Lessons learned from first deal

[Stone Bettersworth]

For members who have done their first deal, whether a flip or a rental, in the past couple years: what were some of the biggest unforeseen challenges you faced? What were the biggest lessons you learned that you will apply to future deals?

[Brad Hammond]

Great question!  Here are some of the things I've taken away from my first few investments.

1. You can't improve the property (charge more rent) then the neighborhood will allow.

2. Having a vacant unit is the most stressful part of investing for me.  Because of that, I want a property that is easy to rent and I now purchase properties that have amenities that rents want (dishwasher, larger units, 2 bedrooms, storage, etc). 

3. I manage my own properties and do as much maintenance work/rehab as possible.  Often times it is better to pay a contractor to rehab the unit to turn it faster so it doesn't sit vacant as long.  

4. Forcing appreciation is the best way to go if you are trying to grow your portfolio.