Being mentally tough

Rubbing it in are ya. . that's handy for sure.

My wife is also a CPA and does our taxes. (Hon if you ever read this you are great )

 

Sleep. It's overrated.

 

I had both my IPs vacant at the same time for an extended period. As others pointed out, we get good rent during the good times to build up a buffer during the bad times. So financially, it didn't hurt at all, but it's still not enjoyable. Living in Perth and having a tenant in Melbourne whinging about something trivial sometimes makes me want to sell up. Toughing it out during those times is the hardest. Still, it's more fun than dealing with an agent.. haha.

 

@The Y-man Fast forward to 3min.18 sec (a nice reference to lack of sleep) you might like it

 

I can see that and raise you...

We had 3 out of 5 vacant together!!

But; and this is an important tip for any newbs; when assessing the figures of an IP for cashflows, I used to always factor in certain costs;
1. Two weeks' vacancy per year.
2. 1% of property value on maintenance costs.
3. Insurance, PM fees, rates and LL insurance, etc

Overall; allow approx 20% of the rent to be swallowed up by the above holding costs (not including loan repayments).

Now; with newer properties there will hopefully be less maintenance costs, but it is always better to over-estimate expenses, and under-estimate income.

Same with vacancies; might not happen, but if the numbers include this, and still work, and you don't get a vacancy; you are in front.