Minneapolis Minnesota Real Estate Blog

Common Mistakes Rental Property Investors in Edina Minnesota Make and How to Avoid Them, by Mike Weiland, Investing Expert.

Buying rental properties in Edina Minnesota is a proven, profitable and relatively safe way of investing in real estate. However, many beginning investors make some deadly mistakes that end up costing them thousands of dollars. Read this page carefully so you know what these mistakes are and how you can avoid them.

Mistake #1 - Not Carefully Researching the Area

There are two things you must know before making any real estate investment in Edina Minnesota.

The first is you must know the comparable rental rates in the area. Check for the comparable rates for units like the one you're considering. Remember to factor in vacancies and maintenance if you can.

It's also important to understand the taxes and laws for the particular property in Edina Minnesota you're considering investing in. If it's a condo, special laws may apply. If the building is old, there may be code violations. For your particular investment, it's important that you know which laws apply and where you stand.

Mistake #2 - Overestimating Income and Underestimating Expenses

For beginning investors, it's very important to work conservatively. Most investors overlook how much maintenance, vacancies, repairs, etc will cost and don't check rental histories closely enough.

As a general rule, you want to have at least 20% padding to ensure that your investment is a safe one.

Mistake #3 - Taking on a Tough First Project

Beginning investors in Edina Minnesota, who take on difficult first projects often find that they've gotten into something that's over their heads. Instead, for your first project, invest in a property that is a fairly easy investment.

In other words, avoid investing in rental properties that require more than minor cosmetic repairs. Find and purchase properties that you can have up and running quickly, so you can get more experience with the closing and investing process quickly.

By avoiding these 3 mistakes, you'll be well ahead of most other beginning real estate investors.

There is a lot of free information available to you about buying, selling or investing in Edina Minnesota real estate. For complete information about the Edina Minnesota real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Edina Minnesota real estate at http://www.Living-in-Edina.com. Please feel free to contact me, Mike Weiland with the Weiland Group of Edina Realty with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 612-735-6834 or email me at mike@mikeweiland.com.

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