First Rental Property Mistakes | Why I'm losing money
First Rental Property Mistakes | Why I'm losing money | Out of state real estate investing
Our first rental property is in Milwaukee, WI. We were so excited when we first got it! We planned for it to be a BRRRR property - that is, a Buy, Rehab, Rent, Refinance, Repeat property, but we made a few crucial mistakes.
In our excitement, we did not do enough due diligence. We did not spend enough time building our out of state team. We did not factor in enough capital expenditures in the first year.
Are you about to buy your first rental property as well? In this video, we will go through our deal analysis and our thinking process and also show the reality of having a rental property. It is not as easy as it looks on a spreadsheet! A lot of things can and will go wrong. Not all deals are good deals, even if they have been "vetted." We definitely learned a lot from our first rental property and made a lot of mistakes along the way, but we're going to learn from these mistakes for our future rental properties.
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About my channel:
My channel focuses on personal finance, real estate investing, and my software engineering career. I post updates about my journey to financial independence, which includes monthly money updates and my journey to acquiring more rental properties.
Timestamps:
0:00 Intro
0:51 How we found it
1:29 About the house
2:12 Initial deal analysis
3:56 Offer put in
4:13 Offer accepted/due diligence
4:45 Rehab/PM
5:46 Getting nervous
6:22 Wrong comps
6:41 More problems
7:11 Tenant moving in
7:45 Cash flow so far
14:47 Lessons learned