My First Rental Property Freak Out

Starting Out
6yFollow

My First Rental Property Freak Out

Justin JohnsonPro Member
Fort Smith, AR · Member since 2018 · 122 posts · 70 votes

Is it normal to start freaking out after you purchase your first rental property?  I know I am seriously freaking out.  I hope that it's just the jitters from all of the new things going on.  This is the first property I've ever bought, let alone a rental property.  My first experience was...interesting to say the least.  The seller seemed a little shady and didn't bother to tell either agent that the tenant was moving out...the same day that we were closing.  I am house hacking this one, living in the one side that I thought was going to be vacant.  The other side was cleaned decently and is in pretty decent shape, but the SMELL is so bad in there.  Everything has been chaotic and I'm really trying to calm myself, but I just have this huge anxiety.  I worked and saved and cut my finances to the bone saving off 40% of my income each paycheck, then poof, it was gone into the down payment.  Has anyone else felt this way when they started or is it just me?

Any stories, advice, or words of encouragement would be greatly appreciated right now while I'm trying to hold it together.

Thanks!

18Reply
204 views

Most Popular Reply

Joe P.
Philadelphia, PA · Member since 2017 · 824 posts · 1k+ votes
6y

Justin -- relax. It's normal. You didn't buy a 100k car which loses 20% of its value driving it off the lot. You bought a property that likely has the same value it did yesterday. If you sold it tomorrow, all you'd lose is your closing costs front/back, a super expensive lesson but ultimately most of your money is still there.

Now, the purchase is done, but I assume you ran your numbers on this? Why not share it with us and we can provide feedback on your evaluation and what to expect.

What's the smell on the other unit? Is it smoke, dead rat, urine? There's companies that fix everything. 

What's your estimate on rehabbing one or both units? Do you have that cash set aside and ready to go? If so, just start executing. Fix whatever is broken, replace what's needed, do it quickly, validate the work, and work on getting your income rolling.

This is an operations and execution business. You just executed the sale. Not start operating the business. What goal needs to be met with this tenant moved out? Providing a clean, safe, and ready rental to your next tenant. Make a checklist, start delegating items to yourself, a GC, or a PM, and focus on one, two, or three of the biggest items until your checklist is down to zero.

Breathe.

51Reply
See this reply in the discussion

72 Replies

Jump to latestLatest
  • Justin JohnsonPro Member
    OP
    Fort Smith, AR · Member since 2018 · 122 posts · 70 votes
    6y

    @Colin Merrill dogs, cats, lots of weed and incense (yuck), also other smells to try to hide the "recreational" smells. I think I found the main source of the odor and just killz'd it. I'll have to remove the baseboards after I finish this and clean/replace them. I'm staying to feel tons better as the progress is made.

    2Reply
  • Stephen KeigheryBusiness Member
    Rental Property Investor · New Orleans, LA · Member since 2018 · 716 posts · 555 votes
    6y

    @Justin Johnson it always uncomfortable to move out of your comfort zone. Congratulations you are experiencing growth and everything is exactly as it should be. Keep going and keep growing.

    Home Buyer Louisiana4.855 Reviews
    WebsiteView Page
    0Reply
  • Justin JohnsonPro Member
    OP
    Fort Smith, AR · Member since 2018 · 122 posts · 70 votes
    6y

    @Abigail Pusey I'm actually glad they moved out, I wish I had known first though. The reason I'm glad is I have a nip smoking and no pet policy, they had pets and smoked a lot of weed and cigarettes. I don't have a problem with them, actually love them, but the dog was a pit bull and insurance wouldn't have liked that. Also, as someone previously mentioned, they made it smell like that they might have been more of a headache than it was worth.

    I'm very thankful for BP right now. My head is chatting and I'm getting my excitement back. Everyone has been so helpful, thanks for letting me rant and freak out a little!

    2Reply
  • Justin JohnsonPro Member
    OP
    Fort Smith, AR · Member since 2018 · 122 posts · 70 votes
    6y

    @Theresa Harris I do have plans to build a privacy fence and a carport/garage. I haven't started looking into more then that yet.

    0Reply
  • Kevin Hunter
    Rental Property Investor · Carlisle, PA · Member since 2013 · 1k+ posts · 543 votes
    6y

    @Justin Johnson, you know that feeling you had on closing day.  Imagine if you were having that feeling in your stomach waking up when you are 60 years old realizing you hadn't invested in anything and didn't know how you were going to ever be able to retire.  That would be much worse!!!  I totally get that feeling and you will get that for the first couple of deals, most likely.  That is good.  It means you are taking this seriously and understand that there is risk.  

    Congrats on the deal!!

    2Reply
  • Nick Loukas
    Rental Property Investor · Bethlehem, PA · Member since 2017 · 59 posts · 22 votes
    6y

    @Justin Johnson hey bro I had the same knots in stomach feeling right after I had my first tenants sign their first lease. My fiancé quit as my “property manager” on the spot because I was so stressed lol. Trust me it will get better and the pieces will fall into place. Just remember to treat this like a business and keep learning new things everyday! Good luck !

    0Reply
  • Justin JohnsonPro Member
    OP
    Fort Smith, AR · Member since 2018 · 122 posts · 70 votes
    6y

    @Kevin Hunter, this is one of the biggest driving factors in my life right now. I see my mum struggling and it breaks my heart. I don't want to end up like that, and I want to be able to help her. She has always wanted to do real estate but never had the chance, then she got scared to try because of SSI, unemployment, AARP, etc., so she stopped. In the last few months I've had several sit downs with her and talked through her fears and mine, she now wants to get into this as well. I only recently started really taking charge of my life. This has been a wild ride and I'm only getting started.

    Do you have any words of encouragement I could share with my mum/family?

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y
    Originally posted by @Justin Johnson:

    @Theresa Harris I do have plans to build a privacy fence and a carport/garage. I haven't started looking into more then that yet.

     The carport or garage will add some value to the house, but not enough to recover costs if you sell in 1-2 years.  If you only want to stay in the property that long, I'd suggest saving for a down payment on your next one and keeping this renting out both sides.

    1Reply
  • Justin JohnsonPro Member
    OP
    Fort Smith, AR · Member since 2018 · 122 posts · 70 votes
    6y

    @Theresa Harris renos are something that are completely alien to me. I have no idea about them yet. I'm going to have to start digging in and figuring them out. I want to be able to raise rent by about $25-$30.

    0Reply
  • Kevin Hunter
    Rental Property Investor · Carlisle, PA · Member since 2013 · 1k+ posts · 543 votes
    6y

    @Justin Johnson, tell her its never too late and there is not much to lose.  Also, show her the numbers from your property as proof that you can start building wealth with a couple of small deals.  Notice I said "start."  A couple hundred dollars a month extra cash sounds like it might help her, but at a minimum it will encourage her.  Worst case scenario, she doesn't want to take the plunge.  Then you do the right thing and help her out when you are able.  Pay her back for what she provided you.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y
    Originally posted by @Justin Johnson:

    @Theresa Harris renos are something that are completely alien to me. I have no idea about them yet. I'm going to have to start digging in and figuring them out. I want to be able to raise rent by about $25-$30.

     With most rentals, you want the place clean and in good condition.  You don't reno a rental the same you do a house where some people go overboard with finishes.  If you do renos, you want to make sure you will get your money back.

    0Reply
  • Julio C.
    Rental Property Investor · The Woodlands TX · Member since 2017 · 34 posts · 8 votes
    6y

    In math we trust.

    0Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    6y
    Originally posted by @Justin Johnson:

    Is it normal to start freaking out after you purchase your first rental property?  I know I am seriously freaking out.  I hope that it's just the jitters from all of the new things going on.  This is the first property I've ever bought, let alone a rental property.  My first experience was...interesting to say the least.  The seller seemed a little shady and didn't bother to tell either agent that the tenant was moving out...the same day that we were closing.  I am house hacking this one, living in the one side that I thought was going to be vacant.  The other side was cleaned decently and is in pretty decent shape, but the SMELL is so bad in there.  Everything has been chaotic and I'm really trying to calm myself, but I just have this huge anxiety.  I worked and saved and cut my finances to the bone saving off 40% of my income each paycheck, then poof, it was gone into the down payment.  Has anyone else felt this way when they started or is it just me?

    Any stories, advice, or words of encouragement would be greatly appreciated right now while I'm trying to hold it together.

    Thanks!

    'Buyer's remorse' is normal with anything new that we worked hard to obtain. 

    At least you have BP, it's empathy and advice.  A lot of us were starting blind pre-BP with no way to reach out for feedback or a shoulder and family telling us we were crazy. 

    What's this smell you speak of?  Cigarettes?  Cats?  That's the big unknown for me.  Smells cost and I require compensation in the form of discounts at purchase. Cats are $10k per unit, cigarettes $8k. 

    1Reply
  • Account Closed
    Member since 2019 · 1k+ posts · 1k+ votes
    6y

    @Justin Johnson

    Normal. I’m surprised it took until you had the keys actually, good work!

    Depending on what the smell actually is, I use kilz restore primer and then paint the place. If there are carpets. May have to replace. Soft surfaces absorb and hold smell. A $100 ozone machine will serve you well. If it’s cats, enzymatic neutralizer is a must. Get after it, every day wasted is a portion of rent lost. You’re now in the business of balancing credits and debits!

    2Reply
  • Stephanie MankePro Member
    Real Estate Agent · Wilmington NC · Member since 2019 · 4 posts · 2 votes
    6y

    @Justin Johnson you got this! Get the smelly side cleaned up and start marketing it. Get a solid tenant in there and you’ll feel better as the rent rolls in and covers your payments. Way to go!

    0Reply
  • Emanuel Ohunwu
    Rental Property Investor · Dallas, TX · Member since 2019 · 88 posts · 55 votes
    6y

    @Justin Johnson If it's close enough to the local hospital maybe you can rent a unit to travel nurses and physicians. Because of the pandemic hospital's have been hiring more staff and they all need housing.

    0Reply
  • Glenn Levy
    Member since 2020 · 17 posts · 11 votes
    6y

    Your current situation reminds me of 2 of my favorite questions:

    1. How do you eat a ten-ton elephant? One bite at a time. - Meaning, take your time with this big project. It's easy to get overwhelmed and try to do everything all at once. The problem with that is, you will probably make some bad decisions and spend money that does not bring you the return you want (i.e. higher rent). Take your time and make smart calculated decisions. Research your rental market and see what other rental units offer that yours doesn't and compare the rents. Maybe put the money into making those upgrades. Also, nobody should really eat an elephant. They are way too cute and majestic.

    2. What do you call someone who learned how to sail on calm seas? A lousy sailor. - Meaning, you are dealing with some tough landlord and property issues right off the bat while you are learning the process. These will only make you better downstream on your next property, knowing how to handle the rough stuff.

    Well done and congratulations to you for taking that all too difficult first step. Good luck!

    2Reply
  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    @Justin Johnson you got lucky! Likely bad tenant out and you get to pick someone compatible with your style. You are living their after all! Far better to be able to control that one, especially these days. Screen well!

    1Reply
  • Martin NealPro Member
    Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
    6y

    @Justin Johnson The first one is usually the toughest because there are so many unknowns. Trust your numbers, and push through. Those jitters go away after a while. Good luck.

    1Reply
  • Chris Mackinlay
    Midland, TX · Member since 2015 · 90 posts · 75 votes
    6y

    You've done more than most Real Estate Investors already.

    Good job.

    Make sure your development is ahead of where you are currently. Do you have some business acumen?

    Make sure you are well versed in tenant laws, selection, and management before you rent the other side.

    0Reply
  • Joe Cassandra
    Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
    6y

    The jitters are usually the fear of the unknown...

    We blow up the fears and think it's reality...

    In REI case..."Oh my gosh...I'm going to lose all my money. What if this rental rests on an Indian burial ground and the ghosts come out and slay my tenants...then for good measure poke holes in my plumbing while they're at it!"

    You'll find taking action each day makes those problems seem very small. And you look back and laugh. 

    Even in the cases where you lose a lot of money on a house (like when we lost 30k on a flip)...turned out, we were okay at the end...and still are. 

    Congrats :)

    4Reply
  • Justin JohnsonPro Member
    OP
    Fort Smith, AR · Member since 2018 · 122 posts · 70 votes
    6y

    @Emanuel Ohunwu it's literally walking distance to one of the hospitals. I'll definitely keep this in mind!

    1Reply
  • Justin JohnsonPro Member
    OP
    Fort Smith, AR · Member since 2018 · 122 posts · 70 votes
    6y

    @Glenn Levy #1 was great and cracked me up at the same time. Laughter is needed. Since I have found the location of the smells, I now know better how to get after it with Isobel odoban/killz/flamethrower lol.

    #2. My life exactly. Valedictorian at the school of hard knocks. I'm trying to take everything in little by little and learn what I can from it. I keep reminding myself that you learn the most from mistakes farther than successes, and that the first time you do anything new is almost alleys the hardest.

    1Reply
  • Kateesha Tearry
    Homeowner · Fayetteville, NC · Member since 2015 · 23 posts · 6 votes
    6y

    @Joe P. Incredibly insightful advice you are so appreciated!

    1Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    The emotions involved in getting a property and then discovering what it is you actually acquired is normal. It definitely goes away after you do it a number of times. We closed on a house last Friday and both my wife and I were discussing that we didn't have the same excitement we used to have on such an occasion. It was just another day at the office...

    Smells can be challenging to deal with but they can be mitigated. Glad you shed those last tenants. Be patient in selecting new ones.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free