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Speaker 1: Welcome to How to Money. I'm Joel and I'm Matt,

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Speaker 1: and today we're talking about investment properties. Yeah, that's right,

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Speaker 1: So we're gonna be talking about investment properties today. Man,

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Speaker 1: I'm looking forward to it. We each have a few

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Speaker 1: and we've got some thoughts. We've been doing it now

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Speaker 1: for for quite a few years, and I think we

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Speaker 1: got a lot of information to share with the listeners

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Speaker 1: out there about how we've done things, kind of the

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Speaker 1: ways that we've I feel like had successes with running

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Speaker 1: properties and and maybe some of the ways that we

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Speaker 1: haven't done it as well as we had hoped. But quickly,

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Speaker 1: let's talk about really people want to know about our

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Speaker 1: cover photo and how they came about. And there's one

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Speaker 1: lingering question that I've gotten from a bunch of listeners already. Matt,

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Speaker 1: you've talked about working from home, but nobody knows what

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Speaker 1: you do. It's kind of fun. We we got Kate,

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Speaker 1: my wife, to take our photo, our goofy photo. But

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Speaker 1: it's it's good, Okay. Not are photographers. We we've been

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Speaker 1: photographers for the past ten years. And she she stays

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Speaker 1: at home now with the kids, but is still a

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Speaker 1: talented photographer. So that's what I still do though, primarily weddings,

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Speaker 1: because weddings are just way better than anything else. Why

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Speaker 1: why do you say that it's more fun. You get

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Speaker 1: to deal with folks that are having a blast, as

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Speaker 1: opposed to say headshots maybe of you know, of some

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Speaker 1: company or something like that when you're sitting in office.

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Speaker 1: Weddings are just jam full of uh, fun and action

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Speaker 1: and activity. You're basically going to a party every other Saturday. Yeah, exactly,

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Speaker 1: And just I love it documenting it so that people

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Speaker 1: can have smiling yeah picture proof for the rest of

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Speaker 1: it all day and enjoying myself. Man, it's awesome. Seriously, Yeah,

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Speaker 1: it's the best. So now everyone knows the secrets out

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Speaker 1: your wedding photographer, because you've alluded a few times to being,

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Speaker 1: uh to working from home, and so people are like, well,

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Speaker 1: just well I work from home. That's my my day job.

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Speaker 1: Folks are like, oh, yeah, you get a party every

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Speaker 1: other weekend, right like you said it. But then Monday

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Speaker 1: through Friday are that's that's emails, editing, the post processing,

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Speaker 1: phone calls, meeting up with folks in person as well,

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Speaker 1: all that kind of stuff. Running a small business, that's

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Speaker 1: the thing that some people. Taxes, insurance all yeah, all

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Speaker 1: that action, there's a lot more to it. Anybody can

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Speaker 1: kind of be a photographer maybe for a year or two,

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Speaker 1: but then when it comes to taxes, and really taxes

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Speaker 1: and insurance are the are the big things that start

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Speaker 1: to gum things up a little bit, and folks are like, oh,

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Speaker 1: I don't know if I want to keep doing this

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Speaker 1: because this is more complicated than I thought. Yeah, that's

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Speaker 1: I think that's the interesting thing because I'm friends with

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Speaker 1: a few photographers and I've found out through the years.

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Speaker 1: You certainly have to have that artistic sense right to

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Speaker 1: be able to make it at all. First and foremost right,

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Speaker 1: you have to have that. But to add to that,

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Speaker 1: and almost just as important, you have to be able

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Speaker 1: to run a business. You have to learn and and

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Speaker 1: want to know how to run a business well. And

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Speaker 1: if you can't do that, that artistic side is especially

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Speaker 1: if you're gonna have your own small business like you do. Obviously,

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Speaker 1: you can be a photographer for someone else and and

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Speaker 1: and just enjoy it as a hobby even obviously, Yeah,

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Speaker 1: but but you have to know how to run that business.

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Speaker 1: And there's a lot involved with that. Yeah, And you gotta,

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Speaker 1: I mean you you need to want to know how

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Speaker 1: to do that, and that's I think that's one of

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Speaker 1: the things that fits me so well as I just

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Speaker 1: love I mean I literally love doing do incorporate taxes,

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Speaker 1: like all the boring stuff that literally goes into like

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Speaker 1: the admin side, like the back end of working on

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Speaker 1: the website, all that kind of stuff. Man, I love it,

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Speaker 1: which is love building the thing from the ground up.

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Speaker 1: It's just it's a blast, which is why we're a

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Speaker 1: perfect fit. And to go to you guys, go to

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Speaker 1: Poor not Poor dot com and you'll see, you know,

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Speaker 1: Matt did a lot of the does a lot of

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Speaker 1: the images, does a lot of so the background work,

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Speaker 1: and um, I'm kind of tackling some of those, some

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Speaker 1: of those other things, some of the the audio, Yeah,

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Speaker 1: the audio editing, because that's that's where that's what I'm

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Speaker 1: into when I know, well, you make us sound good

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Speaker 1: and I make us look good, Joel, So it's great.

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Speaker 1: Are are the things that we're good at balance each

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Speaker 1: other out well, and the things that we enjoy. And

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Speaker 1: I think if you've listened to the first few podcasts here,

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Speaker 1: you might have already kind of got an inkling of that.

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Speaker 1: So on Poor not Poor podcast. We drink a different

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Speaker 1: beer every week. So we're gonna get into talking about

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Speaker 1: investment properties in just a second, but first let's talk

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Speaker 1: about this beer man. What would you bring for us today?

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Speaker 1: All right? So today I brought the beer and it

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Speaker 1: is called scatter Brain. It's an I p A from

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Speaker 1: a brewery called Bearded Iris Brewing out of Nashville, Tennessee. Sadly,

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Speaker 1: I haven't been able to visit the brewery yet, but

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Speaker 1: my mom was up there for a conference, and so

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Speaker 1: I was like, hey, hey, Mom, I'm gonna need you

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Speaker 1: to go pick up some Bearded Iris beers for me

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Speaker 1: while you're there. I'm gonna need you to do this

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Speaker 1: if you could, please, I asked nicely. And also like

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Speaker 1: tossing your laundry as well. Also could you do my laundry?

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Speaker 1: She's like, your thirty three son, I'll get your beer,

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Speaker 1: but I'm not doing your laundry. And so Mom was

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Speaker 1: kind enough to bring back two four packs of beer

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Speaker 1: de Iris beer for me. They specialize in I pas.

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Speaker 1: I think they've done a couple other things, but like

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Speaker 1: literally they'll have like seven I PA s on draft

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Speaker 1: that are just different IPAs. That's what they do, so

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Speaker 1: they know what they're doing. And uh, I will tell

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Speaker 1: this interesting story. First off, how do you feel about

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Speaker 1: your mom or someone close to you being a beer

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Speaker 1: mule for you? Because that's what they call them when

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Speaker 1: you when you send someone out to get beer for

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Speaker 1: you in another state or another location, your beer mule. Yeah,

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Speaker 1: by that definition, I have been a beer mule for you,

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Speaker 1: that's true. You have, you have? We brought back some

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Speaker 1: Abissell Brothers and uh Trullium, Yeah Trulli. I'm out of Boston.

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Speaker 1: I couldn't think of them. Uh yeah, man, but that

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Speaker 1: was absolutely worth that check bag from from Boston. Holy cow,

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Speaker 1: that's I will stay you do it all over again

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Speaker 1: just to get that beer. The only way I'll check

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Speaker 1: a bag is for beer. That's the only time I'll

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Speaker 1: ever check a bag Bucks, and just to get some

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Speaker 1: amazing stuff that you're not gonna be able to get

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Speaker 1: at least in our state in Georgia. So well know, yeah,

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Speaker 1: bestl Brothers and nor Trillium. Neither of them distribute right

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Speaker 1: at all. Yeah, and so actually literally the only way

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Speaker 1: you can get that beer. When I went to Amsterdam

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Speaker 1: one time, I brought back. I believe I brought back

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Speaker 1: thirty seven beers across a couple of bags, check bags.

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Speaker 1: That's a lot of beer. And it was so worth it.

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Speaker 1: I was drinking. It just reminded me of the trip.

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Speaker 1: For I still have one bottle left that's just chilling

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Speaker 1: bottle of Canti, just chilling for me. So because it

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Speaker 1: last twenty years, I believe those those gooses that you

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Speaker 1: can have them on your shelf for twenty years. So

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Speaker 1: I want to tell you real quick story about my

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Speaker 1: mom getting the beer. So she went to the brewery

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Speaker 1: with some of her co workers because she was there

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Speaker 1: for a conference. And she shows up with the brewery

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Speaker 1: and it looks like it's closed apparently. So she walks

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Speaker 1: up to the door and takes a selfie because she

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Speaker 1: just wants to prove to me that she actually went

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Speaker 1: even though it was closed. Oh, instead of being like, sorry,

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Speaker 1: you couldn't get there closing, she was gonna text me

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Speaker 1: the picture. And I guess there's this window. There's this window,

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Speaker 1: and people are everyone staring at her and she's taking

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Speaker 1: a picture. Everyone inside the brewery is staring at or

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Speaker 1: while she's taking this picture, and her friends are like Uh, Cheryl,

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Speaker 1: I'm pretty sure they're open. There's a bunch of people

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Speaker 1: and they're looking at you while you're taking the selfie.

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Speaker 1: And so she went in there and she asked the bartender,

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Speaker 1: excuse me, do you sell beer here? Oh my god.

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Speaker 1: The bartender kind of looks at her like, yes, yes, ma'am,

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Speaker 1: that's actually you are. In fact, that's all we sell.

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Speaker 1: In fact, that's what we do here. We sell beer

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Speaker 1: and beer alone. All right, So the beer is scatter.

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Speaker 1: Let's talk about the beer because we've got a lot

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Speaker 1: of real estate to talk about too. It's an I

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Speaker 1: p A. Let's crack it nice. Yeah, this can it is.

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Speaker 1: It's one of those almost all silver cans. I like

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Speaker 1: how breweries are doing that because the way that they're

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Speaker 1: a lot of breweries are brewing a lot of different stuff,

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Speaker 1: and so they're not dedicating an entire new label necessarily

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Speaker 1: to each beer. They can just yeah, kind of slapping

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Speaker 1: on a new label with kind of the standard can. Uh,

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Speaker 1: like a silver tall silver can. I like that. Anytime

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Speaker 1: I see that, I'm like, I must be good. So

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Speaker 1: Bearded Iris does sixteen ounce cans of beer and four

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Speaker 1: Seliman four packs, and I believe it's about sixteen bucks

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Speaker 1: for four packs, so it's not cheap. It's about four

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Speaker 1: bucks a beer. But they're making some of the best

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Speaker 1: I pass right now. No, but where on the street

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Speaker 1: is They're coming to Atlanta soon, they're gonna start distributing.

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Speaker 1: I think they distribute down in parts of Tennessee. But

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Speaker 1: that's it so so just locally for thoughfully, we'll get

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Speaker 1: them soon. Nice hazy kind of got that orange juice,

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Speaker 1: sort of look to it, man, beautiful color orange and

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Speaker 1: uh so we will be drinking this bearded iris scatter brain,

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Speaker 1: I p A. And we will give you our full

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Speaker 1: beer tasting notes at the end of the podcast for now, though, Man,

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Speaker 1: that's delicious, fruity hazy. It's got that, man, it's got

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Speaker 1: a nice natural sweetness to it. Half of my beer

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Speaker 1: descriptions include a man, I don't really have like a

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Speaker 1: word for it sometimes because we're drinking good seers here, homie,

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Speaker 1: I'm just thinking about it as delicious. Okay, So let's

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Speaker 1: get into investment property talk. What our investment properties, Matt. Yeah,

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Speaker 1: when you hear investment properties, I mean the way we're

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Speaker 1: gonna talk about it today is there's kind of two types.

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Speaker 1: You've got your flip. So an investment property can be

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Speaker 1: something you purchase and that you plan to sell pretty

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Speaker 1: much right away for a profit. Or you can be

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Speaker 1: coming at it from a long term buy and hold

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Speaker 1: sort of option and you buy it and hold it

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Speaker 1: and you know, rents it out. Whether it's be commercial

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Speaker 1: you know you can buy and hold with commercialist date

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Speaker 1: where you're running out of businesses or single family homes

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Speaker 1: or multi family homes, we're you know, running out too families.

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Speaker 1: So and that's what we're gonna be focusing on today

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Speaker 1: is the buy and hold. Yeah, and just uh quick

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Speaker 1: note to people, we will Matt and I each own

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Speaker 1: a few investment properties. Will get into the specifics in

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Speaker 1: a minute. Uh. We Also, this podcast will be a

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Speaker 1: little bit more of a forest conversation, and eventual later

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Speaker 1: podcasts you will get down into some of the trees

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Speaker 1: on how to potentially screen a tenant, um, other decisions

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Speaker 1: you need to make with your rental property about repairs,

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Speaker 1: how you choose where to buy. But for now, we're

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Speaker 1: kind of going to kind of look at the forest

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Speaker 1: and get an overview of what you should be thinking

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Speaker 1: about if you're interested in rental properties and why you

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Speaker 1: should be interested and potentially pursuing a rental property in

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Speaker 1: your portfolio. That's kind of our general approach to to

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Speaker 1: what we're gonna be talking about investment properties. And then

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Speaker 1: so us personally, Yeah, man, how did you get started

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Speaker 1: with with rental properties? And in particular, Yeah, so I

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Speaker 1: bought my first house in two thousand nine, and I

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Speaker 1: got it for a just ridiculously cheap amount of money,

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Speaker 1: as as did I three thousand nine. That was a

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Speaker 1: good year, man, two thousand nine was the right time

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Speaker 1: to buy a house. So actually, I think we both

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Speaker 1: bought at the same time when there was an eight

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Speaker 1: thousand dollar tax credit that you didn't have to pay back,

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Speaker 1: right right. There was one before that, uh that was

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Speaker 1: like I think so fills that had to be paid back.

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Speaker 1: But this eight thousand dollar tax credit for a short

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Speaker 1: period of time, I don't know how long it was

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Speaker 1: in effect, for six six months to a year, was

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Speaker 1: you didn't have to pay it back. And so that

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Speaker 1: was like the perfect time, the perfect impetus to buy

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Speaker 1: a house. The iron was hot and the prices were low,

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Speaker 1: and so I think it was up to ten percent

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Speaker 1: of your purchase price. So really if you could get

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Speaker 1: in that eighty thousand to eight, you know, writing that

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Speaker 1: eighty thousand dollar price range, you're you're maximizing your the

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Speaker 1: government's paying for ten of your home. And so I

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Speaker 1: bought a home into thousand nine and paid eighty nine

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Speaker 1: thousand dollars for it. The federal government paid eight thousand

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Speaker 1: dollars of that, so it was really more like an

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Speaker 1: eighty one dollar purchase. I lived in it for a

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Speaker 1: couple of years, and I had a roommate for a

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Speaker 1: little bit, and then um kicked him out because I

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Speaker 1: got married, and so just decided after a while it

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Speaker 1: just made a lot of sense to buy another house.

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Speaker 1: And rents were going up, and I was like, oh man,

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Speaker 1: it makes so much sense to to get in on

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Speaker 1: this rental action. And you were charging that friend right

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Speaker 1: like you had a roommate, and so that was sort

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Speaker 1: of like your first tenant essentially, it was in your

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Speaker 1: own house, living with you. Yeah, And and considering how

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Speaker 1: cheap I was looking at how much I was paying

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Speaker 1: in rent every month, and compared to what rents are now,

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Speaker 1: obviously it wasn't too bad, but it was still like

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Speaker 1: seven a month, and I just couldn't find I knew that.

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Speaker 1: I think my new mortgage was like seven fifty dollars

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Speaker 1: a month, and then I could get someone a roommate

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Speaker 1: to pay more than half of that, So it just

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Speaker 1: made sense. I was like, oh, man, I can start

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Speaker 1: saving a lot more money if I buy this house

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Speaker 1: and I have a roommate in here. And then that

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Speaker 1: compounds on itself when you think of the idea of

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Speaker 1: actually buying another house and running that out and how

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Speaker 1: much more you can save, which then compounds and you

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Speaker 1: can buy more rental houses exactly right. And a lot

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Speaker 1: of folks call that house house hacking, right where you

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Speaker 1: kind of buy a property thinking that like, Okay, I'm

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Speaker 1: gonna live here, but you know, I've got three other

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Speaker 1: rooms and I'm not using if I can get three

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Speaker 1: other roommates in there, and they're gonna pay for my

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Speaker 1: mortgage right right, And it's not like your rip and

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Speaker 1: people off. It's just you're providing a great place for

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Speaker 1: people to live while at the same time, you know,

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Speaker 1: obviously you had to pay up front and put the

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Speaker 1: down payment on the home and and everything else that

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Speaker 1: comes with owning the property yourself. There's a lot of

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Speaker 1: people that want a temporary place to stay. I don't

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Speaker 1: want you know, he my my roommate at the time

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Speaker 1: was month to month and he was I don't know

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Speaker 1: that totally cool with that. He he just wanted a

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Speaker 1: place to stay for three to six months and was

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Speaker 1: more than happy to pay. He didn't know how long

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Speaker 1: he had to be able to handle you for right,

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Speaker 1: It's like, I don't want to commit to a whole year.

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Speaker 1: But just like we talked about with potential air b

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Speaker 1: and bs UH last episode, you know, you can make

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Speaker 1: a lot of money on AIRBBS. You're not ripping people off.

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Speaker 1: People want a place to stay for a night and

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Speaker 1: you've got You're taking on a lot of a lot

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Speaker 1: of risk, but there's also a lot of potential reward.

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Speaker 1: And it's the same with UH investment properties that you

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Speaker 1: rent out on an annual basis. There's a lot of

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Speaker 1: risk and reward, but the reward could be could be

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Speaker 1: quite nice. Man, Absolutely so, seeing you kind of think

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Speaker 1: through all that back then own the time that you

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Speaker 1: guys were considering so you and Emily, when y'all were

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Speaker 1: considering getting your second house, is when we started having

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Speaker 1: these conversations. This is way before poor not Poor a

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Speaker 1: long time ago, but that's honestly, that was a huge

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Speaker 1: sort of kickstarter for for us to kind of start

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Speaker 1: thinking that as well. We we we've got some good

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Speaker 1: friends of ours that live up in Asheville. And that

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Speaker 1: was my first, I guess awakening towards investment property. Like

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Speaker 1: I didn't grow up in a family where that was

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Speaker 1: a thing, where investment Oh yeah, everybody's got investment properties.

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Speaker 1: It was very foreign to me. But seeing my friend Clark,

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Speaker 1: his first home that he purchased was a triplex and

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Speaker 1: so literally, I mean they moved in and within the

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Speaker 1: first month they had two other renters. Well they took over,

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Speaker 1: they're already they're already there, and so they actually just

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Speaker 1: maintained the lease that they already had and they were

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Speaker 1: able to have income generated by this property that they

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Speaker 1: had not owned and lived in right off the bat.

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Speaker 1: And so I helped him a lot. I mean, I

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Speaker 1: have to move into the house and kind of got

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Speaker 1: to see that firsthand. So those seeds were planted then.

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Speaker 1: But then honestly I thought, man, if Joel can do this,

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Speaker 1: he's an idiot. Yeah, I was just like, if if

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Speaker 1: he can do this, I need to start I need

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Speaker 1: to start thinking down that, you know, thinking on this

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Speaker 1: down this path. But like, honestly, it just had to

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Speaker 1: do with us talking about it. Yeah, right, And so

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Speaker 1: that's what I'm hoping too, that listeners that are listening

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Speaker 1: to this episode can at then this conversation, they'll think, Man,

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Speaker 1: it's really not that complicated. It's not as nearly as

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Speaker 1: scary as maybe I thought in my mind. Let's let's

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Speaker 1: start thinking more about this. This should be an avenue

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Speaker 1: that we should consider. I feel like the first thing

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Speaker 1: that people say usually is they think about the worst

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Speaker 1: case scenario with tenants or but but in what else

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Speaker 1: in life do you really consider the worst case scenario? First,

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Speaker 1: there's a lot of great case scenarios. And sure, there's

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Speaker 1: a lot of potential pitfalls, and there's a lot of

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Speaker 1: things that I mean, I think we could from from

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Speaker 1: our like seven years as being landlords seven or eight years,

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Speaker 1: there's there's some things that we can tell you that

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Speaker 1: you need to avoid, that you need to consider. But ultimately,

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Speaker 1: if you do a thorough job screening and you're smart,

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Speaker 1: and you have a house that's in good condition that

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Speaker 1: you would want to live in, and that's always my standard,

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Speaker 1: what I want to live in the house. If I

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Speaker 1: wouldn't want to live in the house, then I'm not

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Speaker 1: considering it. Time for some upgrades. Yeah, so yeah, So

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Speaker 1: where where are you then today with uh? With real estate?

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Speaker 1: So we have three rental homes and we also rent

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Speaker 1: out the back part of our home and they're all

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Speaker 1: single family homes. At one point you mentioned triplex. At

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Speaker 1: one point we looked at a triplex and we put

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Speaker 1: in an offer, but we didn't get it. Uh. There

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Speaker 1: there have been a couple of multifamilies so we've been

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Speaker 1: interested in but just haven't haven't quite gotten them yet,

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Speaker 1: and we put in offers but just haven't gotten them.

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Speaker 1: But that is something we'd be interested at some point

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Speaker 1: in time. You and I kept from the same cloth

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Speaker 1: man same yeah, same here. I mean, yeah, like you,

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Speaker 1: we've got three as well, which is it's just funny

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Speaker 1: how how similar we are. Hopefully we'll kind of continue

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Speaker 1: to be able to expand that portfolio too. So what

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Speaker 1: is your kind of ultimate goal? Like why do you

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Speaker 1: do this? Yeah? That's great question because and I think

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Speaker 1: anybody that's looking to go into having rental properties needs

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Speaker 1: to think through why they're doing it, because the why

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Speaker 1: behind it. And I mean for me, it's all about

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Speaker 1: financial independence at some point and having another stream of income,

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Speaker 1: having another way to make money. And I think there's

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Speaker 1: a lot of value in real estate being one of

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Speaker 1: those pillars of how you make money. And so yeah, ultimately,

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Speaker 1: rental properties are a great retirement asset to have as

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Speaker 1: well because they can provide income every month. Uh. Most

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Speaker 1: people these days don't have pensions, just have four O

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Speaker 1: one case, maybe a little bit social Security. You're not

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Speaker 1: sure how much you're gonna get there either, So it's

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Speaker 1: one of those things that is perfect in the now

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Speaker 1: to provide some extra income. Yeah, and then on top

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Speaker 1: of that, it's it's something for the future as well. Yeah,

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Speaker 1: I mean that's exactly for us. Again, like I mentioned earlier,

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Speaker 1: being self employed, our income is varies greatly depending on

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Speaker 1: the season, right, So there's season and then there's low season,

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Speaker 1: and so for us to kind of be able to

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Speaker 1: stabilize our our variable income some is always uh, is

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Speaker 1: always welcomed, and our family feels a little less stressed

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Speaker 1: when we know that we've you know, we've got rent

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Speaker 1: kind of coming in. Obviously we've got mortgages, but still

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Speaker 1: annoying that some of that we're going to be able

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Speaker 1: to put towards our our expenses and cost of living

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Speaker 1: living for ourselves, um, but also to man. Another reason why,

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Speaker 1: like the more the bigger picture reason why why we

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Speaker 1: love it the investment properties as well, is that we're

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Speaker 1: able to buy into what we love, which is the city,

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Speaker 1: like being you know, invested in the city both emotionally

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Speaker 1: but also obviously financially as well. Like we believe in

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Speaker 1: in in our city. We we love it, and to

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Speaker 1: kind of be able to to kind of be able

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Speaker 1: to back that in a in a way that's really

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Speaker 1: really tangible is great, I think as well. Yeah, and

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Speaker 1: so the last house that I bought, it's it's it's

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Speaker 1: uncam anyhow weird, uh, Matt and eyes lives are linked.

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Speaker 1: The last rental homes we bought were literally it's been Yeah,

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Speaker 1: we we've been destined to to do this. It was

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Speaker 1: our first foray into another neighborhood. And we'll get into

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Speaker 1: the recent location is really important when picking rental property

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Speaker 1: in just a minute. It was our first foray into

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Speaker 1: another neighborhoods about ten minutes away from where we currently live,

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Speaker 1: and and all our other rental properties are kind of

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Speaker 1: right by almost exactly where we live, and we ended

402
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Speaker 1: up buying houses that were two doors down from each other.

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Speaker 1: But it's it's because we love that neighborhood over there

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Speaker 1: so much. Yeah, but we love you know what made

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Speaker 1: has drawn me to that neighborhood for so long. It's awesome, man.

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Speaker 1: I have always I've told Emily this for years and years.

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Speaker 1: When I retire, I want to live next to a

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Speaker 1: disc golf course, and actually maybe before that, I just

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Speaker 1: want to someday live next to a discolf course. Got

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Speaker 1: to walk out the door. And so the only discolf

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Speaker 1: course basically an in town Atlanta is right there where

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Speaker 1: this rental property is. So I wanted to have that.

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Speaker 1: I wanted to have that place near to that disc

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Speaker 1: golf course. I love that park. It's just it's so awesome.

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Speaker 1: The numbers worked too, which was nice. If the numbers

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Speaker 1: didn't work, I wouldn't buy it, but it would kind

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Speaker 1: of have all that line up together. Yeah, that's that's

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Speaker 1: a nirvana, right, like the location you already believe in

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Speaker 1: that you love obviously in the city that we love,

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Speaker 1: but then also to have kind of like these sweet

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Speaker 1: trappings of man Sunday, I could be over here and

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Speaker 1: walk straight out onto the whole one of the disc golf. Well,

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Speaker 1: I knew, at least in the meantime anytime I've got

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Speaker 1: to go over there and repair something, I was, sweet,

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Speaker 1: you're gonna throw your disks in the drunk and I

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Speaker 1: can go throw four or five holes at least as well.

427
00:20:33,520 --> 00:20:36,639
Speaker 1: It's like Emily, I'll see yet too. Yeah, so it's

428
00:20:36,720 --> 00:20:38,600
Speaker 1: kind of it was kind of perfect, perfect for me

429
00:20:38,640 --> 00:20:41,159
Speaker 1: in that regard. Yeah, so Matt, let's talk about how

430
00:20:41,200 --> 00:20:44,480
Speaker 1: we manage our properties. Serves more the particulars. Yeah, it's

431
00:20:44,480 --> 00:20:46,359
Speaker 1: interesting because the guy that I bought this last house

432
00:20:46,400 --> 00:20:51,240
Speaker 1: from had fifty plus properties, jeez. And he told me

433
00:20:51,520 --> 00:20:53,439
Speaker 1: at the time and he sold me this property, he

434
00:20:53,480 --> 00:20:55,280
Speaker 1: said that the biggest piece of advice I can give

435
00:20:55,359 --> 00:20:58,360
Speaker 1: you is to get a management company, which is interesting

436
00:20:58,520 --> 00:21:00,720
Speaker 1: because I totally disagree with him, and I manage all

437
00:21:00,760 --> 00:21:03,160
Speaker 1: my properties myself. And for the time being, I think

438
00:21:03,240 --> 00:21:05,280
Speaker 1: until I probably get to double digits, I plan on

439
00:21:05,359 --> 00:21:08,199
Speaker 1: managing all my properties myself. And we both do that.

440
00:21:08,320 --> 00:21:10,520
Speaker 1: And why do you think that's important? And why do

441
00:21:10,520 --> 00:21:12,240
Speaker 1: you continue to do that? Yeah, I can see somebody

442
00:21:12,240 --> 00:21:15,800
Speaker 1: that has fifty properties. Why why you don't want to

443
00:21:15,800 --> 00:21:18,959
Speaker 1: do that? But yeah, so that's that's one one way

444
00:21:19,000 --> 00:21:21,960
Speaker 1: you can approach it, right, it's pay management company. And

445
00:21:21,960 --> 00:21:24,159
Speaker 1: and I would even suggest that there too for folks

446
00:21:24,200 --> 00:21:26,880
Speaker 1: that know that they want to get into investment properties

447
00:21:26,880 --> 00:21:29,239
Speaker 1: but don't want to deal with the headache. Cause when

448
00:21:29,240 --> 00:21:31,280
Speaker 1: I talk to people about investment properties, that's one of

449
00:21:31,280 --> 00:21:33,600
Speaker 1: the first things they talk about, right, is, Oh, I

450
00:21:33,600 --> 00:21:34,840
Speaker 1: don't want to. I just don't want to get the

451
00:21:34,840 --> 00:21:36,320
Speaker 1: phone call in the middle of the night saying there's

452
00:21:36,320 --> 00:21:37,680
Speaker 1: a leak and try to have to figure that out.

453
00:21:37,720 --> 00:21:40,399
Speaker 1: It's like, well, you don't have to get that phone call.

454
00:21:40,480 --> 00:21:42,240
Speaker 1: The management company can if you don't want to, don't

455
00:21:42,240 --> 00:21:44,320
Speaker 1: want to deal with that. But in your you've you've

456
00:21:44,320 --> 00:21:47,159
Speaker 1: been a landlord now for six and a half years.

457
00:21:47,359 --> 00:21:49,320
Speaker 1: How many of those have you gotten? That's my thing

458
00:21:49,640 --> 00:21:52,440
Speaker 1: what I want to tell those people. It's overblown, that's true,

459
00:21:52,480 --> 00:21:55,560
Speaker 1: don't worry about it. It almost never happens. But I

460
00:21:55,560 --> 00:21:57,320
Speaker 1: guess what I'm saying though, is that if that is

461
00:21:57,560 --> 00:22:00,400
Speaker 1: the barrier, don't let that be a barrier. Because management,

462
00:22:00,520 --> 00:22:02,080
Speaker 1: you know, they take some off the top, but it's

463
00:22:02,119 --> 00:22:04,600
Speaker 1: not it's not it's not a big deal. Management companies

464
00:22:04,600 --> 00:22:07,680
Speaker 1: will usually take approximately ten, so I might take seven,

465
00:22:07,720 --> 00:22:10,320
Speaker 1: so might take twelves right about percent. It's gonna be

466
00:22:10,320 --> 00:22:12,119
Speaker 1: somewhere in that range. A lot of them take we'll

467
00:22:12,160 --> 00:22:13,600
Speaker 1: take the first month's rent to just to kind of

468
00:22:13,640 --> 00:22:16,520
Speaker 1: get it up and running that initial So you're you're

469
00:22:16,560 --> 00:22:18,520
Speaker 1: you're talking about a big outlay there, and the numbers

470
00:22:18,600 --> 00:22:20,760
Speaker 1: have to be a lot better on a property if

471
00:22:20,760 --> 00:22:23,440
Speaker 1: you're going to use a management company, if you're planning

472
00:22:23,440 --> 00:22:26,000
Speaker 1: on self managing, give a little more leeway in what

473
00:22:26,040 --> 00:22:29,560
Speaker 1: you're going to purchase. The thing is, for most management companies,

474
00:22:29,600 --> 00:22:31,760
Speaker 1: they're collecting the rent and they're answering those phone calls.

475
00:22:31,960 --> 00:22:34,960
Speaker 1: But here's the thing. You're you're still paying the plumber

476
00:22:35,240 --> 00:22:38,120
Speaker 1: or the electrician or whoever may be out of your pocket.

477
00:22:38,400 --> 00:22:42,080
Speaker 1: They're calling the dude, but it's not like they're getting

478
00:22:42,119 --> 00:22:45,199
Speaker 1: a cheaper like you can shop around. You don't know

479
00:22:45,240 --> 00:22:48,160
Speaker 1: that the management companies canna shop around for you. So

480
00:22:48,320 --> 00:22:50,320
Speaker 1: there's and they they'll put on a certain face for

481
00:22:50,400 --> 00:22:52,920
Speaker 1: you the property owner, But man, how are they actually

482
00:22:53,000 --> 00:22:55,400
Speaker 1: treating tenants as well? I mean, I know I had

483
00:22:55,400 --> 00:22:57,880
Speaker 1: horror stories of management companies in college, trying to get

484
00:22:57,880 --> 00:23:00,320
Speaker 1: them to respond to stuff in our apartment right, or

485
00:23:00,359 --> 00:23:01,960
Speaker 1: even just trying to get trying to get the place

486
00:23:02,000 --> 00:23:03,879
Speaker 1: to begin with, Like you'd have to show up at

487
00:23:03,880 --> 00:23:05,720
Speaker 1: a certain time on a certain day. I'm like wait

488
00:23:05,960 --> 00:23:09,679
Speaker 1: outside in the cold literally to remember to get a

489
00:23:09,720 --> 00:23:12,480
Speaker 1: place where we wanted to live and my roommates. And

490
00:23:12,480 --> 00:23:14,639
Speaker 1: in my mind, the biggest reason not to use the

491
00:23:14,680 --> 00:23:19,479
Speaker 1: management company is you're probably not going to be charging

492
00:23:19,520 --> 00:23:23,440
Speaker 1: market rent. The that was the biggest thing I got

493
00:23:23,440 --> 00:23:25,399
Speaker 1: when this when this guy, this investor guy that had

494
00:23:25,400 --> 00:23:27,800
Speaker 1: fifty plus homes and and he sold this one home

495
00:23:27,840 --> 00:23:29,600
Speaker 1: to me. He's kind of starting to eliminate some of

496
00:23:29,640 --> 00:23:32,760
Speaker 1: his port portfolio, sell off some of his houses. And

497
00:23:32,880 --> 00:23:35,440
Speaker 1: when he said get get a management company, I looked

498
00:23:35,480 --> 00:23:37,199
Speaker 1: at the lease that he had, because there was a

499
00:23:37,240 --> 00:23:39,040
Speaker 1: tenant in there currently. I looked at what he was

500
00:23:39,119 --> 00:23:43,720
Speaker 1: charging and I said, that's not anywhere close to market rent. Really, Yeah,

501
00:23:43,760 --> 00:23:45,640
Speaker 1: And there's a lot of waste, that's what you're saying,

502
00:23:45,680 --> 00:23:47,719
Speaker 1: there's a lot of waste. There's there's a lot of waste,

503
00:23:47,800 --> 00:23:50,440
Speaker 1: and so I want to keep an eye on those things.

504
00:23:50,480 --> 00:23:52,320
Speaker 1: I want to make sure I know my properties. I

505
00:23:52,320 --> 00:23:54,879
Speaker 1: want to make sure I'm there. That's why we can

506
00:23:54,880 --> 00:23:56,600
Speaker 1: get into this in just a second. That's why location

507
00:23:56,600 --> 00:23:58,800
Speaker 1: is so important. I personally want the homes to be

508
00:23:58,920 --> 00:24:01,120
Speaker 1: really close by me, and I don't want to management

509
00:24:01,680 --> 00:24:03,800
Speaker 1: company because I want to be over there from time

510
00:24:03,840 --> 00:24:05,879
Speaker 1: to time. I want to move alow every once in

511
00:24:05,920 --> 00:24:08,399
Speaker 1: a while or whatever it may be. I want to

512
00:24:08,440 --> 00:24:11,160
Speaker 1: see them, be present, say, see how things are going,

513
00:24:11,240 --> 00:24:12,720
Speaker 1: kind of get to know them and what's going on

514
00:24:12,880 --> 00:24:15,359
Speaker 1: in their life. Yeah, that's that's definitely our approach, right,

515
00:24:15,400 --> 00:24:18,119
Speaker 1: I mean, but you and I both definitely manage our

516
00:24:18,119 --> 00:24:22,040
Speaker 1: properties ourselves, and so kind of moving on then, I

517
00:24:22,040 --> 00:24:24,959
Speaker 1: guess to some rules of thumb. What you know, if

518
00:24:24,960 --> 00:24:28,520
Speaker 1: you're considering a property is if you're gonna do that,

519
00:24:28,560 --> 00:24:30,680
Speaker 1: if you're gonna self manage, it's important to make sure

520
00:24:30,720 --> 00:24:33,640
Speaker 1: that you kind of have the capacity to do that yourself.

521
00:24:33,680 --> 00:24:34,959
Speaker 1: If you if you know that you want to kind

522
00:24:34,960 --> 00:24:36,359
Speaker 1: of self manage, and this is something you want to

523
00:24:36,400 --> 00:24:38,680
Speaker 1: kind of that you want to start doing, make sure

524
00:24:38,760 --> 00:24:42,119
Speaker 1: that you have obviously the financial capacity, right, Like you know,

525
00:24:42,119 --> 00:24:44,480
Speaker 1: you have to put a chunk you know, twenty Typically

526
00:24:44,480 --> 00:24:47,800
Speaker 1: with investment properties these days, it's if you're wanting a

527
00:24:47,840 --> 00:24:51,800
Speaker 1: competitive rate, and you need to make sure that you've

528
00:24:51,800 --> 00:24:54,879
Speaker 1: got the mental capacity just to think about it. And

529
00:24:54,920 --> 00:24:56,879
Speaker 1: if when you do get a text or an email

530
00:24:56,920 --> 00:25:00,080
Speaker 1: or phone call that says, hey, this is busted, like

531
00:25:00,080 --> 00:25:02,400
Speaker 1: like I did a few weeks ago over the over

532
00:25:02,440 --> 00:25:06,280
Speaker 1: the holidays, you need to make sure that that doesn't

533
00:25:06,280 --> 00:25:08,480
Speaker 1: stress you out and that you don't have any margin

534
00:25:08,560 --> 00:25:11,119
Speaker 1: in your life to where one small thing is just

535
00:25:11,160 --> 00:25:13,399
Speaker 1: going to wreck everything, right, because there's gonna be a

536
00:25:13,400 --> 00:25:15,920
Speaker 1: little small things that kind of crop up here and

537
00:25:15,960 --> 00:25:18,800
Speaker 1: there a decent bit. So that's something to I think

538
00:25:18,840 --> 00:25:21,760
Speaker 1: that to consider. Make sure you've got the capacity for that.

539
00:25:21,880 --> 00:25:24,280
Speaker 1: And it might be best for you to have a

540
00:25:24,280 --> 00:25:27,680
Speaker 1: partner where you guys are both excel at different parts

541
00:25:27,720 --> 00:25:30,720
Speaker 1: of this. Someone brings the money, someone brings the sweat,

542
00:25:30,800 --> 00:25:33,600
Speaker 1: the sweat equity to it. Yeah, you want to make

543
00:25:33,600 --> 00:25:36,639
Speaker 1: sure that you've got that capacity. And one thing that

544
00:25:36,680 --> 00:25:40,199
Speaker 1: goes along with capacity in my mind is location. So

545
00:25:40,240 --> 00:25:43,480
Speaker 1: how close are these rental homes to you? Every mile

546
00:25:43,720 --> 00:25:46,080
Speaker 1: that you have to drive further to your rental home

547
00:25:46,520 --> 00:25:49,040
Speaker 1: to go check on something, it might be a minor issue.

548
00:25:49,080 --> 00:25:52,160
Speaker 1: That's the that's the crazy things. I Sometimes someone will

549
00:25:52,160 --> 00:25:55,040
Speaker 1: call you about you know, the stove's not working and

550
00:25:55,080 --> 00:25:57,440
Speaker 1: guess what it was just a flip breaker. And if

551
00:25:57,440 --> 00:25:59,600
Speaker 1: you had to drive twelve miles to go free that

552
00:25:59,640 --> 00:26:02,240
Speaker 1: out first is a mile and a half. Every mile

553
00:26:02,320 --> 00:26:05,320
Speaker 1: passt is just it's more infuriating to drive, and so

554
00:26:05,600 --> 00:26:09,280
Speaker 1: well we we hate driving. Yeah, yeah, yeah, obviously when

555
00:26:09,280 --> 00:26:11,600
Speaker 1: you're Atlanta, every mile is like you know, you can

556
00:26:11,640 --> 00:26:14,400
Speaker 1: do the math, it's next minutes. It's an episode one.

557
00:26:14,440 --> 00:26:18,160
Speaker 1: You'll know we hate driving. Um. I think it's really

558
00:26:18,200 --> 00:26:20,720
Speaker 1: important for us, and it's something that you at least

559
00:26:20,760 --> 00:26:22,600
Speaker 1: need to think through. Hey am I cool driving this

560
00:26:22,640 --> 00:26:25,199
Speaker 1: far for stuff like that? Or how how am I

561
00:26:25,240 --> 00:26:29,160
Speaker 1: actually going to run this in actuality? And at least

562
00:26:29,240 --> 00:26:32,080
Speaker 1: for us, it's really important to have them close by.

563
00:26:32,119 --> 00:26:34,120
Speaker 1: And even this our our new rental homes that are

564
00:26:34,160 --> 00:26:37,240
Speaker 1: you know, ten twelve minutes away, not two minutes away.

565
00:26:37,760 --> 00:26:39,719
Speaker 1: I see it in myself. I'm like, oh, it's just

566
00:26:39,840 --> 00:26:41,919
Speaker 1: a little more annoying to go over there than it

567
00:26:42,000 --> 00:26:44,200
Speaker 1: is to the other ones. Yeah, I'm with you there.

568
00:26:44,359 --> 00:26:47,119
Speaker 1: So if someone's considering getting an investment property, like what

569
00:26:47,160 --> 00:26:50,080
Speaker 1: do you think, like what like the terms of the

570
00:26:50,119 --> 00:26:54,040
Speaker 1: loan that that folks should be looking at Well. I

571
00:26:54,080 --> 00:26:57,120
Speaker 1: think the first thing first is you have to have,

572
00:26:57,480 --> 00:26:59,800
Speaker 1: like you just mentioned, a bunch of money saved down

573
00:27:00,000 --> 00:27:05,520
Speaker 1: and so if you don't have down for a round property, yeah,

574
00:27:05,600 --> 00:27:06,879
Speaker 1: I mentioned that a second ago. Is that kind of

575
00:27:06,880 --> 00:27:10,600
Speaker 1: standard now standards? Okay, that's pretty standard, and all this

576
00:27:10,720 --> 00:27:14,199
Speaker 1: mortgage companies are requiring down instead of like the standard

577
00:27:14,960 --> 00:27:18,160
Speaker 1: or even obviously less, but that some folks are doing.

578
00:27:18,440 --> 00:27:20,520
Speaker 1: But then they're getting hit with am I you? And

579
00:27:20,560 --> 00:27:23,959
Speaker 1: I would I don't think ever recommend any loan for

580
00:27:24,000 --> 00:27:25,760
Speaker 1: a home if you don't have at least to put

581
00:27:25,760 --> 00:27:28,960
Speaker 1: down and so and and on around property. So you'll

582
00:27:28,960 --> 00:27:32,600
Speaker 1: also need to factor in potential closing costs, potential repairs

583
00:27:32,600 --> 00:27:35,600
Speaker 1: to the home and uh you you just want to

584
00:27:35,640 --> 00:27:39,639
Speaker 1: be repaired. You can't bank on the tenant, uh you know,

585
00:27:39,680 --> 00:27:42,679
Speaker 1: hopefully in a perfect world everything works out and tenants

586
00:27:42,680 --> 00:27:46,159
Speaker 1: paying gangbusters for all twelve months of your loan term.

587
00:27:46,200 --> 00:27:48,919
Speaker 1: But you'll need to be financially prepared. You need to

588
00:27:48,960 --> 00:27:52,160
Speaker 1: have you have some financial margin in your LAFE for sure. Yeah,

589
00:27:52,600 --> 00:27:55,959
Speaker 1: emergency fund set aside even specifically for that house, not

590
00:27:56,000 --> 00:27:59,359
Speaker 1: just for yourself personally, but I mean look at it

591
00:27:59,400 --> 00:28:01,840
Speaker 1: as as a business because it is. You need to

592
00:28:01,880 --> 00:28:06,320
Speaker 1: have a reserve and that'll help you weather the storms. Yeah,

593
00:28:06,359 --> 00:28:08,600
Speaker 1: and obviously you want to shop around for that loan.

594
00:28:09,000 --> 00:28:12,400
Speaker 1: You want to shop locally with at least three mortgage

595
00:28:12,400 --> 00:28:15,880
Speaker 1: providers to try to find the best terms, the best

596
00:28:15,920 --> 00:28:17,679
Speaker 1: the best rate. Yes, so make sure you shop on

597
00:28:17,680 --> 00:28:19,679
Speaker 1: that because there's a lot of people that talk to

598
00:28:19,760 --> 00:28:22,720
Speaker 1: one person and like, all right, let's do it. You're

599
00:28:22,720 --> 00:28:25,720
Speaker 1: talking about thousands and thousands, tens of thousands of dollars

600
00:28:25,720 --> 00:28:27,560
Speaker 1: over the life of the loan if you don't shop around,

601
00:28:27,600 --> 00:28:29,520
Speaker 1: and that's a lot of money. Yeah, a lot of

602
00:28:29,520 --> 00:28:32,240
Speaker 1: times if they do just hit one check with one lender,

603
00:28:32,280 --> 00:28:34,399
Speaker 1: it's always too as well. It's always just like a

604
00:28:34,440 --> 00:28:36,600
Speaker 1: big bank. It's just one of these big lenders and

605
00:28:36,640 --> 00:28:38,960
Speaker 1: they're not really getting a competitive there's gonna be extra

606
00:28:39,000 --> 00:28:40,720
Speaker 1: costs kind of thrown in there, and the measuring is

607
00:28:40,720 --> 00:28:43,720
Speaker 1: going to be a little more expensive. And the big banks,

608
00:28:43,800 --> 00:28:46,040
Speaker 1: the big banks are the absolute worst. They charge the

609
00:28:46,120 --> 00:28:48,840
Speaker 1: higher rates. So you want to check. You know, local

610
00:28:48,920 --> 00:28:51,680
Speaker 1: is better. I would say that some of the online

611
00:28:51,680 --> 00:28:55,920
Speaker 1: banks are great for refinancing, but you might have issues

612
00:28:55,960 --> 00:28:59,000
Speaker 1: and I can personal experience for you, right experience for me.

613
00:28:59,040 --> 00:29:01,320
Speaker 1: Actually that an arstilation is when it comes to a

614
00:29:01,320 --> 00:29:04,000
Speaker 1: new purchase. As an online bank did not come through

615
00:29:04,040 --> 00:29:07,240
Speaker 1: for me, and so I had to quickly, last minute

616
00:29:07,240 --> 00:29:10,880
Speaker 1: try to turn to a lender um that was close by.

617
00:29:10,920 --> 00:29:14,680
Speaker 1: And so I would I would recommend going with someone

618
00:29:14,720 --> 00:29:16,680
Speaker 1: that you can actually know and talk to and that

619
00:29:17,320 --> 00:29:19,960
Speaker 1: lives in your vicinity. Uh, and and shop with a

620
00:29:19,960 --> 00:29:24,040
Speaker 1: few few of those potential loan officers in your area. Yeah.

621
00:29:24,040 --> 00:29:25,840
Speaker 1: So do you want to talk about R O I

622
00:29:26,160 --> 00:29:28,440
Speaker 1: and the one percent rule and all that kind of stuff. Yeah,

623
00:29:28,480 --> 00:29:31,000
Speaker 1: I think the easiest way to break it down to

624
00:29:31,200 --> 00:29:34,200
Speaker 1: hey is this is this house to deal? Yeah, min,

625
00:29:34,240 --> 00:29:35,520
Speaker 1: how do I know whether or not I should buy

626
00:29:35,520 --> 00:29:37,280
Speaker 1: this house or not? Yeah? Yep, So before you even

627
00:29:37,320 --> 00:29:38,680
Speaker 1: get a loane terms, I guess that's the first thing

628
00:29:38,680 --> 00:29:41,800
Speaker 1: you actually have. Sucsess talked about that first. Yeah. Um,

629
00:29:42,080 --> 00:29:44,920
Speaker 1: that's how we do things around here, It's right. And

630
00:29:45,000 --> 00:29:49,000
Speaker 1: so the the easiest way for me to think about

631
00:29:49,040 --> 00:29:50,840
Speaker 1: it in my mind and to explain to other people

632
00:29:51,040 --> 00:29:54,240
Speaker 1: is think about the one percent rule. Can you get

633
00:29:55,040 --> 00:29:57,800
Speaker 1: one percent of the cost of the house back in

634
00:29:58,240 --> 00:30:02,360
Speaker 1: monthly rents? So let's say for a simple math, you

635
00:30:02,400 --> 00:30:05,760
Speaker 1: are buying a hundred thousand dollar house, will your monthly

636
00:30:05,800 --> 00:30:09,480
Speaker 1: rents be equivalent to a thousand dollars a month? And

637
00:30:09,520 --> 00:30:13,200
Speaker 1: if they are, then it it's a great purchase. And

638
00:30:13,440 --> 00:30:16,800
Speaker 1: if they're not, you have to think about that really,

639
00:30:16,840 --> 00:30:18,720
Speaker 1: you know, really long and hard, because if it's close

640
00:30:18,880 --> 00:30:20,560
Speaker 1: and you think, you know, by next year, maybe I'll

641
00:30:20,560 --> 00:30:23,560
Speaker 1: be there, you know, maybe, But if you're if your

642
00:30:23,800 --> 00:30:26,520
Speaker 1: monthly rent is going to be six dollars on a

643
00:30:26,600 --> 00:30:29,600
Speaker 1: hundred thousand dollar house, it's probably not a good person. Yeah,

644
00:30:29,640 --> 00:30:31,680
Speaker 1: or there better be a really good reason why that

645
00:30:31,760 --> 00:30:35,840
Speaker 1: house is either really special or that you foresee rents

646
00:30:35,840 --> 00:30:39,000
Speaker 1: going up immediately there. Yeah, there there should be something

647
00:30:39,000 --> 00:30:42,760
Speaker 1: else going on. But I think there's too many rule. Yeah,

648
00:30:42,760 --> 00:30:44,880
Speaker 1: I think there's way too many people that get into

649
00:30:45,080 --> 00:30:48,840
Speaker 1: the real estate investing game and instead of asking themselves

650
00:30:48,880 --> 00:30:52,520
Speaker 1: the one percent rule, they ask themselves the question of

651
00:30:52,680 --> 00:30:56,760
Speaker 1: will the monthly rents cover my mortgage? And that's a

652
00:30:56,840 --> 00:30:59,640
Speaker 1: terrible question to ask. And then there's just a lot

653
00:30:59,720 --> 00:31:02,640
Speaker 1: of in lords that I've met over the years that say, well,

654
00:31:02,680 --> 00:31:04,760
Speaker 1: the you know what, the rents are covering my mortgage,

655
00:31:04,760 --> 00:31:07,120
Speaker 1: I'm golden, And they're only looking at the equity, I

656
00:31:07,160 --> 00:31:09,360
Speaker 1: guess in the home because otherwise, why I'd go through

657
00:31:09,400 --> 00:31:12,040
Speaker 1: all that if you're getting nothing right And in my mind, yeah,

658
00:31:12,040 --> 00:31:15,200
Speaker 1: it's I'm not banking on purely just the thirty year payoff, right,

659
00:31:15,240 --> 00:31:17,280
Speaker 1: and then I've got this, this house on my hands.

660
00:31:17,280 --> 00:31:19,320
Speaker 1: It's worth something. You know. I want to be able

661
00:31:19,360 --> 00:31:22,440
Speaker 1: to not be already. You know, you might be a

662
00:31:22,480 --> 00:31:25,040
Speaker 1: little you know, miffed if you get that text at

663
00:31:25,040 --> 00:31:27,600
Speaker 1: three am or whatever from your tenant. I want to

664
00:31:27,640 --> 00:31:29,600
Speaker 1: at least know in the back of my mind I'm

665
00:31:29,600 --> 00:31:33,320
Speaker 1: making money every month. So I'm happy to respond to

666
00:31:33,360 --> 00:31:35,760
Speaker 1: this because you know what, this is actually making me

667
00:31:35,800 --> 00:31:37,320
Speaker 1: money and this is a good thing for me. And

668
00:31:37,320 --> 00:31:40,400
Speaker 1: if it was only covering the mortgage amount, I wouldn't

669
00:31:40,440 --> 00:31:44,360
Speaker 1: feel that way. And then all of our all of

670
00:31:44,400 --> 00:31:48,920
Speaker 1: our properties are single family yea, yeah, So what do

671
00:31:48,960 --> 00:31:49,880
Speaker 1: you what do you think about that? What do you

672
00:31:49,920 --> 00:31:52,880
Speaker 1: recommend to people should they start single family go directly

673
00:31:52,880 --> 00:31:56,680
Speaker 1: into multifamily. I mean, if you I think it maybe

674
00:31:56,760 --> 00:31:58,800
Speaker 1: comes down to personality. If you know that you're gonna

675
00:31:58,800 --> 00:32:00,520
Speaker 1: get into this and this is something you really want

676
00:32:00,520 --> 00:32:04,240
Speaker 1: to pursue in something that you're interested in making, say

677
00:32:04,280 --> 00:32:06,240
Speaker 1: even full time and you want to look at it

678
00:32:06,280 --> 00:32:09,960
Speaker 1: like a an eight unit property, sure go for it.

679
00:32:10,000 --> 00:32:13,160
Speaker 1: But if you're gonna if you're looking at managing that yourself,

680
00:32:13,200 --> 00:32:16,440
Speaker 1: just know that you're going from zero to eighty miles

681
00:32:16,480 --> 00:32:20,640
Speaker 1: per hour, like right off of the bat. So I'm

682
00:32:20,680 --> 00:32:22,480
Speaker 1: trying to think if if we would have been prepared,

683
00:32:22,680 --> 00:32:25,080
Speaker 1: so say, instead of getting a single family, if we

684
00:32:25,120 --> 00:32:27,240
Speaker 1: would have our first investment property would have been say

685
00:32:27,280 --> 00:32:29,880
Speaker 1: even a duplex or a triplex. And I think there,

686
00:32:29,880 --> 00:32:32,480
Speaker 1: I mean, would there would have been a more a

687
00:32:32,560 --> 00:32:35,840
Speaker 1: greater learning curve right as as compared to just slowly

688
00:32:35,920 --> 00:32:37,840
Speaker 1: kind of been able to being able to learn things

689
00:32:37,840 --> 00:32:40,360
Speaker 1: over the years. And that's just our approach which we

690
00:32:40,440 --> 00:32:42,640
Speaker 1: prefer doing, is just kind of learning things ourselves, kind

691
00:32:42,640 --> 00:32:46,680
Speaker 1: of nit nice smooth, slow sailing. Yeah, we're kind of

692
00:32:46,720 --> 00:32:50,640
Speaker 1: in the in the slow rental building game. You and

693
00:32:50,680 --> 00:32:53,600
Speaker 1: I say, I'm in no rush. We're in everywhere. We're

694
00:32:53,640 --> 00:32:55,680
Speaker 1: buying a house every couple of years. So we're not

695
00:32:56,960 --> 00:33:00,040
Speaker 1: we're not gangbusters full speed ahead. What I tell a

696
00:33:00,040 --> 00:33:03,360
Speaker 1: lot of young people when uh they talk about wanting

697
00:33:03,400 --> 00:33:06,120
Speaker 1: to buy a house, uh potential to you know, how

698
00:33:06,160 --> 00:33:07,959
Speaker 1: do I say about money to buy this house? And

699
00:33:07,960 --> 00:33:10,440
Speaker 1: and you know how how it's getting so much more

700
00:33:10,440 --> 00:33:15,800
Speaker 1: difficult to afford housing in my area. I encourage them

701
00:33:16,000 --> 00:33:19,440
Speaker 1: to consider buying a duplex. I think, if you're young

702
00:33:19,440 --> 00:33:22,080
Speaker 1: and starting out, that's actually a really smart way to

703
00:33:22,120 --> 00:33:24,920
Speaker 1: be able to get a house and to cover cover

704
00:33:25,040 --> 00:33:27,960
Speaker 1: some expenses. You can usually cover three quarters of your mortgage.

705
00:33:28,520 --> 00:33:31,480
Speaker 1: Uh if you have a duplex by running out the

706
00:33:31,520 --> 00:33:34,000
Speaker 1: other side, and then you're kind of getting into the game.

707
00:33:34,000 --> 00:33:35,560
Speaker 1: And then eventually, let's say, you know, you save up

708
00:33:35,560 --> 00:33:37,200
Speaker 1: your money and you go buy your own single family house.

709
00:33:37,240 --> 00:33:39,480
Speaker 1: You we're not both sides of the duplex. It's kind

710
00:33:39,480 --> 00:33:41,920
Speaker 1: of a great way to get into it. Obviously that

711
00:33:42,200 --> 00:33:44,640
Speaker 1: wasn't the path that I took, but I see that

712
00:33:44,720 --> 00:33:46,800
Speaker 1: as just a really smart way to get in there,

713
00:33:46,840 --> 00:33:49,200
Speaker 1: to get started, to get in the game. As a

714
00:33:49,200 --> 00:33:50,920
Speaker 1: as an aside, that actually makes me think of the

715
00:33:51,200 --> 00:33:54,240
Speaker 1: our Airbnb episode that you know that we did recently.

716
00:33:54,520 --> 00:33:57,000
Speaker 1: I feel like we're further, We're closer to doing it

717
00:33:57,160 --> 00:33:58,920
Speaker 1: than not like last time. I said. I was like,

718
00:33:59,040 --> 00:34:01,560
Speaker 1: I think we're like fifty fifty. Yeah, I mean, so

719
00:34:01,600 --> 00:34:04,800
Speaker 1: you're saying duplex, and so it made me think of, oh,

720
00:34:05,000 --> 00:34:09,200
Speaker 1: or a basement basement department. Yeah, man, I feel like

721
00:34:09,200 --> 00:34:11,520
Speaker 1: we're like close to pulling the trick on less. I

722
00:34:11,520 --> 00:34:14,320
Speaker 1: feel like we're like the of the way I agreed

723
00:34:14,360 --> 00:34:16,720
Speaker 1: that we're gonna do it, so my airstream passion convinced

724
00:34:16,719 --> 00:34:19,719
Speaker 1: to you. Oh man, absolutely. So it's like us one

725
00:34:19,840 --> 00:34:22,480
Speaker 1: night sitting down and talking into microphones and trying to

726
00:34:22,520 --> 00:34:24,959
Speaker 1: convince each other that we should do this too, where

727
00:34:24,960 --> 00:34:26,600
Speaker 1: the next day I was like, man, I really should

728
00:34:26,600 --> 00:34:29,400
Speaker 1: do this. Let's do it. We'll keep updating everybody and

729
00:34:29,880 --> 00:34:32,160
Speaker 1: no new news and yet but I just thought i'd

730
00:34:32,200 --> 00:34:33,440
Speaker 1: tell you that. And I'm about to take a road

731
00:34:33,480 --> 00:34:35,640
Speaker 1: trip and look at that air stream that I mentioned

732
00:34:35,640 --> 00:34:38,399
Speaker 1: to you. So it sounds like we're both kind of

733
00:34:38,760 --> 00:34:40,759
Speaker 1: getting really close and getting each other. We're firing each

734
00:34:40,800 --> 00:34:43,799
Speaker 1: other up, potentially making a plunge and pissing off our

735
00:34:43,840 --> 00:34:46,960
Speaker 1: lives at the same time. So, so what else do

736
00:34:47,000 --> 00:34:49,040
Speaker 1: you think folks need you consider then, just, you know,

737
00:34:49,080 --> 00:34:54,360
Speaker 1: broadly if when they're considering an investment property, Yeah, so quickly,

738
00:34:54,440 --> 00:34:57,880
Speaker 1: when we're just talking about a duplex and and maybe

739
00:34:57,960 --> 00:34:59,719
Speaker 1: you know, young person buying a duplex instead of a

740
00:34:59,719 --> 00:35:04,239
Speaker 1: single Emily home. Uh, one other benefit to that, I

741
00:35:04,280 --> 00:35:07,000
Speaker 1: think and if you are want to start out small

742
00:35:07,080 --> 00:35:09,560
Speaker 1: kind of like kind of like we did. I do

743
00:35:09,640 --> 00:35:12,680
Speaker 1: think it's really wise to live in your first home

744
00:35:13,320 --> 00:35:18,239
Speaker 1: before you rent it out, so instead of it there's

745
00:35:18,239 --> 00:35:20,520
Speaker 1: a couple of benefits this first we just talked about

746
00:35:20,520 --> 00:35:22,040
Speaker 1: how much money you have to put down. You can

747
00:35:22,080 --> 00:35:24,759
Speaker 1: put down a lot less money to live for a

748
00:35:24,760 --> 00:35:26,640
Speaker 1: house that you're gonna live in. You can put down

749
00:35:26,960 --> 00:35:30,600
Speaker 1: less to which I wouldn't recommend, but you can. So

750
00:35:30,760 --> 00:35:33,720
Speaker 1: my first home put down, lived in it for two years,

751
00:35:33,960 --> 00:35:35,879
Speaker 1: then rented it out, and I kind of been trying

752
00:35:35,920 --> 00:35:39,279
Speaker 1: to follow that cycle living in that hunt next home

753
00:35:39,320 --> 00:35:42,040
Speaker 1: for two years and then moved and rented that one out.

754
00:35:42,360 --> 00:35:44,720
Speaker 1: And so I think there's something there's a few good things.

755
00:35:44,760 --> 00:35:46,640
Speaker 1: You kind of get to know the home, you know

756
00:35:46,719 --> 00:35:49,440
Speaker 1: the area, you know the corks, you know the neighbors.

757
00:35:49,920 --> 00:35:51,719
Speaker 1: There's just there are a lot of benefits to doing

758
00:35:51,760 --> 00:35:53,680
Speaker 1: it that way, not to mention the fact that you're

759
00:35:53,680 --> 00:35:55,680
Speaker 1: gonna get a lower interest rate, get to put less

760
00:35:55,680 --> 00:35:58,840
Speaker 1: money down. Um, there's just a lot of benefits to

761
00:35:58,920 --> 00:36:01,319
Speaker 1: living in a place before you actually end up running

762
00:36:01,360 --> 00:36:04,800
Speaker 1: it out. So, Matt, what about general handiness. You're handier

763
00:36:04,800 --> 00:36:06,440
Speaker 1: than I am. How handy do I need to be

764
00:36:06,480 --> 00:36:08,400
Speaker 1: if I'm gonna own a run a home. I mean,

765
00:36:08,480 --> 00:36:10,760
Speaker 1: you either need to be handy with like a tool

766
00:36:11,000 --> 00:36:13,680
Speaker 1: or with a cell phone, because I feel like you're

767
00:36:13,680 --> 00:36:16,279
Speaker 1: handy when it comes to finding somebody to fix something

768
00:36:16,320 --> 00:36:20,440
Speaker 1: for you, right, I mean I'm sing about Yeah, I

769
00:36:20,440 --> 00:36:23,160
Speaker 1: mean I'm handy because I enjoy it. I like learning,

770
00:36:23,440 --> 00:36:25,399
Speaker 1: oh man, especially when it's something that I know I'm

771
00:36:25,400 --> 00:36:28,040
Speaker 1: gonna have to do my own home or or another

772
00:36:28,080 --> 00:36:30,640
Speaker 1: property soon. Like, well, if I can learn how to

773
00:36:30,680 --> 00:36:32,239
Speaker 1: do this myself and then know that it's not gonna

774
00:36:32,239 --> 00:36:34,319
Speaker 1: take that long, that's a skill, hey, that I get

775
00:36:34,360 --> 00:36:37,440
Speaker 1: to learn, And yeah, I've bettered myself in that sense,

776
00:36:37,480 --> 00:36:40,719
Speaker 1: and be it. It saves me money times however many

777
00:36:40,719 --> 00:36:43,239
Speaker 1: times I have to do it. So that's one of

778
00:36:43,239 --> 00:36:45,400
Speaker 1: the ways I approach it. I really enjoy learning and

779
00:36:45,440 --> 00:36:48,200
Speaker 1: how to do things that might be a little more

780
00:36:48,400 --> 00:36:51,000
Speaker 1: considered handy mane work. But those are things I enjoy

781
00:36:51,400 --> 00:36:54,000
Speaker 1: enjoy myself. But do you have to be able to

782
00:36:54,000 --> 00:36:56,759
Speaker 1: do those things yourself? Now? I just ask around and

783
00:36:56,840 --> 00:36:58,600
Speaker 1: ask your friends to de texts or like a you know,

784
00:36:58,640 --> 00:37:00,920
Speaker 1: Facebook post, be like, hey, does he may have an

785
00:37:01,040 --> 00:37:03,080
Speaker 1: h fat guy because my a C just went out.

786
00:37:03,440 --> 00:37:05,400
Speaker 1: If you have friends or anybody that kind of knows you,

787
00:37:05,440 --> 00:37:07,719
Speaker 1: they'll be like, oh yeah, check out so and so. Yeah,

788
00:37:07,840 --> 00:37:10,279
Speaker 1: get a few quotes. Yeah. Yeah, don't go to the

789
00:37:10,280 --> 00:37:12,240
Speaker 1: first person that comments on your walk because that probably

790
00:37:12,239 --> 00:37:16,319
Speaker 1: that person is probably maybe it doesn't have the best recommendation. Yeah,

791
00:37:16,320 --> 00:37:18,759
Speaker 1: you definitely get checking in a few Yeah. I think

792
00:37:19,080 --> 00:37:21,160
Speaker 1: on questions of whether you need to be handy or not,

793
00:37:21,760 --> 00:37:24,040
Speaker 1: I am not handy, but I have learned to do

794
00:37:24,080 --> 00:37:26,799
Speaker 1: a few things, and you like to learn as well. Yeah.

795
00:37:27,120 --> 00:37:32,239
Speaker 1: So I've replaced the toilet, I've fixed a water heater,

796
00:37:32,560 --> 00:37:36,720
Speaker 1: replaced thermister. I believe that's what it was, called thermal

797
00:37:36,760 --> 00:37:38,640
Speaker 1: couple or something like that. Now I was like thermal

798
00:37:38,680 --> 00:37:40,920
Speaker 1: couple or something like. Uh, it's like it is a

799
00:37:40,960 --> 00:37:44,000
Speaker 1: copper piece that the thing that heats up that tells

800
00:37:44,080 --> 00:37:47,319
Speaker 1: the furnace to keep going in exactly so. And you

801
00:37:47,320 --> 00:37:50,799
Speaker 1: YouTube videos, by the way, are invalid. Yeah. In the

802
00:37:50,840 --> 00:37:53,680
Speaker 1: age of YouTube, you you have very little excuse not

803
00:37:53,760 --> 00:37:56,239
Speaker 1: to at least attempt fixing something on your own. I've

804
00:37:56,360 --> 00:37:59,600
Speaker 1: fixed an air conditioner by replacing my air condisher stopped

805
00:37:59,600 --> 00:38:04,240
Speaker 1: working and it was the condenser. No, not the condensor,

806
00:38:04,360 --> 00:38:07,880
Speaker 1: it was the capacitor. Capacitor was the capacity, so you

807
00:38:07,920 --> 00:38:10,919
Speaker 1: can tell because it gets domed the and so there's

808
00:38:10,920 --> 00:38:13,040
Speaker 1: all these things. You know, YouTube will teach you so much.

809
00:38:13,360 --> 00:38:15,160
Speaker 1: If you want to fix something, just google. Yeah, just

810
00:38:15,200 --> 00:38:17,640
Speaker 1: searching on YouTube and just watch three videos and you're

811
00:38:17,640 --> 00:38:22,120
Speaker 1: gonna go. I would say this the minimum requirement for handingness.

812
00:38:22,360 --> 00:38:24,799
Speaker 1: You need to be able to paint, and you need

813
00:38:24,840 --> 00:38:26,400
Speaker 1: to be able to paint your own home, you know.

814
00:38:26,480 --> 00:38:30,680
Speaker 1: And then so the interior specifically the interior specifically if

815
00:38:30,719 --> 00:38:32,680
Speaker 1: you can't or unwilling to do that, if you're going

816
00:38:32,719 --> 00:38:35,239
Speaker 1: to hire basic things like that out and eventually if

817
00:38:35,239 --> 00:38:37,239
Speaker 1: you have enough homes you can do that. But when

818
00:38:37,280 --> 00:38:38,960
Speaker 1: you're starting out, you need to be able to at

819
00:38:39,040 --> 00:38:40,880
Speaker 1: least put in some of the sweat equity to do

820
00:38:40,960 --> 00:38:44,360
Speaker 1: some of the basic things cleaning clans. You need to

821
00:38:44,360 --> 00:38:47,000
Speaker 1: be able to fill holes and throw get a new coda,

822
00:38:47,040 --> 00:38:49,279
Speaker 1: paint up for sure, because that's that's pretty important. When

823
00:38:49,320 --> 00:38:51,160
Speaker 1: it comes to if you're unwilling to do that, I

824
00:38:51,160 --> 00:38:53,560
Speaker 1: would say I would say rental properties just probably aren't

825
00:38:53,560 --> 00:38:56,040
Speaker 1: for you. Yeah, there's there's definitely a degree of kind

826
00:38:56,040 --> 00:38:58,240
Speaker 1: of d I wideness that that goes along with having

827
00:38:58,280 --> 00:39:01,320
Speaker 1: investment properties obviously the way you know, the way that

828
00:39:01,360 --> 00:39:05,359
Speaker 1: we approach it for certainly. Yeah, so handy nous. Yes,

829
00:39:05,600 --> 00:39:09,240
Speaker 1: it's a plus. No, you don't need to be bringing

830
00:39:09,320 --> 00:39:12,480
Speaker 1: Captain d i y, you know, Mr Sunday. But you know,

831
00:39:12,520 --> 00:39:14,880
Speaker 1: if you can mow alan and paint and uh and

832
00:39:14,960 --> 00:39:17,480
Speaker 1: do some cleaning, then I think you're well in your way.

833
00:39:17,640 --> 00:39:19,640
Speaker 1: And you know what, if you're curious and like to

834
00:39:19,640 --> 00:39:22,800
Speaker 1: watch some YouTube videos and figure some stuff out, this

835
00:39:22,800 --> 00:39:25,319
Speaker 1: this is the perfect place to experiment and try to

836
00:39:25,320 --> 00:39:27,440
Speaker 1: fix things yourself. And you know what, I will tell

837
00:39:27,440 --> 00:39:29,520
Speaker 1: you what, as a guy that's not very handy truly,

838
00:39:29,640 --> 00:39:33,040
Speaker 1: in all honesty, I'm I'm really not very handy. To

839
00:39:33,200 --> 00:39:37,040
Speaker 1: actually fix something like that yourself, when you know your

840
00:39:37,080 --> 00:39:41,399
Speaker 1: limitations is super exciting. It's really fun to be able

841
00:39:41,440 --> 00:39:43,640
Speaker 1: to you know what, I just did that. Holy crap,

842
00:39:43,719 --> 00:39:45,480
Speaker 1: I didn't think I could do it and I did it. Yeah.

843
00:39:45,520 --> 00:39:48,120
Speaker 1: It's it's fun fixing, fixing something physical right and and

844
00:39:48,239 --> 00:39:50,719
Speaker 1: in the world in an age where we so much

845
00:39:50,719 --> 00:39:54,880
Speaker 1: of our work revolves around bits of data now on

846
00:39:54,920 --> 00:39:56,600
Speaker 1: the computer, to be able to do something with your

847
00:39:56,600 --> 00:40:00,000
Speaker 1: hands I also very much love that. Man, it's yeah,

848
00:40:00,040 --> 00:40:02,719
Speaker 1: feel so good. So something else I wanted to talk about.

849
00:40:02,719 --> 00:40:06,200
Speaker 1: Two Screening tenants I think is one of the things

850
00:40:06,239 --> 00:40:08,399
Speaker 1: that turns a lot of people off when it comes

851
00:40:08,440 --> 00:40:10,080
Speaker 1: to because they think, oh, man, what if I get

852
00:40:10,120 --> 00:40:12,879
Speaker 1: somebody a terrible renner or somebody that in there that's

853
00:40:13,200 --> 00:40:15,640
Speaker 1: a criminal or something like that. There are so many

854
00:40:15,800 --> 00:40:18,279
Speaker 1: tools today, it's it's not like it was even ten

855
00:40:18,360 --> 00:40:22,920
Speaker 1: years ago. Specifically, we use a site called my smart

856
00:40:22,960 --> 00:40:26,759
Speaker 1: move dot com which takes out so much of the

857
00:40:27,160 --> 00:40:29,640
Speaker 1: stress when it comes to getting a new tenant. Right.

858
00:40:30,120 --> 00:40:32,440
Speaker 1: So it's a site run by trains Union, and all

859
00:40:32,480 --> 00:40:33,960
Speaker 1: you have to do is just create an account and

860
00:40:33,960 --> 00:40:37,279
Speaker 1: then you send your potential tenant, you punch in their

861
00:40:37,320 --> 00:40:40,120
Speaker 1: email and send them, uh the form to to basically

862
00:40:40,120 --> 00:40:44,359
Speaker 1: fill out that reports back with their credit report with

863
00:40:44,400 --> 00:40:48,600
Speaker 1: like any like a criminal record or any past evictions

864
00:40:48,680 --> 00:40:51,480
Speaker 1: anything like that, and so like there's no guesswork anymore.

865
00:40:51,880 --> 00:40:53,279
Speaker 1: Like obviously, you know, you meet with them and you

866
00:40:53,320 --> 00:40:55,000
Speaker 1: get to know them and make sure there seems like

867
00:40:55,000 --> 00:40:57,319
Speaker 1: they're going to be a good tenant. But beyond that

868
00:40:57,600 --> 00:41:00,319
Speaker 1: called prior landlords. Oh gosh, yeah, that's the number one

869
00:41:00,480 --> 00:41:02,960
Speaker 1: number one thing called called previous landlords. Make sure they've

870
00:41:02,960 --> 00:41:05,279
Speaker 1: always paid and that's for really or on time. Yeah,

871
00:41:05,360 --> 00:41:07,240
Speaker 1: that's where you get you know, obviously you have an application,

872
00:41:07,239 --> 00:41:09,280
Speaker 1: you get them to fill it out right down that information.

873
00:41:09,400 --> 00:41:13,400
Speaker 1: You talk to their previously previous three landlords and and

874
00:41:13,440 --> 00:41:17,359
Speaker 1: their employer to make sure they're employed. And that's that's huge.

875
00:41:17,360 --> 00:41:20,880
Speaker 1: But but the TransUnion my smart Move service is excellence,

876
00:41:21,200 --> 00:41:23,319
Speaker 1: like the bow on top. Just to know that, like,

877
00:41:23,360 --> 00:41:25,480
Speaker 1: all right, man, these guys are they they said they're awesome,

878
00:41:26,000 --> 00:41:28,640
Speaker 1: Their landlords landlords have you know, said they're awesome. And

879
00:41:28,640 --> 00:41:31,400
Speaker 1: then there their credit is great and they're not a criminal.

880
00:41:31,880 --> 00:41:34,400
Speaker 1: And I will say you can make takes a lot

881
00:41:34,440 --> 00:41:36,239
Speaker 1: of stress out of it. You can make decisions based

882
00:41:36,239 --> 00:41:37,719
Speaker 1: on if their credit is bad. I have rented to

883
00:41:37,800 --> 00:41:42,040
Speaker 1: people with bad credit based on other things other references income,

884
00:41:42,280 --> 00:41:46,200
Speaker 1: proof of income. Uh. And when you do that, I

885
00:41:46,280 --> 00:41:49,560
Speaker 1: suggest taking a larger security deposit. So if someone's got

886
00:41:49,560 --> 00:41:53,360
Speaker 1: bad credit but good income, you take a larger security deposit,

887
00:41:53,760 --> 00:41:57,040
Speaker 1: and that's kind of your your hedge against kind of

888
00:41:57,040 --> 00:41:58,640
Speaker 1: meet in the middle. You don't want to if they

889
00:41:58,680 --> 00:42:00,359
Speaker 1: still have a great place to rent and you want

890
00:42:00,400 --> 00:42:02,120
Speaker 1: to be able to provide provide that to them as well.

891
00:42:02,480 --> 00:42:04,120
Speaker 1: All right, So one other thing you want to make

892
00:42:04,120 --> 00:42:06,160
Speaker 1: sure of when you're looking at buying a rental property,

893
00:42:06,320 --> 00:42:08,480
Speaker 1: you want to buy in a place that people actually

894
00:42:08,600 --> 00:42:11,320
Speaker 1: want to live. So when you lift your rental property,

895
00:42:11,560 --> 00:42:13,839
Speaker 1: you don't want to get people trickling in one every

896
00:42:13,920 --> 00:42:16,320
Speaker 1: you know, one person that's interested in every couple of weeks.

897
00:42:16,560 --> 00:42:18,640
Speaker 1: You want to steady stream of people that are interested

898
00:42:18,680 --> 00:42:20,960
Speaker 1: in living in your plate. You want open the floodgates.

899
00:42:20,960 --> 00:42:23,080
Speaker 1: A tip my buddy Clark has telling you about up

900
00:42:23,080 --> 00:42:25,520
Speaker 1: in Asheville. One of the things he told me was

901
00:42:25,600 --> 00:42:29,719
Speaker 1: to make sure that you go by that the house

902
00:42:29,719 --> 00:42:33,040
Speaker 1: you're considering that property, go by there at night and

903
00:42:33,080 --> 00:42:35,680
Speaker 1: sit there just to like just see what's going on,

904
00:42:35,800 --> 00:42:37,200
Speaker 1: you know, because like there's a lot of things that

905
00:42:37,239 --> 00:42:39,160
Speaker 1: you will notice when you're there in the day, but

906
00:42:39,239 --> 00:42:40,680
Speaker 1: just go there at night just kind of hang, you know,

907
00:42:40,800 --> 00:42:42,360
Speaker 1: roll down the window and see what, Listen to what

908
00:42:42,440 --> 00:42:44,520
Speaker 1: you hear, like smell like there, you know what if

909
00:42:44,520 --> 00:42:48,400
Speaker 1: there's some plant next next door or something close by.

910
00:42:48,600 --> 00:42:50,759
Speaker 1: There's all these sort of things that you don't really

911
00:42:50,920 --> 00:42:54,280
Speaker 1: you definitely can't see in pictures online. Maybe train tracks

912
00:42:54,280 --> 00:42:56,520
Speaker 1: and the train runs at night. Oh my gosh. Yeah, exactly.

913
00:42:57,080 --> 00:42:58,360
Speaker 1: There's just a lot of things like that you're not

914
00:42:58,360 --> 00:43:01,040
Speaker 1: gonna know, and unless you're you're there in person. So

915
00:43:01,080 --> 00:43:03,480
Speaker 1: if you're thinking about becoming a landlord, I mean there's

916
00:43:03,520 --> 00:43:06,080
Speaker 1: a lot of due diligence involved. You gotta run the numbers,

917
00:43:06,120 --> 00:43:07,520
Speaker 1: you know, you gotta make sure it hits the one

918
00:43:07,560 --> 00:43:09,160
Speaker 1: percent rule or it is close and you got some

919
00:43:09,200 --> 00:43:11,480
Speaker 1: reasons why you're gonna buy. You gotta make sure there's

920
00:43:11,560 --> 00:43:14,600
Speaker 1: enough people that want to rent it and that it's

921
00:43:14,760 --> 00:43:16,839
Speaker 1: going to be something that fits into your life. But

922
00:43:16,880 --> 00:43:20,600
Speaker 1: if it does, owning rental properties is a boon for

923
00:43:20,640 --> 00:43:22,279
Speaker 1: you and hopefully in the short term and in a

924
00:43:22,280 --> 00:43:25,400
Speaker 1: long term. I know it's been great for me over

925
00:43:25,480 --> 00:43:27,040
Speaker 1: the last eight and a half years. It's been a

926
00:43:27,480 --> 00:43:32,680
Speaker 1: incredibly worthwhile pursuit and it's definitely helping me on my

927
00:43:32,760 --> 00:43:35,640
Speaker 1: path to financial independence. Yeah, there's a lot of other

928
00:43:35,640 --> 00:43:37,359
Speaker 1: resources out there as well. I mean, there's a lot

929
00:43:37,360 --> 00:43:39,520
Speaker 1: that we're not covering, right, I mean, there's a lot sure.

930
00:43:39,600 --> 00:43:41,040
Speaker 1: So there's a ton of ways that you make money

931
00:43:41,040 --> 00:43:44,160
Speaker 1: from real estate. Obviously the biggest way is the month

932
00:43:44,160 --> 00:43:47,680
Speaker 1: of cash flow, but you're also you're building up equity, right,

933
00:43:47,719 --> 00:43:50,640
Speaker 1: so every month and when that mortgage gets paid, that

934
00:43:50,680 --> 00:43:53,040
Speaker 1: equity is getting paid down and you know that's that's

935
00:43:53,080 --> 00:43:56,040
Speaker 1: equity that you that you get to have. And then

936
00:43:56,880 --> 00:43:58,680
Speaker 1: so you got cash flow, your monthly rents, you've got

937
00:43:58,680 --> 00:44:02,120
Speaker 1: your equity, and then you've got your the tax benefits. Yeah,

938
00:44:02,120 --> 00:44:04,479
Speaker 1: we didn't even get in attack. That's a whole another

939
00:44:04,800 --> 00:44:08,280
Speaker 1: sort of it's a whole branch that we didn't even discuss.

940
00:44:08,760 --> 00:44:12,400
Speaker 1: And so, yeah, the the benefits owning UH rental properties

941
00:44:12,440 --> 00:44:15,840
Speaker 1: are myriad. There's so many if you are really really interested,

942
00:44:16,000 --> 00:44:17,960
Speaker 1: Like we said at the beginning of this episode, this

943
00:44:18,080 --> 00:44:21,920
Speaker 1: is a forest episode. We're getting, you know, the overview,

944
00:44:21,960 --> 00:44:23,720
Speaker 1: and if you really want to get down in the weeds,

945
00:44:24,280 --> 00:44:26,440
Speaker 1: will in the show notes at poor not Poor dot

946
00:44:26,440 --> 00:44:29,279
Speaker 1: com will get we'll link off to some of the

947
00:44:29,400 --> 00:44:32,520
Speaker 1: great resources and we know of online UH specifically, I

948
00:44:32,520 --> 00:44:35,799
Speaker 1: would recommend checking out this website Bigger Pockets dot com

949
00:44:35,840 --> 00:44:38,359
Speaker 1: and there's all sorts of information you can get as

950
00:44:38,440 --> 00:44:41,600
Speaker 1: down into the weeds as you want on potentially on

951
00:44:41,600 --> 00:44:44,920
Speaker 1: owning rental properties. Any questions you may have, they've answered

952
00:44:44,960 --> 00:44:47,680
Speaker 1: on that website. So I would recommend checking that out. Yeah,

953
00:44:47,680 --> 00:44:49,080
Speaker 1: i'd recommend if you want to go more of the

954
00:44:49,080 --> 00:44:52,920
Speaker 1: old fashioned book route The Millionaire Real Estate Investor by

955
00:44:52,960 --> 00:44:57,560
Speaker 1: by Gary Keller. And this is like like Keller, Williams Keller. Yeah,

956
00:44:57,600 --> 00:44:59,440
Speaker 1: guy knows that's what's going on. So this is one

957
00:44:59,440 --> 00:45:02,200
Speaker 1: of the one the books I was pointed to early on,

958
00:45:02,480 --> 00:45:05,799
Speaker 1: and it's not really it reads like a textbook, but

959
00:45:05,920 --> 00:45:08,440
Speaker 1: man is it rich with information. Things you wouldn't have

960
00:45:08,440 --> 00:45:12,040
Speaker 1: even considered obviously are in there. And so yeah, there's

961
00:45:12,040 --> 00:45:13,520
Speaker 1: a lot of a lot of great resources out there

962
00:45:13,520 --> 00:45:15,919
Speaker 1: that we recommend you check out. And if you've got

963
00:45:15,960 --> 00:45:18,440
Speaker 1: more questions about rental properties and you want to reach

964
00:45:18,480 --> 00:45:20,600
Speaker 1: out to Matt and I, we are available on Twitter.

965
00:45:20,880 --> 00:45:24,040
Speaker 1: You can tweet us at not Poor Matt and at

966
00:45:24,080 --> 00:45:27,799
Speaker 1: not Poor Joel, and we would love to talk to you,

967
00:45:28,320 --> 00:45:30,960
Speaker 1: message you back, and also maybe you some of your

968
00:45:31,000 --> 00:45:33,919
Speaker 1: questions on a future podcast as we delve further into

969
00:45:34,120 --> 00:45:37,520
Speaker 1: real estate endeavors real estate investing, because it's definitely one

970
00:45:37,560 --> 00:45:40,200
Speaker 1: of Matt and I's favorite topics to discuss. Guys. So

971
00:45:40,239 --> 00:45:43,520
Speaker 1: hopefully after listening to this today, you feel that investment

972
00:45:43,520 --> 00:45:45,440
Speaker 1: properties aren't something that are sort of this sort of

973
00:45:45,640 --> 00:45:48,799
Speaker 1: scary unknown thing. It's I mean, it's it's really not

974
00:45:48,920 --> 00:45:51,520
Speaker 1: overly complicated, and it's just a lot of folks aren't

975
00:45:51,560 --> 00:45:54,279
Speaker 1: aren't talking about it. Yeah, they're so much easier than

976
00:45:54,320 --> 00:45:55,759
Speaker 1: I thought they were going to be, as long as

977
00:45:55,800 --> 00:45:57,400
Speaker 1: you know what you're getting into ahead of time and

978
00:45:57,400 --> 00:46:00,560
Speaker 1: how much work it's gonna take, and specifically how much

979
00:46:00,560 --> 00:46:02,359
Speaker 1: work that house is going to take, and how much

980
00:46:02,400 --> 00:46:05,080
Speaker 1: return on investment you're getting, and you're okay with that mentally.

981
00:46:06,080 --> 00:46:08,239
Speaker 1: I mean, I think it's a brilliant pursuit. Yeah, man,

982
00:46:09,000 --> 00:46:11,680
Speaker 1: So Matt, Yeah, Man, back to the beer. Let's get

983
00:46:11,719 --> 00:46:14,880
Speaker 1: back to this beer. Dude, what's your take on Bearded

984
00:46:14,920 --> 00:46:19,040
Speaker 1: Iris brewing scatter Brain I p A. Well, first of all,

985
00:46:19,040 --> 00:46:21,239
Speaker 1: my beer is all gone, so you're still got a

986
00:46:21,239 --> 00:46:23,480
Speaker 1: little bit left. You're a little drinking yours. I like

987
00:46:23,640 --> 00:46:27,319
Speaker 1: this so much, man, I'm a huge fan of all

988
00:46:27,360 --> 00:46:30,759
Speaker 1: these new cloudy hazy I p A s that kind

989
00:46:30,760 --> 00:46:33,600
Speaker 1: of have this like the hop profile that's sort of

990
00:46:33,640 --> 00:46:36,880
Speaker 1: like the sharp has a sharp flavor to it almost

991
00:46:36,920 --> 00:46:38,520
Speaker 1: like this sounds weird to say it, but almost like

992
00:46:38,560 --> 00:46:43,640
Speaker 1: a like a blue cheese where it it's real smooth

993
00:46:43,680 --> 00:46:46,120
Speaker 1: and fresh tasting like the beer, but then that sort

994
00:46:46,120 --> 00:46:48,320
Speaker 1: of the bitterness is sort of I mean, that's the

995
00:46:48,360 --> 00:46:50,320
Speaker 1: best way I can describe. It just reminds me of

996
00:46:50,400 --> 00:46:52,600
Speaker 1: like a blue cheese. I wonder if the listeners out

997
00:46:52,600 --> 00:46:56,080
Speaker 1: there have watched the Netflix documentary Song Yeah. I was

998
00:46:56,120 --> 00:46:59,600
Speaker 1: wonder if you're because, uh, if you watch that, you'll find,

999
00:46:59,640 --> 00:47:01,879
Speaker 1: like Pep will describe these wines in the weirdest ways.

1000
00:47:01,880 --> 00:47:04,879
Speaker 1: It's about these these dudes trying to become wine Somalia's

1001
00:47:05,360 --> 00:47:09,480
Speaker 1: and they just it's fascinating how much things a rigorous process. Though.

1002
00:47:09,680 --> 00:47:11,839
Speaker 1: It's one of the most fascinating documentaries I've ever seen.

1003
00:47:12,239 --> 00:47:14,560
Speaker 1: But you remind me of those people because the way

1004
00:47:14,800 --> 00:47:17,560
Speaker 1: the way you describe things is sometimes I don't know

1005
00:47:17,600 --> 00:47:19,239
Speaker 1: if it's true, and I just say I just say

1006
00:47:19,280 --> 00:47:22,480
Speaker 1: what I smell or taste, and then that's an odd one.

1007
00:47:22,520 --> 00:47:24,799
Speaker 1: I'm not gonna lie blue cheese. I wasn't getting that.

1008
00:47:24,840 --> 00:47:27,359
Speaker 1: I wasn't gonna say that, but you did. You went there.

1009
00:47:27,400 --> 00:47:30,520
Speaker 1: It's a good beer though, yeah, well truly so. My

1010
00:47:30,560 --> 00:47:34,280
Speaker 1: thoughts on this beer is I love the New England

1011
00:47:34,360 --> 00:47:37,680
Speaker 1: I p A style as well the hazy, um juicy

1012
00:47:37,760 --> 00:47:40,279
Speaker 1: I p A s you know, We've been lucky enough

1013
00:47:40,280 --> 00:47:42,319
Speaker 1: to have some of the ones from New England, and

1014
00:47:42,400 --> 00:47:44,840
Speaker 1: this is a decent shot at I say it's up

1015
00:47:44,840 --> 00:47:47,440
Speaker 1: there from down south, it's in my mind it's not

1016
00:47:47,520 --> 00:47:50,840
Speaker 1: quite as thick um and it's doesn't have that thick

1017
00:47:51,160 --> 00:47:53,640
Speaker 1: mouth feel some of those up there half. And it's

1018
00:47:53,640 --> 00:47:55,879
Speaker 1: a little too sweet, but I think so, I think

1019
00:47:55,880 --> 00:47:59,680
Speaker 1: it's a little too sweet. But I mean, honestly, it's

1020
00:47:59,719 --> 00:48:02,239
Speaker 1: it's fantastic. It's really really good beer. It's almost got

1021
00:48:02,280 --> 00:48:05,440
Speaker 1: like this sort of wheat profile to it. It reminds

1022
00:48:05,440 --> 00:48:07,440
Speaker 1: me of like a like a half of yeah, oh

1023
00:48:07,520 --> 00:48:09,359
Speaker 1: totally yeah, I can totally what I'm saying that, Yeah,

1024
00:48:09,400 --> 00:48:12,480
Speaker 1: I dig it um yeah, and I love those. It's

1025
00:48:12,480 --> 00:48:14,960
Speaker 1: a little sweet, it's a little passion fruity, and I

1026
00:48:15,000 --> 00:48:17,520
Speaker 1: think one of the things you're gonna find. I'm I

1027
00:48:17,520 --> 00:48:19,920
Speaker 1: feel like I'm not being kind to this beer, but

1028
00:48:19,960 --> 00:48:22,000
Speaker 1: it's a really good beer. But I think the reason

1029
00:48:22,040 --> 00:48:25,680
Speaker 1: that is is because they're trying a style that the

1030
00:48:25,719 --> 00:48:28,080
Speaker 1: people who do it right. I mean, they're trying a

1031
00:48:28,200 --> 00:48:30,719
Speaker 1: very specific style, New England style I p a. S.

1032
00:48:30,920 --> 00:48:33,120
Speaker 1: And there's only a few people that do that, and

1033
00:48:33,120 --> 00:48:35,200
Speaker 1: and that's a hard standard to live up to, because

1034
00:48:35,200 --> 00:48:36,920
Speaker 1: the guys that are doing it well are crushing it,

1035
00:48:37,000 --> 00:48:39,279
Speaker 1: and you're trying to get into that down south and

1036
00:48:39,320 --> 00:48:40,920
Speaker 1: they're doing a great job. They're one of the best

1037
00:48:40,960 --> 00:48:43,759
Speaker 1: I've had in the Southeast. But I would have I

1038
00:48:43,800 --> 00:48:45,799
Speaker 1: would drink this all the time though, if they were,

1039
00:48:46,200 --> 00:48:48,280
Speaker 1: if they were just dripping it in Atlanta. Yeah, totally,

1040
00:48:48,600 --> 00:48:50,839
Speaker 1: come on, guys, send it down here, we'll drink it.

1041
00:48:50,880 --> 00:48:53,000
Speaker 1: We gotta say give it thanks to my mom. Shout

1042
00:48:53,000 --> 00:48:55,920
Speaker 1: out to Cheryl, Thanks Cheryl, beer mule, appreciate it, Love

1043
00:48:55,960 --> 00:49:00,200
Speaker 1: you mom. Yeah, so let's recap quickly, rental properties, think

1044
00:49:00,200 --> 00:49:04,520
Speaker 1: about getting arountal property. If you desire financial independence, multiple

1045
00:49:04,520 --> 00:49:06,279
Speaker 1: streams of income are one of the best ways to

1046
00:49:06,280 --> 00:49:09,839
Speaker 1: get there. And uh, I think we've talked about this recently, Matt.

1047
00:49:10,040 --> 00:49:12,879
Speaker 1: Passive income is is not a phrase that I love,

1048
00:49:13,040 --> 00:49:15,680
Speaker 1: but it is fitting in a lot of ways. And

1049
00:49:15,719 --> 00:49:18,200
Speaker 1: real estate is a great passive way of making income.

1050
00:49:18,680 --> 00:49:22,360
Speaker 1: Um And so if you can have a small amount

1051
00:49:22,800 --> 00:49:26,040
Speaker 1: of handing this to you and have the capacity to

1052
00:49:26,120 --> 00:49:28,520
Speaker 1: take it on and the capacity to understand what's going

1053
00:49:28,560 --> 00:49:30,880
Speaker 1: on in your local market, and well, yeah, you definitely

1054
00:49:30,920 --> 00:49:33,440
Speaker 1: need to have that willingness to learn right, because I mean,

1055
00:49:33,440 --> 00:49:35,000
Speaker 1: if you're if you're looking for a deal or if

1056
00:49:35,040 --> 00:49:37,799
Speaker 1: you're trying to find a you know, a location that's

1057
00:49:37,800 --> 00:49:39,920
Speaker 1: gonna that's kind of up and coming, because you're not

1058
00:49:39,920 --> 00:49:42,080
Speaker 1: gonna be able to find a deal unless you know,

1059
00:49:42,640 --> 00:49:44,720
Speaker 1: you know, you gotta be one one step ahead of

1060
00:49:44,800 --> 00:49:47,359
Speaker 1: a lot of folks there. So focus on a small

1061
00:49:47,400 --> 00:49:50,360
Speaker 1: segment of the market. Focus on right where you are locally,

1062
00:49:50,520 --> 00:49:52,640
Speaker 1: be an expert in that specific area where you are

1063
00:49:52,640 --> 00:49:55,200
Speaker 1: looking for homes. Gosh, you're so much we didn't talk about. Yeah,

1064
00:49:55,239 --> 00:49:58,120
Speaker 1: not not only know a specific area right at geographic location,

1065
00:49:58,160 --> 00:50:00,839
Speaker 1: but no even the specific ice home that you want.

1066
00:50:01,080 --> 00:50:03,600
Speaker 1: You want to know that, Okay, I'm looking for the

1067
00:50:03,719 --> 00:50:06,399
Speaker 1: three too in this neighborhood and this price range. And

1068
00:50:06,440 --> 00:50:09,040
Speaker 1: when you know, when if you get online and check

1069
00:50:09,080 --> 00:50:11,879
Speaker 1: the MLS listings every morning and just kind of see

1070
00:50:11,920 --> 00:50:15,359
Speaker 1: what's out there, like literally it takes thirty seconds just

1071
00:50:15,800 --> 00:50:17,919
Speaker 1: you click a few get to know us out there,

1072
00:50:18,440 --> 00:50:21,919
Speaker 1: and it might take honestly for you, six months, oh man,

1073
00:50:22,560 --> 00:50:25,879
Speaker 1: scouring Zillo or redfin or whatever app it is and

1074
00:50:25,960 --> 00:50:28,400
Speaker 1: just finding out what the flavor of the local market is.

1075
00:50:28,440 --> 00:50:30,200
Speaker 1: It took it took us over a year to find

1076
00:50:30,239 --> 00:50:32,520
Speaker 1: the house, the one too down from you guys, you know,

1077
00:50:32,640 --> 00:50:34,320
Speaker 1: like I mean, I was looking for a year getting

1078
00:50:34,320 --> 00:50:36,759
Speaker 1: to know that entire you know, neighborhood and that side

1079
00:50:36,800 --> 00:50:39,439
Speaker 1: of town. Before I felt like we had found a deal.

1080
00:50:39,840 --> 00:50:42,160
Speaker 1: And it's amazing a while where we purchased. The north

1081
00:50:42,160 --> 00:50:44,000
Speaker 1: side of the park is so different in the south side,

1082
00:50:44,080 --> 00:50:46,640
Speaker 1: like vastly different. I want to look at the house

1083
00:50:46,680 --> 00:50:47,960
Speaker 1: on the south side of the park that was like

1084
00:50:47,960 --> 00:50:51,879
Speaker 1: sixty grand just a matter of two blocks. It was yeah,

1085
00:50:51,960 --> 00:50:53,680
Speaker 1: and it and it made all the different, all the difference,

1086
00:50:53,719 --> 00:50:55,160
Speaker 1: and I was like, I wouldn't want to live here,

1087
00:50:55,160 --> 00:50:57,840
Speaker 1: but I'd want to live there. Become that location expert

1088
00:50:57,880 --> 00:51:00,279
Speaker 1: on exactly where you want to buy and still to it,

1089
00:51:00,360 --> 00:51:02,120
Speaker 1: stick to what you know and don't venture too far

1090
00:51:02,160 --> 00:51:04,400
Speaker 1: outside of that. There's a lot of real estate investing

1091
00:51:04,480 --> 00:51:07,319
Speaker 1: experts per se that will, you know, kind of try

1092
00:51:07,320 --> 00:51:09,560
Speaker 1: to convince you to go bigger, go home. I say,

1093
00:51:09,560 --> 00:51:11,719
Speaker 1: starts small. There's only a certain amount that you can

1094
00:51:11,719 --> 00:51:14,879
Speaker 1: actually know really well, and and but know that well

1095
00:51:15,080 --> 00:51:18,120
Speaker 1: and and then specialize in there. I completely agree. But

1096
00:51:18,280 --> 00:51:19,719
Speaker 1: you can do it, and there's a lot of ways

1097
00:51:19,719 --> 00:51:22,279
Speaker 1: to get started by a duplex by a single family home.

1098
00:51:22,680 --> 00:51:25,759
Speaker 1: Living it, move out, whatever it is, there's there's a

1099
00:51:25,800 --> 00:51:28,080
Speaker 1: lot of options. Thanks so much for listening everyone. Our

1100
00:51:28,160 --> 00:51:30,560
Speaker 1: home on the web is how to money dot com.

1101
00:51:30,840 --> 00:51:32,279
Speaker 1: Be sure to check it out. We'll have our show

1102
00:51:32,320 --> 00:51:34,279
Speaker 1: notes up there for you, and don't forget to hit

1103
00:51:34,320 --> 00:51:37,800
Speaker 1: the subscribe button on Apple Podcasts or wherever you're listening

1104
00:51:37,840 --> 00:51:40,600
Speaker 1: to this show. Until next time, Buddy, best Friends, best

1105
00:51:40,640 --> 00:51:41,279
Speaker 1: Friends Out.