Buying your first property was only the beginning , what happens next will determine if your portfolio keeps growing or stalls.
Property management choices
As an investor, you will have two options in managing your properties. You can either manage them yourself which will save in costs, give you higher control and help you build experience about the real estate market and how to manage and engage with tenants which will help you in the long run. The other options is that you can hire a property manager, which will have more experience in the short term, but will have a higher cost, and they will not be as invested as you are as this is a job for them not their own journey. Not to mention that there might be some day-to-day stuff that you never get to hear.
Cash flow discipline
Your positive cash flow that will be left over after you pay the loan at the beginning of every month is not spending money. This is singularly the most important discipline. Every investor needs to have otherwise they never get to grow their portfolio. You need to put that money aside and treat it as if it doesn’t exist . You will need it for maintenance, reinvesting strategically in the future, property taxes other miscellaneous stuff that will always come up. All these things cannot come up for months and then suddenly multiple things happen at once and you need to have a good amount saved if you don’t want it to sink you and the only way this happens for a beginner is for them to save their positive cash flow.
Scaling the right way
Scaling and growing does not mean buying again very fast. It means you should buy when you and your portfolio is ready for another investment. When your positive cash flow has added up in your savings to a healthy amount for another down payment that is the most strategically sound way of investing again and growing your portfolio as at that point now, your investments are helping you invest further. This mindset and discipline helps you reduce risk and guarantee success over a long-term.
And remember portfolios grow through consistency not through rushed decisions.
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