A Pint Sized Inspection

My husband and I have been real estate investors for 2.5 years and parents for less than a year. Our kids are 7 and 8. I know, the math doesn’t add up...long story for another time.

One of our goals with REI is to gain the financial freedom to spend more time with our family. We also believe that teaching our children about REI can set them up for a strong financial future and teach them many valuable life skills. We’ve taken them to do “make-readys” with us and even had them around at a lease signing, but I was nervous about taking them to a house showing. You see, they are FULL of energy and a boring walk-through with lots of questions they don’t care about could result in us paying for someone’s broken window if we’re not careful. Enter the “Pint Sized Inspection Report.”

First, I wanted to teach them the important things to look at in a potential purchase: windows, water heater, HVAC, plumbing, electrical, structural, roof, and exterior/land. For each line item I gave a simple check box (good/bad) and a space for comments. The next time we do it I think I will add a place for them to count the number of windows/doors. I also included some questions for them to reflect with--which was your favorite room? Why? What did you NOT like about the house? Why? By the time I’d explained it and given them each a clipboard with their report sheet they were ready to go asking, “When do we get to go to the house showing?”

It’s currently a seller’s market in Louisville, making finding a deal more difficult (particularly when you’re both working full time and taking care of two kids). This particular house was intriguing though, with comps well over $325K (fixed up) and listed under $200K. So, after not looking at a house since getting the kids, we thought it’d at least be worth a look.

We were not the only ones intrigued by the numbers on this property, so it was a crowded Sunday afternoon showing. Our kids were diligent though, looking over every item on the walk-through sheet and making comments like “bupehr” (bumpy) asphalt on the driveway and “lede” (lead) windows. The also learned the difference between copper and pex plumbing and plaster vs. drywall.

After we left there was a math lesson to follow. We gave them “guestimated” rehab costs for each line item, totaled them up together, and subtracted them from what we suspect the property is worth totally renovated. In the end, while we think there is profit to be made here, it was too big of a project for us where we are now.

While we are neither perfect parents nor excellent real estate investors, we do see value in bringing our kids alongside us in our work. We hope this encourages you to consider how you can make your family part of your real estate business. For us, real estate is how we can free ourselves for family, this is one way we make sure real estate doesn’t get in the way of family.