10/20/2024
After owning and managing a 7 figure real estate portfolio, here are a view things I’ve learned along the way.
1. Make sure you accurately estimate your renovation cost. Be conservative because there is always hidden cost around the corner.
2. When analyzing the ROI, be sure to add in annual maintenance, capex, and vacancy cost. Just because the house is in perfect condition, I can promise you that there will be cost throughout the year. One month of no rent collected and a plumbing repair can drop your ROI percent tremendously.
3. When looking at materials for your renovation, create a budget. Don’t buy the highest priced LVP flooring and the most expensive paint. Research materials and you’ll find the same quality for half the price.
4. When dealing with tenants, don’t introduce yourself as the owner. Tell them you are just a property manager. This gives you more freedom to play the “good guy bag guy” when having hard conversations like collecting late fees.
5. Before buying a rental property, make sure you have a network/relationships with maintenance guys/girls, contractors, trades of all kinds, etc. Have a plan A-C list of contractors per trade. Don’t rely solely on one person to make repairs.
