After selling my last single-family rental, I’ve officially closed the chapter on owning these properties. Why? The energy required to manage and operate a single-family rental is immense, energy that could be better spent on multifamily units, which offer stronger returns with often fewer headaches. Over the three years I operated this house, I learned some hard-earned lessons that shaped my perspective and approach to real estate investing. Here are the top five lessons I want to share with you.
When I first walked through the property, I thought I’d covered all my bases. I video-recorded exactly what I wanted done, created a detailed list from the footage, and sent it via text and email to the general contractor (GC). Despite my efforts, things were still missed. A wall was even knocked out that shouldn’t have been, creating tension between me, the subcontractor, and the GC.
The real issue? I wasn’t checking in on the property as often as I should have. At 23, I assumed I could rely on the GC to execute my vision perfectly. But the truth is, you’re ultimately responsible for your project. Even if you hire a GC, you need to oversee their work closely. My lack of follow-up led to costly mistakes, teaching me that being the GC—or at least the GC of the GC—is non-negotiable.
I found my GC through my job at the time, and I liked them as a person. That, combined with their competitive price, was enough for me to hire them. Big mistake. I didn’t vet multiple GC's or review their past work. I later learned they lacked the experience needed for a project like mine.
This was a rookie error. Choosing a GC based on personality and cost rather than proven expertise cost me time and money. Moving forward, I’ll always prioritize experience over a lower price tag. Vetting multiple candidates and checking their track record is a must.
Property managers (PMs) can make or break your rental experience, and I learned this the hard way. Here’s what I discovered:
- Vet multiple PMs. Just like with GCs, don’t settle for the first option. Interview several to find the best fit.
- PMs don’t make much per property. My house rented for $1,900 a month, and the PM earned about $152 from me. That’s not much, especially when they’re juggling multiple properties. Holding them accountable is tougher than you’d think—push too hard, and they might walk.
- Tenants may bypass PMs to reach you. My tenant had an issue ignored by the PM for months. They only got my attention after tracking down my email through their own research. I would’ve been in the dark otherwise.
- Set clear communication expectations upfront. Before signing any agreements, establish the best way to stay in touch with your PM. This is critical to avoiding miscommunication and ensuring issues are addressed promptly.
This lesson is short but sweet. While higher leverage often means better returns, a 15-year mortgage can be a fantastic option for long-term investors. The principal paydown on a 15-year loan is significantly faster than on a 30-year mortgage, and watching your tenant chip away at the loan balance is incredibly satisfying. If your strategy is long-term and the returns still make sense, a 15-year mortgage can accelerate your wealth-building.
When it came to selling this rental, I faced a lot of opinions. But I’ve learned to only take advice from those who’ve been in my shoes—people with actual rental property experience. After months of reflection, I realized the returns weren’t worth the effort, and I was growing frustrated. I knew I could achieve more with the same energy by focusing on multifamily properties.
I didn’t make a rash decision. I trusted my gut, consulted with qualified mentors, and moved forward with confidence. Tuning out the noise and listening to my instincts was one of the best decisions I made.
Selling my last single-family rental was bittersweet, but the lessons I learned were invaluable. From overseeing contractors to choosing experienced professionals, managing property managers, leveraging 15-year mortgages, and trusting my instincts, these insights have made me a smarter investor. If you’re considering single-family rentals, I hope my experience helps you navigate the challenges and make informed decisions. For me, the future is multifamily—better returns, less hassle, and a whole lot more potential.
