People think we're nuts

[Chris Gawlik]

Hey everyone. We are selling our primary residence and moving into a travel trailer behind my parents house.  We live in one of the nicest neighborhoods in town. I have a family of 6.  A kid in high school and all the way down to an 8 year old. After looking at our bills we are just spending to much money.  We are developing a long term plan to develop some passive income.

We have around 250K in Equity. We will be paying off a 3 unit a car and some Bill's.  By the time everything is paid off we should have around 200k liquid. 

With the net cash flow and our jobs we should be saving around 7k a month. 

My wife is the driving force behind this plan. This is pretty hard for my kids and I, but our plan is to have 3 rentals paid for in cash before we move back into a primary again.  This also may sound a little crazy but I think the realestate market / stock market is going to be going into a recession in the next 1 or 2 years.

 Just wanted to know what some people might think that have more experience / knowledge with our plan. Thanks.

[Michael S.]

[DISCLAIMER] I HAVE NOT BOUGHT MY FIRST RENTAL HOUSE YET.  THEREFORE, TO MY WAY OF THINKING, I HAVE ABSOLUTELY ZERO AUTHORITY TO BE GIVING ADVICE.

[/DISCLAIMER]

I've found this a very interesting thread.  It's given me a few ideas for my own situation in fact.  I've been reading forums at BP for a couple of weeks now, trying to soak up 'the culture'.  When I made my first post, it was recommended that I do this.  

That being said, @Chris Gawlik, have you considered not selling your current house and renting it out instead?  I think that this would be the wisest idea for your situation.  That way, you'll STILL own the house if this trailer situation doesn't work out.  The CF it generates could only help you and your family.  And honestly, there ARE easier ways to deal with your spending issues.  I attended a free class at our local library a month ago, about financial literacy.  The first day the instructor handed us a Spending Leaks worksheet, and told us to take it home and fill it out.  I handed mine in the next class period and he looked it over.  He remarked how well we're doing.   I said 'thank you' and he returned to teaching the class.  Along the Y axis, the worksheet had 'whats' and along the X  axis it had   'how often'.  For you in sunny CA, I would think that a possible spending leak for you would be "stopping for coffee".  How often do you stop for coffee a week?  How much do you spend?  Take that number x 7, and you have your weekly cost.  Multiply it by 30 and you have your monthly cost.  Multiply the {daily-cost} by 365 and you can clearly see how much you're spending on coffee per year.  

This is getting longer than I wanted it to.  I'm sure that you can do an Internet search for that worksheet.  Get the worksheet, and find out where your spending leaks are.  Then fill them.  If you find that even after filling them, your expenses still = your income, than you and I are in the same boat.

[Colleen F.]

@Chris Gawlik   We are curious what is your update on this?   Have you done it yet or did you modify the plan?

[Chris Gawlik]

Hello everyone 

I'm here to give you an update. WE HAVE DONE IT!!!!. So yes we actually are nuts now. I want to thank everyone for your reply's. I never thought it would get that many responses. I also never thought it would be such a controversial subject for people. I coast in and out of Facebook and social media sites every few months so I am not the best at checking previous post, so I apologize for not updating sooner, but I think after reading so many responses its the perfect time to reply and give an update to our family's current situation.

Fist let me offer more insight to our situation. If I would have know this would be such a popular post / topic I would have offered more detail and perspective about our plan and situation. I noticed poverty was quite a touchy subject for some people and I am sorry to hear that you have gone through difficult times in your lives. This is not the situation that we are in at all. Also my mother invited us to do this so it was actually her idea, and my father was on board. We are very close to my parents and also very close to my mother and father in law. Both sets of grand parents actually live two blocks away from our primary house ( now sold ). So we are a very tight knit family. Its the way we spend almost every weekend at one grand parents or the others. The grandparents see the kids almost every day or at least once a week. My parents have a big house. We were also able to spend 3 weeks at our mother and father in laws and house sit for them while they were on vacation. We took around 5 or 6 small vacations this summer and will continue to do so through out the year. My parents let us stay in the house in the summer time and have set up bunk beds and places for the kids to have privacy. The kids get to choose weather they want to sleep in the trailer or the house. My parents have a trailer hook up in there back yard so the bathroom smell is not that bad ( keep the door closed please LOL ). The kids have there friends over when ever they want. They try to sneak video games when ever they can, but my wife catches them and hides there controllers LOL. We have 3 bathrooms that we can use. We take turns cooking for each other and my mom is a SUPER GOOD COOK!!!! 

I hope some of these details gives you a better idea and understanding of our current situation. I also want to let you know that it is a sacrifice as well. I have given up my dream home. It was a single story home in the best neighborhood in town 2400 sq ft , half and acre with a pool, and a view of the mountains in the front, and a deep valley view with city lights at night in the back and my 3 car garage and batting cage  :(  . We have given up the American Dream. I know we will live that dream again some day but it was really hard for me to do that. My mother can be well, motherly at times ( controlling haha ). There have been a few arguments between my parents and I, but we argued when we didn't live here so haha...My mom and dad also can get into it now and again as well. This is my mom and dads house so they have control and we have to respect that. Some people may not be able to deal with that, I can. I did not want the post to convey its all peaches and cream, its not. It is a sacrifice, but my wife and I think it is one worth making. When we need a break we take a trip with our travel trailer. 

To be honest after these last three months The family already feels at home here. It sounds strange but the kids call this there home now. Maybe because we traveled as a family for our business the last couple of years, Im not sure why, but they have adjusted quickly. We have had many discussions about this very topic with them and they actually love it here. My parents have been included in this conversation. We communicate and are very open and honest with each other. We were worried about the kids well being just like some of the responses and wanted to make sure they were doing well emotionally.

So why did we do this ? Many reasons but the most important one is my wife. I want to let you know that I am deeply in LOVE with my wife. She is beautiful, the best mom ever, and my best friend. It is my mission in life to make her happy until the day I die period. Its that simple. The main reason we did this is for her, and I am very happy with that decision. Why? Because she is happy. And when I say happy she is the happiest she has ever been in her life. I hope that gives you more perspective towards our situation. WARNING ( if your wife is not on board with this IT WILL NOT WORK haha ) 

$4k per month debt GONE. Now Saving $6-7k per month. Its hard not to be happy about that. We are debt free. Thanks. 

My wife loves investing and it is her dream to own ten rentals free and clear some day. She has loved our rental property from day one. She loves passive income. She loves money. She is a school teacher and works very hard for our family. Harder than me by far, so she deserves what she wants. Its also her dream to give our children a free and clear house each so that they can start there lives and become financially free and independent. We teach our children about investing and Real Estate often ( S & P 500 dollar cost averaging ) . They are reading this post with us. So to those of you who talked about how hard your lives were growing up I want to thank you. That really helped our kids learn and put there lives in perspective. My younger kids had quite a few questions about your responses and it was a very interesting conversation at the dinner table.

To leverage or not to leverage. I am definitely trying to talk my wife into leveraging. We have had this discussion many times over the last couple of months. I also wanted you to know that we did not pay off our 3 unit. We are keeping that capitol to use hopefully to leverage more deals. I am just finishing up a college class and will now start hunting for deals. My plan is to buy cash rehab then leverage. 

To those of you who are thinking of trying this or something similar I wanted to let you know that everyone's situation is different. There can never be a one answer fits all with this type of situation. Some people need the Giant house, The Benz, all the toys, and the house party's. I like those things too, but there was one problem with this for us. We were living beyond our means and not moving towards a goal of financial freedom and independence. To me we were living a lye in debt and trying to be something we were not. To those of you who can afford those things more power to you. It is the American dream after all. Again don't get me wrong I do want those things again some day. Just when I can afford them with passive income to help me so I can live comfortable and out of debt. 

I thought the tight space of the trailer would be a problem, but for our family it was not. We became closer because of this. We huddle together on a table that turns into a couch and watch movies. We work as a team to cook. We are growing a garden together. We work out together ( I lost 25 pounds ). We go on more walks ( to avoid my parents !!! just kidding. ) The kids have been on a Lego craze since we moved in, I think I like playing Legos more than they do. My wife and I share with the homework and cleaning.

So to sum things all up for our family. If we can become closer to each other. Spend the last couple of years with my high school kid, the last I have with him before he becomes a man. Be together more and spend time as a family. Share great experiences with my mom and dad and mother and father in law before they pass on. Become Debt free and financially independent. Make my wife the happiest she has ever been. I would have to be NUTS NOT TO DO THAT !!!! 

Thank you so much everyone for your reply' and kind words. I really appreciate what I have learned from this post and your words of encouragement. Sincerely Chris.

On a side note @Shiloh Lundahl your post was very intuitive and I enjoyed it very much. I love the reference of the Robert Frost poem. Your post was amazing. Thank you. 

@Dave Foster your words of encouragement were great and propelled me to be more positive while moving and selling our home. Thank you so much brother.

[Steve Vaughan]

Originally posted by @Chris Gawlik:

Hello everyone 

I'm here to give you an update. WE HAVE DONE IT!!!!. So yes we actually are nuts now. I want to thank everyone for your reply's. I never thought it would get that many responses. I also never thought it would be such a controversial subject for people. I coast in and out of Facebook and social media sites every few months so I am not the best at checking previous post, so I apologize for not updating sooner, but I think after reading so many responses its the perfect time to reply and give an update to our family's current situation.

Fist let me offer more insight to our situation. If I would have know this would be such a popular post / topic I would have offered more detail and perspective about our plan and situation. I noticed poverty was quite a touchy subject for some people and I am sorry to hear that you have gone through difficult times in your lives. This is not the situation that we are in at all. Also my mother invited us to do this so it was actually her idea, and my father was on board. We are very close to my parents and also very close to my mother and father in law. Both sets of grand parents actually live two blocks away from our primary house ( now sold ). So we are a very tight knit family. Its the way we spend almost every weekend at one grand parents or the others. The grandparents see the kids almost every day or at least once a week. My parents have a big house. We were also able to spend 3 weeks at our mother and father in laws and house sit for them while they were on vacation. We took around 5 or 6 small vacations this summer and will continue to do so through out the year. My parents let us stay in the house in the summer time and have set up bunk beds and places for the kids to have privacy. The kids get to choose weather they want to sleep in the trailer or the house. My parents have a trailer hook up in there back yard so the bathroom smell is not that bad ( keep the door closed please LOL ). The kids have there friends over when ever they want. They try to sneak video games when ever they can, but my wife catches them and hides there controllers LOL. We have 3 bathrooms that we can use. We take turns cooking for each other and my mom is a SUPER GOOD COOK!!!! 

I hope some of these details gives you a better idea and understanding of our current situation. I also want to let you know that it is a sacrifice as well. I have given up my dream home. It was a single story home in the best neighborhood in town 2400 sq ft , half and acre with a pool, and a view of the mountains in the front, and a deep valley view with city lights at night in the back and my 3 car garage and batting cage  :(  . We have given up the American Dream. I know we will live that dream again some day but it was really hard for me to do that. My mother can be well, motherly at times ( controlling haha ). There have been a few arguments between my parents and I, but we argued when we didn't live here so haha...My mom and dad also can get into it now and again as well. This is my mom and dads house so they have control and we have to respect that. Some people may not be able to deal with that, I can. I did not want the post to convey its all peaches and cream, its not. It is a sacrifice, but my wife and I think it is one worth making. When we need a break we take a trip with our travel trailer. 

To be honest after these last three months The family already feels at home here. It sounds strange but the kids call this there home now. Maybe because we traveled as a family for our business the last couple of years, Im not sure why, but they have adjusted quickly. We have had many discussions about this very topic with them and they actually love it here. My parents have been included in this conversation. We communicate and are very open and honest with each other. We were worried about the kids well being just like some of the responses and wanted to make sure they were doing well emotionally.

So why did we do this ? Many reasons but the most important one is my wife. I want to let you know that I am deeply in LOVE with my wife. She is beautiful, the best mom ever, and my best friend. It is my mission in life to make her happy until the day I die period. Its that simple. The main reason we did this is for her, and I am very happy with that decision. Why? Because she is happy. And when I say happy she is the happiest she has ever been in her life. I hope that gives you more perspective towards our situation. WARNING ( if your wife is not on board with this IT WILL NOT WORK haha ) 

$4k per month debt GONE. Now Saving $6-7k per month. Its hard not to be happy about that. We are debt free. Thanks. 

My wife loves investing and it is her dream to own ten rentals free and clear some day. She has loved our rental property from day one. She loves passive income. She loves money. She is a school teacher and works very hard for our family. Harder than me by far, so she deserves what she wants. Its also her dream to give our children a free and clear house each so that they can start there lives and become financially free and independent. We teach our children about investing and Real Estate often ( S & P 500 dollar cost averaging ) . They are reading this post with us. So to those of you who talked about how hard your lives were growing up I want to thank you. That really helped our kids learn and put there lives in perspective. My younger kids had quite a few questions about your responses and it was a very interesting conversation at the dinner table.

To leverage or not to leverage. I am definitely trying to talk my wife into leveraging. We have had this discussion many times over the last couple of months. I also wanted you to know that we did not pay off our 3 unit. We are keeping that capitol to use hopefully to leverage more deals. I am just finishing up a college class and will now start hunting for deals. My plan is to buy cash rehab then leverage. 

To those of you who are thinking of trying this or something similar I wanted to let you know that everyone's situation is different. There can never be a one answer fits all with this type of situation. Some people need the Giant house, The Benz, all the toys, and the house party's. I like those things too, but there was one problem with this for us. We were living beyond our means and not moving towards a goal of financial freedom and independence. To me we were living a lye in debt and trying to be something we were not. To those of you who can afford those things more power to you. It is the American dream after all. Again don't get me wrong I do want those things again some day. Just when I can afford them with passive income to help me so I can live comfortable and out of debt. 

I thought the tight space of the trailer would be a problem, but for our family it was not. We became closer because of this. We huddle together on a table that turns into a couch and watch movies. We work as a team to cook. We are growing a garden together. We work out together ( I lost 25 pounds ). We go on more walks ( to avoid my parents !!! just kidding. ) The kids have been on a Lego craze since we moved in, I think I like playing Legos more than they do. My wife and I share with the homework and cleaning.

So to sum things all up for our family. If we can become closer to each other. Spend the last couple of years with my high school kid, the last I have with him before he becomes a man. Be together more and spend time as a family. Share great experiences with my mom and dad and mother and father in law before they pass on. Become Debt free and financially independent. Make my wife the happiest she has ever been. I would have to be NUTS NOT TO DO THAT !!!! 

Thank you so much everyone for your reply' and kind words. I really appreciate what I have learned from this post and your words of encouragement. Sincerely Chris.

On a side note @Shiloh Lundahl your post was very intuitive and I enjoyed it very much. I love the reference of the Robert Frost poem. Your post was amazing. Thank you. 

@Dave Foster your words of encouragement were great and propelled me to be more positive while moving and selling our home. Thank you so much brother.

Great update and congrats on your success cutting your own path.  A lot of moving parts had to line up to make this work and it looks like you've not only pulled it off but you're  building a tighter family unit because of it. Awesome!

My family thought I was crazy when I quit the cubicle with it's gauranteed salary and benefits and moved 3 states north into a trailer park from '02-'07 to bootstrap REI. BP peeps would've thoughtt me crazy, too, if it existed back then. When we moved up after acquiring 3 dozen rentals, we moved into 'luxury' househacking to continue to keep the monthly living expenses low.

Now I'm (pretty sure) the only 10x Napper on this entire site.  Not having crushing monthly obligations has afforded me the freedom and choices to become so. Not always bad or crazy to take the path less travelled by.  Continued success to you! 

[Juan Pardo]

Originally posted by @Chris Gawlik:

Hey everyone. We are selling our primary residence and moving into a travel trailer behind my parents house.  We live in one of the nicest neighborhoods in town. I have a family of 6.  A kid in high school and all the way down to an 8 year old. After looking at our bills we are just spending to much money.  We are developing a long term plan to develop some passive income.

We have around 250K in Equity. We will be paying off a 3 unit a car and some Bill's.  By the time everything is paid off we should have around 200k liquid. 

With the net cash flow and our jobs we should be saving around 7k a month. 

My wife is the driving force behind this plan. This is pretty hard for my kids and I, but our plan is to have 3 rentals paid for in cash before we move back into a primary again.  This also may sound a little crazy but I think the realestate market / stock market is going to be going into a recession in the next 1 or 2 years.

 Just wanted to know what some people might think that have more experience / knowledge with our plan. Thanks.

In hindsight you sold at the right time, and now are better prepared than most investors to take advantage of a market where prices will fall. You just have to sit on your cash and wait for the best opportunities; no rush, no pressure.. 

[Chris Gawlik]

@Juan Pardo Hey Jaun, I really appreciate all your support. I am actually trying to get prepared and take action. Starting to look into lease options. I think there may be some opportunities in this area if the market takes a dip. Just got back from driving for dollars tonight and studying my local market. If I find any deals right now I would probably just try to wholesale them, but I want to be prepared and know my local neighborhoods and market for the coming downturn. 

Whats are your thoughts Juan? Also was wondering your plans for the future. You can PM me if you want. Talk to you soon. 
  

[John Mainwaring]

Just picked up solar panels for our airstream today that we bought in April.  Our position up until March was to continue being over-leveraged as the worse that would happen is declare bankruptcy and start over.  Then mom died leaving us with a sizable estate that put our net worth positive. We're scrambling now. My wife's a doctor that has been out of work since this all started, she gets panic attacks when wearing a mask so we are starting a main st practice where she doesn't answer to anyone in a town that see through the charade.

My view is that the state government's have shown their hands and I know where I don't want to be. I too would have been selling last year if we had anything in a metro area, it's all rural here and that's on purpose.  My ears perked up when the repo markets went bizarro.  Backed out of six unit just as lock downs were going into effect and real glad that we did. In the meantime, touring the country while slowly burning through our COVID cash and enjoying an extra few months of maternity leave.

[Chris Gawlik]

@John Mainwaring Hey John, interesting story. I hope you guys end up on the plus side of things at the end of it all. Good luck starting a new practice. Whats going on with the repo market. I did not read about that?