Every new real estate investor makes the same mistake. They calculate their profit with just two numbers: Rent minus Mortgage. This single error is the #1 reason “profitable” rental properties end up costing them money. While that initial calculation feels good, it ignores the real-world costs that can turn a
For a new real estate investor, it’s easy to focus on a property’s age. A house built in 1980 is 40+ years old—that’s a simple fact. But what if that number is hiding the real story of the investment? Imagine this: you’re looking at two properties, both built in 1980. House
You’ve finally saved enough for a down payment. You’re ready to make your move, but the question is whether you’ve prepared for your Fixed Capital. But a nagging fear keeps you up at night: “What if I’m missing something? What if I run out of money right after I get the
You’re looking at a real estate listing. You’re looking at a real estate listing. The agent’s description glows: “A cash-flowing machine!” The numbers show a 7% Cap Rate. But what does that really mean for your bank account after you pay the mortgage, taxes, and set aside money for a new roof in