There's a reason why get rich schemes fail. You've got to be willing to do the dirty work and put in the time if you want to get rich.
Going all in on margin is likely to leave you broke. Working for someone else to get rich takes a very long time. And trying to win the lottery is not a great plan, it's really just a waste of money.
Whenever there's a debate about owning versus renting, one of the most common rebuttals against owning is not wanting to fix a toilet. The excuse is so commonly used that it has definitely become cliché.
Homeowners Are Willing To Do The Dirty Work
We know that homeowners have a median net worth ~40X that of renters. Thus, it got me wondering whether there's something more behind the cliché that makes renters deny the positive financial realities of homeownership over the long run. Are they simply not willing to do the dirty work of home maintenance?
Or could it be that those against homeownership secretly wish they could afford a home of their own, but can't because they aren't willing to control their spending or take on extra work outside of their day job? Instead of making some sacrifices, are they trying to debase homeowners with an activity that's supposedly beneath them? Maybe!
Every time someone uses the “fix the toilet” reason, I start to wonder what's so hard about replacing some parts in the water tank or using a plunger? Janitors make well over $200,000 a year here in San Francisco. Are those against real estate arrogantly implying that being a janitor is not as honorable of a job? Perhaps.
I hypothesize those who aren't willing to do the dirty work are the ones who will never earn or accumulate much more than the median income or net worth. Let's debate!
Dirty Work, Grunt Work, It's All The Same
After playing a couple hours of tennis at my club, I headed over to my rental to fix an overflowing dishwasher air valve. You know, those weird ~2 inch cylindrical metal things that sit next to your kitchen faucet.
It's funny because the person I played with, an ex-college tennis player, decided to join a different club because she wasn't willing to pay the steeper initiation fee. Yet when I told her I had to go fix a leak at one of my rentals, she was amazed I would do such a thing! “Don't you have people to do that for you?” she inquired.
When I first got notification from my tenant of the problem, I was initially bummed because I was tanning my cheeks on my deck. But I quickly YouTubed “how to fix an overflowing dishwasher valve” and found the solution. So easy. I'm always willing to do the dirty work to save money. Why pay a plumber hundreds of dollars for something I can easily fix myself? If my tenant can help fix it, even better.
Savvy homeowners are willing to do the dirty work and fix things themselves because of the cost savings. The journey to get rich starts with saving and making the most of every dollar you have. I've worked on fixing things at all my rental properties over the years and have saved thousands in the process.
Anyway, I sent my tenant the 3 minute video as reference. He decided to give it a go by removing the valve cap and blowing forcefully through a paper towel roll to see if it could unclog the hose. It didn't work because he texted me a couple days later to say the problem still persisted. No problem! I love stopping by my rental once a quarter to make sure everything still looks good.
Get Your Hands Dirty And Save Money DIY
Before leaving home I made sure I had all my plumbing equipment: a roll of paper towels, a flat head screwdriver, a wire coat hanger, gloves, pliers, and a pipe brush. What a pleasure to have a trunk filled with tennis equipment and plumbing tools.
When I got to my rental, I also tried the paper towel roll trick to create a seal to remove any gunk with a forceful breath. No luck. Then I got my brush and shoved it down the hole to try and clear out some gunk to no avail because it wasn't long enough. Then I used a much longer straight wire hanger to get in there. That's when I realized more work needed to be done because black gunk started latching onto my wire hanger.
I had to remove the valve connected to the garbage disposal and get in there! Once I did, I found both sides were completely clogged. I carefully started carving out the gunk from the hose with my wire hanger, then feverishly brushed out the insides until both the hose and the garbage disposal side were completely clean. I reattached the hose, ran a test and voilá! Everything worked perfectly.
Willing To Do The Dirty Work: Success!
The total time it took me to do this first-time job was 18 minutes. Next time, it'll take me 10 minutes or less. Not only did I save myself ~$250 – $350 in plumbing fees, I also saved myself the time it would take to coordinate back and forth with my tenant and a plumber.
I also now have the skill to fix all future dishwasher valve problems, including the one in my own house.
After I finished, I did a quick inspection of the house to note any new damages. Then I watered some of the fruit trees, picked a bag of lemons, checked mail and went to get some food. Total time spent: 35 minutes.
The next week I received a $9,000 direct deposit for the monthly rent.
Never Ending Ways To Make Money
Let's forget about the $108,000 annual rental income I collect each year from this rental that requires no more than 10 hours of work a year. The aggressive savings I did in my early 20s is over now. But the rent continues to grow with inflation, forever.
After 14 years of being a landlord, you develop handyman skills that can earn you another solid income stream if you so choose. I could put an ad on Craigslist right now and charge $90/hour with a $200 minimum per visit. You know my ad is going to look pretty darn amazing given my experience in online marketing. Just eight jobs a week would net me an extra $6,400+ cash. Bam! That's an extra $77,000+ in annual income.
Let's say I smartly turn on my Uber drive app to pick up passengers along the way to my handyman jobs. Ten trips a week equals around $80. That's an extra $4,160 a year in spending money. Given I can make driver referral income online as well, I'd probably make an extra $12,000 a year. Did you know the top Uber referrers make more money that Uber employees? Don't be too proud to get rich with hustle and hard work.
The annual grand total from just this one income unit is therefore:
$108,000 rental income
+
$77,000 handyman income
+
$12,000 driver referral income online
+
$4,160 driver income
= $201,160.
Well, what do you know! We've reached a healthy amount of income that can be used to pay down a mortgage, invest in various assets to generate more money, and cover life's many expenses to be more free.
Change Your Attitude
If you're willing to humble yourself, you're going to financially blow all the people who are too arrogant (or too lazy) to fix their own toilets out of the water! It's really not too difficult to replace a washer or tighten a screw you guys. YouTube is your friend. Be willing to do the dirty work because it will not only save you money, it will help you get rich over time.
Eventually, you will get to the point where you can afford to pay people to do everything for you without creating a significant drag to your net worth. But before you get to financial independence, which can be defined as 20X your average gross for the past three years or 50X your average annual expenses, you must be willing to do whatever it takes to get ahead.
If you're unwilling, then no problem. It simply means you're happy with the way things are right now. But if you aren't happy with the way things are and still spend like crazy, are unwilling to get smart about being a self-sufficient person, or aren't willing to get up by 5am or stay up until 2am to work on your side hustle every single day, then you need to read my post about Dunning-Kruger to jolt yourself out of delusion.
Another Benefit Of Being Willing To Do The Dirty Work
There's one final benefit of being willing and able to do the dirty work. You instantly become incredibly attractive to a potential mate. Having enough money to provide for a family is one thing. But if you not only possess a can do attitude, but actually do as well, dare I say you become one of the most attractive people on the planet!
Life is good being free. But you'll only truly know how awesome being free is once you get there. Don't look back and regret not doing the dirty work because you were too proud. Fixing a leaky toilet is just a metaphor for dealing with the inevitable crap life throws your way.
If you don't want to own physical real estate, then you can just invest hassle-free via real estate crowdfunding sites like Fundrise. Make sure you're not hating on an asset class because you're envious of those who didn't miss the boat. There's always another opportunity somewhere!
Further Reading
If you're willing to do the dirty work to grow your wealth, here are some more articles you should enjoy.
- Financial Freedom: Maybe You Don't Want It Bad Enough
- Good Advice On How To Better Manage Your Own Money
- Do The Rich And Powerful Want To Keep The Middle Class Down?
- The Top 5 Cities In America To Get Rich And Enjoy Life!
- How Can You Tell If A Guy Is Rich If He Displays Little Material Wealth?
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I will just replace the word “dirty” with “hard” work, to make the message broader. For real estate DIY owner, it might indeed be dirty as you say but the broader message is that unless you do the HARD work (of living way below your means while people who earn even lesser live a better lifestyle than you), most people will not get rich. The millionaire mindset is much less about the ‘millionaire’ part but about the mindset of being financially responsible, in EVERY decision in your life. This part is the real hard work, which gets lost among the media-induced glamour of being a millionaire.
It really is amazing how much money we can save and self independence we can create when we are willing to get dirty and do the work ourselves. We have an example with one of our previous tenants who trashed the place and left trash and goods in every room. To pay a professional would have cost upwards of a $1,000 to clean this place out. Instead I rolled my sleeves up and did it myself. Stayed up until 3am getting it done but I got it done. Felt pride in my work and the saved money was like money in my pocket. Here is to getting dirty and getting the work done now and in the future!
There is so much benefit from having the skill of knowing that Youtube exists. I knew the girl I was seeing was serious about me when she asked me to re-caulk her sink. I had never done it before, but I looked up the videos and borrowed a caulking gun. She saved a ton of money and I looked really good to her. Absolutely worth it.
my landlord maintenance plan is:
1) give it my best shot to fix it myself.
2) if the fix holds, i’ve saved money.
3) if the fix does not hold, i call someone and provide a slightly-less-ignorant description of the problem.
Lol, hey you stole our plan!
Home Depot and due diligence really does save some serious green.
“Likes to wear sundresses and can also swing a hammer” was the line that got my now husband’s attention on my dating profile. AND I didn’t even include a picture because I wanted to be liked based off of my personality/interests rather than looks. So yes, I do think being handy is attractive. Before I moved in with my husband, I told him that the master bath needed to be renovated because there was a 6-inch gaping hole in the wall across from the toilet due to a leak he had been researching…for OVER A MONTH! Granted, his house is on three acres surrounded by trees so no real need for privacy but it was a good excuse to modernize the 30+ year old fixtures. It was rewarding for us to renovate an 80 sq ft bathroom on our own. We moved the toilet location, expanded the shower to include two shower heads which involved tons of decorative tiling, added another sink, and created a linen closet. I’m an office worker by day so being handy has become a part of who I am through many experiences. It started with an interest to be more self-sufficient so I volunteered on the electrical crew for Habitat for Humanity for 6 years. While volunteering I got to know another girl on the crew who was looking for property to raise her horses but couldn’t find the right home but found plenty of land available. The two guys on the crew suggested that she build her house and they would help. The four of us worked every weekend on her house for 2 years and I’m happy to reminded of the “house that I built” every time I visit. For all those people who think that you’re not handy, just give it a try by easing into projects or helping out at Habitat for Humanity.
Wonderful line that captures the article’s essence perfectly! To be self-sufficient is super attractive. If one can combine financial self-sufficiency with day-to-day life self-sufficiency, I dare one will always be loved.
Pay your dues, then breaking the rules! I like it, especially the part about acquiring new skill sets like plumbing. It’s always good to learn practical things. Recently my wife and I put up wallpaper (I watched like 10 YouTube videos in order to prepare). It took us about 3 hours to do it and I figure the alternative would be to pay a contractor a couple hundred bucks I guess for them to do it – win for us!
I agree with your thoughts here and beleive there is another component that makes society better if more folks were willing to tackle projects. The ability to develop self confidence and thus the mindset that: “I am in charge of my life, not someone else or society or government.”
Watching our elective process whereby charlatans try and sell gov’t security as a panacea over self sufficiency makes me cringe.
I still remember people sitting in water in New Orleans crying “Somebody help us!”
Get off your arse and walk to higher ground! Sitting around waiting for others to help in a situation like that is insane.
That should have been the big story out of Katrina – how soft we are becoming, not what is the government doing or not doing.
$250-350 in plumbing fees? Ouch! COL is crazy over there. My plumber would apologize for charging the $89 service call fee, fix the problem in 5 minutes and try to find something else to do to justify the $89. :) So far I’m really enjoying the services of my plumber because he’s so cheap. Though for your dishwasher fix I’d probably try it myself too since I can handle basic stuff (as long as it doesn’t require a blow torch).
I found this post really interesting since I didn’t know you did DIY fixes, especially at your rental.
Sam — Challenge accepted! 30 minutes to write, 600 words (too short, I know). couldn’t find a direct to you email address any longer…
Kirk ksaha@comcast.net
Life Insurance Needs and why I don’t need any:
Sam recently asked for a guest posting and his latest post triggered a real idea in my mind. I don’t have any life insurance and I feel 100% safe and comfortable with my decision. Let me outline my thought process.
First, we need to evaluate why do we have Life Insurance? To protect and provide for our loved ones if and when we die, right? But is it possible our needs change inversely of what the Insurance Industry would have us believe? I think so.
When I was younger, I had a few assets but many responsibilities and many to provide for. My wife and my kids. My wife needed enough to live the balance of her life after I departed. My kids needed enough to provide for them, plus educational expenses through college. Therefore having little assets but a High Insurance Need. I couldn’t really afford Life Insurance but also knew it was sorely needed. My employer provided some, but not enough. I bought a Term Life / 20 year plan for 250k of coverage. Perhaps not enough, but with my employer’s added on, all I could afford. We were in our 20’s and 30’s
Mid-life — my mortgage is diminishing, bills are manageable, kids are getting older, my wife is older. So Insurance now only needs to support my wife for 50 years (not 70 years as above), and my kids only for another 10 years, plus college. My insurance needs have declined; yet the Insurance Companies realize I now have more of a disposable income and advertize stronger to this group. According to them, how could we even think of living without Life Insurance? We are now in our 40’s – 50’s
Finally, I’m nearing retirement and significantly more financially savvy, thanks to Financial Samurai and ‘life’. So what’s changed? Let’s examine it the changes:
First, my life expenses are Very manageable, close to phasing out. My mortgage has long been paid in full; Kids have graduated college and have lives on their own. Both my wife and I have gotten older (how did that happen?). So now I do not need to provide for my kids; I only need to provide for my wife for a shorter duration (20-40 years)… and here is the biggest change of them all:
I have real assets of my own! Due to many years of decent returns, maxing out / proper 401k contributions, and keeping a watchful eye on my investments, I now have more than enough to meet the requirements outlined above. And additionally the Insurance Companies realize a few things too. They know I have more money; they know sooner or later I’ll need Life insurance and therefore they advertise focusing on our age group. Guess what? I’m not buying and even cancelled all my Life Insurance I had once my assets passed 1.5m. My wife can spend over 100k / year and still have money left over…. Life Insurance for why?
So once you have enough assets in your own portfolio, why continue to have Life Insurance? My money / our money will easily outlast both of us; even spending in excess of 100k per year. Yet it’s funny, every time I talk to an insurance agent (home / auto / umbrella) they always ask about my Life Insurance needs… yet I just asked them to quote 2m umbrella liability plan…. go figure. They know where they make most of their money and can’t help themselves.
So once you have over a million in your portfolio, cancel your life insurance and save a few dollars!
Hello-
Thinking about starting a Servpro franchise in the Los Angeles area. The franchise will cost around 100K-200k. Currently my net worth is around $1.2 million. I have 3 rental properties,1 primary residence, and 300k in cash and retirement account. I am a Corporate employee right now that makes around $73K annually, my wife makes around 50k annually. I also have a 3 1/2 year old son. Do you think it’s a good idea to quit my job and start a franchise? What would you do in my shoes?
Thanks
Sam,
Love this article.
I redid my small master bathroom, tile shower surround to ceiling, heated floors, all nice brushed nickel finishing for ~$2,500. I was getting quotes for $15,000.
Sure it took me many many months and late hours on youtube, but guess what? Not only did I create ~$12,500 out of thin air but now I know how to do almost any home project. I basically created my own college course but instead of costing me money, it paid me.
I now also have the confidence to work with contractors… it is alot harder to screw someone over who knows all about the job already.
Doing your own work, at least early, on is a WIN for net worth, a WIN for knowledge, and a WIN for your mind set.
Keep it up Sam.
~Sam
Well done on fixing it yourself! Saving money = smart. That’s an amazing income you are getting from the rental income, is that just one property? Did you buy in cash?
I’m attracted to my significant other for other reasons. Him being handy around the house is just an added bonus :D
We would love to become homeowners one day. We rent right now, but actually had many problems as tenants in the past. Out former landlord was often a jerk when it came to repairs around the house.
For starters, I remember we had just moved in and the tenants who used to live there before us “forgot” to pay some utility bills. Our landlord refused to take care of the problem, so the utility company disconnected the service. We were left without hot water for a good couple of weeks!
Fast forward a couple of years (and many other inconveniences), we decided it’s time to find another landlord.
The bedroom windows were so old, they wouldn’t close properly anymore. The result was, as you can imagine, a very cold bedroom to sleep in during winter! Our former landlord refusing to fix the problem was the last straw..
Our current landlady is such a peach! We love staying here, but one day we’ll definitely take home ownership into serious consideration.
Great job on the fix Sam! Man, YouTube is the best reference on how to fix things. It has saved my butt so many times.
More importantly, this article really hits home for me tonight. I’m tired and don’t feel like doing any work for Wallet Squirrel. You helped remind that I need to get down to work and push through some projects for the ultimate goal, financial freedom! Thanks so much for the push I needed tonight!
– Adam
Great article. I’ve completed the following jobs with youtube’s help.
– Replaced the bearing in my washing machine (2 days work – Saved $500 in repairs and $2000 for a new washer and dryer… my wife and I had a bet that I couldn’t fix it)
– Replaced the steering components on my Jeep that was causing it to shake violently at 50+ mph a.k.a. Death Wobble (1 days work – Saved $700 in repairs)
– Replaced AC capacitor for house AC unit (15 mins work – Saved $150 in repairs)
Being cheap makes me feel so happy sometimes.
Hi SS
I have a question. How did you know it was your steering wheel and not wheel alignment/wheel bearings, etc? Was it only the steering wheel that vibrated?
My truck chassis, not the steering wheel, vibrates when i drive above 55mph. i thought it was wheel alignment and that helped, especially when i saw the rubbers for the bin needed replacing when they took the tyres off, but the vibration is still there.
i know my tyres are bad and need to be replaced, so that’s next on the list.
i do find that my steering wheel, sticks a little on the bend and my wheel alignment is completely off again but the steering wheel is not vibrating and we checked the wheel bearings over the weekend and they’re fine.
Hi quantakira,
Yes is started with the steering wheel vibrating, but after a few seconds the entire Jeep starting shaking like crazy to the point where it felt like it was going to shake itself apart. I would have to slow down to about 20 mph to get the shaking to stop.
One of the benefits of owning a Jeep Wrangler are the forums, I searched them to see people who were having the same issue, then to confirm I also posted my own question with my symptoms. The most common answer were that the tie rod ends were shot.
I initially wasn’t going to attempt the repair, even after watching the videos as I didn’t think I was up to the task. So I took it to a mechanic (didn’t mention what I thought it was, just gave him the symptoms) and he confirmed that it was my tie rod ends. However after receiving the quote I decided that I would repair it myself as I just couldn’t justify the cost.
Previously I tried to fix it with an alignment which worked for about a week, and a tire rotation which worked for a day.
My advice to you would be to try the following in order:
– Wheel alignment (which you have done)
– New tires (I would recommend wheel balancing before that, but since you need new tires anyway they will have to balance them)
– Tire rotation (This might help if it happens again)
– Replace track bar bushing/track bar (This is another common cause of the vibration). Depending on your setup it might be easier and more economical in the long run to just replace the entire track bar.
– Tie rod ends (what I had to do)
I really hope this helps you out, if so please let me know what fixed it.
Also – if anyone ever tells you its the steering stabilizer then they don’t know what they are talking about. It might fix a very slight shimmy in the steering, but not an entire vehicle that’s vibrating.
Thanks for the information. No, my vibrations are different to your vibrations. There aren’t any vibrations at the lower speeds. It starts at 55mph and stays about the same even if I increase my speed.
It’s definitely the tyres! They have valleys in them. But I will check out the track bar just to be on the safe side. I will definitely let you know when I fix it! (haha! see the confidence there!)
Hi SS
Update time!
I changed out all four of my tyres on Saturday and the vibration is mostly gone. I went to a great place where the guys also checked out my car.
They pointed out that my RHS front brake was wearing out faster than my LHS and that the shock absorber mountings on both sides are loose. I’m opening it up this weekend to see if it’s only the rubber mounting that’s damaged or more.
The guy told me to fix it and bring it back for wheel alignment because it’s not worth doing wheel alignment while those bits are loose.
The bad tyres probably caused all of these problems. Next time I’m going to listen to my gut. I didn’t change out the tyres in December because my dad (who used to fix cars) told me there’s nothing wrong with them and I should just take the car for wheel alignment. I’m pretty sure he thought I was imagining the vibration in the car but when he saw the condition of the tyres on Saturday, he was pretty shocked.
On the upside, I’m now confident as an experienced driver and I know when there’s something wrong with the car I’m driving daily. And I will pursue it until it’s fixed even if no one else believes me.
Hi SS
One more update. While changing out the mountings, dad realised the shocks are gone. While changing out the shocks, dad discovered a stone lodged in the suspension! That was the true cause of all the vibrations.
Car’s fixed except now the plastic over the rear wheel well is loose and rattles, lol. It never ends.
I grew up the son of a handyman and drywaller and was good at most small jobs by the time I was a pre-teen. I currently rent and I do all of the home repairs in the home I rent. My landlord is scared of this type of work and overestimates the costs of a repair 100% of the time. He’s happy to have me in the home because I do the work and save him money. In return, he hasn’t raised my rent once in 4 years. win-win – all because I’m willing to change the garbage disposal, set a toilet, fix a leaky faucet, change air filters, and fix broken fences. And honestly, I enjoy doing all of those things anyway.
I’m currently searching very hard for a property that will enable me to become a landlord. This post only motivates me more to jump into the game. I’ve never minded fixing toilets. Actually, a lot of times I prefer fixing things to leisure time.
You’re Fired….
18 minutes? Really?
It looks to me you spent more time getting your phone out to take pictures (trying to pat yourself on the back even before the job is finished?)
Hey truth be told I like fixing stuff and yes it gives me a chance to buy a new tool if I don’t have it (car or house); and it really gives me satisfaction doing any job.
My first house was bought with no roof (fire) and sweat equity brought it up to livable standards for half price. It was / is the best way to jump start your net worth climb.
I know, crazy slow right? The video did take 3.5 minutes to rewatch though if that makes me look better in your eyes. I know I should work quicker given my 14 years experiences as a landlord, but I’m the guy who always stayed until the very end of class to check all his answers, even if I finished 20 minutes early.
I promise to do the job in 10 minutes or less next time!
And you’re right, I take time to chronicle my fixes to: 1) remind myself in the future how to fix the same problem, and 2) make mega bucks as a personal finance blogger writing about this topic.
I could have added a blogging income line item to the $201,160 total to make the number bigger. But, most people aren’t willing to establish their own website (not sure why since blogging is the best business on Earth), so I decided not to.
But here’s a challenge for you! How about write a 1,200 – 1,500 word post for me in 18 minutes or less. It’ll be a lot of fun! I can help edit it.
I recently replaced a water heater which YouTube was a big help. If you go to Lowes or Home Depot and buy one and pay to have it installed it’s much more expensive. They need to have it “inspected” and it costs about $200 if I recall (earthquake straps, etc.)
It’s basically turning off the water, disconnecting the water supply lines, purging the old tank. You can recycle the old tank for free at a local retail recycle place.
Get a buddy to help you with the actual movement of the new and old tank and get some plumbers tape and compound for the fittings. Done!
Not everyone who hires work out does so because they are too good to do it themselves. Some of us employ other people because we have been blessed with twenty eight thumbs instead of the standard two. Ever seen those #nailedit memes? When someone tries to replicate something they see on social media and completely mess it up? When I try to use tools they seem to turn on me with a vengeance. Screws don’t go in straight. Nothing ever lines up. My twenty eight thumbs get jammed and hit and hurt. If your hand eye coordination works as expected, you have no idea what I am talking about.
We have had a few successes at DIY though, and those feel great. Most recently our shower stopped draining, and I was bracing myself for the cost of a visit from the plumber. When I got home that evening Mr. BITA told me that he had worked from home that day and spent some time unclogging the shower himself. That was all sorts of awesome. When your usual state is to be less handy than a doorknob, the small wins are exhilarating.
Indeed, but like everything, we get better the more we try and learn. I don’t want to slice my fingers off either when doing work, so I will hire out for more dangerous jobs.
I just want to encourage folks to be more self-sufficient. It’s a very important skill and attitude for achieving financial independence.
The reward of DIY is exhilarating. Tell Mr. BITA to keep it up!
+1 for DIY. Most of the time the repair is not that difficult once you have access, the proper tools and parts. I find that a short amount of extra browsing in the hardware store provides me helpful ideas in what is available when the next project arises.
A small puddle would form in front of our water softener every few days. So I stood in front of it during a manual regen, and discovered that one of the control connections dripped for about 3 minutes in the cycle. I stopped by the Culligan location after work to pick up the part and they looked at me as if I was an alien. “You’re going to replace this yourself? We can send out a technician to diagnose the problem and quote you a new softener, as needed.”
No thanks, [Even with the high part mark-up, I’ll replace myself for less than $100, rather than a $300 service call or $1500 new water softener].
However, I will call the plumber to perform cleanout of main drain line to clear roots and such, for under $200.
I’ve learn a ton of plumbing DIY as well. I’ve replaced faucets, toilets, caulked bathtub, and a bunch of other things. It takes time, but I learn a bunch. I haven’t had to deal with the garbage disposal, though. I’ll check it out after the tenant move out. Our tenants have been great and I don’t want them to move out.
I really like your attitude! Actually since we bought our house, I also try to fix as much things myself as possible. When I do, my wife usually asks me: “is it done yet?” Maybe it’s a way to say I’m incredibly attractive :)))
The worst part of dealing with repair folks is tracking them down and finding a good one. I’ve got a water heater to fix and don’t do gas lines myself. But it has taken weeks for people to get back to me – at some point it would have taken less time to just do it myself then manage the phone calls and coordinate the visit.
Great example that explains both the benefit of renting and owning! From the renters perspective, the vent is fixed hassle free since the landlord is responsible of it (at a cost). From the landlord’s perspective, rental income is well worth the hassle.
For me there are 3 major reasons why I will keep renting.
1) Life is a little uncertain to have a primary residence in a fixed location when I would rather have the mobility to move to the heartland if that’s where the next adventure takes me! In many ways Sam, had you bought a condo on the East Coast when you were younger, you may not be in San Francisco today and who knows if that would turn out better or worst for you. Having the mobility at that time gave you options.
2) By renting, I also have the flexibility to up size or down size with at most 12 months worth of commitment. I would hate to own a small house that is suitable for my needs right now, only to outgrow it when I start a family. There is always the option to rent out the first house and buy a second, but who knows if I can afford a second mortgage when its time for me to up size. The alternative being a house suitable for the future, but is too big for me needs right now. That to me feels like unused space that I am paying for up front.
3) Although I am a renter, I am also a true believer in the conservative Asian/Chinese cultural approach of owning real estate. But instead of a personal use property, the focus is on purchasing apartments/multi family buildings to be rented out. I find the cap rate for multi-family buildings to be much more lucrative than a single family house in my local market of Boston suburbs. The rental income I receive, covers or at least supplement rent I am paying elsewhere depending on the place I choose to rent, so I am not on the sideline while everyone else is seeing a steady gain owning a house.
At the end of the day, I value the product (of rental apartments) I am offering and will recommend renting to all! But renting is no excuse for not buying properties as one of the many facades of investment to achieve financial independence.
Those are all very valid reasons for renting. Buying property is not a riskless activity. It requires a tremendous amount of planning, thinking, saving, and courage before making the move.
I WISH I bought a 2/2 condo with a view of the Chrysler Building in Manhattan in 2000. The place would be up 3X, and my downpayment would be up 12X. And I would have rented out the place when I got the opportunity to come to SF b/c there is so much rental demand in Manhattan.
I encourage you to find your stability center ASAP because lots of good things start compounding that’s beneficial for your wealth.
Read these posts if you haven’t already. I have a different view on buying physical real estate than you.
Buy Real Estate For Lifestyle, Capital Appreciation, Or Rental Income?
What Type Of Investment Property Should I Buy?
Thanks for the links Sam. Always good to be directed to older posts that was written before I became a regular reader, and appreciate different view points to form my own opinion as well. Using your progression as an example, perhaps I am closer to the stage of “Condo”, than no view house and really far from house with view especially considering cost.
Just gotta keep saving and keep putting money away, then see what is the most beneficial thing to do when the right moment arises.