Who doesn’t love scoring a great deal? While this approach works for the sale rack, it’s not so wise where rental properties are concerned. Real estate investors, from newbies to old pros, know the temptation of a “great” deal. We’ve been there, done that – and know from experience that cheap properties don’t build world-class portfolios.

While there’s no doubt that real estate is one of the best investments you can make, too many newbie investors go into it without considering the risks. They think because they own their own home or have rented in the past, they know what they’re looking for.

On the surface, buying cheap rental properties seems like a good idea. After all, you can afford several cheap rental properties at once versus one expensive property – and the sooner you can diversify, the better, right?

Who doesn’t love a good deal?

With Black Friday and Cyber Monday just wrapping up, we’ve seen just how crazy people can get when they’re faced with the prospect of a good deal. They’ll go to extreme lengths to save money if they think they can.

For real estate investors, we go to our own extreme lengths sometimes. There’s a natural impulse in all of us to look for the best deal and the lowest price. But just like the person who gets punched over a toaster oven on Black Friday, we may find that getting something cheap isn’t always worth it.

Real estate investors: beware of buying properties on the cheap!