Hello from Central MN!

[Kari M.]

Hello!

My name is Kari and here is my long winded story:

3 years ago, my husband and I purchased a new home and kept our first home as a rental property (DH's plan when he first purchased that house).

My husband purchased that property when it was borded up (previously used for drug trafficking) and fixed it up...nicely, with a few upgrades. He said his first mistake was getting attached to the property when he knew he would be using the house in the future as a rental.

Then he met me and we had a couple babies and it was time to move on.

Our first tenants were not what we wanted. Here was mistake #2: getting desperate. They weren't a horror story, but not ideal. It was very difficult for me to remain optimistic about being an investor/landlord.

Our second tenants were perfect. A new Professor and his wife. Perfect...but the house wasn't perfect for them, so they only stayed a year. BUT, they asked us a few times if we owned other properties because they appreciated the way we maintained the house they were in. Just before they moved out, they contacted me about a house on the market asking if we would purchase it so they could rent it from us. Here is mistake #3 (I think): only owning one property.

I have no new lessons YET with the current tenants.

My husband is in a skilled trade that his body will allow him to do for a maximum of 10 more years. Our goal is to build up enough cash flow over the next few years so we can afford for him to take another job at lesser pay...or just manage our properties.

We have some things going for us:
1. My husband's parents have been buying and holding properties for 25 years...they are eager to share their wisdom with us.
2. We have already screwed up a few times, the best lessons are the ones you won't forget, right?
3. We aren't in this to get rich quick (although we won't be sad if that happens!).
4. We have the ability to take care of a lot of the headaches ourselves, and we are willing to do it (for now).

Some things against us:
1. We are both employed in the construction industry and dealing with layoffs and intermittent work, concerned about what winter will bring. So all of our extra money needs to be set aside for us and our 2 small kids.
2. We are both employed full-time (this month anyway) and we have 2 small kids...time is not abundant right now.

Soooo, my first question to all of you is:
Are we nuts? Later this month we will be approaching my Father-in-Law for money to purchase another property which he will help us find. This decision was not made lightly or hastily and we are prepared for a "No." answer, but expect a "Yes." We are working on a business plan right now. We have never borrowed money from family before.

I'm extremely excited to have found this website and I am looking forward to soaking up as much as I can from you. I greatly value constructive criticism, so lay it on me (gently)!