Most of my rental properties are in St. Petersburg, Florida, area and the place has been experiencing monsoon conditions. The Tampa Bay area has had road closures, flooding and trees falling down. One of my properties has a leaky roof. The other one needs a roof replacement over the former carport, which has been converted into a bedroom. Sometimes these unexpected expenses just cause me to become frustrated.
The biggest challenge with being a real estate investor, in my opinion, is the unexpected expenses. In hindsight, we should have done a better job of due inspecting the roofs on the two properties. We have also made some errors in purchasing in that we bought properties with deferred maintenance. I guess that in itself is not a bad thing because properties that need to be fixed up are often priced lower. The challenge happened because we didn’t set aside the money for repairs. So, when things like a leaky roof happen or a tenant is evicted and the place needs to be rehabbed, we have been scrambling for money.
My biggest lesson. Set aside money for the unexpected and for deferred maintenance.