I am a dreamer. A head-in-the-clouds-walker. My mom has thrown up her hands in exasperation more than once, proclaiming, "You just want it all!"
And, yeah, I guess I do.
I want to be loved and in love. I want my family to be happy and peaceful. I want to be understood, and if not, then left alone to be me and not criticized for it. I want the practical things, too, like being financial solvent, and not constantly worrying about each month's bills. I want my boy back in my life, most of all.
I can want all day, all life long, but how to make all these things happen?
Research. Action. Risk. Reward.
That is what I am going with. For now, shelved are the big vacation plans, the purchase of acreage in the sierras, a vacation home on the Russian River or Northern California coast; gone are the plans for a personal trainer and private Pilates instructor, for buying the old church in town and turning it into a brewery; put on hold are the motorcycles and boats and weekend convertibles.
Shelved are the wants and things that I have no control over.
Enter Excel spreadsheets, and Quicken budgeting. Enter negotiating old debts with creditors and finalizing payoffs. We go back to the drawing board, and try different avenues for finding sustainable income. We do our research, make smarter investments of our time, energy and money.
All of these things have led me to doing something I thought I would never do: buy investment real estate. I have struggled with the idea of buying foreclosed properties because I feel bad for the people who have lost their homes. Although I have some good business skills, a killer instinct isn't one of them. I keep picturing little Janie on the street, dolly held in one hand, big eyes glistening with tears. I am a melodramatic sap, I know, but I still can't seem to get the image out of my head.
So, I committed myself to finding a property (or properties) that were for sale in markets with a high demand for rentals. This, done correctly, could provide a source of income now, and be a financial asset later in life.
Step 1. Research
Some of the most depressed markets home-wise are becoming or have become markets with a higher demand for rental properties. It is not hard to see why; times are tight and people need a place to live, and renting becomes a cheaper alternative than their mortgage, if they haven't foreclosed already.
Cities with low house prices and high demand include Stockton (no surprise there), Detroit (or there), Las Vegas, Orlando, Bakersfield, Phoenix, and Ft Lauderdale. Atlanta and San Francisco are also notable due to their stagnate house prices, yet ever-increasing rents. But the creme de la creme and biggest surprise: Chicago.
Condos, lofts, and flats in the downtown and highly sought-after North Side are at an all time low, while the demand for rental properties continues to surge. When looking at price per square foot coupled with potential ROI, there is no better city than Chicago to buy in right now.
Step 2. Action
We have started making the calls, contacting potential properties and their agents. We have started the preliminary financial discussions, and are meeting with our broker this weekend. (Yes, our money guy works weekends and even comes to our house, even though we don't have much of it.)
Step 3. Risk
This is scary. We have never been landlords. Chicago is thousands of miles away. We are using our savings and tapping some retirement funds for this. All of these things are definite risks. But without CALCULATED risk, there can be no....
Step 4. Reward
What will this do for us? It provides us with a second source of income. We will actually be able to pay the mortgage, insurance, and taxes with the rental income AND put money in the bank each month. It will build equity, providing us with a measure of financial security in the future.
It will make it possible to re-launch a legal assault on my ex, and bring my family back together. It may provide for college tuition for him, retirement for ourselves, or the ability to help our parents as they age.
Eventually, in the not too distant future, we will even be able to start pulling some of those fun things back off of that shelf, and enjoy the fruits of our labor.
