10 Biggest Mistakes of Novice Real Estate Investors

Pat Curry observes that "Real estate has become the tech stocks of the 2000s, the darling investment that everyone seems to think will be their ticket to easy wealth." He put together a terrific list of things that novices RE investors best be aware of. Here's an excerpt, but you should see the list in its entirety:

"If you're looking for rental income -- and most investors are, according to the NAR -- buying a single-family house may be their first mistake. All it takes is for a property to sit vacant for a couple of months -- or a tenant to run out on the lease -- to put a new real estate investor in a financial bind. Far better to buy multifamily units, such as duplexes.

That way, you can live on one side and have the rent from the other side pay your mortgage. Or, rent out both sides and give yourself some breathing room in case one tenant moves in the middle of the night without paying his rent."

Here are Pat's 10 common mistakes made by new real estate investors; Many of these will look all too familiar to equity investors:

1. Falling in love with the property.
2. Not performing your due diligence.
3. Forgetting the rule of home improvements.
4. Thinking you'll get those low mortgage rates you see on TV.
5. Not pre-screening tenants.
6. Breaking your own rules.
7. Investing long-distance.
8. Paying too much for the property.
9. Not studying the competition.
10. Being underinsured.