CalculateRealEstateROI

Investing

What's the biggest mistake new investors make?

Underwriting without reserves and skipping inspections.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Underwriting without reserves and skipping inspections.

Expanded explanation

Zero reserves turns the first vacancy or capex event into a forced sale. Skipping inspection because 'the market is hot' is how investors inherit $40k roof problems.

Examples

  • $15k purchase savings → $40k surprise foundation = -$25k.

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