Early Retirement Extreme Forums

Early Retirement Extreme Forums » Lifestyle Questions

1. 

   landedgentry13
   

   Novice
   Joined: Aug '10
   Posts: 12

   Greetings!

   How nice it is to have a community of people with similar interests and life goals! I'd like to introduce myself and give you a little back story, so feel free to read as much or as little as you'd like.

   When I was 25 years old (I'm 29 now), I was a highly skilled photographer working as an analyst at a major bank. Shortly after being laid off from my third corporate gig in as many years, I decided that I would never be content slaving away in a gray cubicle, regardless of my salary. It became apparent to me that there were only two options: Keep grinding away in various button-down positions while trying to take photos on the side and begging for an annual cost-of-living increase, or striking out on my own. I had no idea what the hell I was going to do, as my Ivy-League undergrad education had prepared me for NOTHING practical. However, I did know that I had to figure out a different path as early as possible.

   The two-week "severance" pay that I received as a "thank-you" for not shooting the place up upon termination brought the balance of my savings account to just under $20,000. Hardly a fortune, and certainly not enough to live on for the rest of my life. Foolish as it may sound, I decided to buy a house. I'm fortunate enough to live in one of the rust-belt cities that, despite it's dreary past, has begun an impressive renaissance. I picked up a dilapidated hovel for $19,900.00 on the cusp of a really cool neighborhood, fixed it up myself, and promptly pulled $50k out of it for the purchase of two more similar homes.

   Yes, I know debt is bad, but this is the only debt I can think of that immediately starts paying me more than I need to pay it back. I currently owe $98,000 and have a total of five properties which generate rental income of approximately $60,000 annually. Borrowing 98k to produce 60k per year is smart, no matter how you feel about debt. I have no other debt besides what I owe on these properties. I WILL BE PAYING CASH FOR PROPERTIES FROM HERE ON IN. The debt was just to get the business off the ground. I work about five hours a week managing the properties, and continue to operate a specialized photography practice. Still, this only ends up occupying 15 hours of my week MAX. I've begun to feel restless.

   As far as the real estate development goes, I intend to keep buying properties until I reach one of two goals: $100k in rental income OR ten properties, whichever comes first. I should be able to reach this goal within 3-5 years (age 32-34). I intend to keep shooting photographs as long as I can bear the weight of the camera.

   I'm unmarried, have no children, and have a reasonably healthy relationship with my live-in girlfriend. In spite of all this seemingly good fortune, I'm wondering what the next step is. Should I be satisfied with what I have? Keep buying properties (with cash, of course)? Focus completely on photography? I'm hoping that the people on this forum can offer me some wisdom and advice. I'm open to all suggestions, however foolish or far-fetched. Indeed, buying a house a week after you've lost your job is about as foolish as it gets, so I won't judge.

   Many thanks for your input!

   Posted 2 years ago #
2. 

   JohnnyH
   

   Expert
   Joined: Jul '10
   Posts: 1,363

   WTG, landedgentry! I agree with you, the ROI you're getting is fantastic and I think you made the right choice.

   A few questions:
   "I picked up a dilapidated hovel for $19,900.00 on the cusp of a really cool neighborhood, fixed it up myself, and promptly pulled $50k out of it for the purchase of two more similar homes."

   I'm assuming you paid cash? Did you sell it right away for 50k or did you get a HELOC, or mortgage?

   If you don't mind, how much do these properties cost and how much do they rent for? Are these properties really renting for 1k a month?

   Any other pieces of advice for potential landlords?

   Renting real estate in my area produces a ROI of less than 10%... Not worth IMO it once you factor in the loss of capital, headaches, taxes, etc.

   Posted 2 years ago #
3. 

   jacob
   

   Expert
   Joined: Jul '10
   Posts: 3,290

   After reaching the "all your needs and most of your wants" stage, I prefer building resilience rather than size. It's like how a human grows as a function of age. At 18ish we stop getting taller and consolidate into a maintenance mode. Otherwise, we'd end up 30 feet tall at age 80.

   Some things to consider ... you could show others how to do what you currently do. Take on an apprentice. If you currently outsource property maintenance, you could learn how to do that. Combining with photography, I guess you could turn it into a specialized real estate operation if you wanted to go that way. So branch out-consolidate-branch out...

   [If I keep driving ERE forward, the blog+forum+book will eventually end up as a publishing company. Maybe I'll even start doing workshops...]

   Posted 2 years ago #
4. 

   Redsted1
   

   Apprentice
   Joined: Jul '10
   Posts: 79

   I agree with Jacob but I have a bit of a different slant on it: Take on an apprentice/apprentices or management trainee(s) to show them how to run your business. All you need is one person underneath you that you trust, then you could expand it to larger than 10 properties/$100,000 in income. NOTE: I see the striking resemblance to the Mexican fisherman story here, but it's not like that, I promise. :) Once you have someone underneath you managing you are now free to do whatever you want, whenever you want. Right now, it sounds to me like it'd be tough to get away for long, or to focus on photography more. I would learn to live on the least you can, and pay someone to manage your places eventually.

   Let's say, for example, you have 12 properties generating $120,000 a year in net income for you. Wouldn't it be a wonderful scenario to pay someone $40-50,000 a year and you still would make $70,000+ for basically sitting back and collecting? That's what I would do because time is far more vauluable to me AND you can collect that $70,000+ for a much longer period of time than you could collect the six-figure income working it alone (you'd burn out fast). Thoughts?

   Posted 2 years ago #
5. 

   jacob
   

   Expert
   Joined: Jul '10
   Posts: 3,290

   @Redsted1 - One of the problems was that it currently only takes 15 hours per week to run it. OP is looking for something to do --- the next challenge.

   Posted 2 years ago #
6. 

   Redsted1
   

   Apprentice
   Joined: Jul '10
   Posts: 79

   @Jacob - Hmmmmmm...I should've read more closely. :D It still sounds like it'd be difficult to get away from it for a few weeks, though, so maybe your apprentice idea would be best?

   Posted 2 years ago #
7. 

   Cashflow
   

   Apprentice
   Joined: Aug '10
   Posts: 97

   I agree with Jacob that the next step is to build resilience because stuff happens in the real world. The current rental businesses are profitable and provide the ability to live on net rental income forever (which is the definition of financial freedom). Here is what I would do to build up my resilience so that I could handle a rainy day or even a stormy season.

   Accumulate cash. A rainy day fund is good to have when I have a rainy day. On sunny days, it is also good to have if the right income-producing asset goes on sale because I can buy it without taking on any new debt.

   Pay down debt. Borrowing money to buy income-producing assets is good debt (while borrowing money to buy consumer products is bad debt), but the best debt is no debt. We live in uncertain times now that the global economy has gone into a tailspin. The less debt I have, the easier it is for me to handle my obligations should things go really bad on me.

   Network. I would like to know who else in the area is an entrepreneur for both moral support and the kind of advice I can only get from someone actually doing what I'm doing for a living. If one of these persons happens to know someone who might be a good manager, I might consider expanding. But if that manager decides to move on someday, either I need to find a replacement or do the management work myself. So I don't want to expand until I have all of my bases covered in case something changes unexpectedly.

   Diversify. With all of my income-producing assets in one business sector and geographic location, I'm only one severe economic downturn or dirty bomb away from poverty. It's better to put some of that excess cash intelligently to work in other income-producing assets as a way to hedge my investment income. Maintaining my financial freedom by ensuring I can always live on investment income is very important to me.

   Study. I read books and listen to the advice of successful investors and entrepreneurs. Warren Buffett, for example, says that most people have a "lust for action" that forces them to do investment-related things they shouldn't do. He advises going to the movies (or whatever) instead of "pulling the trigger" on an investment merely for the sake of pulling the trigger. I make fewer mistakes by erring on the side of staying in cash instead of rushing into something I might later regret doing.

   Posted 2 years ago #
8. 

   landedgentry13
   

   Novice
   Joined: Aug '10
   Posts: 12

   @JohnnyH:

   House 1: I bought the first house with the cash I had saved. I fixed it myself, got a $50,000 HELOC interest only at 3.5%. I pay extra every month and treat it as a fixed, and I'll continue to do that until the rate is higher. House 1 is the house I live in, and I collect a nominal $250/month from DW (actually, DG or DGF) to "keep her honest." Basically, she's living in a three bedroom house all expenses paid (with the man of her dreams, I might add) for $250/month. Not bad. Total monthly income: $250

   House 2: I took out a 60k mortgage for House 2 (45k for house, 15k for repairs) at 6.9%. This house is a double that generates $750/month from unit 1 (2BR) and $900/month from unit 2 (3BR).
   Total monthly income: $1650

   House 3: Purchased with cash from the HELOC for $20,000, used $5k to complete necessary repairs. House is a 2BR single family home that rents for $825/month. Total monthly income: $825

   House 4: Purchased with remaining cash from HELOC for $19,000, used $6,000 to complete necessary repairs. House is a double that generates $750 for each 3BR apartment. Total monthly income: $1500

   House 5: Purchased with cash saved over two years for $12,900. Used remaining saved cash to complete necessary repairs. Single family 3BR home rents for $850/month. Total monthly income: $850

   GRAND TOTAL: $5075/month or $60,900/year

   My expenses on all the houses (principal, interest, taxes, insurance, water, garbage, sewer) come to about $20k, but should drop to about 10k after I've paid off the $98k in debt.

   This is, of course, assuming no vacancies, which I haven't had the pleasure of realizing yet, but I'll have everything full at the end of October this year, so you can get an idea.

   Sorry there's so much information...

   Posted 2 years ago #
9. 

   Kevin M
   

   Journeyman
   Joined: Jul '10
   Posts: 211

   First off, kudos to your real estate mini-empire.

   Should I be satisfied with what I have?
   This is a tough question to answer. Do you need more income or do the current properties provide enough?

   Keep buying properties (with cash, of course)?
   If you need more income, perhaps. Otherwise, I'd look at paying off all the debts as soon as possible and increase cash flow that way. There's also the issue of how much time additional properties would take to manage. Which leads us to...

   Focus completely on photography?
   Kinda depends on the first two answers - is this generating any income? Would additional time spent here increase that income?

   Other thoughts - you could volunteer, travel, learn new skills that would apply to property management, study investing to diversify yourself...

   Posted 2 years ago #
10. 

    akratic
    

    Master
    Joined: Jul '10
    Posts: 480

    Wow, if you're interested in being a mentor/advisor, I'd definitely like to learn from you. All this money that I'm saving through ERE is really burning a hole in my pocket, and I'm suspicious of the stocks/bonds answer to investing. I have a bunch of specific questions I'd like to ask about how you found and fixed up your properties. If you're interested, you could contact me at [email protected], or I could write my questions up in this thread -- your choice.

    Anyway, if I were in your shoes, what I'd do is first finish off the money thing. You're so close! Figure out your current income needs, project your future income needs, and make sure you have that covered as safely as possible.

    After that, well, my post ERE plans involve some combination of: starting businesses (some not-for-profit), long-term world travel, living on a sailboat, hiking the Appalachian trail, biking across the country, and getting a PhD for fun.

    You're welcome to any of those ideas, although it sounds like what you might want to do is start and grow a photography business. I have been studying the wedding photographers at the weddings my friends keep having, and one thing I've noticed is that there are *huge* differences between 1) the quality of the photographs, 2) how the photographers present themselves and 3) the way the photographers market themselves for future customers. I'd be happy to share with you my observations about what the successful photographers are doing differently.

    PS: Of course the best answer is to just be satisfied with what you have! But I suspect most people aren't really wired for that...

    Posted 2 years ago #
11. 

    landedgentry13
    

    Novice
    Joined: Aug '10
    Posts: 12

    @Kevin,

    1. Satisfaction is a personal thing. I have fallen victim to the "just one more..." mentality, that is, just one more property and I'll have *enough* income to be *happy.* I've recently realized the virtues of getting rich slowly, and even if I buy another house per year for ten years--I'll still only be 39 years old. Quitting at 39 would *probably* be almost as satisfying as quitting at 30 or 35. How do I know this? Well, at 20, I thought 30 was OLD. Now I'm 29 and 30 feels no different than 20. Right now, 39 seems WAY too long to wait until "quitting." But I'm willing to bet that I won't feel much older 10 years from now.

    2. Purchasing more properties would indeed increase my income, and no additional debt would be taken on. As a result, my loans would be paid back more quickly (I would not "increase" my standard of living with more income). Any re-payment of debt earns me an automatic 6-7% interest. HOWEVER, another 20k invested in an asset that will pay me 9k/year is hard to resist, even if it means delaying debt repayment.

    3. Photography is indeed something that I can do forever without it feeling like work. Yes, it is profitable right now. But if I quit developing real estate entirely, I could easily pump out 40k/ year working 20 weekends in the summer.

    Posted 2 years ago #
12. 

    landedgentry13
    

    Novice
    Joined: Aug '10
    Posts: 12

    @akratic

    I've always thought that stocks were for suckers.

    I know this is a terrible thing to say, but the reason I would suggest anybody in my region invest in property before stocks is that, properly insured, the CANNOT BE TAKEN AWAY. My parents lost approximately 40% of their portfolios OVERNIGHT when the market tanked. But no matter how bad the economy is, people will always need a place to live. If you provide good value, you're already ahead of the game. Nothing short of a natural disaster can obliterate your asset, and if that happens, you get a big check from the insurance company.

    My photography biz is currently fine and profitable, I'm simply saying that working at it harder would double or triple the earnings.

    Please ask any questions you may have in the thread. I'm afraid I'm a bit too much of a privacy freak to give out my email address.

    Posted 2 years ago #
13. 

    JohnnyH
    

    Expert
    Joined: Jul '10
    Posts: 1,363

    @landedgentry: I too am interested in your real estate investing and would like to know more if you're willing. Few more questions:

    1. Do many people have problems with credit in your area? I'm trying to understand why people would rent and not just buy.

    2. Where did you find your houses? Did you work with a realtor? Did you make low offers?

    3. What if you want to breakup with your GF? How awkward is that going to be?... I ask because I'm in a similar boat.

    4. Any resources or books you found really valuable?

    Posted 2 years ago #
14. 

    landedgentry13
    

    Novice
    Joined: Aug '10
    Posts: 12

    @Johnny

    1. Do many people have problems with credit in your area? I'm trying to understand why people would rent and not just buy.

    ***I have always had good credit, but the only thing I've ever needed it for was for these two loans. Before that I'd never borrowed a dime, and I never will again. Many people rent instead of buy because they can't save money, have too much debt, have terrible credit, or don't want to do ALL the rehab work themselves (which is how I did it so cheaply).

    2. Where did you find your houses? Did you work with a realtor? Did you make low offers?

    ***I found them mostly online. I would then drive by and take a look. If I wanted to see the inside, I called my realtor. Then I'd make the offer.

    House 1: Paid asking price of $19k
    House 2: Paid asking price of $45k
    House 3: Offered 20k to neighbor for their house, they accepted
    House 4: Offered 20k, they were asking $27k, they accepted
    House 5: Paid asking price of $12k

    3. What if you want to breakup with your GF? How awkward is that going to be?... I ask because I'm in a similar boat.

    ***Well, it's my house. SO, I suppose she would have to adjust to a slightly higher cost of living on her own. She's gainfully employed, though so it wouldn't really matter. It would depend on the circumstances of the breakup, but I would most likely not throw her out on the street right away.

    4. Any resources or books you found really valuable?

    ***I actually enjoy reading inspirational stuff (some of which is fluff). I would recommend:

    Work Less, Live More

    Simple Prosperity

    Rich Dad, Poor Dad

    Cashing in on the American Dream

    How I found Freedom in an Unfree WOrld

    Your Money or Your Life

    Forget Suzie Ormond, Dave Ramsey, or any of those people. Too pedestrian and slow-moving advice for ERE, in my opinion. No book can substitute for good old fashioned ambition and a desire to be different. Being financially independent at age 29 definitely has some drawbacks though, not the least of which is having no friends in similar situations. I live on far less than many people I know, yet I have achieved independence 30 years ahead of them. This pisses some people off.

    Posted 2 years ago #
15. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    @ Gentry It seems like you've long ago found your passion. So unless you really need those 15 hours a week to further immerse yourself in photography, or you have a travel bug, I'd say keep on with your RE scheme; it seems like a no-brainer. If you did want to travel or live in different parts of the world/country, you could probably manage the properties without even having a proper manager, depending on where you travel (internet/phone access to manage plumbing/handyman contractors).

    I already saw your preference for anonymity, but would you mind telling us what state you're in? I am looking at the Rust Belt as a potential ERE location.

    Posted 2 years ago #
16. 

    akratic
    

    Master
    Joined: Jul '10
    Posts: 480

    Excellent.

    5. What are your favorite websites for looking for real estate online?

    6. Where did you learn how to do the rehab work? Did you grow up around the stuff? Or was it online/library? How would you recommend someone who didn't grow up around it to learn how to rehab a dilapidated hovel by themselves?

    7. What criteria do you use to decide between the different houses available?

    Posted 2 years ago #
17. 

    landedgentry13
    

    Novice
    Joined: Aug '10
    Posts: 12

    @NYC

    This real estate investment plan can be easily accomplished in the following cities: Cleveland OH, Pittsburgh PA, Buffalo NY, Rochester NY, Syracuse NY, Utica NY. I won't reveal which one I live in, but rest assured any of these towns will be generous to this plan.

    Also, I wouldn't exactly call the real estate investing a *passion* I am, however, passionate about making money passively without a lot of work. My current strategy fits the bill.

    @akratic

    5. Trulia.com is the one I use the most.

    6. I read a few home depot books and a lot on the internet. It's really a lot easier than most would think.

    7. I'll buy anything if I have at least $5,000 more than the asking price.

    Posted 2 years ago #
18. 

    Muji
    

    Novice
    Joined: Jul '10
    Posts: 15

    LandedG, can I ask what you studied at university? Does your degree assist you in any way? I would think being an attorney, or finance person, etc. would be beneficial when taking on a project such as you did. On the other hand, you did mention you education
    prepared you for nothing practical so I guess it wasn't applicable at all. Do you regret attending uni and/or funding the tuition?

    Also, were you already familiar with the area in which you chose to invest? It seems difficult to simply select a recommended location without being familiar with the area.

    Posted 2 years ago #
19. 

    Muji
    

    Novice
    Joined: Jul '10
    Posts: 15

    Just googled Rochester and it was voted one of the best places to live -
    http://money.cnn.com/magazines/moneymag/bplive/2007/snapshots/PL3663000.html

    Homes are so inexpensive there! Does anyone know what it's like?

    Posted 2 years ago #
20. 

    FrugallyLiving
    

    Novice
    Joined: Aug '10
    Posts: 6

    It would be important to research the property tax situation of any location in New York. A starting point for info on this topic is http://www.orps.state.ny.us/reform/index.cfm.

    Rochester gets a lot of snow, though not as much as Syracuse, Utica, and Buffalo, NY: http://www.city-data.com/top2/c464.html.

    Posted 2 years ago #
21. 

    landedgentry13
    

    Novice
    Joined: Aug '10
    Posts: 12

    @Muji,

    I studied art history in university. Personally, it was great. Professionally/academically it was useless. But then again, who among us really wants a "typical" career anyway?

    If I could do it all over again, I wold have skipped school and bought my first house at age 18. By my calculations, I'd be a millionaire (that is, net worth of $1 million, not movie-star millionaire) by now if I had done this...

    Posted 2 years ago #
22. 

    orinoco
    

    Apprentice
    Joined: Jul '10
    Posts: 74

    Wow, why does anyone rent in America?

    From landedgentry13's stats above:

    House price  annual rent  ratio
    60000        19800        0.33
    20000        9900         0.50
    19000        18000        0.95 (woohoo!)
    12900        10200        0.79

    Similar stats for a town near where I live in East Sussex, England (all costs in £sterling):

    House type  average price  average annual rent  ratio
    1 Bed Flat  104717         6204                 0.06
    2 Bed Flat  144035         7296                 0.05
    2 Bed House 235033         9060                 0.01
    3 Bed House 336720         11724                0.03
    4 Bed House 456832         17796                0.04

    Or, why does anyone buy in England?

    Posted 2 years ago #
23. 

    landedgentry13
    

    Novice
    Joined: Aug '10
    Posts: 12

    Not everybody wants to live in the cities I mentioned, particularly if you don't like cold weather. I happen to enjoy the cold and always welcome autumn with zest.

    Yes, the property taxes are high here. I pay approximately 7k/year on all five properties. This is high considering the purchase prices.

    Still, I'd rather live the lifestyle I have here than barely scrape by in NYC or SoCal...

    Posted 2 years ago #
24. 

    FrugallyLiving
    

    Novice
    Joined: Aug '10
    Posts: 6

    There seem to be significant differences between the townships in New York State as far as tax rates and perhaps as far as details regarding assessments as well. This factor could be a surprise to someone from a state that doesn't have townships. I inherited land in upstate NY and although there were reasons I would have liked to have held onto it, they were not compelling enough to justify the expense of the taxes.

    Posted 2 years ago #
25. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    @Gentry Passion--I meant photography! Also, I have an equally useless degree=History from a "top" school, and don't do anything related to it (entrepreneur).

    Posted 2 years ago #
26. 

    Steve Austin
    

    Journeyman
    Joined: Jul '10
    Posts: 178

    FrugallyLiving, would you explain why Rochester does not get as much snow as Buffalo or Syracuse?

    Posted 2 years ago #
27. 

    FrugallyLiving
    

    Novice
    Joined: Aug '10
    Posts: 6

    Actually, which city wins out in receiving the most snow depends on the time frame considered. The following article is informative on the relevant topic of lake effect snow: http://www.straightdope.com/columns/read/2007/whats-the-physics-behind-lake-effect-snow. This article's explanation for how Rochester managed to beat Buffalo in a 30-year average for snowfall rings true to me based on experiences living in Rochester and Niagara Falls.

    Posted 2 years ago #
28. 

    The Dude
    

    Master
    Joined: Jul '10
    Posts: 392

    For starters I think your story is great! I am happy to hear that the Rich dad poor dad concept of real estate is working for you!

    What I think about real estate or starting businesses?

    I think for every winner there is also a loser. I could reference "How to retire and live well with less than a million dollars" as a book about someone who has lost AND won in this area. I think the most important thing he mentions in real estate is not be over leveraged. If your houses had not made instant returns and lost money in value you could have been up the creek. Obviously, you are good at picking real estate or just very lucky or both by finding renters for all your properties.

    A few things to still consider:

    1. When/if you decide to sell the properties remember the costs/fees associated with doing this or if there ever will be future buyers in the areas you are renting. Taxes usually run a year behind and are most likely going up. You appear the type who could sell his own homes. You won us with this article:)

    2. I would recommend always having plenty of finances around for maintenance. With that much real estate you never know when a basement will flood/roof repaired/tree removed/pet owner who's pet has no control. These costs are not as consistent as mowing the lawn.

    3. Consider who is renting your homes. People who get government help that is not consistent, like unemployment, could start defaulting if funds dry up. Even a good credit check does not always prevent strange situations. I had a friend of a friend who rented out a duplex and actually had a tenant murdered and the killer tried to burn the place down. He was ok financially because I think the insurance company paid, but they dropped him after. I don't know how something like this could affect insurance for someone with multiple properties.

    4. Real estate is in the tank. Just like other investments, this means there will be great opportunities like you have experienced because everyone is so cautious. Also, many people who get government handouts are not allowed to buy homes with it.

    Posted 2 years ago #
29. 

    Q
    

    Master
    Joined: Jul '10
    Posts: 346

    Not sure what else to comment on since a lot of my questions were asked. But, you have basically started ERE REIT to me.

    Incorporate and hire a property manager after 10 properties. Expand to apartment buildings - basically a mini-pire that you skim off the top of all the time. And, it lasts for life, or eventually you can sell out and just put your earnings in a CD ladder or something with extremely safe earnings (US Treasuries, ala YMOYL).

    Wish I could follow in your footsteps, but housing here in CA is ridiculous, albeit people cannot afford to buy houses anymore since they were forclosed on, and there are only so many rental spaces here - so we will have a long cycle (7 years+) before our housing market is at baseline again.

    When I save enough cash reserves, I'd like to give it shot!

    Posted 2 years ago #
30. 

    The Dude
    

    Master
    Joined: Jul '10
    Posts: 392

    @Q

    The incorporate is what I was thinking to side scurt the liability, but you beat me to the punch.

    Posted 2 years ago #
31. 

    Concojones
    

    Journeyman
    Joined: Jul '10
    Posts: 117

    Landedgentry, thanks for giving us an inside peek on what is possible with real estate! Unfortunately, where I live real estate is too expensive, but your enterprise looks very exciting to me (just because it's an enterprise). I get that building a whole empire doesn't excite you (would that change with a partner or a whole team around you, to make it a group and not solitary venture? ), so I'd be looking to put your business on auto pilot. Outsource the repairs and even the fixing up, and use the new free time to do what you'd love to do. Delegate and slow down on the real estate, because that's not where the sense of urgency should be. The sense of urgency should be in developing your calling. Which can be done in parallel if you scale down your real estate efforts a little.

    Posted 2 years ago #
32. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    @LandedGentry I feel like you gave more than you got in this thread so far. What is the status of your restlessness? Have you further immersed yourself in photography? Have any unforeseen complications arisen in connection to being a landlord? Happy autumn. :)

    Posted 2 years ago #
33. 

    Zev
    

    Master
    Joined: Aug '10
    Posts: 437

    ping

    Posted 2 years ago #
34. 

    Chad
    

    Master
    Joined: Jul '10
    Posts: 999

    I agree with Zev. So far you have given more than you have given.

    Photography - Seems like this is a hobby level item for you and not a passion. If it was a passion you probably would be doing lots of weekends already. Also, lots of weekend photography limits what you can do with your friends even more since most probably aren't ERE. Plus, dealing with brides does not sound like fun.

    I do think you need to get a very ample cash cushion before you buy again. A few bad tennants (my uncle and my parents experienced this), roof leaks, etc., and your profits are quickly hammered.

    However, it seems like you enjoy the real estate business to a certain extent, so I would definitely shoot for at least $100k and probably a little more (I like having a nice safety margin).

    After that it sounds like you want a new challenge. I think you need to find out what that is. Others had good ideas about apprentices. For me it would be coaching football at the high school or small college level (not very lucrative).

    For everyone else: those rust belt towns have virtually everything you want in ERE (I have lived in Rochester and Pittsburgh). Easy access to a major airport, cheap housing, good universities, close to good outdoor activity areas, good restaurants, etc.). The one thing they do not have a ton of is jobs. Thus, I live in DC and am interested in getting back to Pittsburgh (rental houses being one idea for getting back there). The only city on that list I would not live in is Buffalo. I just don't like it.

    Posted 2 years ago #

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