Your First Rental Property

It’s official: Kim and I moved from Portland to Corolla, Oregon. We closed our house – a 1964 daylight field with a completely converted basement – in late August, and we’ve spent the last six weeks moving and packing. I thought I would have time to explain the details of our purchase, but obviously that didn’t happen. We are very busy!

The short version is: Later. Offer 128,000 on request. At our dream home (and still losing cash offer), we came close to joining another bid war at a similar home. But we didn’t. While other people were bidding. A place down the street From $ 589,000 to $ 707,000, we moved into a house that cost us بہتر 680,000 better – just asking for 000 5,000. We were lucky.

And while I was worried that we might experience buyers’ regrets, I was happy to say that it didn’t happen at all. We love our home and we love Corvalis. How could we not?

Corolla is the best biking city in the state of Oregon. (Yeah, better than Portland.) Our home isn’t Walker’s paradise, it is. Is Within the range of two grocery stores and a handful of restaurants. There is hardly any traffic congestion in Corvalis. The city is surrounded by jungle, which is full of hiking trails. Every day, our squirrels and deer and wild turkeys are in our yard. There are two off-lash dog parks nearby. Our neighbors are very friendly.

I could have moved on, but I won’t. You found a picture.

My opinion while writing this article.

We had high expectations from Corvalis, but so far the city has exceeded them. I’m not kidding. This is the place Absolutely Kim and I were looking for a new place to live after three months of searching. It’s ours The stars are hollow..

And our home, while large enough for two people, has exceeded our expectations. Sometimes it feels like it’s designed to suit both us and our lifestyle. Just the first day, I know, but after six weeks we’re happy.

A small real estate empire.

Kim and I also like that we have already started making friends in the city. I spent some time with Jeff. Happy philosopher.For example, and the dog walks weekly with one of the few neighbors. Last weekend, we had a great time with our real estate agent and his wife.

Michael and Roy may have lived in Corvallis for ten or twelve years. At the time, he stumbled upon the idea of ​​”financial freedom” without ever discovering the growing fire movement. (FIRE is an awkward acronym “Financial freedom And early retirement. “) Like many others who eventually catch fire, they both invented their own version of space.

Michael and Roy are slowly building a small real estate empire, which currently consists of six houses. They will buy a place, live in it during the improvement, then rent it out when they are ready to buy another property. Their goal, which they are approaching, is to provide cash from their rent to cover their monthly expenses.

The realm of Michael and Roy's property.

Last week, on Cocktails and Hunger Magenta., Kim and I asked Michael and Roy about their experience.

“Now that we’re settled here in Corolla, we’re talking about buying our own rental property,” I said.

“I’m just 49 years old,” Kim said. “My years as a dental hygienist are beginning.” I have a back pain. My shoulder hurts. I have a pain in my wrist. I want to find a way to make money without killing myself.

Michael nodded. “We’re happy to share what we know,” he said. “But you need to understand that this is not a magical way to get rich. This is work. Maybe you don’t do it anymore, but this is work. And it takes time to make a living.

“I understand,” Kim said. “I understand you seem to have figured it out. Didn’t you tell us that you’re only hiring college students? And that they come back year after year?”

“We do not charge rent. Only For college students, “said Roy,” but they’re mostly students. Right now, one of our six homes is rented to a ‘normal’ family. But you are right. We’ve been lucky to have less tenant business.

“We try to maintain long-term relationships with our tenants,” said Michael. “We don’t want to be friends with them, but we want to have good communication.” We want them to come back every academic year. This often means that we do not raise their rent. Or, when we do, it’s a very small increase.

“It’s smart,” Kim said. “It makes your tenants more loyal and stops the business. The business is probably difficult.”

“That’s it,” Michael agreed. “We want to keep our tenants at a slightly lower rent than the market rate every year instead of dealing with the business. When someone goes out, we can move things to meet the market. In addition, our rent Building strong relationships with dads helps motivate them to take care of the place. And We’re starting to see that it helps when their siblings come to school in Corolla. They contact us because their brother or sister had a good experience with us.

“I like your moral style,” I said. “And I want to know more about real estate investing by listening to you.”

“You I know I want to know about it, “Kim said.” I’ve been saying this for years. “(She keeps it!)

I said, “You know,” many of my colleagues are investing in real estate. I’ve talked to them about it, even though I’ve never pursued it for myself. Do you read real estate blogs?

“Not really,” Michael said. I am familiar with Paula Pant. Endure anything, Although. I like her stuff “

“Paula and I are good friends,” I said. “We’re close to 2012, and we often call or text to catch up on life. In fact, we hung out in Funkin, Austin last week. It helped me promote my real estate course. Said for

“You should do it,” Michael said. “I haven’t seen the course, but he has solid information on his site.”

I thought for a moment.

“You know what I am. Should Do it, “I said.” I should help Paula promote the course, but more than that I should do the course for myself. I should take it so. I Learn about real estate investing.

“Yes, you should,” said Michael. “It’s not like I have any external motive to buy you more properties.” We all laughed at it.

“You know what will help?” I said. “Whenever a rental property comes on the market, you send a video that analyzes its potential. I love them, even if I don’t fully understand all the things you are talking about. Talking, I especially like the spreadsheets you use to reduce the numbers.

“It’s not surprising,” Kim said.

“Would you agree to record a YouTube video that explains your rental property spreadsheet?” I asked. “I can play with this spreadsheet myself while I do the Paula course at the same time.”

“You bet!” Michael said. “I’ll record a video for you next week.” And that’s all he did. Michael is explaining here. He uses spreadsheets to screen potential rental properties..

Your first rental property.

I recently read Todd Traceders. How much money do I need to retire? I can write a full review of the book at some point. The key to understanding at the moment, though, is that Todd thinks using it is somewhat dangerous. Four percent rule A Criteria for Financial Freedom He offers a strong argument that it is safer to define financial freedom as Vicky Robin. Your money or your life.: The point at which your passive income exceeds your expenses.

Although my recent move to Corvallis made me financially independent again when defined according to the 4% principle, I am no Financially independent based on cash flow. My expenses exceed my inactive income. I want to change that. And I think rental properties can be part of that strategy.

Your first rental property.

This morning, I signed up. Your first rental property., Paula Pant’s Real Estate Course. It was fun to read the sales copy on the landing page. I usually hate sales pages, but it was as if Paula had written it with that in mind. Looks like the course is perfect for my needs.

I think it helps that I know Paula personally. Over the years, he and I have talked a lot about his various real estate adventures. I have seen him slowly build his rental portfolio. Also, I know they are both smart and reliable. If I’m going to pay someone for a real estate course, that’s fine.

I also like and trust Chad Carson. Coach Carson’s Real Estate Courses That, too, would be a good option, and I could see them for myself in the future.

Here’s the thing I got one Very Gradually receive applications to promote books and courses and events. I almost always reject. I never wanted it to be a platform for product promotion. I want GRS to be an education platform.

“I enjoy sharing books and events that I’m sure you’ll find valuable,” she said. That is why I am looking forward to Ramit Sethi. I will teach you to be rich.. That’s why I’m personally involved. This year’s EconoMe conference, And I’m urging others to join us at Cincinnati next month. Some of these things are awesome and should be shared.

Obviously, I can’t guarantee the quality yet. Your first rental property., But I just reduced my money to buy it. (“Did you want to buy a course?” Paula’s assistant emailed me. “Yes,” I said. “I want to take it.”) Wants to work I think it would be fun to do as a couple!

And who knows? We may have acquired some of our rental properties in a few years.

Your first rental property.Like many online courses, there is a limited window of availability. (I think Paula only offers once a year.) The group will go on sale October 14. Get Rich Get a commission on every sale through our site.