How to Accurately Estimate Expenses on a Rental Property in 3 Easy Steps

by Brandon

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How to Accurately Estimate Expenses on a Rental Property in 3 Easy Steps

I have a proposition for you…

You give me $20,000 and I’ll give you… nothing. In fact, you’ll give me another $50-$200 per month until you go crazy or broke.

Sound like a good trade?

No?

Then why are so many landlords making this trade with every investment property purchase?

Yes, I’m talking about negative cash flow. I’m talking about losing money on a rental property. It happens all the time, and it leads to financial ruin. I should know — 90% of the deals I have purchased have been from “failed landlords.” So why do so many landlords fail?

Simple. As I talked about in my recent article, “Why Are So Many Landlords Going Bankrupt?,” landlords simply don’t know how to do the math correctly. They buy properties based on emotion, gut, or bad math and then wonder why they keep losing money.

And where are they losing the most money?

(click to continue reading on BiggerPockets)

About Brandon

has written 199 Awesome posts in this blog.

Brandon Turner (G+) is the BiggerPockets.com Senior Editor and Community Director and owner of RealEstateInYourTwenties.com. He is also an Active Real Estate Investor (Flips, Apartments, and Buy-and-Hold), Entrepreneur, World Traveler, Third-Person Speaker, and Husband. Come hang out with him on Twitter!

P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.

P.S. Looking for more real estate investing knowledge? If you are interested in a top-notch course to help you understand the nuts and bolts of creative real estate investing, I would like to recommend Ben Leybovich's Cash Flow Freedom University. Ben is a close friend and has been my trusted adviser for years. He's a smart guy and CFFU is pretty awesome. The course is waitlisted, but while you wait for an opening Ben will send you tons of FREE content. Seriously. Click here to check it out.

(yes, that's an affiliate link!)

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