✍️ By Debbie Balfour | WBN News |September 8, 2025 | Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.

Buying a rental property can be one of the smartest moves you ever make, but it can also become a costly mistake if you miss the warning signs. While every investment comes with risk, knowing the red flags to look for before you sign the deal can save you from financial headaches down the road. Here are five major red flags that should make you pause.

1. Negative Cash Flow Projections
If the numbers don’t work, walk away. A property that looks good on paper but produces negative cash flow after mortgage, taxes, insurance, and expenses is a liability, not an investment. Always run the numbers before emotions take over.

2. Poor Location Quality
You can fix a property, but you can’t fix a neighborhood. High crime rates, weak job markets, or declining school systems are all signs of tenant turnover and lower appreciation. Location should always be your number one priority.

3. Deferred Maintenance and Hidden Repairs
Peeling paint and outdated kitchens are cosmetic, but major structural problems like foundation cracks, roof damage, or plumbing issues can destroy your profits. Always budget for repairs and get a thorough inspection before committing.

4. High Vacancy Rates
If multiple units or nearby rentals sit empty for long periods, it’s a signal that demand is weak. Even the best-looking property is worthless if no one wants to rent it. Ask local property managers about rental demand in the area.

5. Overpriced Property Compared to Comps
If a seller is asking significantly more than comparable homes in the area, consider it a warning sign. Overpaying reduces your long-term returns and makes it harder to sell later. A smart investor knows the value of walking away.


Not every property is a good deal—and that’s okay. Spotting red flags early protects your capital and positions you for success. By watching for these five warning signs, you’ll make smarter decisions, avoid costly mistakes, and invest in properties that truly build wealth.

Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
📍 Website: www.DebbieBalfour.com
📧 Email: Debbie@DebbieBalfour.com
🔗 LinkedIn: Debbie Balfour
▶️ YouTube Channel: youtube.com/@DebbieBalfour

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TAGS: #Real Estate Investing #Rental Property #Investment Tips #Cash Flow #Wealth Building #Passive Income #WBN News Langley #WBN News Abbotsford #WBN News Okanagan #Debbie Balfour

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