Beginning Landlords and Investors: A Guide to Success

Buying & Selling
Written By Cindy Lou

If you're a new landlord or investor trying to make smart moves in 2025, you’re not alone. I’ve spent time digging into current trends, reading reports, and talking to landlords to figure out what’s working right now. This guide pulls together what I’ve learned to help beginners like you figure out how to get started on the right foot; and while it's not based on my personal experience, it’s rooted in insights from people who are in the game every day.

1. Start Thinking Green (It Pays Off)

Sustainability isn’t just about saving the planet; it can also save you money and help attract good tenants. Tenants are looking for these features. New investors are learning that things like energy-efficient appliances, LED lighting, and even solar panels can lower monthly utility costs and boost a property’s value. Plus, there are often local rebates or tax credits that can help offset the cost of these upgrades.

2. Don’t Put All Your Eggs in One Basket

When you’re starting out, it’s easy to think, “I’ll just buy a few rental houses,” and that’s a great place to begin. But the more experienced landlords said they wish they had diversified sooner. That could mean adding in a duplex, a small commercial unit, or even a self-storage space down the road. E-commerce growth has made industrial spaces like warehouses more attractive too. Each type of property comes with its own pros and cons, and spreading things out helps lower your risk.

3. Use Technology to Make Life Easier

When you’re just starting out, there’s a lot to learn and technology can help you stay organized. Property management software (see below) can handle rent collection, maintenance requests, and even background checks. Some tools also help you figure out whether a property is a good investment by crunching the numbers for you. It’s worth looking into; there’s some pretty cool software out there and it’ll save you time and stress.

4. Look Outside Big Cities

Buying your first property in a major city may sound exciting, but prices can be sky-high. A lot of newer investors are finding great deals and better cash flow in smaller cities and towns. These “secondary markets” often have growing job markets and lower property taxes, which can make things more affordable when you're starting out. Just make sure to do some research on the area before you buy; see my previous blogpost for some tools: www.cindyloureferralagent.com/blog-entries/research-investigate-canvass-nbsp

5. Know That Renters Want Flexibility

The way people live and work has changed, especially since remote work has become a norm. Some newer landlords are experimenting with co-living spaces; think roommates in a big house with shared kitchens or even turning an extra room into a short-term rental. These setups can be more profitable than traditional rentals, if done right. You don’t have to start there but knowing that renters want more flexibility can help you decide what kind of property to buy and how to set it up.

6. Be Smart About Weather Risks

One thing new investors sometimes overlook: not all properties are created equal when it comes to natural disasters. Whether it’s flooding, hurricanes, or wildfires, climate risks are very real. Choosing properties in safer zones or ones already built to handle tough weather can save you big headaches and money later on. And yep, tenants care about this stuff too. A friend of mine in Arkansas has a large storm cellar on his property for tornado weather and has had all his tenants in it a few times this year. And fortunately, he has excellent insurance as well as there was some damage.

7. Know Your Key Numbers

When you’re evaluating a property, it helps to know some basic math. One beginner-friendly metric is the Gross Rent Multiplier (GRM). It’s just the price of the property divided by the annual rent. So, if a house costs $200,000 and it brings in $24,000 a year in rent, the GRM is about 8.3. Lower GRMs usually mean a better deal, but don’t stop there; factor in expenses, maintenance, repairs, taxes, and other costs before you buy.

8. Keep Up with Policy, Rules, and Regulations

Real estate laws can change and they vary by city and state. Things like eviction rules, rent control, and tax laws can all affect how profitable your property is. Seasoned landlords often keep an eye on local city council meetings or join local landlord groups to stay in the loop. Don’t be afraid to ask questions or hire a professional (like a real estate attorney) if something’s unclear. Some landlords make it a habit to follow local news and subscribe to real estate newsletters just to stay ahead of the curve. This kind of info can help you make better decisions, whether you're buying, selling, or just holding onto your investments.

9. Learn from Other Investors

One of the smartest things you can do as a new investor is connect with people who’ve already been through it. Join a local real estate meetup, check out Facebook groups, or listen to podcasts. People in these communities are usually open to sharing what worked for them and what didn’t. It's one of the fastest ways to hear what’s really happening in the market. It’s also a great way to get tips, avoid mistakes, and feel more confident on your journey.

10. Think Long-Term and Big-Picture

Some of the most inspiring stories came from investors focused on impact like offering affordable housing or revitalizing neglected neighborhoods. These kinds of investments can be really meaningful and in many cases they’re also profitable over time. As a new landlord, it’s totally okay to start small but don’t lose sight of the bigger picture. You’re building more than just a portfolio; you’re building a future.

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Getting started in real estate can feel overwhelming but you don’t need to know everything right away. The key is to keep learning, start simple, and don’t be afraid to try something new. Real estate can be a powerful way to build wealth and create stability but only if you treat it like a business and keep growing your knowledge along the way.

Cindy Lou

I’m a licensed real estate professional hanged with Long Realty Referral Associates in Arizona. I received my license in 2020 and was an active REALTOR® in Phoenix my first year. I moved to Michigan in 2021 and changed my designation from sales agent to referral agent which now allows me to serve people in any state in the USA and 70 other countries!

Meanwhile, for nearly a decade, I’ve worked in the Mortgage industry opening and closing mortgage loans. I have an in-depth understanding of the homebuying process from start to finish, so I know the value that great Realtors bring to the experience for homebuyers and investors. Especially first-time homebuyers.

My love of real estate began back in 2008 in Marketing where I was the coordinator of a magazine called Properties of the Southwest. I worked with high caliber Realtors creating their marketing materials and showcasing their clients’ properties in many prestigious magazines and The Wall Street Journal. Serving them gave me great insight into what makes top notch listing agents for clients selling properties.

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