Mistakes I See First-Time Investors Make in the Capital Region

Buying your first investment property is exciting, but in the Capital Region I often see first-time investors make the same avoidable mistakes. I bought my first three-unit property at 23 and went on to purchase additional properties before opening my real estate company in Troy. Through my own experience—and working with investors locally—I’ve seen what works and where people get tripped up.

Here are the most common mistakes I see.

1. Underestimating Property Taxes

Property taxes vary widely across the Capital Region and can significantly impact cash flow. Two similar-looking deals can perform very differently once taxes are factored in. Understanding taxes at the neighborhood level is essential before running the numbers.

2. Chasing the Cheapest Deal

Lower price doesn’t always mean better investment. Cheaper properties often come with higher maintenance costs, tenant challenges, and slower appreciation. Strong investments balance price, condition, location, and long-term demand—not just purchase price.

3. Overlooking Building Condition

Much of the Capital Region’s housing stock is older, which requires careful evaluation. Deferred maintenance, heating systems, roofs, and plumbing can quickly change a deal. A thorough inspection and realistic repair budget are critical.

4. Misjudging the Rental Market

Rents aren’t the same across Troy, Albany, or surrounding areas. Online estimates don’t always reflect what tenants actually pay or the condition needed to achieve top rents. Local knowledge matters more than generic rent calculators.

5. Focusing Only on Cash Flow

Cash flow is important, but it’s not the whole picture. Many strong investments combine modest cash flow with appreciation potential, tax advantages, and long-term rent growth. The best deals consider where a neighborhood is headed—not just today’s numbers.

6. Not Building the Right Team

First-time investors often try to navigate everything alone or work with professionals who don’t specialize in investment property. Having the right agent, lender, and inspector can prevent costly mistakes and protect your long-term returns.

A Local Perspective

Successful investing in the Capital Region comes down to understanding the market, respecting the numbers, and getting guidance from people who’ve done it before.

Thinking About Your First Investment?

If you’re considering buying an investment property in the Capital Region and want honest guidance from a local investor and broker, let’s connect and talk strategy. I’ll help you evaluate opportunities, avoid common pitfalls, and invest with confidence.

Is Downtown Troy Right for You?

Downtown Troy is one of the most sought-after areas in the Capital District—and for good reason. With walkable streets, historic architecture, and a vibrant food and arts scene, it attracts buyers looking for character and lifestyle over cookie-cutter living.

That said, it’s not for everyone.

Why Buyers Love Downtown Troy

• True walkability to restaurants, coffee shops, and local events

• Beautiful historic buildings, lofts, and brownstones

• A strong sense of community and local pride

For buyers who value charm, energy, and convenience, Downtown Troy can be a great fit.

Important Tradeoffs to Consider

• Parking: Many properties don’t include off-street parking, and street parking can be limited.

• Noise: City living means traffic, nightlife, and events—especially on weekends.

• Older Buildings: Historic homes often come with quirks, from higher heating costs to older systems.

Who It’s Best For

Downtown Troy works best for buyers who prioritize lifestyle, walkability, and character—and are comfortable with city energy. Buyers who need quiet streets, guaranteed parking, or newer construction may want to explore other Troy neighborhoods.

A Local Perspective

The happiest Downtown Troy buyers are the ones who understand both the charm and the tradeoffs upfront. It’s not about selling downtown living—it’s about finding the right fit.

If you’re thinking about buying in Troy and want honest, local guidance, let’s connect and talk property.

Preparing your home for spring

As the weather starts to warm up and the days get longer, it's the perfect time to prepare your home for the spring season. Here are some tips to help you get your home ready for the new season:

1. Do a deep clean Spring cleaning is a tradition for a reason! Take the opportunity to give your home a deep clean. Dust all surfaces, wash the windows, and vacuum or mop the floors. Clean out the closets and donate any items that you no longer need. A fresh and clean home can help to boost your mood and get you in the spring spirit.

2. Organize your outdoor space As the weather warms up, you'll want to spend more time outdoors. Get your outdoor space ready by cleaning and organizing your patio or deck. Sweep away any debris or dirt, and clean any outdoor furniture. Consider adding some potted plants or a fresh coat of paint to give your outdoor space a new look.

3. Check your HVAC system Before the weather gets too hot, have your HVAC system inspected and serviced. This will ensure that it's running efficiently and effectively, and it will help to prevent any breakdowns during the hot summer months.

4. Refresh your decor Switch out your heavy winter decor for lighter, brighter items that reflect the season. Add some fresh flowers or plants to brighten up your home. Change out your bedding, throw pillows, and rugs for lighter colors and fabrics.

5. Tackle any home maintenance tasks Spring is a great time to tackle any home maintenance tasks that you've been putting off. Check for any leaks, cracks, or other issues around your home, and have them repaired. Clean out your gutters and downspouts to ensure proper drainage. Inspect your roof for any damage or wear and tear.

Preparing your home for the spring season can help to boost your mood and get you ready for the warmer months ahead. By following these tips, you can get your home in tip-top shape and enjoy all that the season has to offer.

Understanding cash flow and cap rates in real estate investing

1. Understand cash flow: Cash flow is the money that is generated by an investment property after all expenses have been paid. It's important to calculate the net operating income (NOI) of a property to determine its cash flow. This can be done by subtracting all expenses (including taxes, insurance, maintenance, and vacancy) from the property's total income.

2. Calculate cap rates: The capitalization rate (cap rate) is a ratio used to estimate the value of an income-producing property. It is calculated by dividing the NOI of a property by its purchase price or current market value. Cap rates can vary depending on the property type, location, and market conditions.

3. Use cap rates to evaluate potential investments: Cap rates can be a useful tool for evaluating potential real estate investments. Generally, a higher cap rate indicates a better return on investment. However, it's important to consider other factors such as location, property type, and condition when evaluating an investment opportunity.

4. Consider cash-on-cash returns: Cash-on-cash return is another way to evaluate the profitability of a real estate investment. It is calculated by dividing the annual cash flow by the initial investment. This metric can be useful for comparing different investment opportunities and determining which one offers the best return on investment.

5. Plan for contingencies: Real estate investments can be subject to unexpected expenses, such as repairs or vacancy periods. It's important to plan for contingencies and have a reserve fund in place to cover any unforeseen expenses that may arise. This can help ensure that your investment continues to generate positive cash flow and remains profitable over the long term.

Building a real estate investment portfolio.

Building a real estate investment portfolio can be a powerful way to generate passive income, build long-term wealth, and diversify your investment portfolio. However, it's important to approach real estate investment strategically to maximize your returns and minimize your risks. Here are 4 tips for building a successful real estate investment portfolio:

• Define your investment strategy Before you start investing in real estate, it's important to define your investment strategy. This means determining your goals, such as generating passive income or building long-term wealth, and considering factors such as your risk tolerance and time horizon. This will help you identify the types of properties and investments that align with your strategy.

For example, if your goal is to generate passive income, you may want to invest in rental properties that provide consistent cash flow. If you're looking to build long-term wealth, you may want to focus on properties with high appreciation potential.

• Diversify your investments Diversification is key to building a successful real estate investment portfolio. This means investing in different types of properties, such as single-family homes, multifamily properties, commercial real estate, and land. This can help spread out your risk and maximize your potential returns.

For example, if you invest solely in rental properties and the rental market experiences a downturn, your portfolio could suffer. By diversifying your investments, you can mitigate this risk and take advantage of different opportunities in the market.

• Build a network of professionals Building a network of professionals, such as real estate agents, attorneys, and contractors, can be essential to your success as a real estate investor. These professionals can provide you with valuable insights, help you identify investment opportunities, and ensure that your investments are managed effectively.

For example, a real estate agent can help you identify properties that meet your investment criteria, while a contractor can provide estimates for renovation costs. By working with a team of professionals, you can streamline the investment process and increase your chances of success.

• Stay up-to-date on market trends Real estate markets can be volatile and subject to change, so it's important to stay up-to-date on market trends and conditions. This means monitoring market data, such as median home prices, vacancy rates, and rental rates, as well as economic indicators that can impact the market.

For example, if you're investing in rental properties, you'll want to monitor vacancy rates and rental rates to ensure that you're maximizing your cash flow. By staying up-to-date on market trends, you can make informed investment decisions and adjust your strategy as needed.

In conclusion, building a real estate investment portfolio requires a strategic approach and a commitment to ongoing learning and development. By defining your investment strategy, diversifying your investments, building a network of professionals, and staying up-to-date on market trends, you can build a successful real estate investment portfolio that aligns with your goals and provides you with long-term financial benefits.

Understanding commercial real estate investing

5 tips for understanding commercial real estate investing:

1. Do your research: Before investing in commercial real estate, make sure to do your due diligence by researching the market, location, and property. This includes understanding the property's history, occupancy rates, market rents, and potential competition in the area.

2. Consider the risks: As with any investment, there are risks associated with commercial real estate investing. These can include economic downturns, changes in market conditions, and unforeseen expenses such as repairs or renovations. Consider the risks and weigh them against the potential returns before investing.

3. Understand financing options: Commercial real estate investing typically requires significant upfront capital, which can be obtained through various financing options such as traditional loans, private equity, or crowdfunding. It's important to understand the pros and cons of each option and choose the one that best suits your needs and goals.

4. Know your exit strategy: It's important to have a clear plan for exiting your investment in commercial real estate. This may include selling the property, refinancing the debt, or leasing the property to generate ongoing income. Knowing your exit strategy can help you make more informed investment decisions.

5. Work with a team of professionals: Commercial real estate investing can be complex, so it's important to work with a team of professionals who can help guide you through the process. This may include a real estate broker, attorney, accountant, and property manager. A team of professionals can help you make better investment decisions and avoid costly mistakes.