Real Estate Investing 101: What I've Learned as a Broker and Property Manager

Everyone thinks they want to be a landlord until they're actually a landlord.

Here's what I wish someone had told me at the start.

The Reality Check

It's Not Passive

Even with a property manager, you're making decisions, reviewing reports, dealing with issues that escalate.

Cash Flow Is Harder Than It Looks

What people underestimate:

Vacancy (5-10% budget)
Maintenance (1-2% of property value annually)
Turnover costs
Capital expenditures
Legal and accounting

Tenants Are People

Job loss, health crises, relationship changes happen. You'll need to decide how to handle difficult situations.

The Money Mistakes

Underestimating Purchase Costs

Closing costs (2-4%)
Immediate repairs
Reserves needed
Carrying costs during vacancy

Getting Operating Numbers Wrong

The property that looks cash-flow positive often breaks even after realistic expenses.

The Skills You Need

People Skills

Tenant screening is critical
Communication prevents problems
Boundaries matter

Business Skills

Record keeping
Financial literacy
Time management

Practical Knowledge

Understanding building systems
Knowing when to DIY vs. hire out
Vendor relationship building

Getting Started

First Property Considerations

House hacking (live in one unit)
Start small
Know your market intimately

Financing Options

Conventional mortgages (owner-occupied)
Investment property loans (15-25% down, higher rates)

Due Diligence

Inspect thoroughly
Verify income
Understand local law
Have an exit strategy

Mistakes to Avoid

Not screening tenants properly
Underestimating costs
Over-leveraging
Skipping legal protections
Treating it as a hobby
Ignoring maintenance
Poor communication

Is It Worth It?

Rewards

Wealth building over time
Cash flow (eventually)
Tax benefits
Pride in building something

Costs

Time and attention
Stress
Risk
Opportunity cost

Honest Assessment

Real estate investing isn't right for everyone. It rewards those who take it seriously, develop skills, and commit long-term.

I'm happy to talk with aspiring investors. Sometimes the conversation helps people get started. Sometimes it helps them realize it's not right for them. Either serves them well.

Questions about real estate investing? Reach out to discuss.