26. Budget equity.
Allow a 5% equity margin for unexpected expenses. Accurately calculate how much it will cost to enter the market, just as accurately as you calculate how much it will cost to stay in it. If you’ve calculated it will cost you $100,000 in deposit, stamp duty, legal fees, etc to buy an investment property, then you need $105,000 in equity or savings to cover things like a hot water system going bung or a tenant taking off in the middle of the night.