Key Takeaways
- Thorough tenant screening ($30-$50/applicant) is the highest-ROI risk management tool for residential investors.
- Inspect the "big five" systems (roof, HVAC, plumbing, electrical, foundation) before every acquisition.
- Stress-test every property: 10% vacancy, +200bp rates, and 50% higher repair costs — simultaneously.
- If any single stress scenario threatens solvency, reduce leverage or increase reserves before proceeding.
This track contains subscriber-only lessons
Explore free tracks in this area of study, or subscribe for full access.
Browse available tracks"Emotional Buying, Overimprovement & Residential Risk Controls" is a Pro track
Upgrade to access all lessons in this track and the entire curriculum.
Test Your Knowledge
1.What is the highest-ROI risk management tool for residential landlords?
2.What are the "big five" systems to inspect before any residential acquisition?
3.What three stress scenarios should be tested simultaneously?