‘I was scared out of my mind.’ He now owns 180+ homes

Eric Augustyn got his start in real estate by selling his car, buying a $55,000 foreclosure in a sketchy neighborhood, and muddling through renovations with YouTube University and a few panicked calls to dad. Fifteen years later, that first deal has grown into a 180-home portfolio and a new job as CEO of the real estate investment site BiggerPockets. Here’s what he wishes someone had told him back when he thought real estate was “radioactive.”

Q: Tell me about your first investment property. “It was a three-bed, two-bath foreclosure in Magna, UT, for $55k. I needed about $15k for a down payment and closing costs and another $10k for the reno materials. So I sold my car and leased a RAV4 for $199 a month. Looking back, I was scared out of my mind. I was told to buy on the east side, but all I could afford was the west. I did all the reno work myself on nights and weekends, watching YouTube along with an occasional call to my father for help fixing stripped electrical. I ended up selling it four years later for $135k and used that money to buy more. This rental started my addiction to real estate.”

Q: How many homes do you own now? “About 180. Currently, I rent—you don’t need to own your own home to invest in real estate—and I buy in more investor-favorable states at lower price points with above a 6% cap rate, like Huntsville, AL. You can still find good deals.”

Q: What mistakes did you make early on? “I don’t even know where to begin! I made many mistakes—like selling properties when I should have refinanced, or justifying a purchase when the math didn’t make sense, or when it needed several things to go my way for it to work. Still, if you buy a property at 75% to 80% of market value, you have room to make mistakes. I believe you make money on the buy, and I don’t count on the appreciation—that’s just a bonus.”

Q: What are some lessons you learned the hard way? “I learned how to do my own renovations for my first 10 doors. It was stressful and time-consuming, but it taught me what things cost and how much labor and time they truly take. I now leverage contractors and handymen, but I know exactly where the bid should fall and how to cut costs.”

Q: What have you learned about running rentals? “I learned that I’m not a good property manager and that hiring good property managers can be the most important tool in your real estate chest. They manage the headaches for you while being on the ground for potential deal flow. Over the years, my property managers have become close friends. I visit them often, travel with some, and exchange gifts at Christmas. I would not be where I am today without them.”

Q: What are the biggest challenges investors are facing in today’s market? “High interest rates and asset prices due to inflation are probably the biggest challenges. That said, every time period has its challenges. Back in 2010, the global financial crisis had just happened, and people looked at real estate as radioactive. Buying it was teased, laughed at, and dismissed in several professional settings.”

Q: What’s your best advice for investors? “Find an experienced investor in your area and offer to work for free to learn the ropes. Get on BiggerPockets and attend our annual convention, BPCon, to connect with other members. We would be having this interview on a 100-foot yacht right now if I had access to the mentors at BiggerPockets when I started. You don’t need to go at it alone.”