6 Ways to Save Time and Money in Your Real Estate Investment This Year

Real estate is one of the most dependable long-term investments you can build your wealth on. But making an annual profit isn’t that simple, especially when you consider how volatile the markets have been lately.

According to data, the average commercial real estate (excluding industrial spaces) experienced a 9% decline in 2024. Residential properties, on the other hand, appreciated, on average, 40% or more since 2020.

But while you may be ready to navigate the challenges and opportunities of real estate investing, it’s always a good idea to have a plan for maximizing your ROI.

In this guide, we’ll review the six best ways to save time and money in your real estate investment this year, with actionable advice on tactics and tools to use. Let’s get into it.

Lower Your Taxes and Increase Cash Flow with Cost Segregation

They say there are only two things that are certain in life: death and taxes. But while avoiding the former may be out of your power (well, not exactly, but let’s not get into that right here), you can and should optimize how much you’re paying in taxes.

So, how do you reduce the amount of your cash flow lost to taxes? Well, you start implementing cost segregation.

At its core, cost segregation is a tax strategy that yields exceptional results. It works by allowing property owners to reduce their taxable income. And the secret lies in accelerating the depreciation of the specific property components.

Essentially, instead of waiting for your entire real estate investment to depreciate to make tax savings (that’s 27.5 years for residential and 39 years for commercial properties), you can conduct a cost segregation study and identify (and reclassify) the assets (like personal property or land improvements) that lose value more quickly.

What’s even more interesting is that the U.S. government signed the One Big Beautiful Bill Act in July 2025. One of the major points of this act is that it allows permanent 100% bonus depreciation, meaning that investors can write off 100% of the cost of qualifying assets in the same year they’re placed into service, as long as they bought them after January 19, 2025.

Ultimately, cost segregation (paired with bonus depreciation) opens up room for exceptionally impressive tax savings. What’s even more positive is that it allows real estate investors to reclaim some of their cash flow, making it easier to reinvest that capital and build wealth faster.

One thing to note about going in this direction, however, is that it’s not the best option if you’re planning on selling due to depreciation recapture. Instead, it’s best to implement this tactic if you’re planning to hold onto a property for at least three years.

Automate Rent Collection and Tenant Communication

Experienced real estate investors understand that the costs of managing a property go beyond the financial aspect. They know that the time required to ensure the smooth operation of a property can be just as substantial (and costly).

Naturally, you could hire a property manager to handle administrative tasks like rent collection, tenant communication, maintenance, record keeping, documentation, and everything else that comes with the job. However, on average, that could set you back anywhere between $120 and $250 per month per unit.

Alternatively, you could opt for the DIY approach. And while you might save some money, you’d have to dedicate several hours per month per property. If you have a large portfolio, that could mean working more than 40 hours per week or risking your work-life balance (or your tenants’ satisfaction) just to get everything done.

A potential workaround to these problems could be to explore automation options for simpler (or low-value) administrative tasks. With several tools available in the market — RentRedi, Avail, and Hemlane — you can easily optimize daily operations while lowering costs and maximizing your returns.

What’s great is that most of these software solutions shouldn’t cost more than $50 to $100 per month (though some charge on a per-unit basis). So, if your portfolio is still relatively small, this approach could be a great way to get started with your real estate investment journey. Then, as your portfolio grows, you can explore more advanced management options.

Perform Preventive Maintenance Instead of Emergency Repairs

Very few investors (or homeowners, for that matter) consider maintenance costs when investing in real estate. But the simple fact is that the annual cost of repairs adds up very quickly.

According to survey data from Hippo, 83% of homeowners had to pay for unexpected home repairs in 2024, with 46% saying they spent more than $5,000.

In general, the most common culprits of emergency damage include water, roof issues, door, or window problems. But you may also encounter electrical problems, foundation issues, HVAC, mold, and termite damage. And the thing is, all of these can be exceptionally pricey.

However, even though you might not be capable of preventing damage to your properties, especially when the factors are beyond your control, you can invest in preventative maintenance that’ll lower the likelihood of emergency breakdowns.

A good rule of thumb is to compose a list of checkups and inspections your properties need (whether annually or less frequently) and to invest in these regularly.

In addition to day-to-day checks, make sure you hire professionals for annual:

• HVAC servicing
• Roof inspection
• Plumbing system checks
• Electrical system checks
• Pest inspections
• Termite damage
• Gutter cleaning

Furthermore, ensure you invest in property improvements such as repainting, appliance replacements, driveway and foundation sealing, etc. All of these can protect your investment and ensure its continual profitability.

If you’re serious about investing in real estate and using these assets to build your wealth, chances are, you won’t be doing all the work by yourself.

Instead, you’ll outsource most of the work to qualified contractors, knowing that they can perform tasks much more efficiently (and cost-effectively) than you ever could. Plus, going in this direction frees up your energy to focus on building additional income streams, side hustles, or simply enjoying the fruits of your labor.

Hiring an experienced real estate broker could be a game-changer. But you don’t want to be wasting your hard-earned capital on paying for their busywork.

So, if you want to save time and money in your real estate investment this year, choose a broker that uses smart tech tools to maximize productivity and improve customer experience. The great thing is that there’s a huge variety of available apps and platforms nowadays.

For instance, virtual staging tools like Roomify can help buyers see the full potential of a space. An AI focused answering service can provide customers with 24/7 support and enhance lead generation. Then, of course, there are AI-powered tools that can help collect pricing data for dynamic strategies. These can be particularly interesting if you own short-term rentals in a location with significant seasonality.

In general, doing even a bit of research on these tools and checking whether a broker uses them in their workflow before hiring them is a good way to set yourself up for success. More importantly, it’s an excellent tactic to prevent unnecessary monetary or time-related losses.

Flip Smarter by Focusing on Value-Add Markets

Property flipping has always been a popular income-generation strategy. And if you consider that the average flip generated $73,500 worth of profits in 2024 — just by adding a lick of paint or changing out the appliances — it’s clear that this can be a lucrative opportunity.

But here’s the deal. Many house flippers make the common mistake of targeting the lowest-cost properties out there, thinking that these will allow them to earn more. Unfortunately, they often fail to consider neighborhood trajectory or buyer demand.

The simple truth is that the potential investment value of real estate hugely depends on location factors.

For instance, buying fixer-uppers in areas with growing demand can be a tremendous investment opportunity. But the same cannot be said for places where there’s zero room to raise rent or occupancy.

If you’re interested in identifying value-add markets where you can invest in real estate, look for the following factors:

• Older properties that can be renovated and sold for a profit.
• Expanding job opportunities.
• Growing population.
• Clear upward-trending rental demand.

By making smart investments in amenities, updating interiors, and optimizing operations (cutting costs or raising rents), you can ensure significant gains and recoup your capital quite quickly.

Refinance Strategically to Cut Interest Costs

Some of your biggest expenses will come in the form of interest costs, so don’t be lazy about monitoring interest rates. If you find that they’re lower than what you’re already paying, why not refinance some of your loans?

This strategy allows you to lower monthly payments and reduce the total interest paid to your bank. Plus, it can be an excellent opportunity to improve your cash flow. And that’s particularly important if you’re looking to generate long-term wealth (which depends on investing as much as possible as early as possible).

The one thing to note is that refinancing isn’t always financially viable. Pay attention to closing costs, break-even points, or prepayment penalties. These could make it more challenging for you to recoup your investment or could even end up costing you more in the long run.

Final Thoughts

Real estate investment is a great opportunity. But you need to be smart about it, especially if you’ve got a tight margin for how much you can afford to lose. The tactics outlined in this guide are all excellent ways to save time and money this year. So, consider whether they could help you cut costs or make a bigger profit. And explore opportunities to implement them.