Things you learned from your first investment property

[Ryan Muska]

My first investment property has taught me some crucial things that I had no idea would be an issue until it was too late. What are some things you learned? Here are my key educational points:

- Electric Heat --> SUPER expensive for whoever is paying utilities; stay far away from

- Knob and Tube --> Not good for getting insurance carriers to insure your property and it is an outdated and expensive electrical system

- Always negotiate for lower purchase price --> Just because the numbers 'work' doesn't mean you can't get it for lower. I wish I had negotiated more

[Taylor L.]

Property age is a big factor that people don't talk about enough. The issues you mentioned will correlate heavily with property age, but it's not limited to that. Older properties are more likely to have big plumbing issues, old roofs, and other major deferred maintenance issues that pop up. 

As a multifamily investor focused on maximizing NOI, I've found that the older properties eat up too much capital in upkeep. I now focus on newer assets that are far less likely to have those big issues.