Catching that wave just right is often when SFH investors perform best and then transfer the equity into other assets.The biggest mistake is when investors sell prematurely not recognizing the fundamentals exist.

But require a longer hold period than a 1031 exchange.Occasionally we get investors who purchase an investment property to hold but end up having to prematurely sell despite their intent.

It's important to consult an attorney regarding LLC formation; many individuals set up an LLC prematurely.

Occasionally, we get an investor who intends to hold onto a property when an investor approaches them with an offer that is too good to refuse, despite their intent to hold they end up prematurely selling.

One requirement for a 1031 exchange is that you intend to hold onto the property long-term for investment use; that's why fix-n-flips don't work.If you decide to do more of a BRRRR method and rent it out for a year, that would be fine because you have demonstrated that intent to hold onto the property for productive use.Occasionally, there's an investor who experiences a negative catalyst that would affect their long-term goals and end up prematurely selling despite their intent to hold.

So me suggesting an S corporation is premature is something you may want to take slightly more seriously than you might at first guess.2.

While waiting (do not approve the tenant prematurely), review other screening criteria (credit, income, references) and communicate the delay to the applicant, asking if they’re aware of past evictions.

Occasionally, there is an occurrence that causes an investor to prematurely have to sell, like a bear moving into the neighborhood (true story), or they receive an offer that's too good to refuse despite their plans to hold. these scenarios are more justifiable until they happen multiple times. 

Purchase price: $55,000 Cash invested: $30,000 Sale price: $75,000 Contributors: Peter Vekselman Partner Driven and Seth Choate bought this property on Gum Street in Tracy City, Tennessee, for $55,000.

Next up: How to chew gum and walk at the same time....