Not going to lie you are taking a risk and going a little bit off the beaten path. But the returns are great. And is the difference could be retiring in 5 years instead of 40+ years.

How do we mitigate the risks?

Most of the time there will be repairs and issues. But that is why it’s important to run you numbers conservatively to account for contingency. With my sample size of 11 rental properties in 2016 in B- Class properties I had 1-2 evictions a year and 3-4 big repairs ($200-$4000).

Make sure you have emergency liquidity. Enough for a big expense like a HVAC going out or a property going vacant for a few months.

How else you mitigate this?

Just buy more 🙂 It’s tough starting out because your cash reserves are low and you are banking on one or a few properties but as time goes by your portfolio will get more stable.

You have to push through this tough start!

You can also mitigate your blind spots by getting me on board as a consultant to coach you.

Live Coaching Call with a Doctor going 45 to 75 MPH! – https://simplepassivecashflow.com/151doctor/

Next week we will go into the world of syndications and private placements. But for now let’s get used to and accept that fact these things will go wrong but if we keep our cashflow strong we can outlast the problems

PS: have some coffee!

A little off topic but here is something different mostly to apply our investing mindset 138 – Fundamentals – Crypto Currency Basics with Andy Lapointe – SimplePassiveCashflow.com/crypto101

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