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Too Little Cash
Cutting one's cash flow to close is a mistake that can cost them their entire empire. Don't get caught with a property that needs immediate attention (roofs, furnaces, walls, bathrooms, etc) and funds that you don't have. Always keep at least 10% of each property's monthly rent as a reserve for future repairs. Try and keep 5% of the rent set aside for any future vacancies that may arise, and always keep at least a full month's rent on hand for paying mortgages. Often the tenants' checks are not received before the mortgages are due, meaning that their needs to be extra money in the bank account to pay mortgages before the rent checks are received.
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