Many folks will tell you what their favorite type of real estate is, and it’s usually the type that makes them the most money or that’s the easiest to manage. By that definition, for many years, one of my best types of properties was garages. But that’s not what I’m really getting at today. I’m talking about the kind of real estate that makes you happy.
How I Bought, Rehabbed, Rented, Refinanced, and Repeated for 14 Rental Properties
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“Happy” Real Estate
Some of us, myself included, talk about the negatives of owning real estate, like tenant problems, ongoing maintenance, or problems with inspectors, townships, and contractors. But many of us don’t talk enough about the good times or the good deals — the rewarding properties. For me, my most rewarding property is my recovery house. It’s been seven years now, and I know my son and I have saved hundreds of lives.
But, there are also other types of “happy” real estate, like our vacation homes.
Your Vacation Home
Most people I know either only dream about owning a vacation home someday or they scrimp and save their money over many years until they have enough money to own one. In other words, they reach into their own pocket for the down payment and monthly payments. They often never end up making any monthly cash flow. If anything, they just hope for some appreciation.
But when I first started investing, one of my primary goals was to have my rental properties — or the cash flow from them — pay for my vacation home instead of paying for it out of pocket.
Although my current getaway property could be rented out to make some money, I just don’t bother anymore. The cleaning and wear and tear is just a hassle. So, it’s technically a loser today on paper, but it’s a winner in my heart. Just the idea of having a weekend to relax on the schedule gets me excited.
Whether your place is at the beach, on the lake, or in the mountains, there’s no greater feeling than the mental freedom you get when checking out early on a Friday afternoon just to get away and recharge your batteries. Maybe it’s the family memories, but there’s no better feeling than crossing the bridge towards the beach or heading up the turnpike to the mountains.
There’s nothing like being near the ocean or close to nature in the mountains. The water from my 900-foot well is so clean, you can feel it on your skin. The air is so fresh and clean, you can see it. It’s funny how my wise, 84-year-old mother says to me, “Don’t you ever sell that special place” — yet my younger son can’t figure out why I still go there.
Two weekends ago, I encountered a mama bear and two cubs as I was putting the flags out for the 4th of July. It was a quick wake-up call that I was visiting their environment. At the same time, I realized how lucky I was to experience all the wildlife, including deer, turkeys, chipmunks, and woodpeckers, not to mention all the great fishing. It showed me how truly fortunate I am.
It’s hard to put a price on the “happy” real estate because it’s so much more than cash flow.
This past weekend, I lost a very good friend in my “happy” town where my “happy” real estate is located. His name was Dutch, and he ran The Dutchman Tavern, a restaurant in Gouldsboro, PA. Although this place is in the middle of nowhere USA, just Southeast of Scranton, it is the friendliest little place in the world. Dutch had the greatest job in the world, doing what he loved by making people happy and cooking good food. He always had a smile on his face for the hunters, skiers, and locals. He will surely be missed.
So, if you’re lucky enough to have found a piece of “happy” real estate, whether it’s the place itself or the people and wildlife that truly make you happy, how do you take that first step towards making the dream a reality?
How Do You Pay for it All?
I remember approximately 15 years ago when I had scraped together a few thousand dollars to purchase a building lot in a gated community. The good news was that I was able to get a loan from the bank, and eventually that lot I had paid $4,000 for increased in value to $10,000.
Related: 7 Things You Should Know BEFORE You Purchase a Vacation Home
So, I was able to put the $10k lot up as collateral, along with another $20k as a deposit towards a construction loan, to build a nice mountain retreat. The cool part was the $20k came from a home equity line of credit on one of my rental properties, and the monthly payments were paid for each month out of the positive cash flow from my rental portfolio near where I lived.
Over the years, I was able to utilize a HELOC on my mountain home to fund other cash flowing assets, like notes or lending private money to fellow rehabbers.
Eventually, I shifted my strategy for this property. This year, my special retreat will be paid off.
So this weekend, as I take my grandson and his friend up for a weekend of fishing, swimming, and good old bonfires (with marshmallows), I truly realize how blessed I am to have some “happy” real estate that I’m lucky enough to own from being a real estate investor.
My only wish for you is that you too find some place that makes you happy. Better yet, what does or what will your happy place look like?
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