Top mistakes: underestimating reserves, ignoring vacancy and maintenance in the cash-flow math, choosing the wrong loan type, and over-leveraging so the deal barely cash-flows.
Underwriting mistakes
New investors often overstate cash flow by ignoring vacancy, maintenance, and management. Underwrite conservatively so a slow month doesn’t sink you. And keep real reserves — lenders require them for a reason.
Structure mistakes
Using a conventional loan when you’ve hit the property limit, or a DSCR loan when conventional would price better, leaves money or growth on the table. We match the loan to the property and your bigger plan.
Frequently asked questions
How much should I keep in reserves?
Enough to cover several months of payments per property, plus a cushion for repairs and vacancy.
What DSCR should I avoid?
Deals that barely reach 1.0 leave no margin. Aim for a ratio that also cash-flows after real expenses.
Should I always use the cheapest loan?
Not if it caps your growth. Sometimes a slightly pricier DSCR loan is the smarter long-term choice.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.