or they do not know what such a term means. 

Property management sure rings a bell for all asset owners, but the day-to-day habits of establishing it might still be blurry for several investors. Real estate asset management is working closely with your properties, whether by hiring a property manager or taking on the corresponding tasks yourself. It is one factor you need to consider if you want to achieve optimal profits and overall results. 

Here are some of the essential pointers in setting excellent asset management to help you demonstrate effective practices. 

Don’t Get Attached to Your Property 

Value and look after your property, but never fall in love with it. The pride of ownership should not consume you and cloud your judgment. It’s natural to cherish your assets as they come from your blood and sweat; however, it should not go overboard. Getting emotionally attached to your property can be the start of unstrategic upgrades that are not even warranted and relevant. 

Know Your Market and Submarket 

Be one step ahead of your competitors and know the scope of your market as well as submarkets. The future residents of your property are just within a five-mile radius. Familiarizing yourself with the vast majority gets you a better view of the current demand in the market. 

Doing a rent survey can lead to the current upgrades and amenities that break the cost of most high rents. You will create a more impactful capital improvement plan when you are armed with the necessary information. 

Real estate asset management

Get to Know Your Resident Base

Making more money and working on proceeds are what a normal property investor does. While many people believe that raising rent is the most effective way to achieve your property business’s high standing, there are three broad categories you have to go through first to accomplish your goal. 

Scrutinize your investments’ pillars by increasing renter retention, decreasing expenses, and increasing revenues. Increasing renter retention is the category that you’ll have to focus on the most. Make good renters feel more like residents than temporary settlers. Valued renters would likely continue staying in your property and even recommend your units to their friends and loved ones.  

Never Ignore Your Property

Not getting emotionally attached to your properties is a good bar to set. But it should not mean that you neglect them completely. Your investment will not magically grow itself. One of the awful things you can let your renters experience is ignoring repair requests or not injecting budgets for property improvement.

Deferred maintenance is the perfect opposite of good real estate asset management. It could lead you to lose all your renters and clients and decrease your estate’s overall appeal. Renters are magnetized to apartments where safety and cleanliness are both a priority. 

Hold Cash Reserves

In business, wins are not always on your side. If you keep this fact in mind, then it’s expected that you are already considering holding cash reserves as part of your asset management. Property investment is a breathing and living business — things could go wrong anytime without warning. 

Have cash on hand be prepared for unforeseen circumstances coming to play. Many investors set aside capital for six months of debt service, emergencies, and planned improvements. Managements that do not allot a budget for cash reserves set themselves for limited options in times of dire need. 

Effective real estate asset management tips

Negotiate Significant Expenses

Maintain your buying power by being on top of all the units you own and weighing significant expenses needed for your properties. For maintenance services and appliances, bulk buying is a smart way to get the necessary discounts. Try to negotiate lower costs for contracts for utilities such as maintenance supplies, electricity, trash management, and phone expenses.

Review your expenses and look for ones that might help you save more money. Retailers that offer multiple units are usually considered to larger buyers as they could also be hardly affected when your business is not thriving. Aim for a lower price as much as possible. 

Other Best Practices for Real Estate Asset Management 

As there could be endless best practices for real estate asset management, several property owners also consider other good habits such as:

  • Protesting a tax increase
  • Driving additional income
  • Requiring renters insurance
  • Taking account of preventative maintenance programs. 

There’s no perfect formula for the best real estate asset management. All the tips mentioned above are only helpful when you commit hard work and dedication to boost your business’s growth and maintain good service to all your residents as an investment property owner.

1031 Exchange Real Estate: A Guide For Commercial Multifamily Properties

Commercial multifamily properties refer to induced residential assets done through the 1031 Exchange. To maximize tax burden and other issues, some considerations are important when using 1031 exchange real estate. These considerations are important because it’s a functional solution to reduce unexpected costs and to defer taxes.

The typical long-term capital gains rate can be magnified up to 20% or more if you know how to handle the strategy. Being fully investable in the next asset provides equity growth in the future and sets a more current income. Transform your investments into commercial multifamily properties. Familiarize yourself with the ways to extract the golden benefits of the 1031 exchange.

What is 1031 exchange real estate meaning?

A 1031 exchange allows you to defer capital gains taxes whenever you sell an investment property and reinvest the sales into a property of a like-kind whose value is greater than or equal to the first property. The 1031 exchange is derived from section 1031 of the Internal Revenue Code.

Qualifications for 1031 Exchange Real Estate

To be eligible for the 1031 exchange real estate, the following conditions apply:

Unsold like-kind properties

To perform the exchange for commercial multifamily investments, one needs an income-producing property and ready to be sold. This could be anything from the available choices, including small medical office buildings, strip retail centers, 1-4 unit rental property, and rental condos.

1031 real estate exchange

Is the capital gain you’re seeking to defer worth it?

Minimizing taxes can be a good hack, but it’s not always advisable for all cases. Take note that a capital gain of $50,000 below is just one small part to focus on. The 1031 investment often takes the value from downstream restrictions and sets up the exchange.

Did you set up a 1031 exchange, and are you still within your 45-day next investment identification window?

Evaluate the circumstances of setting up a 1031 exchange within 45 days of the next investment identification window. You must execute your strategy within this window.

Properties That Are Acceptable for a 1031 Exchange Real Estate

Qualified like-kind properties do not imply buying and selling the same types. The term ‘like-kind’ refers to the raw property’s character or nature and not solely it’s quality and grade.

Two specific property types are acceptable for IRC 1031 tax-deferral treatment:

  • Relinquished properties
  • Replacement properties.

Both are usually held for productive business and trade uses. To name a few properties under the categories, these types are suitable for 1031 exchange real estate.

  • Residential properties
  • Commercial properties
  • Rental properties
  • Raw land
  • Rental ski condo
  • Mitigation credits

1031 Real Estate Exchange Rules

Here are the top 1031 real estate exchange rules to keep in mind when exchanging multifamily property:

Facilitator

The property transactions’ facilitators must be present and involved in verifying that the exchange’s prerequisites are matching. Also, all the documents submitted are valid.

Title

Ensure that the title of the replacement property and the first property’s name are parallel to what is originally written. Double-check the property documents and amend the necessary actions before signing the deal’s last phase.

Timing requirements

After the first asset is sold, the 180-day and 45-day rules must be applied during the new property purchase. The requirements’ timing is imperative in proving that the transaction is legible and valid at all costs.

Similar exchange

The replacement property and original property must be similar in value as the life-kind exchange takes place. Transactions and deals will run smoothly if both types of properties have similar equity. Otherwise, the process may take a while and induce hassle as they review the requirements and other details.

1031 real estate exchange

Exchanging One Multifamily Property for Another

Are you planning to sell a multifamily property and invest in another? Here’s what you should do.

The Reverse Exchange

The reverse exchange is a dependable solution for investors if there’s a delay in payments for the relinquished properties. Through the Exchange Accommodation Titleholder (EAT), the exchange properties are titled in their distinctive names to avoid confusion and mismatch.

Identical Property Titles

Properties under identical property titles must have uniform names. The taxpayer listed on the purchase property should be identical to the taxpayer listed on the relinquished property.

Choosing Replacement Property

This exchange only applies to real estate properties. Unlike the standard life-kind exchanges, not all replacement properties cover evidence of indebtedness, bonds, stocks, inventory, and other security details.

To favorably apply 1031 exchange into commercial multifamily properties, investors should know the types of the properties skin-deep. They should also acquaint themselves with the different setups of the said investment strategy.

Equipping investors with the standard knowledge on 1031 exchange real estate before confirming deals and agreements is important. It will make it easier for the investors to plan for the next step.

REIT vs Rental Property Investment: The Only Guide You Need

Should I buy a rental property or invest in a REIT?  If you’re asking yourself this question, you’re not alone. Most investors are confused about which option to choose. Not to worry, though; this article will help you make the right decision when it comes to REIT vs. the rental investment.

Many money managers recommend investing in rental property because you can usually expect a good return on your investment. But this can either go really well, doubling or tripling your investment, or the value of the property you invested in might decline, and you are left with no or minimal ROI.

This all depends on the decisions that you make when investing. Putting your money on real estate property is a huge feat that requires a lot of planning, research, and preparation. Doing this will increase the chances of you making a smart investment and getting a satisfactory ROI.

When it comes to large-scale real estate investment, an investor has two options: investing in rental property and real estate investment trust. The two differ significantly, and being aware of their similarities and differences will help you make the right decision.

What’s the Difference between the Two Investments?

In apartment investing, the GP or general partner collects capital from a pool of other investors, who are called limited partners or passive investors. Their collective contributions are used to pay for the investment, so all the parties involved will share the profit and proceeds of the investment.

On the other hand, a real estate investment trust refers to a company that either owns, operates or finances real estate properties. REIT works the same way as regular stocks do, where the investors receive income in the form of dividends.

reit vs rental

Should You Invest in REIT of Rental Property?

Each type of passive real estate investment is structured differently. So it’s important to be aware of how they are different to make an informed decision and a smart investment choice among your options.

1. REIT vs. Rental Property: Diversification

Real estate investment trusts have fewer fluctuations in income. This is thanks to their structure, where the money is spread across different assets instead of a singular one like in apartment investing.

That way, you can better ensure that you’re going to have a good ROI every year because you’re not relying a hundred percent on a single piece of property. But of course, this would also depend on how the property performs.

In terms of diversification, you can also create your own structure in a real estate investment trust. It ultimately depends on where you want to invest your money and how you want to divide your capital into different properties.

2. REIT vs. Rental: Initial Investment

A real estate investment trust is significantly more affordable than apartment investments. In a REIT, you can invest as low as $1,000. So it’s a good option if you’re starting or testing the waters of real estate investing.

On the other hand, rental property investment has a lot of requirements before you can invest. The initial investment is also a higher rate, with some sponsors requiring a minimum of $50,000 or more. The requirements needed for apartment investing are the following:

  • High capital
  • Accreditation status – This means that you should be earning 200k if you’re an individual investor. If you file jointly, the joint income should be 300k. This, or you have a net worth of 1 million dollars.

 3. REITs vs. Real Estate: Liquidation

Liquidation is essential when considering REIT vs. owning rental property.

As mentioned, a real estate investment trust works the same way as a regular stock. So in terms of liquidation, you can buy in or sell out anytime you need to. Hence, there is more flexibility with a REIT.

But it’s not the same when investing in rental property. In this type of investment, you cannot pull out anytime you want. You need to stay in the investment for the entirety of the business plan. However, there may be instances when you can pull out your capital when there is really a need to.

But do take this pro tip: when investing, make sure that you are willing to keep the money in the investment for a long time.

4. REIT vs. Rental Property: Ownership

In the last few factors, the real estate investment trust has significantly overtaken rental property investment. But in terms of ownership, the game is interchanged.

The benefit of rental property is that you have sole ownership of that specific property where your money is. Remember, you invested 100% in that property, so it is yours.

Having ownership of it, you also have the authority to access the benefits of a general partnership and get updated with reports, status, financials, etc.

This is not possible in REIT because you do not have ownership of whatever property you invested in. So you enjoy fewer benefits like speaking to the company, getting updates and reports, etc.

a complete guide to reit vs rental

5. REITs vs. Rentals: Returns

When it comes to the rate of returns, rental property investment wins by a landslide. From 2013 to 2018, the percentage of returns has been 25%, which is a higher average than real estate investment trust.

That means that if you put your money, say $200,000, in apartment syndication in 2013, by now, you would have a total profit of over $50,000.

Having said that, it doesn’t mean you’ll lose when you choose to invest in REIT. Just be sure to find the best REITs to buy to increase your chances of reaping big.

6. REIT vs. Rental: Taxes

Are REITs tax efficient?

Well, both types of passive investments are taxable, so there’s bound to be a depreciation in income regardless of what you choose. But there is one benefit of investing in rental properties, which is known as the 1031 exchange.

In this setup, limited partners can use 1031 to reinvest whatever they earned from the initial property into another investment. In effect, this defers the taxes on the profits. The 1031 exchange is only possible in apartment investing and not in REIT.

REIT vs. Owning Rental Property: Concluding Thoughts

Both types of passive investments offer their own benefits. What you should choose will ultimately depend on what your goals are when it comes to your investment.

The important thing is to be aware of what each type entails and your rights in each setup. Being informed will help you make a wiser investment decision when considering REIT vs. rental property.

Common Real Estate Investment Mistakes To Avoid

So everyone is telling you to invest in real estate, however, very few will alert you of the common real estate investment mistakes.  True enough, real estate investing is a great way to expand your profits as these typically have good ROIs.  But not every real estate investment story concludes with a happy ending.

There is still a risk of losing a lot of money, especially if you don’t do property properly. To be successful in real estate investing, you need to have the knowledge and skills to make wise decisions for your venture. 

It also pays to be aware of the common mistakes other people make so that you can steer clear. Here are the biggest mistakes in real estate investment you should avoid. 

1. Lack of planning and preparation

One costly mistake in real estate investing is that most people are unaware that it is more than just about putting your money in and waiting for it to blow up and make you rich. No one succeeds in real estate investing by chance. The most successful investors always start with a plan. After all, you don’t go to a battle unarmed. 

Before taking proactive steps to invest in real estate, make sure you form a solid investment strategy. Your plan should include things like the specific types of houses you’re looking for, how you plan to purchase the property, etc. 

common real estate investment mistakes.

2. Not doing research

The real estate sector is a very complex one, governed by several laws and regulations. If you don’t make yourself aware of the basics and concepts in real estate investing, you can potentially get yourself into a lot of trouble and lose a lot of money along the way. 

Like how you would compare different car models before making a purchase, you also need to do your due diligence in researching your potential investment. Learn as much as you can about the specific property and the surrounding areas, the location, the zoning laws, etc. 

Here are some questions you need to ask yourself: 

  • How likely will the area be developed? 
  • Are the surroundings safe? Flood-prone? Disaster-prone? 
  • Are there issues in the property that may cost you a lot of money to address? 
  • What’s the reason the property is for sale? 

3. Not seeking expert opinion or help

Investing in real estate is not a walk in the park. You won’t be able to understand a lot of things on your own, especially if you’re new to this whole thing. As much as possible, you should be asking for the opinions of professionals who can tell you whether or not it’s a good investment according to hard facts. 

If you want to avoid these common real estate investment mistakes, consult these experts as they can give you a lot of valuable insights

  • Real estate agents
  • Home inspectors
  • Real estate or property lawyers
  • Insurance professionals 

If you’re the investor, it’s hard not to have a bias about the condition of the home. It might look like you’re getting a good deal at first glance, but professionals will be able to spot potential problems and risks that you need to take into consideration. 

common real estate investment mistakes.

4. Overbidding

First-time real estate investors tend to get overly excited about their first investment. And because of that, they make the mistake of overbidding. Or sometimes, you just become too tired of looking for the perfect property that you end up settling. 

Overbidding is one real estate investment mistake, especially if done impulsively without first crunching the numbers and determining if you can really afford it. This can cause you to go above your budget and burden you financially. 

This goes back to the importance of research. Find out how much the property’s actual value is, calculate your budget, and determine if it really is going to be worth the investment. And if not, don’t lose hope! It’s simply a sign that there’s a much better opportunity for you. 

5. Not being prepared for expenses

When computing for your investment, you shouldn’t just consider the cost of the property. You also have to include the expenses that come with it, such as bills, repairs, taxes, renovations, etc. 

These might seem like small expenses, but if you look at them as a whole, they can cost thousands and thousands of dollars. So when you do your accounting, make sure to know exactly how much you can afford and consider all other expenses. 

A lot of people tend to underestimate real estate investing. But it’s not as easy and fool-proof as they think. No matter how equipped you think you are, the only way to really protect yourself and your interests and increase your chances of actually making a profit is to expand your knowledge and skills in investing. Avoid these common real estate mistakes, and you are one step closer to becoming a successful real estate investor.