If you’re just getting started with real estate investing, you’ll want to avoid purchasing rehabs. Rehabs are very risky investments. You might see a house with a lot of potential, but there might be something you don’t see. Which would inevitably lead to underestimating repairs and causing you to lose money. Don’t lose money by making other easily avoidable mistakes.

However, if you’re in the business of pretty homes, the risks are minimal. The only way you lose money on a pretty home is if you overestimate the value of the house. This can be done by paying $300,000 on a home when its market value is only $250,000. 

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