DISQUS

dawn · 1 year ago

I have a totally different background in real estate.
Hubby and I bought our first property straight out of high school. We duplexed it out, got a tenant for the upstairs, lived in the bottom. Eventually we bought a separate residence... but we never stopped purchasing rental houses, even being a part owner in an eight-plex.
It was fun, we learned a lot, and made some good money over the years.
I personally think the real estate market isn't a disaster from investment property purchasers, as much as homeowners that couldn't afford the homes they purchased...
That said, I do agree that knowledge is important when purchasing properties. But, a little learning along the way, is ok too.
And you are totally on the money with location, location, location.
I also think you have to have a certain comfort level with the whole "landlord" thing...

deepali · 1 year ago

I find being a landlord stressful. Otherwise, it's worked out well for us, luckily. I wouldn't say we're making money on it, though.

Writer's Coin · 1 year ago

I can attest that Brip's advice is good and this is more good advice. For most people I think real estate investing is just too much work and too much stress.

How do you feel about REITs though? I'm looking at Vanguard's REIT index but maybe not for another few months.

remodelingthislife · 1 year ago

I've enjoyed using real estate as a means to making some money along the way in the first part of adulthood. It's fun, it's a learning experience, and it is something both hubby and I knew from growing up - we both have parents that used real estate as an investment vehicle. I think it all comes down to comfort level. Some people love the idea and know a lot about it or want to learn more so they get into it. Others are terrified of the stock market and wouldn't dare go there. Our differences are what make the world go round. I am with you on being in NYC making it a lot tougher to jump into it though.

And HOLY SMOKES! Nice before and after shots. I'd never guess it's the same person. Way to go, Steve!

Kacie · 1 year ago

I totally agree with you--your home is NOT an investment. It is your home. Unless you liquidate it by selling it, it's just a roof over your head.

And, like any "investment" there's no guarantee that you'll make money on it.

Sometimes, people have to pay to get out of their houses, if they sell for less than you paid (and you still owe on it). What kind of investment is that? A lousy one, obviously.

Living Off Dividends · 1 year ago

I've bought over a dozen homes in the past few years (and have facilitated the sale of nearly a 100 to investors). I've been renting my own home back in San Diego since 2005, which was the peak of the market.

Now is definitely not a good time to get into real estate investing.

Hunter Nuttall · 1 year ago

Steve, when you do eventually have something to say about real estate investing, I'm sure it will be very good advice. Thanks for not jumping right in before you have helpful advice to give.

thickenmywallet · 1 year ago

When the U.S. Census Bureau reports that only 41% of real estate investors actually made money, you know its not as easy as it looks!

FourPillars · 1 year ago

Nice pic! - of course I'm talking about the For Sale sign - that's the kind of shot I was looking for when I did my FSBO post recently. Where do you get your post photos?

As for the before & after...very impressive. I'm actually impressed that as a 101 pounds-overweight-man you don't look as big as I thought you would.

Mike

Patrick · 1 year ago

Steve, I feel the same way. I think I would like to have a rental property sometime in the future, but not quite yet. As for our primary residence, I'm not concerned about making a ton of money when we sell it. First and foremost it is where we live. Even if we didn't have this house, we would have to live somewhere. Nice article.

In Debt · 1 year ago

"Your home is not an investment. It is a HOME, first, second and last."

Yes! Thank you for articulating what has been bothering me about the real-estate advice that I've been reading. I am no good at regarding my home as an investment. That may be because I grew up in the same place all my life, but I also can't see why anyone would be okay with moving every couple of years for the rest of their life, especially if they have children.

Lazy Man and Money · 1 year ago

Reasons 2 and 3 make a lot of sense to me. Number 1 doesn't seem to fit as much since there are a lot of people who invest in real estate without making it their primary residence.