The 3 Biggest Real Estate Mistakes I See My Clients Making (And What You Should Do Instead)

Today, I want to talk to you about something I’ve seen over and over again with my clients: big mistakes in real estate investing.

Now, quick reminder — when I talk about the investments I like (or don't like), that's just based on my own experience and what I’ve seen work. That doesn’t mean you should rush out tomorrow and buy a three-family property. Your goals are your own, and your investment strategy should reflect that.

That said, here are the top 3 real estate mistakes I see — and what to do instead.

🚩 Mistake #1: Letting Emotion Drive the Investment

It happens all the time. Clients get excited about real estate. They jump in without doing their due diligence and wind up buying properties that don’t serve their financial goals.

I had one client who bought two properties between our first and second meeting. He hadn’t yet learned how to analyze an investment, and when I asked him what the cash-on-cash return was, he didn’t even know what that meant.

Let’s break that down:

• Cash-on-cash return = (Net Annual Income) ÷ (Money Invested Out-of-Pocket)

• So if you put $20K into a deal and make $2,400 a year from it, your return is 12%. That’s actually solid!

But in his case, the return was 4-5%, and he could’ve done better — had he paused and evaluated the deal properly.

💡 Takeaway: Emotions make terrible financial advisors. Use tools like cash-on-cash return, cap rate, and ROI to analyze deals before signing.

🚩 Mistake #2: Not Considering Multifamily Properties

I say this with love — multifamilies are the real MVPs in real estate investing. So many people get stuck on single-family homes because they’re familiar. But multifamilies? They’re the Costco of real estate — you’re buying in bulk.

Here’s why they’re a game-changer:

• More units = more income streams. If one tenant moves out, the others are still paying rent.

• Lower cost per unit. It’s often cheaper per door to buy one 4-unit than four single-family homes.

• Easier management. One roof, one property manager, fewer moving parts.

• More leverage. Fewer mortgages = better debt-to-income ratio and borrowing potential.

Yes, you might pay more upfront. But the cash flow and risk mitigation are worth it.

💡 Takeaway: If you’re serious about scaling your real estate portfolio, stop sleeping on multifamilies.

🚩 Mistake #3: Waiting Too Long to Start (Especially Over Location)

I’ve seen clients delay their real estate journey for months — or years — because they’re determined to buy locally or too afraid to invest out of state.

One client in construction had every skill necessary to succeed — and plenty of capital. But his fear of investing out of state kept him stuck.

The truth? I have clients buying turnkey rentals in other states all the time. And they’re cash flowing from Day One.

If you're willing to buy a pair of jeans online and return them if they don’t fit, you can research a market remotely. You can build a team in that market. You can make this happen — but you have to start.

💡 Takeaway: Don’t let geography or fear hold you back. Start where the numbers make sense.

🔒 Bonus Mistake: Trusting the Seller’s Numbers

This one’s crucial: Don’t blindly trust the pro forma from the seller, turnkey company, or wholesaler. Always verify their numbers with your own analysis — or with a trusted advisor or real estate agent.

I nearly bought a deal once that looked amazing — until my agent ran his own comps and showed me it was a bad investment. One second opinion saved me tens of thousands of dollars.

Final Takeaways: 

When it comes to real estate investing, success isn’t just about enthusiasm or good intentions — it’s about preparation, strategy, and discipline. Avoid letting emotions drive your decisions, take the time to understand your numbers (like cash-on-cash return), explore the powerful benefits of multifamily properties, and don’t let fear or limiting beliefs hold you back from getting started.

With the right education, criteria, and team, you can make real estate a tool that truly accelerates your path to financial freedom— if you do it right. The key?

• Run the numbers.

• Choose strategy over emotion.

• Don’t wait for the “perfect” deal in your backyard.

You don’t need to be perfect. You just need to be intentional.

📚 Resources Mentioned:

• Book: Multifamily Millions by David Lindahl

• Tool: Cash-on-Cash Return Calculator (many free options online)

💬 Let's Talk!

Have you made one of these mistakes? Thinking about buying your first multifamily? DM me or drop a comment below — I love hearing your stories and helping you move forward.

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