Spouse Not on Board?

Question

I'm new to BP and am venturing into buying and holding with a skeptical spouse. We're considering moving to Austin, Tx and that's where I'd most likely buy a rental. Given my partner isn't on board for any sort of RE investment (live-in / house hack / duplex), I've considered my first property to be 20% down on a non-line-in investment (not ideal, I know).

One of my partners' concerns is I'll be over-leveraged, for when we try and buy a home for ourselves, ideally our dream home. I have no sense of what my dream home would be and just view RE as an investment and don't need somewhere I buy to be a permanent home. That being said, they want reassurance that it's financially the right choice either jointly or for me before they get on board.

What sort of emotional logic can I bring to the table to convince them? They are very financially risk-averse, so not only does it need to make financial sense, but I also need to convince them that it's the best emotional decision as well.

Has anyone on BP ever faced similar challenges with your spouse? If so, how did you handle it?

Sure would appreciate some advice here. Thanks!

Ryan Kelly · Answer

@Logan J. first of all, Austin is not a cheap market, so starting with a rental here could be pricey and you will definitely want your spouse on board. However, if you don't already own a primary residence, start with that first. And here's one way to convince your spouse. Don't buy your dream home. Purchase a solid property that can serve as a PRIMARY residence now (1-3 years) and become a RENTAL in the future when you go buy your next property. YOu will already know everything about this property when you move out including the maintenance schedule. It will be very easy to convert it to a rental and you will already know all your numbers. Plus, you'll have a head start on paying off the debt. This is the cheapest and most flexible way to purchase investment properties.

Jonathan Greene · Answer

They sound smart. Listen to your partner. Tie down your own personal residence in your minds first and be on the same page about it before trying to invest. Even if you invest first, know what the plan is so you don't do exactly what your partner's fear is and compromise your life by needing to invest too early. Can you invest on your own, with your own money? And if you are new to BP and to the idea of investing, again, I would listen to your partner. They often know better because they aren't in the emotional excitement phase of wanting to invest.

Bruce Woodruff · Answer

If you can get a decent primary residence first then that is obviously the way to go. You can't can't have your rent raised and nobody can throw you out.

But if you come across The Deal, jump on it and use it to buy your own house later....

Aaron Gordy · Answer

@Logan J. @Jay Hinrichs

Hey Logan follow Jay's advice. A happy home makes you alot more productive. If your partner isn't on board then it can be high drama which is no fun ever. I hear dream home and I am never really sure what to make of that phrase. After all a nightmare is a dream too. No thanks! But if both of y'all are on board then buy a duplex or sfh with the intention of eventually renting it out. If you two like the rental business keep on trucking. A happy partnership is the key here. You could always create an llc and buy rentals through that entity. The Austin metro is relatively expensive and you should keep that in mind.

Joe S. · Answer

You say your spouse and then you transferred your verbiage into saying “ my partner.” Will they be on the deed and sign on the loan?

Jordan Moorhead · Answer

@Logan J. I would talk this through with a strong lender. They're the only one who will really have the answer.

Spouse Not on Board?

Spouse Not on Board?

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