Most people only re-examine the path that their life is taking when they suffer a traumatic experience. Some people take a deep breath when they reach a point where they realize that their days are numbered. They sense the need to focus the remainder of their lives on doing something that provides a deeper satisfaction and allows them to spend more time with their family. For others, they realize that they don’t want to continue to work at a mind-numbing job or for an ungrateful boss.
There is more to life than just making money. Henry David Thoreau said, “Most men live lives of quiet desperation.” We long for something more fulfilling.
Taking a new path toward earning money requires us “to give up what is familiar and secure,” as Marsha Sinetar says in her book Do What You Love and the Money Will Fol-low. Sinetar feels that working at the “right” job involves “doing our best at what we do best.” Sinetar suggests that we periodically take stock of our true life’s purpose by asking the following questions:
1. What do I want to have accomplished when I look back upon my life in old age?
2. What habits would I need to cultivate and what would I have to delete from my present life to live out my true purpose?
3. What activities would I do if I lived as if my purpose meant something to me?
I have been the landlord of a triplex for just over 5 years. For most of that time, I simply maintained the property that I owned after making a couple of bigger renovations (windows and insulation). The biggest challenge I had was that my existing tenants paid way below market rent and rent control would not allow me to increase rents beyond 0.7%-2.2% each year. I felt stuck.
Recently, one of those tenants moved out. I managed to gut and redo the one bedroom unit and once it was finished I rented it out for almost double what I was getting before! This took the pressure off quite a bit but I realized I had to get my other “long term” renter out of her apartment. I ended up paying her to leave (2 months free rent) but it looks like it paid off. Her rent for a 2 bedroom was $474.77, but I have a lease now on the apartment for $799 a month. Surprisingly, I got this tenant because they saw pictures of the first unit I did and knew that I was finishing the second unit the same way. When they did the walk through the place was gutted and I didn’t even have the walls framed in yet!
I have looked at some other systems out there, but it seems to me that the only one that really works is finding a run down property with below market rents in a good area, fixing it up, and rerenting to higher classed tenants. If I knew a few years back what I know now, I would get the old tenants out ASAP even if I need to use my “cash for keys” program.
Right now I work full time so I rely on a dependable contractor that I feel I can trust. I hope to start renovating my own houses down the road, but I think I might need to get rid of my job to free up the time. Currently, I just do a walk through each day to see what work has been done and simply manage the renovation. Once the triplex is completely turned around next month I figure I will start looking for another project; I just need to convince my wife who still has fresh memories of my less stellar tenants.
Before the show I heard Ron going through the news and he said that ratings were so bad at CBS that Katie Couric was showing up to work in sweat pants, a tank top and a ball cap too.
So, during the interview, I mentioned that one of the advantages of working with rental properties was, like Katie Couric, I can show up to work in sweat pants and a ball cap.
I was watching the movie Australia last night, starring Nicole Kidman and Hugh Jackman. It was such a classic tale that it sent chills down my back.
A man starts up a small cattle empire in the outback of Australia. He is killed and his inexperienced wife has to take over the operation. She’s in way over her head, but in order to save the ranch she has to drive the herd thousands of miles to the market. She asks her ranch hand to lead to trail drive.
The tough ranch hand assembles a rag tag group, which include of a drunk, two aboriginal women, a young boy, and the wife, to herd the cattle. Despite stampedes, poisoned watering holes, and other travails, they keep moving on.
We are what we are
Before the trip begins,the ranch hand addresses his team and goes over the “dos and don’ts” of working a cattle drive.
At the end of his speech he says, “Well, we are what we are.”
He said it with some degree of exasperation at having to use vastly unqualified people on the drive.
But, I also thought that he said it with a sense optimistic determination. As if he is saying, “This is all I have to work with. Its not as good as it could be, but I’m going to make it work and we’ll get these cattle to market.”
You don’t have all the experience that you might want to begin, but you don’t let that stop you. There’s a lot to learn and you learn as you go. Your determination gets you over a lot of obstacles.
Upcoming Radio Interviews
August 20, 8:30 am, I will be on David Sutton’s show, KSRN 1490 am, Los Alamos, New Mexico.
August 25 at 8:08 am, I will be on Jeff Anderson’s show, KSDR 1480 am, Watertown, South Dakota.
Are you willing to pay the price to have your life be the way you really want it? We all know there is a price to be paid for everything in life. If we stay in the same circumstances we are now it may cost us our life. Serious illness can be caused because of stress, the stress of being in a job we hate. Take the time to consider what price you are paying now for what you have in your life.
For me, the perfect job was buying fixer-upper houses and renting them out. It provided me the independence and financial security that I desired, and I could do it while still working my 8:00 to 5:00 job.
If you don’t like your job, if you are having your hours reduced, or if you lose your job altogether, it may be time to consider establishing a business that will provide you with some additional economic security.
How would you answer Joe Sabah’s question, “What price would you be willing to pay to have the life you really want?”
Here are the final numbers on the rental property that I purchased.
Price: $106,000
Interest rate: 5.125%
Term: 30 years
Down payment: $21,200
Principal & Interest: $457.37
Taxes & Insurance: $128.87
Total monthly payment: $586.24
Estimated rent: $770
The townhouse is 1100 sq.ft., 2 beds & 2 baths, washer, dryer, carport, and small back yard. It has a great central location and should rent easily. I have another property nearby that is very easy to rent.
It needs some cleanup and repair work in the kitchen, fire alarms, blinds in the windows, new toilet sets, etc. There is nothing big that we have to do to it. With my wife and kids pitching in, we should have it ready to go by the end of the weekend.
Here are a few more photos of the kitchen, the living room, and the back yard.
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I’m pleased to announce that my book, “Fix em Up Rent em Out,” is an Award-Winning Finalist in the Real Estate category of the National Best Books 2008 Awards, sponsored by USA Book News.
Top 50 Amazon Reviewer D. Blankenship says,
What this work does give you is ideas and an outline, that through hard work, common sense, and a bit of luck, you can do quite well for yourself and have a bit of fun while you do it. The author is quick to point out the down side of every aspect of this business and points out ways, if there are any, to avoid them. On the other hand, the author does a wonderful job of pointing out the positive. He not only emphasizes the financial aspects, but does a very nice job of drawing attention to the many side benefits involved, and there are many of these! I like the way that the author directs your attention to the fact that a job well done is a wonderful feeling. The author has listed given us a great list of other books and resources to turn to which I find most helpful. Actually, his list of places to go for information is almost worth the price of the book alone.
How Abraham Lincoln Used Stories to Touch Hearts, Minds & Funny Bones
“Timeless wisdom! The author shows how we can develop these skills and put them to use in our daily lives and businesses..” — Don Blankenship – Top 50 Amazon Reviewer.
“The book is much more than a collection of stories. It teaches us the importance of storytelling as a means to succeed in life and build relationships with your family, friends and employers.” — Awdhesh Singh
“Highly recommended! Improve “people skills” by becoming a more “people friendly” “approachable person.” — Alma Jones
*2013 NATIONAL AWARD WINNER *
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"As a direct result of reading this book, I finished writing my book and published it as well. All of this took place within the past 30 days. "
Brian V. Menard, Amazon Reviewer
"Sprouse is one of the most practical authors in this genre I have ever read. 'Carve Out Your Niche' is downright inspiring."
Don Blankenship, "Top 50" Amazon Reviewer
"Invaluable for anyone seeking to successfully write, publish, and market their own work"
The Midwest Book Review
FIX EM UP RENT EM OUT
Purchase FIX EM UP RENT EM OUT (paperback)Award-Winning Finalist in the Real Estate category of the National Best Books Awards, sponsored by USA Book NewsGreat information for anyone starting out in the fixer-upper business. The author has served his apprenticeship in the trenches.
-- Fixer Jay P. DeCima, Investor and AuthorTerry Sprouse has created a profitable rental business in his spare time. What sets him apart is he took action.-- Bob Zachmeier, Investor, Educator, Author With the wit of Will Rogers, this book provides simple guidelines for restoring homes, and sanity to our crazy lives. --M.D. Matlock, Ph.D., P.E., C.S.E.
