Have you ever purchased real estate in which you thought would be a profitable, cash-flowing investment only to realize later you were losing money every month?

Erik Bredemeyer, Erik Bredemeyer-Owner of Bredemeyer Investments at Bredemeyer Investments, LLC (1995-present)

Answered 10m ago

Have you ever purchased real estate in which you thought would be a profitable, cash-flowing investment only to realize later you were losing money every month?

Hi Dan, in regards to rental houses the answer is no on my end since I mostly have had good experience with rentals but in regards to fix and flips the answer is a huge “YES” and it will happen to the best of us, because when you deal with houses there are lots of hidden problems that you won’t know till you actually own the house and are in the process of remodeling it. For example, there was a house in the countryside that we bought and it had an old septic tank, which has perfectly worked fine for the last 10 years but of course once we purchased the house and we started remodeling it then all of sudden the septic tank no longer worked and started leaking everywhere-yikes! We had to replace the tank and this unforeseen problem alone cost us roughly 10K to replace it! When you deal with real estate you better get used to dealing with many different issues on a daily base so that is why your foundation needs to be solid and what is the foundation? Always buy a house for a “great price” because when problems like this arise at least you have some wiggle room and will avoid or minimize potential losses.