As investors, we know we must take special care in examining potential investments. Like Groucho, we should be averse to speculation if we wish to be successful. But Groucho showed what happens if we go along with the conventional thinking and jump on certain investments just because others seem to be doing it. It is up to us to do our due diligence on every potential purchase. With that in mind, I have detailed a number of possible income and expense items below - many of which we often fail to include in our analysis. That is because sellers are reluctant to include them. Some of them are not traditional and may unhappily surprise you once you have made your purchase if you didn’t sleuth them out beforehand.
Not all properties that you review will have every one of these individual categories. However, they are itemized here so you can be certain that you have included all of them in your property analysis. Missing even one item can make the difference between a profit and a loss in your investment. Make certain you thoroughly query the owner and the broker. There are often more expenses then you initially anticipate. So make certain you have accounted for them. As a reminder to you, place a checkmark next to each item that you encounter.
o Utilities Reimbursed by Tenant
o Furniture Rental