What are you Top mistakes made on your second property

Question

Hey everyone

In the process of obtaining a second property

My first purchase was a duplex with a FHA 203k

It is not worth the refi due to the low interest and no cash out.

I am now looking to use a homestyle loan to purchase another house hack brrrr.

What are common mistakes made in purchasing your seconded property

Account Closed · Answer

My second deal was about 3 times the square footage as my first deal. The biggest mistake I made purchasing it was being in too much of a hurry and not taking a closer look down in the crawl space. (Always bring a flashlight and take a close look)

The previous owner was throwing junk down there and there was some dry rot on the sills, nothing too serious but it could have been a lot worse.

Steven Foster Wilson · Answer

I learned properties that have less work and just need a cosmetic lift are far better. My second property I took it down to the studs and it was a lot of work/money. It now is doing great although things always take more time than you think.

Yael Lederman · Answer

Not diversifying my portfolio enough! If you have a good experience with one property it can be easy to think you should buy as similar a property as possible. While that does have its advantages, as your portfolio grows you should think about diversification. Don't over-invest in a particular neighborhood, investment strategy, etc.

Nicole Heasley Beitenman · Answer

We made a small profit.

Daylen Fiallo · Answer

I spent too much on the renovation thinking that I was going to live there, but never did.

Nicole Heasley Beitenman · Answer

I overspent on my 2nd property and found I didn't love the location. I sold it sometime in 2020, I think, and I don't have any regrets. We learned a ton from it.

Anthony Ziccardi · Answer

@Nicole Heasley

Did you lose any money in the deal ,break even ,or profit l.

Alan Asriants · Answer

I ran into less problems buying my subsequent properties after my first one. Each property has its issues and problems, and sometimes its a deal as you go situation. I would say that in one instance, I actually became too greedy. There was a wonderful duplex for sale for 415k and I was negotiating tooth and nail for it. I knew the true value of it, but for some reason it wasn't selling. If the same duplex came out on the market today (1.5 years later) it would be easily worth 520k+. I ended up getting beat out by a cash offer by only 5k discrepancy. If I just agreed to their price right away I would've secured that deal.

What are you Top mistakes made on your second property

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