Mistakes when analyzing first property

[Quentin Jivery]

I am curious what mistakes everyone else made when analyzing their first properties?

[James Dainard]

One of the most common mistakes we're seeing right now is not using the right comps.

People are using comps that are from too far back, when interest rates were much lower, to justify purchases now, in the face of interest rates rising again.

Make sure you're using accurate and timely data to justify your purchases!

Another mistake that we see a lot is overspending. Spend on your renovation to match the comp, don't go above and beyond where you don't have data to support your reno. We see this a lot with newer investors who are looking to make the most of their projects. We all want to do a good job and make nice products but we have to conform to the market and provide what it demands. If the demand shifts like it has recently, you should be able to shift your projects and your trades to adjust and pivot your business to meet the demand where it's at. This means cutting back on finishes in some places to save both time and money where we would've spent the money a year ago to get a higher final value.