What I Really Made on My First Real Estate Investment—And What I Learned Along the Way

In 2015, I bought my very first property—a 2-bed, 1-bath townhome in Boulder, CO—for $295,000. I was 27, ambitious, and had no idea how much I didn’t know. The property was a rundown rental with good bones but a long to-do list. The unit next door had sold earlier that year for $7,000 more, so I thought I scored a deal. Spoiler: that unit was in much better shape—and I was naive about how far $7,000 would actually go in renovations.

Fast forward to 2025: I sold that same townhome for $435,000. While that may sound like a big win—and in many ways, it was—it wasn’t all easy money. Here’s the real financial breakdown and what I learned along the way. If you're thinking about investing in real estate, I hope this helps you plan smarter.

💰 The Investment Breakdown

• Purchase Price (2015): $295,000

• Down Payment: $60,000

• Sale Price (2025): $435,000

• Final Net Proceeds: $210,000(After closing costs, credits, and loan repayment)

• Equity Gained: $150,000

  
  

🏡 Let's Talk Rental Income

During my 10 years of ownership, I rented out the property for 8 of them. My strategy over the past decade has been to buy a home, live there for 2 years, then rent it out.

In this case, after covering mortgage and HOA expenses, I made about $8,000 in net rental income—averaging just $1,000 per year. I had a long-term tenant at below-market rent, which made things easier operationally, but likely left some money on the table.

Total Return Before Expenses: $158,000 (Equity: $150,000 + Rental Income: $8,000)

🔧 Don’t Forget About Expenses

While those numbers look solid, every property comes with its fair share of costs. I spent over $60,000 on:

• Capital Improvements: Replaced all major systems (furnace, A/C, water heater), every appliance, and updated flooring, paint, and lighting.

• Special Assessments: Two major assessments through the HOA for a new roof and new siding.

Net Profit After Expenses: $98,000

📊 What That Means for ROI

I turned a $60,000 investment into $98,000 in profit over 10 years.

That’s an annualized Internal Rate of Return (IRR) of about 10.17%—a solid return, especially for a first-time investor learning as they go.

That said, when I ran the numbers, I realized that I would’ve made almost the same return if I had put that money into a low-cost S&P 500 index fund and let it sit for 10 years—with a lot less effort.

🧠 What I Learned

Here are the takeaways I wish I’d understood better when I got started:

• Deferred maintenance adds up—fast. If a property “needs a little love,” prepare for that love to be expensive. Budget accordingly and negotiate hard on the purchase price.

• Plan for rising costs. My HOA fee nearly doubled during ownership, mostly due to insurance increases. Small line items can quietly grow into real profit killers.

• Have reserves. I only recouped my $60,000 in improvements at the time of sale. Without strong savings, unexpected costs could have put me underwater.

• It takes more time and energy than you think. Renovating—especially while living in the property—requires more than just money. It's physically and emotionally draining.

• Long-term holds can still win. Even with the headaches, this investment appreciated significantly. Real estate is rarely perfect, but it rewards patience.

Final Thoughts

This townhome was where I learned the ropes—not just of homeownership, but of real estate investing. I learned how to manage repairs, think strategically about upgrades, and most of all, how to stay patient when things got hard.

If you’re just getting started, remember: the numbers on the surface don’t tell the full story. Look deeper. Know your risks. Plan for surprises. And make sure you’re ready—mentally and financially.

Because even with all the bumps, that $60,000 investment turned into nearly $100,000 in profit—and gave me a decade’s worth of experience I wouldn’t trade for anything.

Ready to start your own real estate journey? I’ve been in your shoes—and for the past 10+ years, I’ve helped others grow their wealth through smart, strategic real estate moves. Let’s chat about how to make your next move a powerful one.