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My husband and I officially bought our first investment property, which means I’m officially a homeowner! We purchased a duplex in Buffalo, New York, and the craziest part? Neither of us had ever been to Buffalo or actually seen the property before buying it. We completed most of the process while living in Brazil, and I still haven’t seen the house in person!
After more than two months of unexpected delays, we finally closed on October 2nd. We officially have the keys, Ragz is already in Buffalo working on renovations, and I’m getting ready to visit our new property for the very first time.
There have definitely been some unexpected challenges, but I’m so excited to share this next chapter with you.
In this post, I’m breaking down everything about our first real estate investment: why we chose Buffalo, how we bought a property remotely, how much we paid, our renovation budget, and our long-term real estate investment strategy. I’m also sharing some of the things I’ve already learned as a complete beginner!
If you’ve been following The Wanderlover for a while, you know that for almost a decade, my focus has been on building a business that allows me to work from anywhere. That business has given me the opportunity to live in different countries, travel full-time, and now raise our son abroad.
But as our lives have evolved, so have our financial goals.
I’ve always been interested in investing and building long-term wealth. Now that we have a family, I’ve been thinking more about how we can diversify our income and build assets outside of our online businesses.
And that’s what led us to real estate!
Why We’re Getting Into Real Estate Investing
One of the biggest things I’ve learned from almost ten years of entrepreneurship is that you never want to rely entirely on one source of income.
When I first started The Wanderlover, most of my income came from brand collaborations. Over time, I started creating digital products, coaching, affiliate marketing, and eventually built multiple income streams within my business.
That’s been incredibly valuable, especially because the creator industry changes so quickly. Platforms change their algorithms, brand budgets fluctuate, and there are always new trends and technologies.
Having different ways to generate revenue gives you more flexibility and makes your business less dependent on any one platform.
But even with multiple income streams, they’re still largely connected to my business and my ability to continue running it.
So we started thinking about how we could take some of the money we’ve earned and saved and put it into assets that could generate income over the long term.
Ragz used to work in construction, and I’ve always loved numbers. We love the idea of having different properties around the world where we travel while being able to generate rental income.
Of course, real estate isn’t completely passive. There are tenants, repairs, maintenance, vacancies, property taxes, insurance, and unexpected expenses.
But I really like the idea of building a portfolio of properties over time that can eventually provide another source of income for our family.
Our goal is to build up to around ten rental units over the next five years. Along the way, we’d love to build relationships with local contacts, bring in investors, and eventually expand into more properties abroad while having reliable teams on the ground.
From there, we could potentially continue expanding into larger multifamily and commercial properties.
But first, we want to learn the process, understand the numbers, and make sure our investments actually make financial sense.
And this duplex is our very first step!
Why We Chose Buffalo, New York for Our First Investment Property
Now, you might be wondering: Why Buffalo?
Especially because we’ve spent the last several years living abroad, including over a year in Florianópolis, Brazil, and we’re used to living in places with beaches, surfing, and warm weather.
Buffalo is obviously a very different lifestyle!
First and foremost, I’m American, and my husband just got his green card. We wanted to keep our first investment in the United States to avoid additional complications like currency exchange risk and language barriers.
We also had a few specific criteria for our first property.
We wanted to start with a multifamily property, ideally two to four units. We needed a market where we could find properties within our cash budget, renovate them, and hopefully generate positive cash flow.
Initially, we looked at several different markets, including Ohio, Kansas, Colorado, and Florida. Eventually, we realized we needed to narrow our search.
I grew up in New York, so we were already familiar with the state, and I wanted to be within driving distance of my family and friends.
That’s when Buffalo caught our attention.
You can find multifamily properties at incredibly affordable prices compared to many other markets. The housing stock is older, and many properties need renovations, which was actually something we were interested in because we wanted the opportunity to add value ourselves.
Buffalo also has several things we were looking for in a market:
- It’s the second-largest city in New York.
- It has a growing population.
- It has an airport, hospitals, and universities.
- It’s home to the Buffalo Bills.
- There are affordable multifamily properties with renovation potential.
We liked the idea of investing in a market where people already live, work, and have reasons to stay.
We specifically wanted a duplex because you have two separate rental units and potentially two sources of rental income from one property. If one unit becomes vacant, you may still have income coming in from the other.
Of course, you also have two units to maintain and two sets of tenants to manage, but we liked that trade-off.
And because Ragz is very hands-on and enjoys renovating, we felt that buying something that needed work could be a great way for us to get started.
Our ideal property was something structurally sound, in a location where people would want to rent, but that could benefit from updates and renovations.
We weren’t necessarily looking for something completely finished. We wanted the opportunity to create some of that value ourselves.
We started looking at listings, comparing neighborhoods, researching rental prices, and working with a local real estate agent in Buffalo.
And we did all of this while we were still in Brazil!
How We Bought Our First Investment Property Remotely
This is probably the part of the story that people find the most surprising.
We were living in Brazil when we started our property search, so we were looking at listings online, reviewing photos, discussing potential investments with our agent, and trying to understand the market from thousands of miles away.
I actually found our real estate agent on Instagram, and he’s been amazing!
Buying remotely definitely adds another layer of complexity because you can’t just casually drive over to a house and take a look at it.
You have to rely on the information you’re getting from other people, including your agent, inspector, attorneys, and anyone else involved in the process.
We looked at a number of properties before finding this one. There were definitely houses that seemed interesting on paper but didn’t end up being the right fit. We also made a few other offers that didn’t go through.
And that’s something I think is important to remember if you’re getting into real estate investing: You can’t become emotionally attached to every house you see.
The numbers have to make sense, and sometimes you have to be willing to walk away.
Eventually, we found a duplex in South Buffalo.
The property was originally listed for $175,000, and we liked that it was a two-family home with the potential to renovate and increase its value.
We initially negotiated the purchase price down to $162,500, which we were happy with.
Based on what we knew about the property and our renovation plans, we felt that it could be a good first investment.
So we went under contract and started working through everything we needed to do before closing.
At the time, I don’t think we realized just how long that process was going to take!
Why Closing Took More Than Two Months
We ended up being under contract for more than two months before finally closing.
And about a month of that was an unexpected delay related to the seller’s side of the transaction.
The seller had a previous bankruptcy, and their attorney needed to obtain additional documentation to make sure there weren’t any liens or other issues affecting the property.
Obviously, we wanted to make sure we were purchasing a property with clear title. That’s extremely important, and you don’t want to rush through something that could create legal or financial problems later.
But at the same time, it was frustrating because we had an entire timeline planned around this purchase.
We wanted to close, start renovations while the weather was still relatively warm, and get the property ready for tenants as quickly as possible.
And in Buffalo, timing matters because winters can get pretty intense. Certain exterior renovations are just easier to complete before it gets freezing outside.
Every additional week we spent waiting meant one less week we had to complete renovations before winter.
We were originally expecting to close much earlier, and because everything kept getting delayed, our plans started shifting.
But interestingly, the delay ended up working in our favor in one very important way.
By the time we were finally ready for the final walkthrough, we had already returned to New York from Brazil.
Which meant Ragz could physically go to Buffalo and see the property before we closed.
And I’m SO glad he did!
The Final Walkthrough That Saved Us $7,000
Remember, we were originally going to purchase this property for $162,500.
We had already negotiated that price, gone through the inspection process, and were preparing to close.
But when Ragz went to the final walkthrough, he noticed something that hadn’t been properly identified during the inspection.
There was an issue with an extension at the back of the house. The supports underneath appeared to be sinking, and you could actually see daylight from inside where things weren’t sitting the way they should.
Obviously, that’s not something you want to discover after you’ve already purchased a property!
Instead of accepting it and moving forward, we went back to the seller and renegotiated.
We ended up getting the purchase price reduced from $162,500 to $155,500.
That’s another $7,000 off the purchase price because of something Ragz found during the final walkthrough.
Here’s how the numbers changed:
- Original listing price: $175,000
- Initial negotiated purchase price: $162,500
- Final purchase price: $155,500
I think this is such an important lesson, especially for anyone buying a property remotely.
You absolutely need people on the ground who are going to look out for your interests, and you need to take the final walkthrough seriously.
I also can’t believe our inspector missed this issue, so we will not be using or recommending him in the future.
Even though we had already completed an inspection, this problem wasn’t properly flagged. It was something Ragz noticed himself.
At least we were able to negotiate some additional room in our budget before closing.
And honestly, if the closing hadn’t been delayed, we might not have been back in New York in time for Ragz to attend the walkthrough himself.
So that was definitely an unexpected silver lining!
After all of that, we finally closed on October 2nd.
How Much We Paid for Our Buffalo Duplex: Purchase Price and Renovation Budget
Now let’s get into the actual numbers because I know this is probably what a lot of you are most interested in!
We purchased the property with cash, which was intentional because of the investment strategy we’re planning to use.
Here’s our initial investment breakdown:
| Expense | Amount |
|---|---|
| Final purchase price | $155,500 |
| Total cash out of pocket, including additional purchase expenses | $159,938 |
| Estimated renovation budget | $50,000 |
| Estimated total investment after renovations | $209,938 |
Our total cash out of pocket of $159,938 includes the purchase price, home inspection, closing costs, attorney fees, taxes, and LLC formation.
Now let’s talk about renovations.
We’re currently budgeting approximately $50,000 to renovate the property.
There’s nothing majorly structural that we need to fix, mainly cosmetic updates and some siding on the house.
We’re just getting started, so we’ll see how close we can stay to that number!
Anyone who’s renovated a house knows that there are almost always surprises, especially when you’re dealing with an older property.
Our goal is to make improvements that increase the property’s value and make it attractive to tenants without overspending on things that won’t necessarily increase the rental income or resale value.
We’re not trying to create a luxury dream home.
We’re trying to create a clean, updated, durable rental property that people will want to live in.
Our Estimated After-Repair Value (ARV)
The other really interesting number is our estimated after-repair value, or ARV.
We’re targeting an ARV of approximately $300,000.
That’s our estimate of what the property could potentially be worth once renovations are complete, based on comparisons with other similar duplexes in the area.
It’s not a guaranteed appraisal, and obviously we’ll have to see what the market and the lender’s appraisal say when we get to that stage.
But if we can purchase the property for $155,500, put approximately $50,000 into renovations, and have it appraise somewhere around $300,000, that would create a significant amount of potential equity.
And that’s the entire reason we’re approaching this investment the way we are.
We’re not just buying a property to collect rent. We’re hoping to add value through renovations, refinance it, and then use some of that money to purchase another property.
Which brings me to our actual investment strategy!
Our Real Estate Investment Strategy: Buy, Rehab, Rent, Refinance, Repeat (BRRRR)
The strategy we’re planning to use is called BRRRR, which stands for:
- Buy: Purchase a property at a price where there’s room to add value.
- Rehab: Renovate the property to improve its condition and increase its value.
- Rent: Find tenants and generate rental income.
- Refinance: Refinance the property based on its new value and rental income.
- Repeat: Use the capital recovered to purchase another investment property.
I love this concept because it allows you to potentially recycle the same investment capital into multiple properties over time.
Here’s how we’re planning to approach each step with our Buffalo duplex.
1. Buy
The first step is buying a property, ideally at a price where there’s room to add value.
For us, that was purchasing this duplex for $155,500.
We specifically wanted something that needed updates but had the potential to become a desirable rental property.
2. Rehab
The second step is renovating it.
We’re budgeting around $50,000 to improve the property, address necessary repairs, and hopefully increase its value.
Ragz is already in Buffalo getting started on the renovations, and we’re planning to be strategic about where we spend our money.
3. Rent
The third step is renting it out.
Our goal is to get both units rented for ideally $1,500 per month each.
That would give us a target of $3,000 per month in gross rental income.
Of course, actual rental income will depend on the market, the finished property, and finding the right tenants.
4. Refinance
Then comes the refinance.
Our plan is to look into a DSCR loan, which stands for debt service coverage ratio.
Essentially, this is a type of real estate investment loan where the lender looks heavily at the property’s rental income relative to its debt payments, rather than evaluating the loan exactly like a traditional owner-occupied mortgage.
There are obviously still lender requirements, and things like credit, property condition, appraisal, reserves, and rental income matter.
But for investors, DSCR financing can be an interesting way to refinance rental properties.
Let’s say we complete the renovations and the property appraises for $300,000.
If we qualify for a refinance at 75% loan-to-value, that could mean a loan of approximately $225,000.
Here’s the potential calculation:
| Item | Amount |
|---|---|
| Estimated after-repair value | $300,000 |
| Potential refinance at 75% LTV | $225,000 |
| Initial purchase price | $155,500 |
| Estimated renovation budget | $50,000 |
| Estimated purchase + renovation costs | $205,500 |
On paper, the potential refinance amount could be higher than our initial purchase and renovation costs.
Now, that doesn’t mean we’re automatically going to walk away with $225,000 in cash!
There will be refinance closing costs, potentially other expenses, and the amount we can actually borrow will depend on the appraisal, the property’s rental income, the lender’s terms, and any seasoning or cash-out restrictions.
We also have to make sure the mortgage payment still makes sense relative to the rental income.
Because at the end of the day, I don’t want to maximize how much debt we can take out if that means the property barely cash flows.
The goal is to recover as much of our original investment as makes financial sense while still having a healthy rental property.
5. Repeat
And finally, if we can successfully refinance and recover a meaningful portion of our original investment, we can take that money and put it toward the next property.
That’s the repeat part!
Buy another property, renovate it, rent it, refinance it, and hopefully continue building our portfolio.
Obviously, it sounds very straightforward when you explain it in five words, but there are a lot of moving parts.
We’re going to learn exactly how this works by actually doing it.
That’s also why I want to document the process from the beginning. I think it’s easy to see people online talking about how they’ve built huge real estate portfolios, but you don’t always see the first property, the delays, the repairs, and all the little decisions that happen along the way as a complete beginner.
Our Buffalo Duplex Renovation Plans
Right now, Ragz is already in Buffalo working on the house.
I think one of the biggest advantages we have with this first property is that he’s willing and able to do a lot of the renovation work himself.
He’s very hands-on and has the experience, and we want to take advantage of that because labor can be one of the biggest expenses in a renovation.
For the exterior, we’re planning a much more updated, cohesive look.
I love the idea of:
- Off-white siding with white trim.
- A darker roof.
- Natural wood tones on the porch.
For the interiors, I’m thinking greige tones, modern appliances, and an overall aesthetic that’s somewhere we would want to call home ourselves.
We’re also trying to be really strategic about the order of work because winter is coming, and certain projects are going to be much easier to complete now than once the temperatures drop.
Ragz is there getting started, and I’m actually going to head up to Buffalo in about three weeks with Leven.
I STILL haven’t seen the house in person, but I’ll definitely take you along with me when I do!
I’m so excited to finally see it for myself.
I think it’s going to be such a different experience walking into a house that we actually own and knowing that we’re responsible for everything that needs to happen before someone can move in.
And I’m sure I’ll have a completely different perspective once I’m there in person.
Our Timeline: Renovate, Rent, and Head to Asia
Our original goal was to finish the renovations by the end of the year and get tenants in as soon as possible.
But because closing took longer than expected, our timeline has shifted a little.
We’re now aiming to have the property fully renovated and rented by February 2027 at the latest because we’re planning to go to Asia in January.
This is exactly why having a business that allows us to work from anywhere has been so important to us.
But it’s also going to be an interesting test of how we manage real estate while traveling.
We’re definitely aiming to hire a property manager and build relationships with reliable contractors and service providers who can handle things while we’re away.
I don’t want us to buy rental properties that require us to physically be in Buffalo all the time.
The north star is to eventually build a portfolio that we can manage while continuing to live and travel wherever we want.
And I think that’s going to be one of the biggest learning experiences for us with this first property.
Our Five-Year Real Estate Goal: Ten Rental Units
Our goal is to build a portfolio of approximately ten rental units over the next five years.
I think that’s a really exciting number because it’s ambitious, but it also gives us something concrete to work toward.
We’re starting with two units.
If this first duplex goes well, we might purchase another duplex, or we might look at a four-unit property.
We’ve already been looking at larger multifamily opportunities in Buffalo, but I also don’t want to rush into something just because we’re excited.
I think this first investment is going to teach us so much.
If we can successfully renovate it, get it rented, refinance, and recover a meaningful portion of our cash, that could put us in a much stronger position to buy the next property.
And if the refinance doesn’t work out exactly as planned, we still want to own a rental property that makes financial sense on its own.
Over time, as we build experience and equity, we can start looking at larger opportunities.
Eventually, I’d love to explore larger multifamily and commercial real estate, potentially use strategies like 1031 exchanges, or have investors come in.
But that’s much further down the road.
For now, our focus is on making this first duplex a successful investment.
What We’ve Learned So Far as First-Time Real Estate Investors
Even though we’ve only just closed, I feel like we’ve already learned so much about buying real estate.
Here are some of my biggest takeaways so far.
1. Everything Takes Longer Than You Think
We went into this with a timeline, and then the closing process took over two months.
A month of that was essentially spent waiting for additional documentation from the seller’s side.
And when you’re planning renovations, every delay affects everything else.
It’s important to build flexibility into your timeline because things won’t always happen exactly when you expect them to.
2. Always Do Your Due Diligence and Never Skip the Final Walkthrough
We had an inspection, but Ragz still found a problem with the extension that hadn’t been properly identified.
Because we found it before closing, we were able to negotiate another $7,000 off the purchase price.
That’s a pretty significant amount of money, especially when you’re working with a renovation budget.
The final walkthrough is an important opportunity to make sure you’re comfortable with the property’s condition before officially taking ownership.
3. Always Have a Contingency Plan
We have a $50,000 renovation budget, but I fully expect there are going to be surprises along the way.
The important thing is to make sure we’re not stretching ourselves so thin that one unexpected repair completely derails the project.
Having room in your budget for unexpected expenses is so important, especially when you’re renovating an older property.
4. Having the Right People Involved Matters
This is especially true when you’re buying remotely.
You’re relying on your real estate agent, inspector, attorney, and contractors to help you make informed decisions.
You can’t physically be everywhere at once.
And even now, with Ragz in Buffalo and me still downstate with Leven, we’re coordinating everything from different places.
Communication and having people you trust are incredibly important.
I think the biggest takeaway for me so far is that real estate investing is very different from investing in stocks or running an online business.
There are so many moving parts, and you’re dealing with a physical asset that needs constant attention.
But that’s also what makes it interesting.
You can actually improve the property, create value, and potentially turn something that needs a lot of work into a really nice place for people to live.
From Building an Online Business to Real Estate Investing
I want to bring this back to something I talk about a lot on The Wanderlover, which is building a life around freedom.
When I quit my corporate job in 2017, my biggest goal was to have the freedom to travel.
I didn’t want to be tied to an office. I wanted to be able to work from anywhere, explore the world, and create my own schedule.
And building my online business allowed me to do exactly that.
But over the years, my definition of freedom has evolved.
Now that I’m married and we have Leven, I’m thinking more about long-term financial security, building assets, and creating income streams that can support our family for years to come.
I think this is such a natural progression of entrepreneurship.
You start by learning how to make money independently.
Then you learn how to build a business.
Then you start thinking about how to use the money you’re earning to create even more opportunities and financial security in the future.
And that’s really where we are right now.
We’re taking money that we’ve earned and saved and using it to purchase our first real estate investment.
Hopefully, over the next five, ten, and twenty years, we’ll be able to continue building on that.
It’s also one of the reasons I’m so passionate about teaching people how to start online businesses.
Because once you learn how to make money independently, you have so many more options.
You can travel. You can work from anywhere. You can spend more time with your family. You can invest. You can build other businesses.
And if you’re still working toward making your first income online, that’s exactly what I teach inside The Wanderlover Business Academy.
We focus on getting paid first, building your first online income streams, and working toward your first $5,000 online.
You don’t need to have everything figured out from the beginning. You just need to start creating opportunities for yourself, and then you can build from there.
If you want to learn how to build an online business that gives you more freedom and flexibility, check out The Wanderlover Business Academy here!
What’s Next for Our First Investment Property?
So that’s where we’re at right now!
I definitely want to document this entire process because every expert was once a beginner, and it’s so exciting to me to get started on something completely new.
There are so many things I want to share as we go through this first investment.
I want to show you:
- The before-and-after renovations.
- How much everything actually costs.
- What we end up renting each unit for.
- Whether we stay within our $50,000 renovation budget.
- What the property appraises for once renovations are complete.
- Whether our refinance goes according to plan.
- How we manage the property while traveling internationally.
Because right now, all of these numbers are projections.
The real test is going to be seeing what happens when we actually complete the renovation, get the property appraised, and find tenants.
And I think that’s going to be really interesting to look back on a year from now!
If you’re interested in real estate investing as a digital nomad, especially buying your first investment property, I hope you’ll follow along.
I’d also love to hear from you! Have you ever invested in real estate, or is buying your first investment property something you want to do?
Let me know in the comments below. If you’ve already invested, I’d especially love to hear your tips and lessons learned.
Thank you so much for following along with this next chapter of our lives. I’m excited to share the entire journey with you, from our first renovation to hopefully building a portfolio of ten rental units!
I’ll see you in the next episode!
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