Hello from Milwaukee, WI! Dreaming, planning, getting support

[Karen M.]

Hi Everyone,

I'm Karen M. from Milwaukee, Wisconsin, and have been just starting to explore the Bigger Pockets community and learn about real estate investing. I am interested in real estate to diversify our investments and earn income.

I'm 43 and a mom of three young kids, married for almost 14 years. I teach fitness classes part-time as a hobby business (about 15 hrs/wk) and I'm otherwise a stay at home mom.

I'm hoping to turn on my husband to the idea of real estate (rentals) as a viable way for us to gain additional income. I have my own investments but this is team decision. There is so much to learn, and I have to do a sales job to my husband if we are to do this.... I have to be successful for my family, period.... I have met a few people along the way in my life who have had rentals and it works for them. Maybe it could work for us too. I have all the normal concerns about getting started and wondering if there is a property out there that could produce income for us, and I'm curious about how to handle maintenance/labor without putting extra stress on my spouse or taking too much away from our busy family life (he doesn't want more on his plate.)

I am interested in all kinds of properties, but mostly want to have a good first experience if we decide to take the leap -- it will be so important to show that this can work. I'm all about baby steps and building up a little at a time. My little fitness business has been a lot of fun, and I'm still learning and growing and having fun with it.

I'm a person with a lot of ideas and enthusiasm. Focus and follow-through will be important for me. Before kids I was an account manager at a marketing firm and I have some good experience for this, but I know ZERO about real estate.

Questions for you:

1. What is your #1 favorite book about rental real estate? What should I read first?

2. I am very concerned about our economy for the long-term. Is your outlook as a landlord positive regarding your position in a changing economy? Are you concerned about the rental market getting hurt by a bad economy and changing/aging demographics? (I read an essay by someone who said a poor economy is good for renting... do you agree with that?)

3. I've also read that agricultural land is a good possible investment. Is anyone into farmland or leased raw land. That seems very specialized and a little harder to understand, but I"m curious if this forum is into that area also. Probably out of my league but I've heard that demand for farmland will be good for a long time.

4. I've read a few comments here on the forums from people who are not into the stock market.... is it realistic to put a large part of your investments into RE?

5. If you don't mind..... what was your first purchase like? What was the most important bit of advice you would give to a newbie like me?

6. I've also been reading about paying off our mortgage on our own home. We have a low rate so it's not a big concern... I think it's a great goal / freedom goal... my husband is not so interested... I love the idea of not having debt, and honestly the whole financing thing is a big piece I'll have to learn about and get comfortable with.

7. How did you get started with meeting people in your network -- a good quality but affordable contractor???? a good property management company????

Take a stab at any topic you want... Thanks so much! Nice to meet ya!

I have tons of reading to do here and look forward to learning. You can expect a lot of questions.. I will learn how to search too, promise. :)

Karen

[Brandon Turner]

Hey Karen Mikolainis welcome to BiggerPockets!

1.) I'd start with Rich Dad Poor Dad. It's an easy read, and will motivate anyone (including your husband) to check out real estate. For more books, read through The Best Books for Real Estate Investors Ever From BiggerPockets

2.) I'm not concerned. People always need a place to live. I AM concerned about inflation which is why I invest. Someday, rent will shoot up to $5000 per month for a studio apartment, but my 4 plex payment is going to be fixed at $450 a month for the next 30 years. So real estate investing is going to be my life-raft to ride the inflation curve. This is why it's so important to start now and get locked in with these low rates.

3.) I wouldn't touch raw land. :) Personal choice, but you can't get monthly cash flow out of it! (Well, you can, but not much)

4.) Stocks are good and I think they are a viable source of building wealth. But, you are going to get a max of 12% on your stocks probably, where real estate I shoot for 30% ROI. Granted, stocks take a lot less work, but still. Plus - with real estate - you have control, not wall street. Also - with real estate, you have the ability to use your mind to make money. I just bought a 4-plex for $90,000 with almost no money at all (under 2k of my own money.) But It's 100% my property. You can't do this with stocks.

5.) My first was a house I lived in and then decided to sell. My 2nd was a duplex, that I lived in one half and rented the other half out. Still one of my favorite properties to this day.

6.) I'm a big fan of this as well. Check out Dave Ramsey if you haven't. He's a radio talk show host and a genius. He's all about paying off debt and getting financially free.

7.) Interacting with other investors is the best way to network and meet others in the industry. Real estate clubs are a great way to do this!

Wow! That's a lot of answers - sorry if you are bored now! :) But definitely check out these two resources:

1.) Check out our "Start Here" page
2.) Check out "The Ultimate Beginner's Guide to Real Estate Investing."
They will help a lot, especially the Beginner's guide!

Finally - don't forget a photo! :)