@Nathan G.
I made a bunch! Our first (and only rental) wasn’t bought to be a rental. We purchased the home to live and build on as we built our family.
I got a job across the country, and we’d have lost money if we sold the home. SO, we rented out the house. To save space, I’ll just tell the mistakes:
1. Tried to manage the property remotely and leveraged friends/family for PM duties
- I do not recommend. Everyone will execute your wishes thinking they know better than you.
2. Didn’t know how to collect after being stuffed in early termination fees.
- our first tenant terminated lease early. Didn’t pay fees, didn’t pay the last month’s rent. We didn’t know how to pursue the guy for the money owed, or if it was even worth it
3. Didn’t save for repairs
- didn’t get another tenant in the home for around 8 months. When we could actually afford to hire a PM, turns out we had mold! Had to wait another several months to save money and get the mold taken care of; on top of making the property rent-ready after the previous tenant left
4. Didn’t know what to do with utilities in between tenants
It’s a year later, and we’re out of the negative for the month. Next year will be MUCH better and less stressful. Hang in there, make a plan, review the plan with your PM, be transparent and realistic. DO NOT listen to family, friends, or even a mentor if they don’t invest in real estate. It’ll just cloud your judgement and make your plan vague.
