The life of a real estate investor is about creating a passive income and achieving financial independence. When you first decided to get into real estate you probably had a vision of traveling, enjoying life or doing whatever you want while your bank account continues to grow.

real estate investing is one of the biggest vehicles for building wealth, and most wealthy people have used real estate in one form or another in their investment portfolio. The tax benefits, appreciation, cashflow and leverage make it very appealing. If you are managing your own investment portfolio, you have just created a job for yourself. In the recession, Cashflow is king.

When purchasing an investment property, you should factor in a 8-10% monthly management fee, as well as room for unforseen maintenance. Having a great property manager is a sound investment in achieving your goals and owning your time. However, hiring a bad property manager, can make things very rough, very fast. To help protect your goals and your investment, avoid these 5 property manager pitfalls:

1. No References. Property Management has traditionally been a referral based business and the manager should have strong relationships within the local community. They should be able to supply references from tenants, owners, local organizations or vendors.

2. Unavailable. A property manager's responsibilities are 24/7. There are issues that will arise at your property on nights, weekends and holidays that will need attention. Make sure your property manager approaches their services this way.

3. Sales Pressure. If a property manager is forcing you into making a quick decision or seems desperate for your business, these are red flags to run. A good property manager will give you time to collect references, get quotes from competitors and will work with you to determine if the relationship is mutually beneficial.

4. Conduct. The property manager should be able to convey confidence in the value of his services, and be professional. If the manager is not professional with you, they probably will not be with your tenants and vendors.

5. Successful Experience. Rather than having many years of experience, look at the amount of successful experience a property manager has. They should be able to give examples of their processes and how they are going to deliver the services they promised. It is important that they can change rapidly with the rental markets, technology and regulations.

Be sure to take your time and find a property manager that will provide excellent service and also be respectful of your time and money. Property management should be an investment, not an expense.