A Milestone Reached: My First Investment Property
This summer, I found myself in a familiar yet slightly different position—on the other side of the real estate transaction, searching for an investment property of my own.
While I knew the ins and outs of buying a home, living through the process as a buyer was a different story. It’s given me a whole new level of empathy for my clients and reinforced some valuable lessons about patience, perseverance, and staying true to what you really want.
In California, the current median home price is around $830,000, which can make it challenging to start building a real estate portfolio, especially if you’re looking for positive cash flow. I wanted to get in, start building my portfolio, and achieve cash flow from my investments. Bigger homes and properties in California will come later as my portfolio grows. So, I decided to invest in out-of-state properties where the economy is growing and the entry costs are more manageable, allowing me to start generating rental income sooner.
The journey was both exhilarating and revealing. I anticipated a whirlwind of emotions, but surprisingly, I wasn’t as emotionally charged after closing as I expected. Perhaps it was because the property was intended as a rental rather than a personal home.
One of the biggest challenges was the mortgage process. The uncertainty of approval, the pace of the process, and the quiet periods where nothing seemed to be happening were particularly tough. During these times, I relied heavily on my partner and my dad, a former mortgage underwriter, whose support helped me stay focused and grounded.
From this experience, I’ve learned some key lessons that can benefit anyone navigating the real estate journey:
Embrace the Process: Real estate transactions come with their own set of ups and downs. Embracing the process, including the quiet periods and moments of uncertainty, is crucial. Every step, even the challenging ones, is part of reaching your goals.
Seek Support and Expertise: Lean on your support network and trusted experts when facing challenges. My parents provided invaluable guidance and reassurance during the mortgage process. Having a solid team can make all the difference.
Stay True to Your Goals: Whether you’re buying a home for personal use or investing, it’s essential to stay focused on what you really want. Be patient, persevere through obstacles, and keep your long-term vision in mind.
Avoid Emotional Attachment with Investment Properties: When dealing with investment or rental properties, avoid getting emotionally attached. Focus on the financial aspects rather than personal preferences, as these properties are primarily for generating income and building wealth.
Choose the Right Home for Personal Use: If it’s your first-time home that you’ll be living in, select a property that suits your current lifestyle, allows for building equity, and provides a foundation for future upgrades. You can always trade up to your dream home later as your financial situation evolves.
Taking the leap into real estate investment or buying your first home can feel daunting, but it’s a journey well worth embarking on. Remember, every step forward, no matter how small, brings you closer to your goals. If you have questions about my journey, want to know where I bought my property, or need guidance on starting your own real estate adventure, I’m here to help. Sometimes you just have to press “play.”