Investing and buying a rental property is important to building wealth and financial freedom.  Making money should always be on the minds of a new investor but also avoid losing money should be right next to it.  These are the 5 pitfalls I see with new investors.

# 1 pitfall I see is that new investors have no game plan.  They watch TV and see people investing and flipping houses.  They think that its easy to make money so they decide to just go out and start buying properties without an actual game plan.  When I invest, I have a game plan.  I have everything mapped out and I know exactly what to buy where to look and how much to pay for it.  This game plan allows me to stay focus and not get emotional during my search.

#  2 pitfall I see with new investors is buying what they like.  So many new investors just like to buy rental properties because they like it and that is what they want to rent.  The problem with this is that buying a rental should be a business decision, it should be based on the numbers and ARV of the home.  It should not be based on personal preference.  Investors that do this tend to buy rentals that don't make them money. 

# 3 pitfall I see with new investors is trying to buy a property and renovate it like they are living in it.  You don't want to put the nicest finishes in a rental.  The property needs to be nice and in good condition but you do not need to put the best material. 

# 4 pitfall I see with a new investor is buying a house because its cheap.  So many times I see them buy a property because of the price and its located in a bad area of town and will cause them problems they are not aware of.  I teach my students what areas are the best to buy and how to avoid bad areas.

#5 pitfall I see with new investors is buying in up and coming areas.  Up and coming areas are good if you know what you are doing.  The issue is that many newbies do not know how to evaulate area and end up buying garbage.

As a new investor these pitfalls can really hurt your growth and cause major setback in your investing career.  Don't invest blindly and do it by guess work.  Contact me and learn how to buy with a systematic approach and purchase rentals like a Pro.