Beyond Cash Flow: How I Used Investing to Buy Real Estate in My “Happy Place”

Beyond Cash Flow: How I Used Investing to Buy Real Estate in My “Happy Place”

4 min read
Dave Van Horn

Dave Van Horn is a veteran real estate investor and CEO of PPR Note Co., a $150MM+ company managing funds that buy, sell, and hold residential mortgages nationwide. Dave’s expertise is derived from over 30 years of residential and commercial real estate experience as a licensed Realtor, real estate investor, and private lender.

Experience
Beginning his career in construction and as a Realtor, Dave bought his first investment property in 1989. After years of managing his own construction business, Dave became a full-time real estate investor, specializing in fix and flips, buy and holds, and eventually commercial projects, before moving into note investing in 2007.

Over the past decade, Dave has also invested his time into becoming a connector and educator, who helps others achieve success. He focuses jointly on helping accredited investors build and preserve wealth with his group Strategic Investor Alliance and with general audiences through the annual MidAtlantic Real Estate Investor Summit.

Dave has also shared his strategies and experiences with real estate and note investing via hundreds of articles published on the BiggerPockets Blog and with his acclaimed book Real Estate Note Investing.

Press
Dave has been featured on the BiggerPockets Podcast twice (shows 28 and 273), as well as episodes of familiar podcasts, including Joe Fairless’ Best Ever Show, Invest Like a Boss, Cashflow Ninja, and many others. He also has been a guest of Herb Cohen’s on Executive Leaders Radio, which airs nationwide.

Accreditations
Dave is a licensed Realtor with eXp Realty with CRS and GRI designations.

Follow
Dave’s LinkedIn
PPR on LinkedIn
PPR on Facebook
Twitter @DAVIDAVANHORN

Read More

Join BiggerPockets (for free!) and get access to real estate investing tips, market updates, and exclusive email content.

Sign in Already a member?

Many folks will tell you what their favorite type of real estate is, and it’s usually the type that makes them the most money or that’s the easiest to manage. By that definition, for many years, one of my best types of properties was garages. But that’s not what I’m really getting at today. I’m talking about the kind of real estate that makes you happy.

“Happy” Real Estate

Some of us, myself included, talk about the negatives of owning real estate, like tenant problems, ongoing maintenance, or problems with inspectors, townships, and contractors. But many of us don’t talk enough about the good times or the good deals—the rewarding properties. For me, my most rewarding property is my recovery house. It’s been seven years now, and I know my son and I have saved hundreds of lives.

But, there are also other types of “happy” real estate, like our vacation homes.

vacation-rental-tips

Your Vacation Home

Most people I know either only dream about owning a vacation home someday or they scrimp and save their money over many years until they have enough money to own one. In other words, they reach into their own pocket for the down payment and monthly payments. They often never end up making any monthly cash flow. If anything, they just hope for some appreciation.

But when I first started investing, one of my primary goals was to have my rental properties—or the cash flow from them—pay for my vacation home instead of paying for it out of pocket.

Although my current getaway property could be rented out to make some money, I just don’t bother anymore. The cleaning and wear and tear is just a hassle. So, it’s technically a loser today on paper, but it’s a winner in my heart. Just the idea of having a weekend to relax on the schedule gets me excited.

Whether your place is at the beach, on the lake, or in the mountains, there’s no greater feeling than the mental freedom you get when checking out early on a Friday afternoon just to get away and recharge your batteries. Maybe it’s the family memories, but there’s no better feeling than crossing the bridge towards the beach or heading up the turnpike to the mountains.

There’s nothing like being near the ocean or close to nature in the mountains. The water from my 900-foot well is so clean, you can feel it on your skin. The air is so fresh and clean, you can see it. It’s funny how my wise, 84-year-old mother says to me, “Don’t you ever sell that special place”—yet my younger son can’t figure out why I still go there.

Related: Developing Your “Why”: How to Work for MORE Than Just Money

Two weekends ago, I encountered a mama bear and two cubs as I was putting the flags out for the Fourth of July. It was a quick wake-up call that I was visiting their environment. At the same time, I realized how lucky I was to experience all the wildlife, including deer, turkeys, chipmunks, and woodpeckers, not to mention all the great fishing. It showed me how truly fortunate I am.

It’s hard to put a price on the “happy” real estate because it’s so much more than cash flow.

This past weekend, I lost a very good friend in my “happy” town where my “happy” real estate is located. His name was Dutch, and he ran The Dutchman Tavern, a restaurant in Gouldsboro, Penn. Although this place is in the middle of nowhere USA, just Southeast of Scranton, it is the friendliest little place in the world. Dutch had the greatest job in the world, doing what he loved by making people happy and cooking good food. He always had a smile on his face for the hunters, skiers, and locals. He will surely be missed.

So, if you’re lucky enough to have found a piece of “happy” real estate, whether it’s the place itself or the people and wildlife that truly make you happy, how do you take that first step towards making the dream a reality?

reasons-buy-vacation-home

How Do You Pay for It All?

I remember approximately 15 years ago when I had scraped together a few thousand dollars to purchase a building lot in a gated community. The good news was that I was able to get a loan from the bank, and eventually that lot I had paid $4,000 for increased in value to $10,000.

Related: 7 Things You Should Know BEFORE You Purchase a Vacation Home

So, I was able to put the $10k lot up as collateral, along with another $20k as a deposit towards a construction loan, to build a nice mountain retreat. The cool part was the $20K came from a home equity line of credit on one of my rental properties, and the monthly payments were paid for each month out of the positive cash flow from my rental portfolio near where I lived.

Over the years, I was able to utilize a HELOC on my mountain home to fund other cash flowing assets, like notes or lending private money to fellow rehabbers.

Eventually, I shifted my strategy for this property. This year, my special retreat will be paid off.

So this weekend, as I take my grandson and his friend up for a weekend of fishing, swimming, and good old bonfires (with marshmallows), I truly realize how blessed I am to have some “happy” real estate that I’m lucky enough to own from being a real estate investor.

blog ads 01

My only wish for you is that you too find some place that makes you happy. Better yet, what does or what will your happy place look like?

Leave your comments below!