All Forum Posts by: Patrick M.

Through my limited research but from being both a renter and now a home owner, renting offers a ton of flexibility for a fixed amount.  My personal water heater just went out.  $900.  Need a new snow blower 500-$1000.  Remodeled a living room with fireplace $3000.  Redid plumbing main line $2000.  A renter doesn't need to worry about any of these costs. 

Compared to a friend of mine that rents an apartment who is going on a road trip this weekend.  He pays his rent and goes about his day.  I don't envy him as I knew my ownership costs up front and am good with personal finance. I am obviously working towards owning rental.  But that's the difference.  He's not worried about a snow blower, water heater, etc.  He pays his $1200-1500 a month and is happy.  

On the flip side you find that $1000/month in rent crazy as did I.  And it's becuase we value a dollar differently.  I refused to pay more than $600/month in rent because I didn't care about swanky granite and pools and downtown views. (I was also single no kids) I knew if I had a reasonable roof over my head, close to work, I could save the difference to purchase a property for the cost most people rent at. 

Now that I'm married I can especially see families looking for an updated comfortable space for reasonable rent.  They get the appearance of owning a home, the stability of a home, without the financial responsibility.  It takes a lot of time and sacrifice to save financial resources to buy and for some it's not worth it.  

Remember they could pay $500 a month to bank the other $500.  So for a $7,000 down payment it would be 14 months of saving $500 no touching it.  They would also be shopping the $200k range that doesn't offer much for updated homes in my area.  1600 sq  ft ranch but usually 60s era outdated.  

Now to save that $500 they would live in a less desirable location or place. they would end up doing laundry at a laundry mat. or need roommates. or live too far from work/school etc.  So the trade off becomes a really lousy place for $500 only to upgrade to a non updated house that you own.  or just pay $1000 upfront and get an updated place in a nice location.

@Laura White Welcome Laura. I'm new to the investing and the site. I have found a lot of good resources already in my short time here!

@Brett Kash thanks for the heads up on the house hack.   looking forward to the next Brew City meet up I can attend.

@Corina Eufinger I will take a look at them! 

@Marcus Auerbach thank you for your comments. This was some of the direction I was looking for. With my ultimate goal at passitivity that sort of rules out flipping. 

In the end if you get a bad enough tenant maybe you end up flipping a house anyways...just kidding. 

Appreciate your post. This makes a lot of sense. Now to find some deals!

@Jacci Konkle thanks. 

@Christina J thanks for the tip on keywords!

Nice job Nicholas.  This area is very close to me as well! Nice to see practical applications in an area that I know!

Quick introduction. My name is Patrick and my wife and I live in Wisconsin, northwest of Milwaukee.  I've been saving up money and have been disappointed in the bank interest and thought there has to be a better way. 

I'm not sure how I found Biggerpockets but it has been an excellent resource! I'm currently educating myself as much as possible with a goal to purchase our first property by July 2019...before I turn 30. Undecided on SFH for rental or doing a flip.

Would be interested in connecting with other Milwaukee area residents and hearing their stories and or finding out about the next local meet up!