WEBVTT - Investment Property Basics #004 0:00:00.080 --> 0:00:03.199 Welcome to How to Money. I'm Joel and I'm Matt, 0:00:03.279 --> 0:00:18.800 and today we're talking about investment properties. Yeah, that's right, 0:00:18.800 --> 0:00:22.400 So we're gonna be talking about investment properties today. Man, 0:00:23.239 --> 0:00:24.880 I'm looking forward to it. We each have a few 0:00:25.120 --> 0:00:27.000 and we've got some thoughts. We've been doing it now 0:00:27.080 --> 0:00:29.640 for for quite a few years, and I think we 0:00:29.760 --> 0:00:31.960 got a lot of information to share with the listeners 0:00:32.000 --> 0:00:34.960 out there about how we've done things, kind of the 0:00:35.000 --> 0:00:38.000 ways that we've I feel like had successes with running 0:00:38.080 --> 0:00:39.839 properties and and maybe some of the ways that we 0:00:40.240 --> 0:00:42.160 haven't done it as well as we had hoped. But quickly, 0:00:42.240 --> 0:00:44.599 let's talk about really people want to know about our 0:00:44.600 --> 0:00:46.599 cover photo and how they came about. And there's one 0:00:46.680 --> 0:00:50.520 lingering question that I've gotten from a bunch of listeners already. Matt, 0:00:50.600 --> 0:00:52.879 you've talked about working from home, but nobody knows what 0:00:53.000 --> 0:00:55.680 you do. It's kind of fun. We we got Kate, 0:00:55.800 --> 0:00:58.480 my wife, to take our photo, our goofy photo. But 0:00:58.640 --> 0:01:01.880 it's it's good, Okay. Not are photographers. We we've been 0:01:01.880 --> 0:01:05.000 photographers for the past ten years. And she she stays 0:01:05.040 --> 0:01:08.000 at home now with the kids, but is still a 0:01:08.040 --> 0:01:11.640 talented photographer. So that's what I still do though, primarily weddings, 0:01:11.640 --> 0:01:16.360 because weddings are just way better than anything else. Why 0:01:16.400 --> 0:01:18.679 why do you say that it's more fun. You get 0:01:18.680 --> 0:01:21.240 to deal with folks that are having a blast, as 0:01:21.280 --> 0:01:25.120 opposed to say headshots maybe of you know, of some 0:01:25.200 --> 0:01:27.160 company or something like that when you're sitting in office. 0:01:27.200 --> 0:01:31.640 Weddings are just jam full of uh, fun and action 0:01:31.680 --> 0:01:35.720 and activity. You're basically going to a party every other Saturday. Yeah, exactly, 0:01:35.920 --> 0:01:39.080 And just I love it documenting it so that people 0:01:39.120 --> 0:01:42.120 can have smiling yeah picture proof for the rest of 0:01:42.160 --> 0:01:45.040 it all day and enjoying myself. Man, it's awesome. Seriously, Yeah, 0:01:45.319 --> 0:01:48.400 it's the best. So now everyone knows the secrets out 0:01:48.440 --> 0:01:51.440 your wedding photographer, because you've alluded a few times to being, 0:01:51.640 --> 0:01:54.360 uh to working from home, and so people are like, well, 0:01:54.560 --> 0:01:56.920 just well I work from home. That's my my day job. 0:01:56.960 --> 0:01:58.600 Folks are like, oh, yeah, you get a party every 0:01:58.600 --> 0:02:01.760 other weekend, right like you said it. But then Monday 0:02:01.760 --> 0:02:06.200 through Friday are that's that's emails, editing, the post processing, 0:02:06.560 --> 0:02:09.280 phone calls, meeting up with folks in person as well, 0:02:09.960 --> 0:02:12.320 all that kind of stuff. Running a small business, that's 0:02:12.320 --> 0:02:15.880 the thing that some people. Taxes, insurance all yeah, all 0:02:15.919 --> 0:02:17.960 that action, there's a lot more to it. Anybody can 0:02:18.000 --> 0:02:21.360 kind of be a photographer maybe for a year or two, 0:02:21.400 --> 0:02:25.040 but then when it comes to taxes, and really taxes 0:02:25.040 --> 0:02:26.840 and insurance are the are the big things that start 0:02:26.880 --> 0:02:29.799 to gum things up a little bit, and folks are like, oh, 0:02:29.840 --> 0:02:31.160 I don't know if I want to keep doing this 0:02:31.240 --> 0:02:34.560 because this is more complicated than I thought. Yeah, that's 0:02:34.600 --> 0:02:37.160 I think that's the interesting thing because I'm friends with 0:02:37.200 --> 0:02:39.800 a few photographers and I've found out through the years. 0:02:40.480 --> 0:02:42.600 You certainly have to have that artistic sense right to 0:02:42.680 --> 0:02:44.920 be able to make it at all. First and foremost right, 0:02:44.960 --> 0:02:47.560 you have to have that. But to add to that, 0:02:47.680 --> 0:02:50.840 and almost just as important, you have to be able 0:02:50.840 --> 0:02:53.280 to run a business. You have to learn and and 0:02:53.400 --> 0:02:56.000 want to know how to run a business well. And 0:02:56.040 --> 0:03:00.000 if you can't do that, that artistic side is especially 0:03:00.000 --> 0:03:02.519 if you're gonna have your own small business like you do. Obviously, 0:03:02.560 --> 0:03:05.480 you can be a photographer for someone else and and 0:03:05.480 --> 0:03:07.840 and just enjoy it as a hobby even obviously, Yeah, 0:03:08.200 --> 0:03:10.320 but but you have to know how to run that business. 0:03:10.320 --> 0:03:12.120 And there's a lot involved with that. Yeah, And you gotta, 0:03:12.280 --> 0:03:14.240 I mean you you need to want to know how 0:03:14.240 --> 0:03:15.520 to do that, and that's I think that's one of 0:03:15.520 --> 0:03:17.680 the things that fits me so well as I just 0:03:17.760 --> 0:03:22.320 love I mean I literally love doing do incorporate taxes, 0:03:22.560 --> 0:03:25.640 like all the boring stuff that literally goes into like 0:03:25.680 --> 0:03:27.560 the admin side, like the back end of working on 0:03:27.600 --> 0:03:29.960 the website, all that kind of stuff. Man, I love it, 0:03:30.040 --> 0:03:32.200 which is love building the thing from the ground up. 0:03:32.240 --> 0:03:34.280 It's just it's a blast, which is why we're a 0:03:34.280 --> 0:03:39.600 perfect fit. And to go to you guys, go to 0:03:39.640 --> 0:03:41.400 Poor not Poor dot com and you'll see, you know, 0:03:41.480 --> 0:03:42.920 Matt did a lot of the does a lot of 0:03:42.960 --> 0:03:45.360 the images, does a lot of so the background work, 0:03:45.520 --> 0:03:48.520 and um, I'm kind of tackling some of those, some 0:03:48.560 --> 0:03:52.280 of those other things, some of the the audio, Yeah, 0:03:52.720 --> 0:03:54.800 the audio editing, because that's that's where that's what I'm 0:03:54.840 --> 0:03:56.839 into when I know, well, you make us sound good 0:03:56.880 --> 0:04:00.680 and I make us look good, Joel, So it's great. 0:04:00.680 --> 0:04:02.880 Are are the things that we're good at balance each 0:04:02.880 --> 0:04:04.560 other out well, and the things that we enjoy. And 0:04:04.560 --> 0:04:07.320 I think if you've listened to the first few podcasts here, 0:04:07.400 --> 0:04:10.000 you might have already kind of got an inkling of that. 0:04:10.360 --> 0:04:13.480 So on Poor not Poor podcast. We drink a different 0:04:13.480 --> 0:04:15.880 beer every week. So we're gonna get into talking about 0:04:15.880 --> 0:04:18.800 investment properties in just a second, but first let's talk 0:04:18.800 --> 0:04:21.360 about this beer man. What would you bring for us today? 0:04:21.360 --> 0:04:23.680 All right? So today I brought the beer and it 0:04:23.760 --> 0:04:27.000 is called scatter Brain. It's an I p A from 0:04:27.200 --> 0:04:32.279 a brewery called Bearded Iris Brewing out of Nashville, Tennessee. Sadly, 0:04:32.320 --> 0:04:33.960 I haven't been able to visit the brewery yet, but 0:04:34.000 --> 0:04:36.560 my mom was up there for a conference, and so 0:04:36.800 --> 0:04:39.280 I was like, hey, hey, Mom, I'm gonna need you 0:04:39.360 --> 0:04:43.440 to go pick up some Bearded Iris beers for me 0:04:43.520 --> 0:04:45.560 while you're there. I'm gonna need you to do this 0:04:46.720 --> 0:04:50.039 if you could, please, I asked nicely. And also like 0:04:50.120 --> 0:04:53.679 tossing your laundry as well. Also could you do my laundry? 0:04:53.760 --> 0:04:55.479 She's like, your thirty three son, I'll get your beer, 0:04:55.520 --> 0:04:58.440 but I'm not doing your laundry. And so Mom was 0:04:58.520 --> 0:05:01.159 kind enough to bring back two four packs of beer 0:05:01.240 --> 0:05:03.720 de Iris beer for me. They specialize in I pas. 0:05:03.720 --> 0:05:05.760 I think they've done a couple other things, but like 0:05:05.800 --> 0:05:07.919 literally they'll have like seven I PA s on draft 0:05:07.920 --> 0:05:10.159 that are just different IPAs. That's what they do, so 0:05:10.240 --> 0:05:12.560 they know what they're doing. And uh, I will tell 0:05:12.560 --> 0:05:15.000 this interesting story. First off, how do you feel about 0:05:15.560 --> 0:05:18.080 your mom or someone close to you being a beer 0:05:18.160 --> 0:05:19.680 mule for you? Because that's what they call them when 0:05:19.680 --> 0:05:21.200 you when you send someone out to get beer for 0:05:21.240 --> 0:05:24.480 you in another state or another location, your beer mule. Yeah, 0:05:24.760 --> 0:05:27.520 by that definition, I have been a beer mule for you, 0:05:27.600 --> 0:05:30.279 that's true. You have, you have? We brought back some 0:05:31.200 --> 0:05:36.240 Abissell Brothers and uh Trullium, Yeah Trulli. I'm out of Boston. 0:05:36.560 --> 0:05:38.840 I couldn't think of them. Uh yeah, man, but that 0:05:38.920 --> 0:05:43.159 was absolutely worth that check bag from from Boston. Holy cow, 0:05:43.320 --> 0:05:44.960 that's I will stay you do it all over again 0:05:45.120 --> 0:05:48.400 just to get that beer. The only way I'll check 0:05:48.440 --> 0:05:50.840 a bag is for beer. That's the only time I'll 0:05:50.880 --> 0:05:54.280 ever check a bag Bucks, and just to get some 0:05:54.720 --> 0:05:56.640 amazing stuff that you're not gonna be able to get 0:05:56.880 --> 0:05:59.839 at least in our state in Georgia. So well know, yeah, 0:06:00.000 --> 0:06:03.280 bestl Brothers and nor Trillium. Neither of them distribute right 0:06:03.320 --> 0:06:05.680 at all. Yeah, and so actually literally the only way 0:06:05.720 --> 0:06:07.359 you can get that beer. When I went to Amsterdam 0:06:07.400 --> 0:06:10.920 one time, I brought back. I believe I brought back 0:06:11.000 --> 0:06:15.679 thirty seven beers across a couple of bags, check bags. 0:06:15.480 --> 0:06:18.400 That's a lot of beer. And it was so worth it. 0:06:18.440 --> 0:06:20.599 I was drinking. It just reminded me of the trip. 0:06:20.680 --> 0:06:23.239 For I still have one bottle left that's just chilling 0:06:24.080 --> 0:06:26.800 bottle of Canti, just chilling for me. So because it 0:06:26.920 --> 0:06:29.960 last twenty years, I believe those those gooses that you 0:06:30.000 --> 0:06:32.680 can have them on your shelf for twenty years. So 0:06:32.760 --> 0:06:34.640 I want to tell you real quick story about my 0:06:34.680 --> 0:06:36.800 mom getting the beer. So she went to the brewery 0:06:37.040 --> 0:06:38.600 with some of her co workers because she was there 0:06:38.640 --> 0:06:41.479 for a conference. And she shows up with the brewery 0:06:41.520 --> 0:06:44.080 and it looks like it's closed apparently. So she walks 0:06:44.120 --> 0:06:46.919 up to the door and takes a selfie because she 0:06:47.040 --> 0:06:48.760 just wants to prove to me that she actually went 0:06:49.000 --> 0:06:51.679 even though it was closed. Oh, instead of being like, sorry, 0:06:51.680 --> 0:06:54.120 you couldn't get there closing, she was gonna text me 0:06:54.160 --> 0:06:58.239 the picture. And I guess there's this window. There's this window, 0:06:58.279 --> 0:07:00.680 and people are everyone staring at her and she's taking 0:07:00.680 --> 0:07:02.680 a picture. Everyone inside the brewery is staring at or 0:07:02.680 --> 0:07:07.279 while she's taking this picture, and her friends are like Uh, Cheryl, 0:07:07.800 --> 0:07:09.800 I'm pretty sure they're open. There's a bunch of people 0:07:09.800 --> 0:07:11.840 and they're looking at you while you're taking the selfie. 0:07:12.040 --> 0:07:14.840 And so she went in there and she asked the bartender, 0:07:16.080 --> 0:07:18.760 excuse me, do you sell beer here? Oh my god. 0:07:20.080 --> 0:07:23.640 The bartender kind of looks at her like, yes, yes, ma'am, 0:07:23.640 --> 0:07:26.320 that's actually you are. In fact, that's all we sell. 0:07:26.880 --> 0:07:29.000 In fact, that's what we do here. We sell beer 0:07:29.080 --> 0:07:31.960 and beer alone. All right, So the beer is scatter. 0:07:32.240 --> 0:07:33.520 Let's talk about the beer because we've got a lot 0:07:33.560 --> 0:07:35.120 of real estate to talk about too. It's an I 0:07:35.160 --> 0:07:39.880 p A. Let's crack it nice. Yeah, this can it is. 0:07:39.920 --> 0:07:42.160 It's one of those almost all silver cans. I like 0:07:42.200 --> 0:07:44.320 how breweries are doing that because the way that they're 0:07:44.560 --> 0:07:46.600 a lot of breweries are brewing a lot of different stuff, 0:07:46.600 --> 0:07:49.480 and so they're not dedicating an entire new label necessarily 0:07:49.520 --> 0:07:53.400 to each beer. They can just yeah, kind of slapping 0:07:53.480 --> 0:07:57.040 on a new label with kind of the standard can. Uh, 0:07:57.360 --> 0:08:00.560 like a silver tall silver can. I like that. Anytime 0:08:00.600 --> 0:08:02.600 I see that, I'm like, I must be good. So 0:08:02.720 --> 0:08:08.040 Bearded Iris does sixteen ounce cans of beer and four 0:08:08.240 --> 0:08:12.119 Seliman four packs, and I believe it's about sixteen bucks 0:08:12.120 --> 0:08:13.640 for four packs, so it's not cheap. It's about four 0:08:13.720 --> 0:08:17.600 bucks a beer. But they're making some of the best 0:08:17.600 --> 0:08:21.200 I pass right now. No, but where on the street 0:08:21.240 --> 0:08:23.320 is They're coming to Atlanta soon, they're gonna start distributing. 0:08:23.440 --> 0:08:25.880 I think they distribute down in parts of Tennessee. But 0:08:25.960 --> 0:08:28.720 that's it so so just locally for thoughfully, we'll get 0:08:28.800 --> 0:08:31.880 them soon. Nice hazy kind of got that orange juice, 0:08:31.920 --> 0:08:36.599 sort of look to it, man, beautiful color orange and 0:08:36.840 --> 0:08:40.080 uh so we will be drinking this bearded iris scatter brain, 0:08:40.200 --> 0:08:44.240 I p A. And we will give you our full 0:08:44.920 --> 0:08:48.839 beer tasting notes at the end of the podcast for now, though, Man, 0:08:48.840 --> 0:08:52.920 that's delicious, fruity hazy. It's got that, man, it's got 0:08:52.920 --> 0:08:55.800 a nice natural sweetness to it. Half of my beer 0:08:55.840 --> 0:09:00.240 descriptions include a man, I don't really have like a 0:09:00.240 --> 0:09:02.720 word for it sometimes because we're drinking good seers here, homie, 0:09:02.760 --> 0:09:05.680 I'm just thinking about it as delicious. Okay, So let's 0:09:05.679 --> 0:09:11.400 get into investment property talk. What our investment properties, Matt. Yeah, 0:09:11.440 --> 0:09:13.520 when you hear investment properties, I mean the way we're 0:09:13.520 --> 0:09:15.400 gonna talk about it today is there's kind of two types. 0:09:15.920 --> 0:09:18.600 You've got your flip. So an investment property can be 0:09:18.640 --> 0:09:21.280 something you purchase and that you plan to sell pretty 0:09:21.320 --> 0:09:24.520 much right away for a profit. Or you can be 0:09:24.559 --> 0:09:26.600 coming at it from a long term buy and hold 0:09:26.840 --> 0:09:30.680 sort of option and you buy it and hold it 0:09:30.720 --> 0:09:32.840 and you know, rents it out. Whether it's be commercial 0:09:33.120 --> 0:09:34.800 you know you can buy and hold with commercialist date 0:09:34.800 --> 0:09:38.080 where you're running out of businesses or single family homes 0:09:38.240 --> 0:09:41.760 or multi family homes, we're you know, running out too families. 0:09:41.760 --> 0:09:44.120 So and that's what we're gonna be focusing on today 0:09:44.280 --> 0:09:47.840 is the buy and hold. Yeah, and just uh quick 0:09:47.880 --> 0:09:50.240 note to people, we will Matt and I each own 0:09:50.280 --> 0:09:52.240 a few investment properties. Will get into the specifics in 0:09:52.240 --> 0:09:55.120 a minute. Uh. We Also, this podcast will be a 0:09:55.200 --> 0:09:59.320 little bit more of a forest conversation, and eventual later 0:09:59.360 --> 0:10:01.520 podcasts you will get down into some of the trees 0:10:02.000 --> 0:10:06.440 on how to potentially screen a tenant, um, other decisions 0:10:06.520 --> 0:10:08.560 you need to make with your rental property about repairs, 0:10:09.480 --> 0:10:11.600 how you choose where to buy. But for now, we're 0:10:11.640 --> 0:10:13.520 kind of going to kind of look at the forest 0:10:13.840 --> 0:10:16.200 and get an overview of what you should be thinking 0:10:16.200 --> 0:10:18.400 about if you're interested in rental properties and why you 0:10:18.400 --> 0:10:21.760 should be interested and potentially pursuing a rental property in 0:10:21.840 --> 0:10:25.120 your portfolio. That's kind of our general approach to to 0:10:25.160 --> 0:10:27.240 what we're gonna be talking about investment properties. And then 0:10:27.559 --> 0:10:29.240 so us personally, Yeah, man, how did you get started 0:10:29.800 --> 0:10:33.720 with with rental properties? And in particular, Yeah, so I 0:10:33.720 --> 0:10:38.520 bought my first house in two thousand nine, and I 0:10:38.600 --> 0:10:42.000 got it for a just ridiculously cheap amount of money, 0:10:42.080 --> 0:10:44.160 as as did I three thousand nine. That was a 0:10:44.200 --> 0:10:46.760 good year, man, two thousand nine was the right time 0:10:47.000 --> 0:10:49.640 to buy a house. So actually, I think we both 0:10:49.679 --> 0:10:53.160 bought at the same time when there was an eight 0:10:53.160 --> 0:10:55.880 thousand dollar tax credit that you didn't have to pay back, 0:10:56.080 --> 0:10:59.200 right right. There was one before that, uh that was 0:10:59.320 --> 0:11:01.680 like I think so fills that had to be paid back. 0:11:01.960 --> 0:11:05.120 But this eight thousand dollar tax credit for a short 0:11:05.120 --> 0:11:06.360 period of time, I don't know how long it was 0:11:06.360 --> 0:11:09.520 in effect, for six six months to a year, was 0:11:09.760 --> 0:11:11.400 you didn't have to pay it back. And so that 0:11:11.480 --> 0:11:13.520 was like the perfect time, the perfect impetus to buy 0:11:13.520 --> 0:11:17.320 a house. The iron was hot and the prices were low, 0:11:17.520 --> 0:11:20.000 and so I think it was up to ten percent 0:11:20.000 --> 0:11:23.160 of your purchase price. So really if you could get 0:11:23.160 --> 0:11:26.600 in that eighty thousand to eight, you know, writing that 0:11:26.640 --> 0:11:30.960 eighty thousand dollar price range, you're you're maximizing your the 0:11:31.000 --> 0:11:33.560 government's paying for ten of your home. And so I 0:11:33.600 --> 0:11:36.120 bought a home into thousand nine and paid eighty nine 0:11:36.160 --> 0:11:39.600 thousand dollars for it. The federal government paid eight thousand 0:11:39.640 --> 0:11:41.360 dollars of that, so it was really more like an 0:11:41.360 --> 0:11:44.040 eighty one dollar purchase. I lived in it for a 0:11:44.080 --> 0:11:45.360 couple of years, and I had a roommate for a 0:11:45.400 --> 0:11:47.839 little bit, and then um kicked him out because I 0:11:47.880 --> 0:11:52.840 got married, and so just decided after a while it 0:11:53.000 --> 0:11:55.400 just made a lot of sense to buy another house. 0:11:55.760 --> 0:11:58.839 And rents were going up, and I was like, oh man, 0:11:58.880 --> 0:12:00.760 it makes so much sense to to get in on 0:12:00.800 --> 0:12:04.080 this rental action. And you were charging that friend right 0:12:04.120 --> 0:12:05.760 like you had a roommate, and so that was sort 0:12:05.800 --> 0:12:08.079 of like your first tenant essentially, it was in your 0:12:08.080 --> 0:12:10.720 own house, living with you. Yeah, And and considering how 0:12:10.800 --> 0:12:12.880 cheap I was looking at how much I was paying 0:12:12.880 --> 0:12:15.920 in rent every month, and compared to what rents are now, 0:12:16.320 --> 0:12:18.840 obviously it wasn't too bad, but it was still like 0:12:18.960 --> 0:12:23.360 seven a month, and I just couldn't find I knew that. 0:12:23.480 --> 0:12:26.439 I think my new mortgage was like seven fifty dollars 0:12:26.480 --> 0:12:28.640 a month, and then I could get someone a roommate 0:12:28.760 --> 0:12:30.960 to pay more than half of that, So it just 0:12:31.040 --> 0:12:32.640 made sense. I was like, oh, man, I can start 0:12:33.000 --> 0:12:35.120 saving a lot more money if I buy this house 0:12:35.440 --> 0:12:37.720 and I have a roommate in here. And then that 0:12:38.280 --> 0:12:40.599 compounds on itself when you think of the idea of 0:12:40.679 --> 0:12:43.000 actually buying another house and running that out and how 0:12:43.040 --> 0:12:45.040 much more you can save, which then compounds and you 0:12:45.040 --> 0:12:46.960 can buy more rental houses exactly right. And a lot 0:12:47.000 --> 0:12:50.000 of folks call that house house hacking, right where you 0:12:50.080 --> 0:12:52.040 kind of buy a property thinking that like, Okay, I'm 0:12:52.040 --> 0:12:54.160 gonna live here, but you know, I've got three other 0:12:54.240 --> 0:12:56.120 rooms and I'm not using if I can get three 0:12:56.160 --> 0:12:57.760 other roommates in there, and they're gonna pay for my 0:12:57.800 --> 0:13:00.080 mortgage right right, And it's not like your rip and 0:13:00.200 --> 0:13:02.560 people off. It's just you're providing a great place for 0:13:02.640 --> 0:13:05.000 people to live while at the same time, you know, 0:13:05.000 --> 0:13:07.640 obviously you had to pay up front and put the 0:13:07.880 --> 0:13:10.440 down payment on the home and and everything else that 0:13:10.480 --> 0:13:12.800 comes with owning the property yourself. There's a lot of 0:13:12.800 --> 0:13:14.880 people that want a temporary place to stay. I don't 0:13:14.880 --> 0:13:17.160 want you know, he my my roommate at the time 0:13:17.240 --> 0:13:19.680 was month to month and he was I don't know 0:13:19.679 --> 0:13:21.640 that totally cool with that. He he just wanted a 0:13:21.640 --> 0:13:24.840 place to stay for three to six months and was 0:13:25.160 --> 0:13:27.120 more than happy to pay. He didn't know how long 0:13:27.120 --> 0:13:29.080 he had to be able to handle you for right, 0:13:29.440 --> 0:13:30.880 It's like, I don't want to commit to a whole year. 0:13:32.400 --> 0:13:34.520 But just like we talked about with potential air b 0:13:34.679 --> 0:13:37.920 and bs UH last episode, you know, you can make 0:13:37.920 --> 0:13:40.240 a lot of money on AIRBBS. You're not ripping people off. 0:13:40.320 --> 0:13:42.400 People want a place to stay for a night and 0:13:42.480 --> 0:13:44.040 you've got You're taking on a lot of a lot 0:13:44.040 --> 0:13:46.480 of risk, but there's also a lot of potential reward. 0:13:46.880 --> 0:13:49.880 And it's the same with UH investment properties that you 0:13:49.960 --> 0:13:52.760 rent out on an annual basis. There's a lot of 0:13:52.840 --> 0:13:55.040 risk and reward, but the reward could be could be 0:13:55.120 --> 0:13:58.320 quite nice. Man, Absolutely so, seeing you kind of think 0:13:58.360 --> 0:14:00.920 through all that back then own the time that you 0:14:00.960 --> 0:14:03.720 guys were considering so you and Emily, when y'all were 0:14:03.720 --> 0:14:08.000 considering getting your second house, is when we started having 0:14:08.000 --> 0:14:11.480 these conversations. This is way before poor not Poor a 0:14:11.480 --> 0:14:15.280 long time ago, but that's honestly, that was a huge 0:14:16.320 --> 0:14:18.480 sort of kickstarter for for us to kind of start 0:14:18.480 --> 0:14:20.040 thinking that as well. We we we've got some good 0:14:20.040 --> 0:14:22.920 friends of ours that live up in Asheville. And that 0:14:23.040 --> 0:14:26.120 was my first, I guess awakening towards investment property. Like 0:14:26.120 --> 0:14:28.200 I didn't grow up in a family where that was 0:14:28.240 --> 0:14:31.280 a thing, where investment Oh yeah, everybody's got investment properties. 0:14:31.560 --> 0:14:33.840 It was very foreign to me. But seeing my friend Clark, 0:14:34.560 --> 0:14:37.520 his first home that he purchased was a triplex and 0:14:37.560 --> 0:14:40.960 so literally, I mean they moved in and within the 0:14:40.960 --> 0:14:44.600 first month they had two other renters. Well they took over, 0:14:44.720 --> 0:14:46.720 they're already they're already there, and so they actually just 0:14:46.800 --> 0:14:49.400 maintained the lease that they already had and they were 0:14:49.440 --> 0:14:52.360 able to have income generated by this property that they 0:14:52.360 --> 0:14:54.800 had not owned and lived in right off the bat. 0:14:54.840 --> 0:14:56.000 And so I helped him a lot. I mean, I 0:14:56.000 --> 0:14:58.280 have to move into the house and kind of got 0:14:58.320 --> 0:15:01.440 to see that firsthand. So those seeds were planted then. 0:15:01.440 --> 0:15:04.600 But then honestly I thought, man, if Joel can do this, 0:15:05.600 --> 0:15:07.280 he's an idiot. Yeah, I was just like, if if 0:15:07.320 --> 0:15:09.000 he can do this, I need to start I need 0:15:09.000 --> 0:15:10.680 to start thinking down that, you know, thinking on this 0:15:10.840 --> 0:15:13.280 down this path. But like, honestly, it just had to 0:15:13.320 --> 0:15:15.240 do with us talking about it. Yeah, right, And so 0:15:15.520 --> 0:15:18.240 that's what I'm hoping too, that listeners that are listening 0:15:18.240 --> 0:15:21.360 to this episode can at then this conversation, they'll think, Man, 0:15:21.360 --> 0:15:23.640 it's really not that complicated. It's not as nearly as 0:15:23.680 --> 0:15:26.440 scary as maybe I thought in my mind. Let's let's 0:15:26.480 --> 0:15:28.440 start thinking more about this. This should be an avenue 0:15:28.480 --> 0:15:30.360 that we should consider. I feel like the first thing 0:15:30.360 --> 0:15:34.680 that people say usually is they think about the worst 0:15:34.680 --> 0:15:38.760 case scenario with tenants or but but in what else 0:15:38.800 --> 0:15:41.480 in life do you really consider the worst case scenario? First, 0:15:41.960 --> 0:15:44.800 there's a lot of great case scenarios. And sure, there's 0:15:44.800 --> 0:15:47.000 a lot of potential pitfalls, and there's a lot of 0:15:47.040 --> 0:15:49.440 things that I mean, I think we could from from 0:15:49.440 --> 0:15:54.520 our like seven years as being landlords seven or eight years, 0:15:55.000 --> 0:15:57.000 there's there's some things that we can tell you that 0:15:57.160 --> 0:16:01.000 you need to avoid, that you need to consider. But ultimately, 0:16:01.080 --> 0:16:04.160 if you do a thorough job screening and you're smart, 0:16:04.200 --> 0:16:07.240 and you have a house that's in good condition that 0:16:07.280 --> 0:16:09.680 you would want to live in, and that's always my standard, 0:16:09.920 --> 0:16:11.160 what I want to live in the house. If I 0:16:11.200 --> 0:16:12.800 wouldn't want to live in the house, then I'm not 0:16:12.880 --> 0:16:16.280 considering it. Time for some upgrades. Yeah, so yeah, So 0:16:16.280 --> 0:16:19.200 where where are you then today with uh? With real estate? 0:16:19.680 --> 0:16:23.600 So we have three rental homes and we also rent 0:16:23.600 --> 0:16:25.400 out the back part of our home and they're all 0:16:25.560 --> 0:16:28.280 single family homes. At one point you mentioned triplex. At 0:16:28.280 --> 0:16:31.880 one point we looked at a triplex and we put 0:16:31.920 --> 0:16:35.000 in an offer, but we didn't get it. Uh. There 0:16:35.000 --> 0:16:36.560 there have been a couple of multifamilies so we've been 0:16:36.560 --> 0:16:40.080 interested in but just haven't haven't quite gotten them yet, 0:16:40.080 --> 0:16:42.200 and we put in offers but just haven't gotten them. 0:16:42.240 --> 0:16:44.080 But that is something we'd be interested at some point 0:16:44.120 --> 0:16:46.000 in time. You and I kept from the same cloth 0:16:46.080 --> 0:16:49.040 man same yeah, same here. I mean, yeah, like you, 0:16:49.040 --> 0:16:51.120 we've got three as well, which is it's just funny 0:16:51.120 --> 0:16:54.200 how how similar we are. Hopefully we'll kind of continue 0:16:54.200 --> 0:16:57.120 to be able to expand that portfolio too. So what 0:16:57.200 --> 0:16:58.760 is your kind of ultimate goal? Like why do you 0:16:58.800 --> 0:17:01.200 do this? Yeah? That's great question because and I think 0:17:01.240 --> 0:17:05.200 anybody that's looking to go into having rental properties needs 0:17:05.240 --> 0:17:07.280 to think through why they're doing it, because the why 0:17:07.359 --> 0:17:11.240 behind it. And I mean for me, it's all about 0:17:12.119 --> 0:17:16.800 financial independence at some point and having another stream of income, 0:17:17.160 --> 0:17:20.240 having another way to make money. And I think there's 0:17:20.320 --> 0:17:22.440 a lot of value in real estate being one of 0:17:22.480 --> 0:17:28.080 those pillars of how you make money. And so yeah, ultimately, 0:17:28.160 --> 0:17:30.360 rental properties are a great retirement asset to have as 0:17:30.359 --> 0:17:34.320 well because they can provide income every month. Uh. Most 0:17:34.320 --> 0:17:36.879 people these days don't have pensions, just have four O 0:17:36.920 --> 0:17:39.040 one case, maybe a little bit social Security. You're not 0:17:39.040 --> 0:17:41.000 sure how much you're gonna get there either, So it's 0:17:41.000 --> 0:17:43.040 one of those things that is perfect in the now 0:17:43.119 --> 0:17:47.760 to provide some extra income. Yeah, and then on top 0:17:47.800 --> 0:17:50.080 of that, it's it's something for the future as well. Yeah, 0:17:50.080 --> 0:17:52.720 I mean that's exactly for us. Again, like I mentioned earlier, 0:17:52.760 --> 0:17:57.840 being self employed, our income is varies greatly depending on 0:17:57.840 --> 0:18:02.000 the season, right, So there's season and then there's low season, 0:18:02.600 --> 0:18:03.960 and so for us to kind of be able to 0:18:04.080 --> 0:18:09.280 stabilize our our variable income some is always uh, is 0:18:09.280 --> 0:18:12.320 always welcomed, and our family feels a little less stressed 0:18:12.320 --> 0:18:14.320 when we know that we've you know, we've got rent 0:18:14.440 --> 0:18:16.960 kind of coming in. Obviously we've got mortgages, but still 0:18:17.000 --> 0:18:18.680 annoying that some of that we're going to be able 0:18:18.680 --> 0:18:21.879 to put towards our our expenses and cost of living 0:18:22.000 --> 0:18:26.760 living for ourselves, um, but also to man. Another reason why, 0:18:26.920 --> 0:18:30.040 like the more the bigger picture reason why why we 0:18:30.080 --> 0:18:33.480 love it the investment properties as well, is that we're 0:18:33.520 --> 0:18:36.480 able to buy into what we love, which is the city, 0:18:36.960 --> 0:18:40.600 like being you know, invested in the city both emotionally 0:18:40.760 --> 0:18:44.400 but also obviously financially as well. Like we believe in 0:18:44.400 --> 0:18:46.480 in in our city. We we love it, and to 0:18:46.640 --> 0:18:49.160 kind of be able to to kind of be able 0:18:49.200 --> 0:18:51.720 to back that in a in a way that's really 0:18:51.720 --> 0:18:55.960 really tangible is great, I think as well. Yeah, and 0:18:56.040 --> 0:18:59.560 so the last house that I bought, it's it's it's 0:18:59.640 --> 0:19:03.399 uncam anyhow weird, uh, Matt and eyes lives are linked. 0:19:04.520 --> 0:19:07.680 The last rental homes we bought were literally it's been Yeah, 0:19:07.800 --> 0:19:10.080 we we've been destined to to do this. It was 0:19:10.160 --> 0:19:12.640 our first foray into another neighborhood. And we'll get into 0:19:12.760 --> 0:19:15.639 the recent location is really important when picking rental property 0:19:15.640 --> 0:19:17.439 in just a minute. It was our first foray into 0:19:17.440 --> 0:19:19.960 another neighborhoods about ten minutes away from where we currently live, 0:19:20.040 --> 0:19:22.560 and and all our other rental properties are kind of 0:19:22.640 --> 0:19:26.880