What’s one real estate mistake you wish you could take back?

Question

David Krulac · Answer

I was a co-author and wrote of the Bigger Pockets book "Real Estate Rewind" which is a FREE download here at BP.  In it I said that if I could go back in time I would have bought FEWER properties, eliminating the ones that didn't make money or made money but were too little money to make them not worth the effort, time , money or risk involved.

Joe S. · Answer

Buying to many rentals in a small time frame….

Seth McGathey · Answer

Not major ones but each slowed down my progress. And all of them came from a simple lack of knowledge/wrong mindset.

1. I bought a single family when I could have probably afforded a duplex. This could have expanded my income up front. Not a huge issue as the property ended up doing well on appreciation and I have always been able to cover my expenses plus more. But it could have been much better with 0 extra effort.

2. I sat on that first house for 4+ years saying I was getting into real estate but making no future moves. Most of that time I was unmarried, no kids, good income. It was pre Covid with low rates and low prices. I could have pretty easily house hacked into at least 3 more properties by the time I got married.

3. When I did get married and we decided to move, I was still in a Dave Ramsey anti-debt mindset. So I went with a 15 year mortgage on my second house. If I knew then what I know now, I would have done a 30 year with as little down as I could and taken that extra income/money and put it towards my next property. (I have been able to use all the equity for a HELOC which got me another duplex, but I could have done that interest free if it was saved rather than tied up in equity).

All of these mistakes are optimization mistakes and happened before I started listening to BiggerPockets and before I got my Real Estate License. I am still doing pretty well with my investments. All have been profitable so far. But if all three of these mistakes had been done correctly instead, I would likely be at 8+ properties by now instead of 4.

Cole Bossert · Answer

Sounds like you’re in a great spot despite those early “mistakes,” and honestly, they’re the kind of lessons that most investors only learn in hindsight. The duplex vs. single-family decision is a common one, and it’s crazy how just a little shift in mindset early on can compound over time. Sitting on the sidelines for a few years is another big one—timing is everything, and looking back, those pre-COVID years were a goldmine. The 15-year mortgage decision makes sense given where your head was at then, but it’s wild how perspectives on leverage change once you get deeper into real estate. Either way, you’re still ahead of most people, and now that you have the right mindset, scaling up should be a lot easier. What’s your next move from here?

Katie Holmes · Answer

Not investing out-of-state sooner!

Seth McGathey · Answer

@Cole Bossert appreciate the feedback. Right now I am mostly saving. I bought my latest duplex less than 6 months ago. I have stabilized it after some minor consmetic repairs and a few necessary repairs. So I am short on financies right now and have to make progress paying down my HELOC I used to purchase it. I am using some credit card hacking to avoid interest while also racking up points. I also got my Real Estate License this year so that I can help others get into Real Estate while also padding my income to help me invest faster. Finally, I am looking into the feasibility of converting the basement of that same duplex into a studio apartment. If my preliminary numbers are right, I should be able to get all or most of my coversion money back in a cash out refinance after converting the basement. Plus be able to rent it for $900 while the other tenants already cover my expenses. So that extra $900 would allow me to get back in the market much faster.

Do you have any mistakes you regret from starting out?

What’s one real estate mistake you wish you could take back?

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