Whitehall, PA · Member since 2017 · 10 posts · 0 votes
Costly factors when purchasing a property, especially a buy and hold, are unforeseen costs, especially those that could have been avoided. For example: roofing, sewer, boiler, furnace, fire safety, foundation stability, led paint, etc.
The list is endless and so are the subsequent associated costs! What measures do you employ to mitigate unforeseen costly repairs, who do you include in your must come and inspect list (fire Marshall, roofer, architect, plumber, etc)?
Investing is a risk--- risk reduction saves money, increases productivity and cash flow.
An inspection reduces the risk of investing, no doubt. Another good way to mitigate risk is to buy more houses. That way if you get one money pit, the cash flow of the others will make up for it.
I have a thorough home inspection done by someone I trust, who also happened to own a company that built custom homes for a very long time. Thankfully he is an all-in-one package for everything house inspection related. This alleviates a lot of my risk, and helps me sleep at night.
Having cash reserves saved away really takes the worry out of unexpected repairs. Figure out how much you personally feel comfortable with saving away, and get there.
I'll also mimic Nick's comment about having more cash flowing properties! It's much much easier laying down at night knowing you have thousands in positive cashflow every month from all of your investments.