1306 - What I Learned From My First Investment Property by Samantha Hawrylack
My first investment property was a C/D-class multifamily in Houston. I selected it primarily based on perceived cash flow. According to my calculations, the return on investment (ROI) was between 12% and 14%. And with a multifamily, even if one unit is vacant, I still have cash coming in. How could I lose? And then I got hit in the face (wallet) with reality: It was an older building, and maintenance was continual and expensive. Plus, the tenants and others almost continuously vandalized the property. Rent delinquencies and evictions were frequent, and the process was lengthy and expensive. And I was left with a damaged property that needed hundreds or thousands in repairs before it could be rented again. I ended up losing thousands of dollars each year despite doing almost all repairs and maintenance myself. This was completely different from the calculated 12% to 14% ROI. Learn more about your ad choices. Visit megaphone.fm/adchoices