So my ongoing quest to make sure every real estate investor does proper due diligence continues. This time, I go over a due diligence disaster we had about six years ago with a house in Grandview, MO. Of the many problems I discuss, the biggest was my underestimation of how bad the basement was, When we were buying houses just after the Great Recession, it seemed that everyone and their brother was finishing their basements for some inexplicable reason. As mentioned in my article on rental property add-ons, it almost never makes sense to finish your basement. In the end, we ended up almost 70 percent over budget and upside down in the property!
So don't skimp on due diligence. Instead, follow the checklist I laid out in my article "The Ultimate Guide to Due Diligence." The checklist, again, looks like this:
Follow it, and you'll be OK. Don't follow it, and you could end up with a turd like the one I describe in my most recent article. If are interested in getting into real estate investment, please check both of these articles out.
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