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Stage 3 · WealthStep 1 of 28 min

Your first investment property: a framework

Buying your first property is a big leap. The right framework de-risks the decision and helps you avoid the mistakes most rookies make.

Start with the goal

Cash flow today? Long-term appreciation? Tax sheltering? House-hacking to lower your own housing cost? Different goals point to different markets, different property types, and different financing.

Run the numbers conservatively

Underwrite with realistic, even pessimistic, numbers. Vacancy, repairs, capex reserves, property management, taxes. If a deal only works when everything goes right, it doesn't actually work.

  • 1% rule and 50% rule are starting heuristics, not gospel
  • Always model cash-on-cash return, not just monthly cash flow
  • Stress-test for a vacant month and a major repair

Financing options

Conventional 20-25% down is the textbook. FHA can let you in with 3.5% down if you'll live in the property (house hack). DSCR loans qualify based on the property's income, not yours. Each has trade-offs.

Where rookies get burned

Buying the cheapest house in a class-D area. Underestimating capex. Skipping inspections. Taking on more debt than your reserves can support. None of these are obvious until they bite you.

Now try it

Run the numbers before you fall in love.

A quick first-pass underwrite. This isn't a full deal model, it's the back-of-napkin check that catches 80% of bad deals.

$
%
%
$
%

% of rent (50% rule baseline)

Monthly cash flow

-$316

-$3,797 / yr

Cash-on-cash return

-3.9%

On $98,000 invested

1% rule check

0.74%

Below 1%, common in modern markets

Mortgage payment

$1,746

$262,500 loan @ 7%

Quick math

  • Down payment$87,500
  • Closing costs (est. 3%)$10,500
  • All-in cash$98,000
  • Monthly operating expenses$1,170

Insight

This deal loses $316/month. Either the rent is too low, the price is too high, or your expense estimate is too rosy. Most rookies underestimate vacancy and repairs.

Key takeaways

  • Goal first, deal second.
  • Underwrite conservatively. If it only works on paper, it doesn't work.
  • House-hacking is the lowest-risk way for most people to start.
Sweetheart offer · Stage 3

Want to walk through this with me?

Get two 45-minute 1-on-1 sessions, two weeks apart, focused entirely on your real estate situation around “Your first investment property: a framework.” We'll pressure-test your numbers, build a plan you'll actually follow, and check in once you've started moving.

$399$798 for two 45-min sessions, biweekly
  • Two 45-minute video sessions, scheduled two weeks apart
  • Personalized plan, written follow-up, async questions between calls
Claim the offer

Or longer engagements: 3 sessions $1,097 · 12 sessions $3,788.

Next step529 plans: tax-advantaged college savings

You've put the work in

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You've moved through the foundation, the growth, and you're eyeing the bigger moves. That's where 1-on-1 coaching kicks in.

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