3. Underestimating expenses. 

Once a property becomes yours, those numbers turn from hypothetical, to real. There are costs associated with general upkeep for things like the yard & pest control… as well as bigger ticket items like appliance repairs, HVAC service, and roof-related items.

​​The best advice is to make a list of all of the monthly costs associated with running and maintaining a house (based upon estimates) before actually making an offer on one. Once those numbers are added up, you can calculate your Return on Investment after subtracting these costs.

If you’d like a free investment property calculator that helps you accurately estimate all of these expenses as well as your Return on Investment, shoot us an email at contact@livelycharleston.com and we’ll send it over to you .

4. Failing to build a support team before you make the purchase.

Oftentimes people will try to do all repair work and property management themselves to save on costs. Although this can work in the short term, in the long term this often takes away from personal time, family time, or time that could be spent working on your other business.

Building relationships and having a go-to list of people in skilled positions, such as a general contractor, plumber, or electrician will help you play the long game as your investment properties age.

Your support team is your boots on the ground. Screen them and build trust and rapport with them. The day will come when you need to rely on their judgment because you aren’t there to handle an issue yourself.

5. Neglecting your renters.

Now, let’s fast forward a bit and let’s say you have purchased a property and have your first renters. You may become inundated with after-hours calls, and responding to renter requests can be tedious and exhausting. Successful investors and landlords respect tenants with a professional attitude, and don’t let emotions get in the way.

Easier said than done, but renters likely will not renew their lease if they feel neglected. Improving and maximizing renter retention is the best way to ensure your property is generating income. We all know empty properties don’t make money, and unhappy renters won’t stay put for absentee landlords. If you feel yourself getting behind on requests and upkeep, or the general happiness of your tenants is slipping... consider hiring a property manager to your team to help balance or run all of the above.

That wraps up our list of the top 5 mistakes to avoid when investing in Charleston real estate. Let us know if you have any investment questions we can answer!