Top Mistakes Made By Residential Real Estate Investors

3. Not understanding how to analyze a rental property or account for the costs. I made this mistake and so did another person. You have to verify the management and maintenance fees as well as rents. Sometimes, landlords can have hidden concessions that are not in lease, so you'll lose money on a property that looks great on the surface.

4. Working with contracts without someone on your side. This is a tough one. A general contractor is probably the #1 way to lose money, especially if they know that you are inexperienced. Whether you're a landlord or a rehabber, you'll need to use a service provider or general contractor and some point. Before you hire, talk to an experienced investor.

5. Not calculating enough cost when fixing up a property. This one is always made. At some point, 100% of investors will underestimate their repair costs. The question is.. by how much?