I was forced to become a landlord!

[Candice Coates]

I really thought I had it all planned out.

I have a great work-from-home job, I had just purchased my home, and my daughter’s school was literally five minutes away, just one traffic light from my house. It seemed perfect.

Is this a safe space?

The school’s test rankings weren’t the best, but they explained that a lot of it was due to the impact COVID had on kids who started learning from home. I thought...okay, we’ll give this Pre-K experience a chance.

We ended up pulling her out because there were too many incidents involving a lack of supervision. I don’t regret that decision for one second, but it completely changed my plans. She now attends school in her father’s district…30 miles away from me. I figured I’d just commute, set up shop at Panera Bread during the day, and keep working remotely. Well…that got old FAST.

Between the traffic, working in public spaces, and using public bathrooms, eeeeeeeyuk! I was exhausted.

The good news? My daughter is absolutely thriving at her new school. So while the commute has been rough on me, seeing her excel has made it worth it. Eventually, I decided, Enough is enough. It’s time to move.

The problem? I didn’t want to sell my house.

I looked into refinancing so I could have some type of cash flow, but the numbers just weren’t working in my favor. So I called one of my girlfriends who’s a realtor. She ran the comps and realized I could actually rent my home out, cover my mortgage, continue building equity, and when the timing is right, do a cash-out refinance and purchase a house hack property.

Sounds like a plan, right?

Then came my unrealistic expectations. I was convinced my future tenant needed at least a 700 credit score because…well…they needed to match me, right? I had plenty of interest, but everyone seemed to fall somewhere between the low 600s and high 600s. Apparently, there weren’t any 700s in the building! Then it hit me…

If someone has excellent credit, there’s a good chance they’re shopping to buy a home instead of renting one.

I reached out to a couple of friends who own rental properties, and they quickly corrected my thinking. They told me I was focusing on the wrong things. Rental history, employment verification, bank statements, and reviewing the full credit report (not just the score) were what really mattered.

That advice changed everything.

I found someone who was genuinely interested, and she provided every document I requested. She was supposed to move out of her current place on August 1st, and I was preparing to rent an apartment myself for less than my current mortgage.

Then…another hurdle.

I needed my Social Security card.

I honestly hadn’t needed it in years because I’ve been using my passport as my primary ID for almost 20 years. The Social Security office told me it could take up to 14 business days....that’s basically three weeks! I was convinced I was going to lose my tenant. She had to be out of her place by August 1st. We planned for an August 15th move-in, but I had to push everything back to September 1st.

Thankfully, she was incredibly understanding, although that means she has to move 2X. She signed her lease on Monday, and for the first time in weeks, I felt all that anxiety lift, at least for now. I’m choosing to put positive energy into the universe and believe this is going to be a great experience.

What’s the biggest lesson you’ve learned as a first-time landlord?

[Laurence J.]

Congratulations @Candice Coates on becoming a landlord! In 2006-2008, due to the financial crisis, about 6 million Americans were forced into becoming landlords ("accidental landlords"). I would predict many of them are looking back on their rentals, now having them for 20 years, and can't imagine life without that extra income, responsibility and pride. If history has a way of repeating, then in 20 years, you're going to be so happy with this one huge life decision you've made.