My husband and I made a joint decision to buy rental properties. We already had one, our former home, and we recently purchased another, strictly for renting out. We did a 180, going from hating being landlords (and doing it all wrong) to searching for more properties to buy and researching forms of alternative financing.
I, personally, have always been into real estate—acquiring, holding, flipping, what-have-you. My husband had always treated my obsession with following real estate trends in and around our home as, at best, a distraction that kept me from my real career, at worst, a waste of our time. However, as a former reader and big fan of the now defunct More Magazine, I believed in the “Second Act.” More’s monthly “Second Acts” featured women, all over the age of forty, who transitioned out of their lives-as-they-knew-them and became something new and different. Some women went from homemakers to corporate giants, others abruptly left the corporate world and started small businesses or nonprofits. One woman, whom I remember quite distinctly, left a high-stress, high-paying job and moved to some expansive property in a wild western state and created a rescue farm. 180s, “Second Acts”—they’re the comebacks of disgruntled GenXers. I’ve been dreaming of a 180 since I read my first copy of More Magazine.
All my husband needed to get on board with real estate investment was the right pitch from the right person. That person wasn’t me. It was, ironically, a Millennial. I will hold no grudges, though, since I got what I said I wanted.
After scraping and struggling and acquiring two Masters degrees, moving from venue to venue, I finally found a teaching environment that I truly enjoy, and recently, things started falling into place. I was offered a full-time position, albeit non-tenured. I passed it up. My big plans as the fall began last year to sample a variety of teaching positions while I held my part-time status at my current college until something big came up… well, it came up. And then it went. My choice. I finally got what I SAID I wanted, but all the while, what I really wanted was my second act.
I’m lucky. I’m lucky that my husband has a career that’s too serious to get taken over by today’s bottom line—new, young, and hungry. You can’t bullshit your way into what my husband does, and freshly-minted graduates are not necessarily the most cost-efficient or valued prospects. My field, on the other hand, is oozing with cronyism and bullshit. It’s time for my 180.
Believe me, I don’t think that real estate investment is going to make us rich, or that it will be easy. At present, our monthly cash flow from rentals is about $100 a month—see, we rented out our former family home to my best friend and her husband with bad credit for a deep discount last year, just because we didn’t want to be landlords anymore, and we knew they’d take care of the property. Our second investment should yield us a $450 cash flow. That’s $550 a month of tax-sheltered income once we find a tenant. That’s what I make, after taxes, hustling part-time in the classroom. And with rental properties, someone else pays down the mortgage. Why not try this out?
I’ve already learned a lot from our mistakes—I know where the unplanned for expenses come from, I know the value of having a contractor’s license, I know that the city where we planned to invest is getting more expensive (taxes are rising, water bills are rising, lead abatement policies are getting much stricter). I know not to rent to friends or family. My best friend threatens to never leave our property. And why should she? She’s got the cheapest rent in town. More airtight leases, better pre-screening practices—I’m learning it all. On Monday, I am going to tackle my first handyman projects by repairing holes in the drywall and the plaster in my friend’s/tenant’s house so that it can pass a lead inspection and become a legal property again, a service that I will charge my tenants for in the future. It’s like getting another degree, but this time it’s hands-on. Lucky me.
Only time will tell if this new path is really a second act, or if it’s just another short-lived distraction. Well, I shouldn’t say “only time,” as if this venture is not an act of free will. It is. And I’m a little scared. Because life gets real when you take ownership of it, and I’ve been in the habit of NOT doing that.