5 Tips from my First Duplex Purchase

I earned my real estate license in 2015, never intending on becoming a full-time real estate agent. My goal was to learn how to invest in real estate since that was my passion- but had absolutely no experience. (We'll save the story of how I was went from living at home with my parents to making an investment deal of a lifetime in a future blog).

Fast forward 3.5 years and I finally purchased my first duplex. The journey to get here has been long, but I'll sum up 5 lessons I found critical to making this deal a success.

1) Acting Quickly is a Must

When I first saw the duplex on the market (I have access to the MLS), I wrote the offer before asking my (pregnant) wife's permission. It was on the market for a matter of hours. I was pre-qualified, knew the rents and market in this area, and knew that I had an inspection period that could release me entirely from the contract should I not like the property. Today, money is bountiful and deals are sparse. You MUST be willing to pull the trigger on an offer the moment you know it's a good one or someone else will. 

2) Education, Education, Education 

Realize that educating yourself does not mean "paralysis by analysis." It is easy to get caught up in wondering if you should place an offer or make a move. Educating yourself means completely understanding the market climate. Networking with those in the field. Going to meet-ups. Knowing home and rental values. Reading books. Listening to podcasts. Ask questions- lots of questions. Ideally, it's living the life you want without necessarily making an income, yet. This is easy if it's a true passion. 

3) Use Property Managers

Under no circumstance should you want to go to showings, deal with deposits or leases or applications, take tenant phone calls, or collect rent. The time that I have back from NOT dealing with these allowed me to earn more money in my primary real estate career. The good ones will provide monthly income statements which are helpful for the sale of the property and taxes. And so much more. Self-managing can be easy... until something goes wrong. 

4) Work with a Lender that Understands Investment Properties

My lender told me 75% of the rental income can be used to offset my debt-to-income ratio, allowing me to qualify for more. Not knowing that, I would have never even tried to purchase a home through a traditional 30-year fixed mortgage. Having access to the MLS, allowed me to see rental rates before writing the offer. Find a business partner that understands what they're doing when you do not! 

5) Be Comfortable Making Mistakes

There were a number of things I would do over. I'll spare the dissertation for another post, but I made a few thousand dollars worth of mistakes through the process. Learn from them and move on quickly. To boot, I know that I'll make more. It's all part of the process! 

Feel free to introduce yourself, I'm BRAND NEW to Bigger Pockets :)