Soliciting Genuine Feedback: Rate Me 1 or 10?

27 Replies

Hi Everyone! Hoping to get much needed advice. My husband and I are getting really interested in REI (particularly buy and hold, single-family homes in the Seacoast of New Hampshire or Maine). We are in our early 30s, have twin toddlers and both work full-time. I'm in the middle of completing my second masters, an MBA (part-time and free thanks to tuition reimbursement from work). We would love to create a passive cash-flow at some point, and I hope to create meaningful social, environmental and economic impact through this and all of my endeavors. My question is this: on a scale of 1 to 10, with:

10 being “You sound like a hard-worker, with enough education and a loving partnership, you and your husband will be just fine. Never Stop, Never Stopping!” 

and 1 being “You sound nuts. Chill out, enjoy the kids while they are young and don’t bite off more than you can chew” 

where would you put me?

Go for it! Listen to some podcasts, read a couple of books, and take the plunge. Hopefully it will buy your time back, so you can be around more for the kids. My husband and I are in Dover, about to move to Rochester, and are house hacking our 3rd 2 family home. Check out the rental property calculator on this site (I think the first 5 are free if you are not a member). If you are looking to invest locally, you might have a hard time getting single family homes to cash flow. The prices around here right now are very high, but thankfully rents have skyrocketed too. We have a property in Somersworth that is a single family home and has a detached garage with apartment off of it. People love the property because it is basically like 2 single family homes on 1 lot. Those don't come up often, but they do once in a while and tenants will line up to get in one. If you want to chat sometime, message me. Good luck! 

I would rate you a 10. Definitely start investing in real estate, doing it part time while having a full time job is perfect. Just make sure you are not completely depended on appreciation. You should cash flow 200+ rental income monthly after all expenses and 1 to 100 ratio if purchase price is 100k rent should be atleast 1000. BP calculator works very well to determine the numbers.

I guess a 10. It’s not really that difficult to do real estate if you have a property manager.

I’m about to start grad school, already own real estate, and work full time. I’m about ten years younger than you. I don’t have kids but besides that we’re identical.

Good luck

It’s easy to fall into the “it’s too late” mindset for anyone at any age. I say 10, save some money and pick something up on the side. In 20 years you’ll only be in your 50’s and glad you did.

@Faina Bukher I'll hold back from 10 and say 9. You sound way more ambitious than I am with toddlers, getting a SECOND masters and studying real estate investing in the side. You obviously have the drive. The only thing that concerns me a tiny bit is your desire to make a meaningful social, environmental and economic impact. I don't totally know what you mean by this, though with what you've accomplished It sounds like if anyone could do it you could. But if these goals are too lofty you could be in for some disappointment and discouragement.

@Faina Bukher I think what you want to do is great for your family. You can easily buy a small MF or SF and rent it out, build up equity, refinance, do it again. You could also search for a turnkey provider to make it super passive. You'll likely lose some equity that way, but it an make investing more passive. Good luck!

I would place you at a 5. Primarily due to the fact that most indivulaes looking to invest in real estate will never start.

You have some ideas that simply will not apply or will make your plans more difficult. Always prioritise making a profit otherwise real estate will be a major loss. Meaningful social, environmental and economic impact are pie in the sky warm and fussy "feelings" that have nothing to do with investing for profit. They should be relegated to the bottom of your list of priorities if you want to be successful. Seeking to mix money with emotions is a recipe for disaster.  Operate exclusively as a business and then contribute money to charity if you wish.

SFHs are very high risk and are primarily an appreciation move as opposed to a cash flow investment. Target purpose built rental propetties.

You do not sound "nuts" but you are typical of a want to be investor in the dream stage.   

I see a Popstar reference, I give a 10...

In all seriousness, focus on the important things in life. Don't devote too much time to ancillary things, especially for your kids. They need their parents growing up! Whatever you do, I hope for the best in your endeavors!

I would say 9, just make sure you give those kids lots o time and love. Investing in a SFR is okay but why not in a duplex or triplex? Those generate a little better. If one of two is not rented out in a duplex you don't have to come up with as much money as you would if you have zero out of one. Just food for thought.

Go for it...especially at your age.  My wife and I started 6 years ago in NH when I was 38 and I wish we got going sooner!  My first recommendation would be to start getting after some of the great reading resources BP highlights...whether that be their books (Set for Life, Book on Rental Property Investing, etc) or the many others out there that the guests on the podcast mention.  I just read "The ABCs of Real Estate Investing" by Ken McElroy (https://amzn.to/2tP6BCw) and it had some really great tips for finding, analyzing, and executing on deals.  

Secondly, start looking for and analyzing potential deals now. There's no better experience than getting your feet wet. It's scary and exciting all at the same time. You're obviously a quick study, so after getting your financial ducks in a row, jump in and actually make an offer on a place that makes sense on paper. Find a contractor you trust and take them with you to the property to give you a rehab estimate, go home, put their info into the BP calculator, and make a sensible offer quickly. It's that simple...doing all this takes a lot of effort initially, but it all becomes 2nd nature. And look at a lot of deals...they're harder to find in this market, but they're there. Finding a local wholesaler is a handy resource as well. My business partner and I are under contract on a 3 plex in NH and there are a lot of balls to juggle, but it's a blast. Good luck!

Originally posted by @Faina Bukher :

Hi Everyone! Hoping to get much needed advice. My husband and I are getting really interested in REI (particularly buy and hold, single-family homes in the Seacoast of New Hampshire or Maine). We are in our early 30s, have twin toddlers and both work full-time. I'm in the middle of completing my second masters, an MBA (part-time and free thanks to tuition reimbursement from work). We would love to create a passive cash-flow at some point, and I hope to create meaningful social, environmental and economic impact through this and all of my endeavors. My question is this: on a scale of 1 to 10, with:

10 being “You sound like a hard-worker, with enough education and a loving partnership, you and your husband will be just fine. Never Stop, Never Stopping!” 

and 1 being “You sound nuts. Chill out, enjoy the kids while they are young and don’t bite off more than you can chew” 

where would you put me?

Don't overthink it. Buying a few rentals isn't much work. It's a very passive business that is a great place to park capital from your job. Assuming completing your MBA opens the door to even more income opportunities for you i'd give you a 10 as you both have jobs & presumably the funds and resources to make this happen. However I'd have to give you a 1 on your outlook of the rental business based on your desire to create a "meaningful social, environmental and economic impact". The realities of this business are much different. If it's praise from the community &/or tenant base you are looking for, this is not the business you want to be in. 

Originally posted by @James Wise :
Originally posted by @Faina Bukher:

Hi Everyone! Hoping to get much needed advice. My husband and I are getting really interested in REI (particularly buy and hold, single-family homes in the Seacoast of New Hampshire or Maine). We are in our early 30s, have twin toddlers and both work full-time. I'm in the middle of completing my second masters, an MBA (part-time and free thanks to tuition reimbursement from work). We would love to create a passive cash-flow at some point, and I hope to create meaningful social, environmental and economic impact through this and all of my endeavors. My question is this: on a scale of 1 to 10, with:

10 being “You sound like a hard-worker, with enough education and a loving partnership, you and your husband will be just fine. Never Stop, Never Stopping!” 

and 1 being “You sound nuts. Chill out, enjoy the kids while they are young and don’t bite off more than you can chew” 

where would you put me?

Don't overthink it. Buying a few rentals isn't much work. It's a very passive business that is a great place to park capital from your job. Assuming completing your MBA opens the door to even more income opportunities for you i'd give you a 10 as you both have jobs & presumably the funds and resources to make this happen. However I'd have to give you a 1 on your outlook of the rental business based on your desire to create a "meaningful social, environmental and economic impact". The realities of this business are much different. If it's praise from the community &/or tenant base you are looking for, this is not the business you want to be in. 

She can do that Jim by donating houses or her time.. but not being a landlord.. you become a landlord and a few things happen one you either start to realize that not all people are as nice as you are and you sell and move to some other investment like notes or flipping or stock market.. Or you become Matter of fact and black and white like you see the long term landords on this site.. there is no give .. you can die and they still want the rent.. you can have all manner of problems they still want the rent.. this is not a social experiment unless your quite wealthy and just want to donate your time and money to those who for whatever reason work in jobs that puts them in the renter sector of our society.

5.

Pros: Dual income (both on same page?). Early 30s. You will have decades for growth or correcting mistakes. Family structure appears to be set, unless you’re still planning to have several more kids.

Cons: Time/value realization of another Master’s - even if it’s free. Unless it translates into significantly more capital, that time is better spent with family or on business/RE. If it will then add 2 points. Millenial mindset = meaningful social, financial, blah blah impact. No, just no. In for some serious hurt if you think that true. Lose this belief and add 3 points.

@Faina Bukher
I will not provide a rating but some honest feedback

What experience do you have in finance and / or real estate ? I see your getting an MBA which is great but the honest answer is an MBA does not prepare you for the world of real estate investing.

Working full time with twins can be very difficult. If you look at times you can look at properties vs times when kids have activities you will note they primarily conflict. Our portfolio also was based on BRRR and we were self managing and thoroughly enjoyed once we finished the property only to have our new tenants put baby potatoes down the drain or block the toilet or break the washing machine only to spend a Saturday or Sunday trying to get someone to fix it.

You have to be prepared to spend time on your business. Being in the same boat you were I will be happy to discuss offline and share my experiences.

It’s easy for everyone else to tell you to go for it but there are risks and the ugly side of real estate that people don’t like to publish. M
Definitely not saying it’s not doable or you cannot - as anyone can do it, it’s just as much about time and commitment as it is education

Thanks @James Wise , @Jay Hinrichs , @Steve B. and @Aaron Hunt .

@Chris Seveney , thank you for the honest feedback. My sense is also that this wouldn't be as "passive" as I want it to be, even with a property manager (which has cut into our potential cash flow so much, we haven't yet found a great deal). I hadn't yet thought about the kids activities and property viewings (since they are still so young), so I really appreciate that reminder! With only 24/7, time is definitely a factor.

@Faina Bukher 50 years from now it's not going to be the things you did that haunt you. It will be the things you didn't and now can't. 50 years from now there will be real estate to buy. But there will not be two twin toddlers to pour your life into. If you can structure a transition to REI to free up your time children - great. If you can structure your career to have more time with them - great.

But don't sacrifice family or experiences and memories just to make money to use "some day".  Some day many times doesn't come.  And funny but I've noticed that it's much easier to make money than memories and children who stay in your life.  Be careful with those precious lives.  You won't regret a bit of what you pour into them.

@Faina Bukher , We seized the day and were able to raise our 4 boys on a sailboat for 12 years. 

 I wouldn't trade that for all of the money in the world!  Now here I am doing what I do again and loving it even more because I followed another dream for a day.  You can have it all.  As long as you make what you have all you want.  

10 all the way!!  

I'm doing valuations and phone calls right now.  My 1 year old is napping and the older two are in the pool.

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