All Forum Posts by: Aaron Z.

Jerry Poon This is a great question and something I've planned for and dreamed about for years now. In fact personal finance is my real passion and RE is the a tool that I'm using to get to FIRE (financial independence retire early). My lifestyle now is pretty good - high paying job, great family, etc but I lack the freedom to do what I want when I want which has been extremely important to me ever since I started working a full time job. I dream about being at home both before and after school to make my 2 young kids breakfast and take them to school and then being there to pick them up each day. I dream of being able to experience them growing up and shaping them into independent self-starters that have a foundation to achieve financial freedom in their 20's. I dream of spending my days relaxed and excited to find another deal just for the thrill of it. My wife and I long to spend our summers traveling to new places for weeks/months at a time, to teach our kids about the world by experiencing it first hand. We dream of being able to pick up and go to _______ for a week anytime we want (you fill in he blank!) We are getting close to my personal comfort level for FI. I'm 36 now and in less than 18 months I'll retiring from the military with the benefit of a small pension. At that point, the RE income won't have replaced my job income but we'll be able to live comfortably as I finish executing our acquisition plan. My goal is 75k/yr from long term rentals without managing them myself. I don't plan to stop at 75k/yr but at that point we will have the freedom to design the ideal life for us and that's all we care about. My asset allocation in retirement will be very heavy in RE at about 60% initially with the remaining 40% split between retirement accounts (stocks) and cash for future investments and as an emergency fund.

@David Zheng Great story!  I second the idea of providing unique added value to your tenants as a way to have them happily pay higher rent.  I cater to a younger crowd where they aren't used to having to deal with a crappy apartment or a junky house which is largely what the current inventory consists of where they want to live & where I operate. They definitely appreciate the premium experience of a quick response and a quick fix.  Its a very different way of land-lording and it takes some time to get used to the idea if you've never considered it.

To find a new credit card you really should start with your spending. What you do you spend your money on and how much. Some annual fees are worth it if you spend enough or use the benefits enough.

Tim, there have been lots of recommendations for house hacking, buying a duplex or other multi family and I second those recommendations. To get past your concerns of 1. Not having tenants pay - you get to pick your tenants, so you can avoid most problems by buying near the university and renting to college student (parents almost always foot the bill and they are concerned about credit scores and defaults for themselves and their children) or picking a nicer neighborhood where good quality tenants want to live and then screening them really well. You can find lots of info on here about how to pick good tenants. And finally #2: Not being nearby to respond to calls from tenants if something breaks. What you can do here is have an agreed upon arrangement with a 2nd party to act as your go-to in the case of an emergent repair that you can't address - your dad may be a good fit for this. You work out the labor rate in advance and some of the "what to do if" situations. You can have this person on call for you in case you need it. I am military and not local to my rentals so I have a good friend that I have answer all the phone calls/texts and respond to and fix minor problems at $25/hr (it used to be $15/hr but he has saved me so much money that I told him to charge me $25!). It has worked well for me. He is not my PM but is much more than just a handyman. It helps that he is a fellow investor and has rentals just down the street from me. There is a lot you can do at your age and with your living and expense situation. Buying a primary residence, renovating if needed, house hacking, staying the required length of time, and then moving and repeating this over and over is one of the lowest cost paths for you to get a lot of experience and doors at a low cost with a low capitol amount since you get access to low down payment loans and good interest rates. Feel free to hit me up with additional questions. I was in your shoes about 15 years ago.

Patti Robertson thank you. I also prefer Norfolk but have recently had my attention drawn to Portsmouth. How do you feel about Portsmouth? Any advice on areas to avoid? I'm a little concerned about appraisals for BRRR or when flipping.

Patti Robertson If you don't mind me asking, how much are you typically into a 3/1 that'll rent for 1350 to section 8 for? Any particular parts of Tidewater area that you concentrate on? I haven't done Section 8 before but I understand the appeal.

Thanks Gail. I have one house with screen doors and they are definitely higher maintenance. I'm not installing them anywhere else and I'm removing them as they are broken.

Thanks Brian. I've read a lot about how bad carpet is but I really have had pretty good luck. I have had it in one house for 11 years and another for 13 years. It has stains but the college students usually add to the stains so they don't mind starting with some steam cleaned yet stained carpets because they won't be charged for the new stains they are likely to add. I've only had to replace the carpet in a couple bedrooms when there was a tear or burn that couldn't be replaced very easily. On my next house I plan to install LVT in the baths hallways and kitchen and leave carpet for the bedrooms. For the most part carpet is cheap and pretty low maintenance since students don't demand it be replaced in order to pay pretty close to top dollar.

Lynn M. That thread is a goldmine. Thanks for sharing, that was exactly was I was looking for!

Great suggestions and thoughts. I never thought about the staining of concrete. Maybe I won't put in that patio...but the more concrete in the yard the less grass to mow and yard to maintain! College students aren't the best at using a lawnmower and the city likes to fine for tall grass. I like the runner idea too...I just have to find one that doesn't look like my grandma's style! I'm definitely a fan of delta and American standard and since I will own for the long haul I see the value of the lifetime warranty. I don't get the no baseboard suggestion, what does that get me? Good luck figuring out the no corners thing...