The Top 3 Mistakes Real Estate Investors Make (And How to Not Be That Investor)
I’ve worked with hundreds of real estate investors. Some were absolute rockstars. Others… well, they had more hustle than sense. And after seeing the same trainwrecks happen over and over again, I can tell you this: there are three major mistakes that consistently wreck returns and kill momentum.
If you’re serious about building long-term wealth with real estate, avoiding these mistakes isn’t optional—it’s survival. Already made one? No shame. Just don’t make it again.
Mistake #1: They Don’t Know the Market
This one’s especially common with out-of-town investors. They fall in love with the numbers in a market like mine—North Central PA, where the ROI looks sexy on paper—but they don’t actually understand how the market works.
They try to make it happen with out-of-town agents or partners who don’t know squat about the tenant base, old housing quirks, or what it actually costs to run a rental here.
If your boots aren’t on the ground, you better have a local team that’s really good and deeply involved. You need people who live this market—not folks who pop in once a month and call it “management.”
Mistake #2: They’re Obsessed with the Numbers
I get it. Spreadsheets are comforting. Numbers feel objective. You can tweak assumptions until your deal looks perfect.
But real estate isn’t a math test. It’s a real-world, real-mess business.
Too many investors manipulate their spreadsheets to justify bad deals. They leave zero margin for error and assume everything will go according to plan. Spoiler alert: it never does.
I met with an investor who bought a triplex with just 10% down—funded by a one-year hard money loan. Within five months, two tenants moved out. Suddenly the property had one paying tenant, no cash flow, newly discovered maintenance issues and a balloon payment looming.
They didn’t budget for vacancy. They didn’t plan for risk. Now they’re looking to sell less than a year in—and they’re going to take a hit.
Don’t be that investor. Stop playing fantasy landlord. Budget for repairs. Expect vacancy. Plan for stuff to go sideways—because it will.
Mistake #3: They Have a Plan, But Can’t Execute
Some investors come in hot with a plan. They’re gonna raise rents. Replace the tenants. Rehab the kitchens. Fix the plumbing. Whatever.
But then… they freeze.
They’re afraid to raise rent because a tenant might leave. They’re scared to enforce the lease. They avoid evictions because it feels mean. The reality of taking the actions scares them and they start to make excuses.
A plan without action is just a daydream. If you can’t execute, or you won’t, you need someone who will. Full stop.
The Bottom Line
Buy-and-hold real estate investing works—me and my 100’s of clients are living proof. But it only works if you treat it like the serious business that it is. That means:
Knowing your market
Running realistic numbers
Following through with clear, confident execution
I’m PM Jen, the—landlord educator, real estate investor, and your favorite straight-talker in the buy-and-hold game. Hold It With PM Jen exists to help real estate investors protect their assets, grow their cash flow, and stop spinning their wheels.
Our mission is simple: help you hold properties smarter, longer, and with way less bullshit. Whether you're new to real estate or knee-deep in it, I’m here to help you hold strong and grow big.