1. Maintenance and repair costs: While investors typically consider the purchase price and potential rental income, they may overlook the ongoing expenses associated with maintaining the property. Maintenance and repair costs can vary depending on the property's age, condition, and location. Failing to account for these costs can significantly impact the overall profitability of the investment.
2. Vacancy rates: Another factor that is often overlooked is the vacancy rate. This refers to the percentage of time that a rental property remains unoccupied. Vacancy rates can vary depending on factors such as the local rental market, property location, and property management efficiency. Ignoring the potential for vacancies can lead to inaccurate financial projections and potential income shortfalls.