One of the most common mistakes in buying an investment property is becoming attached to it. That is, letting emotions rule your judgement. You must buy according to your figures, not because you like the place, or because the roof reminds you of your granny's house. If common sense tells you that it needs expensive renovations or is priced way too high, walk away from it.
Incorrect financial structuring can cost you a great deal in unnecessary fees. Fees and interest can be negotiated; you don't have to accept what's offered if it doesn't suit you. A broker should be able to get you a better deal than you could find for yourself. And don't forget landlord insurance if you really want peace of mind.
Trying to manage an investment property by yourself is another mistake. Even if you live in the area, your time could be better spent on looking for more investments. A property manager will take a great deal of stress off your shoulders. They have access to bad tenant records, too. Besides, being your own manager limits you to your own area - or somewhere close enough to travel to - and so you miss out on many other investment opportunities.
