All Forum Posts by: Eric Hulstrand

I would also encourage you to hire an inspector for the duplex and have them give it a complete once-over. Totally worth the cost.  Even if nothing "wrong", it gives you an idea of where any vulnerabilities are as the future unfolds. BTW, I'm also in ministry and trying to build up my portfolio for the sameness purpose. Keep at it!  

Good for you to take steps to get into the game!  I am also a pastor/investor and find the two things to have some similarities.  

One thought to ponder.  Prayerfully consider hiring a management company to run your rentals.  Pastoring a church and being a landlord are two time consuming things and you don't want your church nor your investments to suffer from lack of attention.  Took me a few years to realize that.  My church didn't suffer, but my real estate definitely did!  

God bless you in finding the right properties!

Kenny,

Great to have you here! I also am a pastor/investor. Since your work has something to do with a college, I wonder about looking into some type of student housing. If you know students, or if you are going to grow into knowing more and more students, you could have a steady flow of reliable tenants for the time that you live there. Maybe start peeking around at possible places, get to know the area? You never know when you could offer someone a contract for deed. I found both of my 4-plexes by nosing around and asking "who owns that?". They originally weren't for sale, but when I asked, things started to move and I was able to buy one on a CFD.

With not having SS, having some rental income is a wise idea.  Keep in prayer about it and when you find something that fits, make sure to run it by some wise counsel.  But by all means be willing to pull the trigger when the Holy Spirit gives you and others you trust a green light!  It's work, but worth it.

Couple thoughts as a pastor/investor (FWIW)...

1.  The verse you mentioned in your original post (borrower slave to lender) is a Description verse versus a Prescription verse.  The Bible describes many things, like Judah having sex with his daughter-in-law in Genesis 38 (yuck!), but that doesn't mean "go and do likewise"!  Proverbs is a book of observations or descriptions, not necessarily prescriptions.  Solomon, et.al are basically saying "watch out and here's why from what we've observed."

2.  Jesus' most helpful, IMO, teaching on business and money is found in Luke 16 with the parable of the shrewd manager.  He basically says that "people of the light" should be just as shrewd with their money and financial dealings as "people of the world".  People tend to avoid Jesus' story, however, because the hero is a crook!  

3.  Related to #2, the word "Shrewd" only comes up in 2 places in the Bible, above and Matt. 10:16.  Both of them have to do with how we interact with the wider world.

So, let's "be as shrewd as snakes and as innocent as doves."

@Steven J.  Thanks...ditto if I hear of possibilities as well.

Thanks for the thoughts, gentlemen!  

@Scott Weaner I did run the numbers and it is a bit underwhelming.  However, farm land is also underwhelming.  Not a clear winner.

@Chris Shaw that thought keeps going through my head.  Farm land has a unique value that I am reticent to sell.

@Charlie Fitzgerald I sent you an email.

Hey All,

I have kind of a unique question.

I recently inherited, free and clear, 90 acres of great farm land.  I also currently own 20 units of apartments (12 unit and 2x4-plexes). I am quite in debt on my rental real estate and am bleeding negative cash flow every month).  I could sell the farm land and pay off all my debt, including all the mortgages on my rental real estate, PLUS my home mortgage.

However, I would have NO more farm land.  Rental real estate is in eastern North Dakota (no oil there, just good steady rents).

So, should I continue to SLOWLY stop the bleeding on my rental real estate and keep the farm land OR sell the farm land to pay off all my mortgages (REI and home) OR should I just sell my rental real estate, lick my wounds and start over with the equity on the farm land?

Finally, I do believe that the U.S. is headed towards the rocks financially and we will very likely find ourselves in a country with more and more capital controls.  IF that happens, which is better to own, farm land or rental real estate?

I hope that makes sense in such a short space.  Thoughts?

@Chris Newman

I have it down to check on TDR in our county.  Thanks...and I will put "farm land" on my key words.