The Truth About Investment Properties: What New Real Estate Investors Get Wrong

by Bren Brewer

Are you thinking about buying a rental property in Conroe, The Woodlands, or surrounding areas like Spring, Magnolia, or Montgomery, TX?

You’re not alone. With real estate investing becoming more popular across Southeast Texas, many first-time investors are drawn in by the promises of “passive income” and “quick wealth through rentals.”

But here’s the truth:

Real estate investing is not easy.

It’s rarely passive, not always profitable, and—without proper planning—can cost you far more than you expect.

I’m Bren Brewer, your local Conroe real estate agent and real estate investing coach. I own multiple single-family rental properties and have firsthand experience with renovations, tenant management, evictions, and working with property managers throughout Montgomery County and Harris County.

In this post, I’ll break down the biggest real estate investing myths I see new investors fall for—and how you can avoid them to protect your money and maximize your returns.

❌ Myth #1: “It’s Passive Income”

This is the most common real estate investing myth—and also the most misleading.

Even if you hire a property management company, you’re still responsible for making key decisions, paying for unexpected repairs, and keeping your property in compliance with local laws and codes. That’s especially true here in the Houston metro area, where weather extremes and aging housing stock can create surprise maintenance issues.

💡 Real Example:

Last year, I had to replace two full HVAC units in my Conroe rental properties—a $12,000 expense I wasn’t planning for.

If you think real estate investing means kicking back while the rent rolls in, you’re in for a surprise.

💰 The Real Math on Cash Flow

Let’s break down a typical monthly cash flow scenario:

Monthly rent: $2,000
Mortgage, taxes, and insurance: $1,200
Property management (10%): $200
Maintenance reserves (5%): $100
Vacancy reserve (1 month/year): $167
Capital expenditures savings: $100

Actual monthly cash flow? Roughly $233—if everything goes smoothly.

And this is in areas like Montgomery, TX or Tomball, where average rents can vary widely by neighborhood.

🔥 Myth #2: “Zillow Says It’ll Rent for $2,000!”

Too many new investors rely on Zillow or other national websites for rental estimates.

But online rent estimators rarely reflect true market conditions. They don’t consider:

Interior upgrades
Neighborhood comps
School district ratings (a huge factor in areas like The Woodlands ISD and Conroe ISD)
Local demand and seasonality

📌 Pro Tip: Always pull real rental comps from the MLS or work with a local real estate professional who understands the market.

🧱 Myth #3: “Older Homes Are Better Deals”

Older homes may seem like bargains, especially in historic areas of Montgomery or rural parts of Willis. But they often come with:

Foundation problems
Outdated plumbing or electrical
Old roofs and HVAC systems
Higher risk of costly surprises

If you’re not experienced in renovations—or don’t have significant cash reserves—this “deal” could turn into a financial drain.

🚩 Red Flags to Watch for When Buying Investment Properties

When evaluating a property, keep an eye out for:

Homes in low-rated school districts
Deferred maintenance hidden by quick cosmetic updates
Unrealistic rent projections
Sellers or wholesalers creating artificial urgency

🕓 Don’t Rush the Deal

Investors often feel pressured to act fast—especially when dealing with wholesalers or cash buyers. But the best deals survive thorough due diligence.

💬 Remember: “If an investor will pay that price today, they’ll likely pay it tomorrow.”

Slow down. Run your numbers. Talk to a local agent familiar with investment properties in Conroe, Spring, and The Woodlands.

✅ What to Do Instead

If you're serious about real estate investing in North Houston, here’s how to set yourself up for success:

Use conservative numbers when evaluating deals
Budget for vacancies and large repairs
Start with stable, single-family homes in solid neighborhoods
Avoid high-pressure deals—walk away if something feels off
Work with professionals who understand the Montgomery County real estate market