What is the best real estate investing for a school teacher?

Question

Hey everyone, this is my first post on the BP Forum. I have been listening for a while to the podcast and I've also read the UBG and trolled the boards a bit. I am finishing up my student teaching experience this spring, getting married this summer and looking for our first home. I am curious as to what type of real estate investing would be the best for me to focus on as a school teacher. I have 3 months of the year that are open to me to focus on some real estate investing. Given this period of open time I have and a combined income of 70,000 a year between my fiancee and me, what does everyone think I should narrow my scope to in educating myself about real estate investing? Thanks so much everyone, and I'm looking forward to getting to know more about real estate through this awesome website.

Christina R. · Answer

@Matt Jennissen - Welcome to BP! Sounds like you are very motivated to begin both REI and teaching. I'm going to give you some advice that is probably going to sound like sour grapes but I do hope you consider it. I would wait until you are through your first year of teaching to do anything. Consider it another year to increase your savings. I say this because I'm a teacher - have taught in public and private schools, general and special education, since 1996. Student teaching, while necessary and prepatory in nature, is nothing like being the ACTUAL lead teacher. I don't know what the school systems are like in Minnesota but I know how administration, parents and school systems can be. You are going to be extremely busy navigating your students, your fellow teachers and admin, meetings upon meetings, requirements you still may need for certification even after getting out of college, your observations towards tenure, and the parents of your students that first year. Don't even have to know what grade or subject, I know that this will be the case. You are going to have a lot on your plate and I really believe you should focus on that and (it sounds like) your new marriage. If you take ANYTHING on, be sure you have a partner to JV it with that can handle the day to day or it's something extremely passive. I know how hard it is to sit by when you really want to jump in. But the first year of teaching is the hardest (imo).

Matt J. · Answer

Wow! So many responses, this is great. Joel, we have about 40,000 saved up, but won’t be putting all of that into a real estate investment property. Probably more like 10,000 as of right now. Steven, I am in a pretty similar situation to you. Both of my parents are educators too. I want to make sure I set myself up for long-term success and comfort. Did you get some practice on flipping then? Andrew, that is awesome to hear about where you are compared to where you started, it’s inspiring! I never thought of starting an LLC (shows how green I am). Is that a pretty extensive process? What kind of timeline would you suggest according to your plan? James, I’m a member of the Air National Guard myself, thank you for your service. I’d like to have about that many too by the end of 10 years. You’re dreaming just like I am! Bill, it’s nice to hear an example of a high school teacher who did well doing what I am sort of thinking of doing. I get what you’re saying; I should keep my options open. The only thing I worry about is possibly drowning in information. Maybe that’s an irrational worry though. You’re right about me having some time during the week to conduct RE stuff too, my summers just make it even better! Steve, WOW. Absolutely right about that, this is great! Engelo, I keep thinking the same thing. Your 2 cents are appreciated! Zaid, I hadn’t considered that too much until you mentioned it (teaming up with an experienced flipper). I suppose a good question for me to piggy back onto that is, are there some house flippers in the Minneapolis/St. Paul area who’d be willing to teach me a few things? And I definitely do want to add to my income year-round and not just during the summer time. I’m sure I’d have time to do both!

Andrew Tisdale · Answer

As an educator, and investor I have been exactly where you are at. My wife and I had about the same income when we got married, but couldn't save much because of some debt. I found some experienced real estate investors friend/family and sought their advice on how to get started, and with-in a year started an LLC. We all contributed $50 per month and went in together to buy a rental property. With active management, clear expectations, and clear policies our 13 year old LLC is now valued at $250,000 net. When my wife and I saw this LLC growing, we paid off all debt in about 4 years (expect for our house), and started saving hard to buy some investment properties. We started our on LLC and have 3 rental properties. Because of life events like children, career changes, bubble burst, ect. our LLC is not growing like as fast as I would like, but it has taught us to enjoy this and work hard at it. My advice is to save up some capital to make a good down payment, form an LLC, and seek out a great property at a fair price that could be flipped, or rented until the value makes it worth selling. Wish you the best, and keep us posted on your journey.

Andrew Tisdale · Answer

In NC an LLC took about 5 minutes to apply, and 6 weeks to process. I used an attorney, but I should have saved the money a did it on my own.

Brandon Turner · Answer

Hey @Matt Jennissen welcome to BP!

Joe F. · Answer

As teachers my wife and I I bought houses for us to live in and fixed them up during the summer and sold within a couple of years. Kind of a slow flip but it helped to create enough cash for us to invest in buy and hold homes now. If I were starting out I would use that free time in summer to rehab and I would use owner occupied financing to help me start with smaller down payments. I would do what I did. I would just do it more often. I lived in every house for at least two years. I decided to quit moving once we had a second child.

Engelo Rumora · Answer

Thanks @Matt Jennissen Make a passion an obsession and you will never work a day in your life :)

Zaid R. · Answer

Having a 3 month opening in your schedule would be great for something like a rehab project - however keep in mind that you're just getting started (so there's a learning curve) and some projects end up taking more than planned (because of unexpected issues or insufficient planning..etc). It might make sense for you to partner up with someone who's been doing it for a while - it will be a great learning experience especially if you can spend most days @ the site. Another thing I'd recommend doing is seeing how much time you can spend in a regular day on real estate related activities (when you work) . I'm guessing you want to bring in more income year around and not just those 3 months you have off. Good luck!

Engelo Rumora · Answer

Welcome @Matt Jennissen 3 months is a decent amount of time to flip a few houses especially in the summer. Just me 2 cents ;)

Steve Smith · Answer

@Matt Jennissen welcome to biggerPockets as you can see there are a lot of helpful people on this site. Ask a question get an answer.