#AspiringRealEstateMogul is, for me, a fanciful and satirical hashtag, since I lack both the capital and the risk tolerance to truly go for it. Maybe down the road, things will break right and I'll both be able to and want to swing for the fences. But right now my real estate interests (addiction?) filter through the following screens:
* Consumption. Every property I've bought has been something we'll actually use at least some of the time. Our first purchase (in University City) is obviously our current home, and our second (on the Delaware River) is our future home when the older two kids leave the nest. Adams Morgan DC will eventually be a place Amy and I enjoy a few weeks every summer (and otherwise rent out to a student or young professional). And Ocean City NJ will be rented out during peak season and hopefully off-peak too, but we'll grab a week during the summer and maybe another week or two off-season. As of now, the thought of buying something only to rent or sell, and not ourselves enjoy, is not of interest to me.
* Investment. Since I don't need to buy, and have a long buying window, I can wait for the numbers to work. Which means that I don't go for it unless the incoming revenue, using conservative assumptions, comfortably covers the carrying costs (upkeep, property taxes, HOA, HOI, utilities). I also don't have much time or expertise to offer ongoing, hence so far I've leaned on the combination of condos (having to pay HOA is offset by not having to worry about as many things) and property managers (who handle tenants and anything that comes up with the place).
* Legacy. Thinking long long term, it's neat to think that I could pass these properties on to the kids if they are interested in the same consumption/investment package that has motivated me. So it's part of all the hustling I'm doing now to help them out financially. And what a wonderful possibility that places they enjoyed as kids might one day become places they enjoy with their kids and grandkids.
* Daydreaming. I'll admit that as rational and disciplined as I usually am, including when it comes to big life expenditures, there is also a dreamy aspect to hunting for properties and envisioning a path to acquiring and enjoying them. I process real estate listings with a cold eye, but am also taken by incredible views and well-down interior design. A little daydreaming never hurt anyone, right?
What about you? If you're into real estate listings, what drives that?
2 comments:
This is so interesting to me and I think it’s a great strategy. I have been thinking about doing the same thing - we are sitting on cash that I have earmarked towards a piece of real estate that we will mostly rent out for now but use more in retirement. Do you do all the research and analysis yourself, or do you find a trusted realtor in each community who understands what you are trying to do? If the latter, how do you find and vet that person? Any other advice? Thank you.
Good realtor is key, since they're the ones who can get you info on listings as well as show you around. I didn't shop around for realtors, just lucked into great ones every time I reached out to someone in a new city. Good luck and happy hunting!
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