I like to think I’m a pretty seasoned real estate investor, but that wasn’t always the case. Like most, I’ve learned quite a few lessons along the way. Here are three things in particular I wish I’d known before buying my first investment property so you hopefully can avoid them before you get started.
1. Don’t underestimate how much money you’ll need
One mistake I made before buying my first investment property was not leaving enough cash in the bank to deal with unforeseen expenses. My lender required a 20% down payment and six months’ worth of mortgage payments in reserve. But that was by no means enough.
For one thing, the property needed some significant repairs shortly after closing (which I knew about). These ate up most of the reserves right away. Then one of the units took longer than expected to rent out, and the business account I