What Story Did You Listen To and What Did It Cost You?

What Story Did You Listen To and What Did It Cost You?

Investor · Midwest · Member since 2019 · 350 posts · 229 votes

What story did you listen to, what did it cost you, and what rule or system do you use now because of it?

My first tenant was polite, employed, and showed up when my vacant house was bleeding money, so I skipped the background check and the landlord call. Then she asked me to keep the electric in my name for a month while she sorted out a past-due balance. Six months later she stopped paying rent and the electric.

The utility company could have shut off the power.but I couldn’t. It was winter, and cutting it off would have been an illegal self-help eviction. That “small favor” cost me $278.13 and taught me this: flexibility without boundaries isn’t kindness. It’s financing someone else’s life at the expense of your own.

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  • Realtor · Memphis, Shelby County · Member since 2026 · 29 posts · 5 votes
    18h

    The most expensive story I see investors believe is the rent number on a listing. Zillow and listing sites routinely overstate achievable rents, and I've watched buyers underwrite deals on fantasy income, then discover the real market rent is $200 less a month — which wipes out the cash flow entirely. The system I use now with every investor I work with: verify rents with local property managers who actually lease in that submarket, never with a website. Get it in writing before you make the offer, not after. One five-minute call to a PM has saved more deals than any spreadsheet trick I know. What's the story that cost you?

    • Investor · Midwest · Member since 2019 · 350 posts · 229 votes
      9h

      @Ametria Chaney I lost a deal because I was trying to save $5k. Property was well worth the ask, but I offered $5k less. Can't quantify what that cost me.

  • Leo SteinBusiness Member
    Property Manager · Orange County, CA · Member since 2025 · 113 posts · 34 votes
    13h

    Thanks for sharing the real number, Carl. The lesson that stuck with me is that a small favor with no written boundary tends to become a bigger problem later. I keep the same screening steps and the same move-in paperwork for every tenant, even when the applicant seems great, since it keeps the decision from being personal. Did you change anything about utility setup after that?

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    • Investor · Midwest · Member since 2019 · 350 posts · 229 votes
      9h

      @Leo Stein 1000% I changed immediately. Once an approved applicant signs the lease utilities are scheduled for shut-off. The tenant receives an email with utility companies name and phone number with the date service will shut off which is usually 24-48 hours. If they can't get service changed in that time it's not my issue. No need to discuss utilities remaining on or any other arrangement. Live, learn, adjust.

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