Starting Out w/ Children
Chicago, IL · Member since 2015 · 16 posts · 10 votes
Starting Out w/ Children
Most Popular Reply
Hartsdale, NY · Member since 2015 · 874 posts · 218 votes
11yChildren are happy when you are happy. I don't think what you do for a living matters as long as there is a good relationship between the husband and the wife and of course the child.
24 Replies
- Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes11y
Welcome @Andrew Lisi
I'm in a very similar situation as you. I have a wife, young daughter and another one on the way. We are down here in Houston, TX and we're looking into starting out the "House-Hacking" way possibly. I will keep an eye out for the responses you get.
Good Luck with everything
P.s. What books have you started to read?
- Hartsdale, NY · Member since 2015 · 874 posts · 218 votes11y
Children are happy when you are happy. I don't think what you do for a living matters as long as there is a good relationship between the husband and the wife and of course the child.
- Investor · Eastlake, OH · Member since 2015 · 174 posts · 85 votes11y
As with anything in life there really is no good time, sometimes you just have to do it. I have four kids under 7, and would much rather go back to when I only had one and househack a multi family property. At this point it becomes much more difficult to find a property that meets my family's needs and meets my business needs. My resolution is that when I move next year I will probably be paying premium for a property.
The benefit to this is that you have to pay for housing anyways, might as will minimize the cost of your housing by offsetting it with someone else's rent. The other part is that you can invest without house hacking.
- Investor · Eastlake, OH · Member since 2015 · 174 posts · 85 votes11y
There is never a good time to do anything good in life. having kids does not stop your world, and your wife and your kids are much more resilient than you give them credit for. So you might as well do it. I have four kids under the age of 7. If I could back to your position and house hack it would be much easier than it is now. At some point mixing business and personal does not go over well, and really does begin to affect the children. i.e. I need a big yard at this point, it is very unlikely to find a multi unit property with a big yard, 3 bedrooms, and an extra room for schooling and play. Could I do without? yes, but my business partner won't go for it, and I don't want to make her go for it, even if it is only a year.
You have to pay for housing one way or another, you might as well have other people offset that cost by owning a multi family home. Or you could still invest without house hacking, you just have to come up with more of a down payment. Or just use OPM! Nothing good comes wihtout sacrifice.
- Investor · Dubuque, IA · Member since 2015 · 88 posts · 19 votes11yI just bought a duplex to live in with my girlfriend and her almost 3 year old daughter. So far it has not been an issue at all. Like Barbara Goodman said as long as you're happy, your kids will be happy. We are all happy here and are making the best of it until I can afford a single family for us to move to. Just make sure you screen your tenants extremely well since you will be living next door!
- Investor · Isabel, KS · Member since 2015 · 247 posts · 85 votes11y
Andrew, welcome to bigger pockets and thanks for posting an intelligent question/thought. There really are a large number of ways you can get started investing and many ways to finance your deals. It varies as widely as people do really.
Don't feel too intimidated, I had a part time job or maybe got that just after I decided to pursue real estate for my future, and .36 cents in my pocket. No kids though - I would've had to pursue things differently had that been the case.
Now I believe it was the podcast "the one thing revisited", I think.... where the story says you basically need to work backwards to where you are in order to put the right steps together to move forward. You should listen to it when you get time. It was interesting to me since I've almost always done that somewhat naturally. The point I'm making here is, you want to enter real estate investing, so...... what exactly are your goals?? I saw your profile said you'd like to end up a millionaire, though you didn't say when you'd like that to happen. Good news is that your goal is entirely possible with real estate!! There isn't any bad news - must be your lucky day!
I'd say this, for starters anyway..... Make an end goal that is attainable, you can always adjust it upward as you move forward. Ok so make that goal with a time line for it, then work backwards to where you are today. That will help you see the path. You say you're very new to REI, so maybe setting aside time in you goals in this beginning period to read and learn and explore your market and get comfortable in your new REI clothes would be a good first move so that you get off to a good informed and confident start when you make that first investment!
Feel free to post back here with some refined thoughts.
Some questions to think on as you form a strategy:
- do you have any money to use now to invest with
- will you be a multi unit only, sfr only or mixed bag investor, or commercial
- if you make an investment, or when you do rather, what number in monthly cash flow will you set as your floor in order to get involved in the deal (mine is 200$/month/property, or I don't buy)
- can you find owner carry sellers
- can you use a lease option or find lease option sellers
- what grade of property or neighborhood/tenant will you be targeting
- what fits best into your life as far as time management with the young kids at this point
- do you have anything to bring to the table in order to partner up with someone to make all this a bit easier
- according to your opportunities you find out there, what additional streams of income can you identify to go along with target properties or create as a result of being an investor (some people are agents, brokers, property managers, some use coin op laundry in multi units etc etc etc)
All these types of things can go on forever as far as lists are concerned, but you'll have to find a comfortable place to start/enter investing and evaluate things as you go along and readjust as time passes.
- 11yJohn CasmonPro MemberCincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
Not sure of your goals with real estate investing, but I have a 14-month old (who's currently destroying pots and pans from the sound of things) and if you can house hack, I would highly recommend it. Find a neighborhood you want to live in and search for properties that make sense based on your personal needs that also work as an investment.
Starting out we purchased a 2-flat in North Center, living in one unit, renting out the other. Our plan was to fix up our unit (the bigger unit) and then duplex down for the first floor. We haven't duplexed down yet, but rents in North Center are very strong as the schools are some of the best in the city. Don't treat this as a normal investment where you're strictly looking at numbers and you may face negative cash flow, but keep in mind most investors pay a mortgage on their personal residence and you will have someone helping pay down the mortgage. Also, screen tenants as your neighbors and not just tenants. It's one thing to get someone who can pay rent on time, something else to get a neighbor who won't drive you batty. Note that you can be a bit more discerning for owner-occupied units, but fair housing rules are still in play.
Finally, you can always convert a duplex to a SFR down the road after you get help paying down the mortgage. - 11yMark AinleyBusiness MemberProperty Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
Do it now and get your family used to the lifestyle. Also do it now before your 19 month old becomes a huge drain on your personal cash flow, as they become more expensive the older they get and more activities they get into.
GC Realty & Development LLC4.61066 Reviews - Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes11y
We started buying multifamily 2 years ago, my kids were 3 & 5. I manage our properties and often had one or both with me for various things. If we could do it all over, we would have started when we got married and bought a multifamily to live in, but better late than never.
We bought two triplexes that first year, had another baby last year, and bought a quad this year. It isn't always easy, but I think we are showing our kids a great work ethic and a way to a more secure financial future.
My 7 and 5 year olds enjoy watching shows like Flip or Flop and Rehab Addict, and often WANT to come with us when we work on apartments. I prefer to show apartments without kids tagging along, but it isn't the worst thing in the world. I am sure I come off less professional to some potential tenants, but it hasn't stopped us from filling vacancies or getting work done.
My husband is the hardest working person I have ever met, and I believe it starts early. His family farmed when he was a kid and he has worked hard his whole life. I believe we are showing our kids that hard work (and wisdom) will lead to great rewards.
Kelly
- Bronx, NY · Member since 2015 · 151 posts · 54 votes11y
@Andrew Lisi better late than never. We have to remind ourselves that we should never use our children as cruthches for us not taking action. It should be the exact opposite, taking action and calculates risk so that they may do the same in their lives.
- 11yNick NoonPro MemberChelmsford, MA · Member since 2015 · 124 posts · 70 votes
I did a search and came upon this thread as I am thinking about doing the same myself in MA.
My girlfriend is 5 months pregnant and we are currently renting at the moment. The plan is to be in a house by March of 2016. I have convinced her that I want to start our real estate portfolio now and take advantage of the FHA loan. I am still deciding if househacking is such a good idea with a baby coming. Some of my common questions I ask myself:
1. Will I be able to say no to a tenant if I have a bad "gut feeling" with the strict housing laws?
2. If I buy a house with a yard do I have to give my tenant access to it?
3. What if they are making noise late at night and I'm trying to get the baby to sleep?
4. Is it better to be side by side, or top and bottom units?
5. What if there is limited parking?
These questions are starting to scare me away from doing a multi family. The other option is a 203K loan and buy a distressed property and rehab it to gain sweat equity. Then take that money to buy a muli family that we can rent out.
Anyone who has been through a similar experience please let me know how it turned out for you! Much appreciated.
- Rental Property Investor · Burbank, IL · Member since 2015 · 40 posts · 3 votes11y
@Andrew Lisi and talk Real Estate while the kids play. That's one way to get some quality time in with family and real estate at the same time. :-) Granted I try not to mix the two very much while I'm at home.
- Chicago, IL · Member since 2015 · 298 posts · 261 votes11y
For your first question, here in Chicago, if you only own one building and it is 4 units or less you are exempt from most of the ordinances that govern tenant screening. Meaning that i can accept or deny based on gut feeling if i want. I believe the only thing i really have to worry about is discriminating based on race. Check your local ordinance and see if that applies there. Small one building landlords usually have less stringent rules.
As to the yard stuff, that is determined by your lease. If you market the unit and tell the prospective tenants that yard access is not included (and u put it in the lease) then you keep the yard to yourself.
- Rental Property Investor · Laguna Niguel, CA · Member since 2015 · 142 posts · 98 votes11yI don't have any advice but am interested in the responses because my wife and I are in the same boat. We have an 11 month old and are about to take the plunge!
- 11yNick NoonPro MemberChelmsford, MA · Member since 2015 · 124 posts · 70 votes
Thanks for the insight @Nnabuenyi Anigbogu
I was reading the Massachusetts laws on fair housing and of course MA has added an additional eight protected classes on top of the Federal laws protected classes. But there is an excerpt I found below:
"Massachusetts limits maximum exemption to single dwelling unit in an owner-occupied, two-family house."
This sounds like If I have a duplex and owner-occupy than I don't have to follow the Massachusetts fair housing act. I believe the only thing I can't discriminate against is race, like you said.
- Rental Property Investor · Harrisburg, PA · Member since 2013 · 160 posts · 62 votes11y
We have 3 kids and are expecting our fourth later this year. Don't let children discourage your efforts, rather make them the reason for your efforts! Get them involved from day one. Let them see you work on the business and as they get older let them be involved...be it helping with renovations, seeing the financials, driving around with them to viewings or auctions...make it a family endeavor! Depending on your goals, the business will be something you can pass on to them some day. REI - Cradle to grave!
- Real Estate Broker · Chicago NW Suburbs · Member since 2015 · 9 posts · 5 votes11y
@ Andrew Lisi
I am currently in the same position. We have a 3 1/2 year old and a 9-month old, and I have just convinced my husband to sell our suburban Chicago home (with a rather large yard) in order to purchase a 3-plex or 4-plex to live in for a year while we build our portfolio. As another writer said, its the children that are motivating me to take control of our future and create a better lifestyle and nest egg for them. We are also considering living with our parents for a year after we sell as an option to put a larger down payment down without having to house hack. If that is an option for you and your family, you may consider that as well! Good luck with everything! I can totally empathize with you!
- Real Estate Investor · Dracut, MA · Member since 2011 · 104 posts · 35 votes11y
Hi Andrew,
My recommendation is call Adam and ask what turn key properties he has in your area.
To much to discuss than I can write.
They set up the property with tenant.
They provide aproperty management firm and you collect the rent after expenses.
Before you call have a list of questions to ask him. I do not have any affiliation with this company.
I only have over 25 yrs in RE experience. I remember when interest rates were over 17%. Live free and prosper my friend. --Paul D
Adam Maggio
SVP Sales-VIP Investor Relations
American Wealth Builders
1804 N Dixie Hwy, Suite C
West Palm Beach, Fl 33407
(o) 561.232.2399 x706
(c) 561.270.6922
(f) 561.420.0118 - Investor · Park ridge, IL · Member since 2014 · 84 posts · 33 votes11y
I have a 3 year old and one on the way. 2 Boys! I take the 3 year old with me on every part of the job from looking at the properties, to checking on the rehabbing to showing the units and meeting the tenants. I use this as a valuable learning experience for him to show him from a young age all about this business. I hope one day he will see the value in what we are doing and start his own real estate business. He loves going with me and being a part of it. Even though he is only 3 he learning about a great business and the value of hard work and the value of money. I wouldn't have it any other way!
- Chicago, IL · Member since 2015 · 16 posts · 10 votes11y
Thanks for reaching out man. That's great that you are in the same boat as me. The feedback on this post in particular has been super helpful. Regarding books, I'm reading Rich Dad, Poor Dad and pretty much all the stuff that has been thrown out on this website. I feel like it's all a great start and I've also been connecting with folk here.
Keep me posted!
- Chicago, IL · Member since 2015 · 16 posts · 10 votes11y
Wow! Thanks so much for all of that. All of the questions to consider are great. Currently we do have a decent amount to put down, but not 20%. Also, we are looking primarily at multi-family, 2-4 units, in north Chicago. We are trying not to leave this community. I would want to get this strategy down right before venturing into other areas, though I have a number of friends and mentors in commercial real estate.
The help we've gotten thus far has been great, both from here and some folk we know. Thanks so much for yours!
- Chicago, IL · Member since 2015 · 16 posts · 10 votes11y
Thanks for the words. North Center is a great spot. It would be great to connect with you like @Tyrone Jacksonsaid! I'd love to know the process that you went through to get to where you're at now.
- Chicago, IL · Member since 2015 · 16 posts · 10 votes11y
You're totally right. My wife and I have been dreaming together about what it would look like making this a family business. As we talked I realized that there are so many aspects to life that I don't get to expose our son and future children to because I'm off at work. It would be great to bring them to the "office" everyday and so they can play a part in it all. It's a great education they could never get in class.
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