Real Estate Investing: Rookie mistakes and saves
November 3, 2014
While we were traveling, a few somewhat unexpected bills came in the mail for the Investment House: utilities!
I tend to operate a little bit on autopilot when it comes to bills, I check the amounts and dates, then I go straight to paying them, particularly when a due date is in the past. I’m a bit allergic to paying after the due date, it gives me flashbacks to writing checks for Mom when I was a kid, not understanding why we didn’t pay on time, and then later to my late teens when I could only JUST pay bills on time after working hundreds of overtime hours.
My bottom line was about to take a beating when I took a minute to whine at my RE friend and he pointed out that the property manager should be able to bill the tenant for these – well!
I blame the heat, pregnancy brain, and totally being a rookie for not remembering that tenants almost always cover all the utilities unless it’s explicitly covered by the rental agreement. Heck, I was a tenant for years, my Dad still is and I pay his bills, so why it totally slipped my mind that we have always paid our own trash, sewer, water and electricity bills, I couldn’t even say!
Luckily, it was as easy as emailing the scanned documents off to get that sorted. Whew. Saved myself $200+. Never mind the slightly horrified lurking sense that if I nearly messed that up, what else have I done wrong? Ach. Live and learn.
Read More From the Beginning
Paula from Afford Anything posted about being off for a month and how well that worked for her; she shared a story from a single income family that has been working away at this real estate thing as well and it was a bit heartening. Randy’s also following the same general thought process that I was: save enough cash to cover the first purchase, with some extra to cover unexpected expenses, and keep reinvesting any income to build up to the next purchase. If I have a good cash cushion that I can dip into, of course I will, but Little Bean potentially changes that landscape for the moment.