Stuck trying to make a decision

New to Real Estate · Southeast Missouri · Member since 2023 · 33 posts · 23 votes

Little back story. I Have been trying to get started on real estate for about 3 years now, my wife and I were close to pulling the trigger on a property when a plot of land came up at a discount price. We’ve always wanted land to build on, been together for 10 years. Anyways, we bought the land, cut the timber off of it and essentially got our down payment back plus some. My dilemma is, should I start building or take the money and look for a property? Building would put me at a 5 minute drive to work vs 30 min currently and we would be down sizing bringing our mortgage payment down and we’d be in a happier place. Doing all of this would delay investing.
Thoughts? Suggestions?

Thank you all!!

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
2y
From what you've written, it is clear that you want to build a place. It sounds like you've been waiting along time to do it, so take the opportunity.

Once the house is built, you could use your current home as a rental if the numbers work. If they don't work, use the money from the sale of the home to buy a rental.
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Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
You logged off a whole lot, and made a profit out of it.
I am impressed with this!
Did you do it 100% yourself with a chainsaw and a log splitter?
How did you sell the wood?
That is some serious Daniel Boone stuff there!
https://www.youtube.com/watch?v=e7PIsHh8MXs
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Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
2y
I agree with the other folks. If you’ve waited 10 years to build your home, maybe it’s time to do it!
Podcast Guest on Show #223
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Jose BotelloPro Member
OP
New to Real Estate · Southeast Missouri · Member since 2023 · 33 posts · 23 votes
2y
Quote from @Account Closed:

Quote from @Jose Botello:

Little back story. I Have been trying to get started on real estate for about 3 years now, my wife and I were close to pulling the trigger on a property when a plot of land came up at a discount price. We’ve always wanted land to build on, been together for 10 years. Anyways, we bought the land, cut the timber off of it and essentially got our down payment back plus some. My dilemma is, should I start building or take the money and look for a property? Building would put me at a 5 minute drive to work vs 30 min currently and we would be down sizing bringing our mortgage payment down and we’d be in a happier place. Doing all of this would delay investing.
Thoughts? Suggestions?
Thank you all!!
Family First. Build, be Happy.

Thank you!
1 Reply
Jose BotelloPro Member
OP
New to Real Estate · Southeast Missouri · Member since 2023 · 33 posts · 23 votes
2y
Quote from @Scott Trench:

I agree with the other folks. If you’ve waited 10 years to build your home, maybe it’s time to do it!
I think I’ve made up my mind. I didn’t know about real estate until about 3-4 years ago and that’s when I really started studying and reading about it. The I found BP about a year ago! So it really has me itching to get started!
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Jose BotelloPro Member
OP
New to Real Estate · Southeast Missouri · Member since 2023 · 33 posts · 23 votes
2y
Quote from @Scott Mac:

You logged off a whole lot, and made a profit out of it.
I am impressed with this!
Did you do it 100% yourself with a chainsaw and a log splitter?
How did you sell the wood?
That is some serious Daniel Boone stuff there!
https://www.youtube.com/watch?v=e7PIsHh8MXs
Ha! I wish! That would have taken me months and months! I hired a logging company they did it all I just collected my share of sale of the logs to the mill
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Jose BotelloPro Member
OP
New to Real Estate · Southeast Missouri · Member since 2023 · 33 posts · 23 votes
2y
Quote from @Theresa Harris:

From what you've written, it is clear that you want to build a place. It sounds like you've been waiting along time to do it, so take the opportunity.

Once the house is built, you could use your current home as a rental if the numbers work. If they don't work, use the money from the sale of the home to buy a rental.
That was plan B. But since I’ve been listening to BP I’m itching to get started! I’m afraid I’m going to have to sell my current home due to the rental market not being the greatest for my little town
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Jonathan R McLaughlin
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
2y
sure sounds like you are investing to me! Congratulations. And if you could make a little money on the timber of that lot....check out Jay Hinrichs' stories of timber investing.
If I'm reading you right you already have a primary, so keep it and rent it out when you finish building and voila, there is your investment property. Or sell that and get another.
You will know more than 90% of investors once you complete this project as well. Any chance you could build a duplex or some kind of second unit on the property you bought? Even an in-law would allow for some income and flexibility.
And you
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Jose BotelloPro Member
OP
New to Real Estate · Southeast Missouri · Member since 2023 · 33 posts · 23 votes
2y
Quote from @Jonathan R McLaughlin:

sure sounds like you are investing to me! Congratulations. And if you could make a little money on the timber of that lot....check out Jay Hinrichs' stories of timber investing.
If I'm reading you right you already have a primary, so keep it and rent it out when you finish building and voila, there is your investment property. Or sell that and get another.
You will know more than 90% of investors once you complete this project as well. Any chance you could build a duplex or some kind of second unit on the property you bought? Even an in-law would allow for some income and flexibility.
And you

I need to listen to that! We do have a primary home already. There’s a possibility to build and in-law suite or some sort of small apartment separate from the main home once we build. Thank you all for the advice!
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