5 Things I Learned From Buying The First Investment Property
My first experience buying an investment property, I was excited, motivated, and ready to make it work. I had little experience in real estate, but I was eager to learn. Looking back, there are so many things I wish I had known before jumping in. Experience teaches you things that no course or book can, and today, I want to share the five biggest lessons I’ve learned from my real estate journey:
1. Just Because It Looks Like a Good Deal Doesn’t Mean It Is
At first, I thought I had found the perfect property—great price, nice area, close to where I lived (so easy to manage), and what seemed like a cash-flowing investment. It needed some improvements, but I assumed I’d recover those costs in a couple of years. What I didn’t do was run the numbers properly or think ahead. I learned the hard way that cash flow, rental demand, and long-term value matter more than just the purchase price. Now, I analyze every property thoroughly before making a decision.
2. The Real Costs Are More Than Just the Mortgage
I used to think that if rent covered the mortgage, I was set. WRONG. There are so many hidden expenses: maintenance, repairs, property taxes, HOA fees, vacancies, and insurance increases.
This particular house turned out to be one of the most expensive ones to maintain. Besides the mortgage, there were high property taxes, MUD fees, and an expensive HOA. Over time, I also realized that previous owners had likely made insurance claims for repairs, causing insurance costs to skyrocket.
And let’s not forget that older homes (20+ years old) start needing major repairs—A/C units, roofs, exterior paint, plumbing, etc. I’ve already had to replace the A/C unit and roof on this property. Now, I always set aside 10-15% of rental income for expenses so I don’t end up losing money.
3. Location Is More Than Just a Zip Code
One thing I did right was choosing a great location. The house is in the suburbs but has easy access to the highway, making it convenient for tenants who commute to the city. It’s in an HOA community, which keeps the area well-maintained and attractive to renters.
My advice? Invest in an area you know well. Because I was familiar with the neighborhood, I understood the type of tenants I would attract and the rental demand. Don’t just buy based on price—buy in an area where you understand the market.
4. Screen Tenants Properly
One of my biggest mistakes as a beginner was rushing to fill the vacancy. I was eager to rent it out quickly, so I skipped a proper tenant screening. The tenant seemed great at first, but after five months, they started paying rent late, and by the seventh month, they stopped paying altogether.
This led to an eviction—every landlord’s nightmare. And because I was inexperienced, I made mistakes in the process, which dragged it out even longer. Now, I screen every tenant carefully, verify income, check rental history, and never rush the process. A vacant unit for a little longer is better than a bad tenant who doesn’t pay.
5. Managing a Property is a Full-Time Job (Unless You Set It Up Right)
I quickly learned that property management is not passive income, it’s a business. You need a network of reliable people to handle maintenance and repairs:
A contractor for big projects A handyman for small repairs A trusted plumber, electrician, and A/C technician A good cleaning crew
Investing in property management software has also made my life easier, helping me track rents, expenses, and maintenance requests all in one place. But most importantly, I’ve learned that providing a personalized service goes a long way. When tenants know they have someone responsive to contact, they’re more likely to take care of the property and communicate issues early.