Top 5 Rental Property Mistakes - You'll LOSE THOUSANDS

I recently made a video on the top 5 mistakes to avoid when flipping houses. After making that video, I decided to make one on the top 5 mistakes to avoid when buying rentals!

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If you missed the video on the top 5 mistakes to avoid when flipping houses, you can find it here:

The first mistake people make when buying rentals is not understanding what their cash flow actually is. Many people think that cash flow is simply rent minus mortgage. That couldn’t be further from the truth.

The second mistake is being cheap on the renovation. In my experience, it is better to use slightly more expensive yet way more durable materials that are going to save me money in the long run.

The third most common mistake I see is people trying to self-manage their properties. My time is worth way more than $100 a month, and therefore, I hire a property manager for my rentals.

The fourth mistake I see is not properly vetting tenants. Bad tenants will cost you way more money than they will save you. That is not a problem you want to have. Always vet your tenants properly before choosing someone to rent your property out to.

The 5th and final mistake is people who get too emotional. Some landlords think they have the best house ever and try to rent it out for way over market rent. Understand that a rental property is a business and therefore run it as such.

[landlordninja]

Well said. Only thing I would say differently is if you are going to self manage then build a property management company! That is what we did. We tried to find a good management company but to be honest none existed back then. Now we are starting to offer our services to others and feel we have the best team in the area

[bradleydosch]

I think the most valuable lesson i got was not rushing to find a tenant. To wait and lower the rent if necessary. Appreciate you being real about that.

[brianheron]

Good video. I spend between $4k & $8k per unit the 1st time I go in. It's a great base for my rentals. The 2nd time I go in to that apartment, it costs me about $500 to $1k. So worth doing it right! Happy Investing! 👍🔥

[samuelirvine]

Can you do a video about how you manage the finances for your rentals? Thanks for the great content.

[EventSantaCruz]

This video is super helpful. Currently in the process of looking for our first rental property.

[The_Mr_UCNJ]

These are deff important things to know when getting into rentals. What you spoke about cash flow, that’s huge!

[Graystone]

After selling rental properties to investors for 20 years, the common denominator why people hate rentals is because they don't like managing the rentals. I always tell investors to spend their time educating, improving, and becoming the best Investor that they can be!

Do not waste one minute managing these properties! You should not manage on your own because your time is more valuable in finding the next best deal! Second, because you are not looking to become an expert property manager (you want to become an expert investor), third because you can utilize a property management company's resources and scale your business a lot faster. Finally, the most important reason you don't want to manage your properties is that it takes so little for you, your wife, or your family to get burned. It could take just one single call on the weekend on a Saturday while going to church that could make you blow up and say, "I want to leave this business"! Please don't put your future or retirement to a chance; do not let something like this happen to you by hiring the right management team.

[chessgirlvegas]

Good video, informative. Also, self managing Landlords need to remember to comply with local rental laws. Most self managing Landlords who only own a property or two are not property mgmt savvy on local regulations, and typically think that how they deal with their properties in another state or country outside of the USA works just fine in the USA and this is not the case. These self managing Landlords often spend the security deposits and fail to return them, ending up in court in a tenant dispute. Some tenants don't pay as agreed and deserve no money back, but you have to notify the tenant in writing within 30 days of move out of the charges. Like Ryan said, it's better to hire an expert. A lead based paint disclosure and form to be signed is required to be given to any tenant or buyer or seller of a property that is built before 1978. This is another issue. Lastly, if you discriminate it can be a big fine. Be careful to rent to all parties in a similar manner with no discrimination, not only is it wrong, it's against the law.

[oceanearth]

I self manage and I do well. If you can fix issues your self management is worth $100 per hour, a great value given what electricians plumbers and management costs are.

[ayalearnsandplay]

I feel good now. I just had a dose of Ryan's Property Insight of the day. Good content as always. More power to the show!

[ivanrvzo]

I only self manage (I started a property management business) because I’m out of money to invest in more. I have two 1950s homes and 1 2004 renting the basement.

[allaboutreptile]

Great solid advise! I currently have a rental and I'm looking at getting a second.. that's where I have the issue is adding more to my portfolio... (Will I get approved and how can I show the lender I can handle more rentals?) 🤔

[mpak]

Pray, feed babies, work, watch Ryan Pineda video, gain knowledge=Ready for the day 💪 😆

[arnovandeventer]

I need advice guys, I'm in Gr11(senior I think) and I have pure maths, but I suck at it and fail in it, so I want to switch to math literacy. Should I switch or not what do you think??

[raceroyce]

If you have more than a dozen units then yes property management is good. If not self manage is better. That $100/month per unit adds up and prop managers never look after your property like you do. Their motive is to make money from you not for you. Self management will probably save you thousands vs $100 you mention.

[rollin]

I only own 1 rental but I’ve self managed for 10 yrs. I’ve saved at least $10k during that time.

[alexhahn]

No mention of property taxes or insurance... Those are big ones and they are fixed costs

[PriscillaGomez]

Thanks for the tips! Anyone else watch all these top 5 tips videos at 2x? 😆 lets👏get👏to👏THE👏POINT👏

[hanielgarcia]

Ryan is legit, can't wait to be 18 to put all the advice into action.