LONG POST: Seeking Guidance as a Novice Investor

LONG POST: Seeking Guidance as a Novice Investor

Member since 2024 · 38 posts · 8 votes

Hey everyone, 

I'm a novice investor and would like some advice. 

I got my first property near Austin and house hacked for 2 years. I went through some financial issues, but I was able to pay a third of my mortgage, get excellent tenants, and gain experience as a landlord. 

I finally rented out the entire place by the room, but I've incurred a couple of issues:

- My mom stayed with me temporarily, which wasn't planned. Unfortunately, this led to a conflict with one tenant and some personal matters being shared with another.

- I didn't have time to make improvements like I wanted so there were a few other problems when the tenants moved in: fire ants, some spots on the carpet, and some walls need to be painted. Nontheless, I ensured the place was livable and fixed major issues such as better ventilation, garbage disposal, balanced the patio deck, fixed the shower head in the bigger bedroom, and others.

- Two tenants currently aren’t getting along. One of them, who lived with me previously, keeps informing me about the conflict. However, I’ve made it clear in the roommate agreement that interpersonal issues should be handled among themselves unless there’s an emergency.

I’ve learned a few hard lessons already:

- I should've established an LLC, created a separate business bank account, and used a business email and phone number.

- I should’ve built in more time for property prep and set stronger boundaries upfront

That said, I’m taking steps to improve. I’m using property management software for maintenance requests and messaging, which I've been using the entire time, and I’ve set clearer boundaries with tenants. However, it’s only been three weeks, and I’m already feeling overwhelmed.

I’m still committed to managing the property, but I’m considering finding a leasing agent to help advertise the rooms (I’ve been relying on Facebook so far).

If anyone has advice—on marketing, stress management, tenant conflict resolution, or just navigating the early stages—I’d greatly appreciate it. I’ve gone through a lot since moving back to the States, and while I made mistakes, I’m eager to learn and grow from them.

Thank you.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y

Are you making enough for it to be worhwhile or should you just sell and start over?

Regarding tenant relationships - you will NEVER win!
- You have limited actual authority
- It never ends
- Best advice is to tell tenants you can only assist if they can prove a lease violation or there's a police report.

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    1y

    What is your cash flow per month?

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    Are you making enough for it to be worhwhile or should you just sell and start over?

    Regarding tenant relationships - you will NEVER win!
    - You have limited actual authority
    - It never ends
    - Best advice is to tell tenants you can only assist if they can prove a lease violation or there's a police report.

    • Joe VilleneuvePro Member
      Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
      1y
      Quote from @Drew Sygit:

      Are you making enough for it to be worhwhile or should you just sell and start over?

      Regarding tenant relationships - you will NEVER win!
      - You have limited actual authority
      - It never ends
      - Best advice is to tell tenants you can only assist if they can prove a lease violation or there's a police report.

      This is exactly where my question was leading up to.  Even if the property does cash flow, is the amount of cash flow worth the aggravations?  Could the cash made upon a sale get a property that cash flowed better, or enough to not have to deal with the aggravations this one has.
      I hate long term room rentals.  You basically have a small, a very small, apartment building, without separations between the tenants.  That means you are also building a family relationship with  your tenants.  Imagine renting rooms to family members that don't get along.
    • Member since 2024 · 38 posts · 8 votes
      1y
      Hey Drew,

      I've been house hacking for 2 years, and I never had an issue before. But suddenly I ran into issues for different reasons, so the cash flow isn't large but I'd lose out on a lot of money if I try to sell now since I've only had it for 2 years and only put 3.5% down on the house. I would like to sell in about 3 to 4 years and invest in a different project. 

      Quote from @Drew Sygit:

      Are you making enough for it to be worhwhile or should you just sell and start over?

      Regarding tenant relationships - you will NEVER win!
      - You have limited actual authority
      - It never ends
      - Best advice is to tell tenants you can only assist if they can prove a lease violation or there's a police report.


    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
      1y
      Quote from @Simone Montague-Jackson:
      Hey Drew,

      I've been house hacking for 2 years, and I never had an issue before. But suddenly I ran into issues for different reasons, so the cash flow isn't large but I'd lose out on a lot of money if I try to sell now since I've only had it for 2 years and only put 3.5% down on the house. I would like to sell in about 3 to 4 years and invest in a different project. 

      Quote from @Drew Sygit:

      Are you making enough for it to be worhwhile or should you just sell and start over?

      Regarding tenant relationships - you will NEVER win!
      - You have limited actual authority
      - It never ends
      - Best advice is to tell tenants you can only assist if they can prove a lease violation or there's a police report.



       Yes?

  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Hey! It sounds like you're learning a lot. For tenant conflicts, step in to mediate if necessary and check in regularly to catch issues early. When marketing, expand beyond Facebook to sites like Zillow and Craigslist and make sure to use great photos and descriptions. Focus on high-impact fixes like paint, pest control, and cleaning, and tackle small improvements monthly. To manage stress, break tasks into steps and consider outsourcing cleaning and repairs. If things get overwhelming, hiring a leasing agent or property manager can lighten your load.

    Kerlous Tadres | Reafco Real Estate540 Reviews
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