Have you ever enjoyed a nice 8oz. filet mignon cooked to perfection? Satisfying isn't it. But how would that enjoyment feel if the minute you finished, the waiter at your favorite restaurant brings you another one? And then another one? The enjoyment suddenly vanishes and you are not only overstuffed but miserable. This is a common mistake in the investment home world. Someone wanting to buy
investment homes buys one and before it is rented/renovated, (let's just say stabilized), he/she buys another one, and another one. Next thing you know everything that CAN go wrong, DID go wrong. I've actually done this a few years back. Suddenly couldn't get refinanced and ended up with a couple of properties on less than favorable mortgage terms temporarily.
New investors should pay attention to this overeating syndrome of real estate. If you buy investment homes and take quality time to digest them, you'll likely find the experience of owning investment homes much more enjoyable. The fears of vacancy,
contracting,
property management suddenly aren't amplified and it will be much easier to handle a single crisis at a time then feeling like a doctor working the ER on Saturday night. Buying investment homes has a lot of parallels to eating. Do you remember what your mother told you about eating to fast?
