As of this month, I’ve officially been a landlord for two years. Becoming one wasn’t exactly planned, but once Kellie and I made the decision to leave Salt Lake City for Star Valley, we couldn’t bare letting go of our first home: a nice condo in a great part of the city. So we decided to find renters.
Despite some arguments that your home isn not an investment, to the average American a home has many characteristics of one. It tends to appreciate in value, there is an active market for buying and selling, and it can be relied upon for future cash flow (typically through renting or a reverse mortgage).
When I was single and dating, I had several wise friends and family members tell me not to “put all your eggs in one basket.” Anyone that has much experience in dating knows the value of the phrase, cliche as it may sound. Opportunities tend to come and go in the dating world. Getting your heart set on one person (especially early on) and having it not work out can lead to unnecessary heartache. A better approach is often to go on dates with a variety of people.
Being homeowners and landlords has given us a new appreciation for using real estate to build wealth. It’s been a great experience so far, but there are both material and unseen costs involved which take a toll. Here are a few thoughts based on our own experiences, and why homeownership sometimes isn’t all it’s cracked up to be.