Weekend Reflections: February 9, 2020
A lot has been on my mind lately. One topic is real estate.
Part of the reason is because my youngest sister had just bought a house. I’m really happy for her!
Meanwhile, my other sister and her husband is very interested in real estate investing. They want to acquire some investment properties so that they are less dependent on their income as pharmacists. It’s understandable after reading doom and gloom articles about the field of pharmacy like this one.
I didn’t know it was that bad. I’ve even heard of some pharmacy job postings that offered wages as low as $25 per hour. Yikes. For a recent graduate who has around $200,000 in debt from pharmacy school loans, that’s really scary. Good luck climbing out of debt.
While I don’t have a ton of experience with real estate investing, I still want to help them on their journey. Therefore, I directed them to some blogs and websites run by people who do know a thing or two about real estate. Sites like Semi-Retired MD, Passive Income MD, and Bigger Pockets. I also lent them my copy of Real Estate Investing For Busy Professionals by Dr. Cory S. Fawcett.
Real Estate Nuggets
There’s a lot of information out there about real estate investing. It seems like everybody has their own journey and unique style. Makes complete sense because there is never just one way of doing things.
While reading and learning about real estate investing, Crispy Doc shares a few things that he has learned in his latest post Nuggets: 4 Ways To Make Money In Real Estate.
To highlight the main points of his post [spoiler alert], he states that you can make money in real estate in four ways: cash flow, appreciation, loan amortization, and tax shelter.
There is much more to it than that, so I would encourage you to read the entire post (and his thoroughly excellent response to my comment too). Crispy Doc’s words are always so thoughtful and insightful. It’s always fun to pick his brain.
AirBnb as a Real Estate Investment
Remember how I said there is never just one way of doing things? Well, there are so many different ways to invest in real estate. The different ways to invest include: REITs (real estate investment trusts), crowdfunding, syndications, and direct ownership. Then there’s different types of real estate such as commercial versus residential.
With residential real estate investing, short-term rentals are becoming more and more popular. Technology and user friendly platforms like AirBnb, has made it easier to become a real estate investor by owning and remotely managing short-term rental properties.
Boris of Build Your BNB explains how he does this successfully in his post How to Generate Over $5,000 Per Month in One AirBnb Property, which was recently featured on Physician on Fire’s blog. He has so many helpful tips on how to make a successful AirBnb investment such as automating the hosting process.
Maybe my sister should consider using AirBnb as a way to invest in real estate. I could see her and her husband being great five star hosts. Hmm…
Real Estate Tycoonery?
Not everybody is high on real estate, though. At least not right now.
In his latest post, Gasem of MD on Fire explains how he sees the real estate market as priced to perfection and that we are likely close to an inflection point in which the second derivative of the growth curve is negative. To further illustrate his point, he adds a compelling video from a YouTube vlogger that is worthy of watching.
Gasem is a very smart guy who has years of knowledge, wisdom, and experience under his belt. When he speaks, I listen. When he writes, I read.
Perhaps 2020 really is the year the real estate bubble pops. And if that’s the case, then now is a great time to learn about real estate. Just like my sister and Crispy Doc, I’m steadily learning more about real estate investing too. When the bubble does pop and prices drop, I’m sure we will be better equipped and more ready to jump on opportunities to invest.
We shall see.
Mom Guilt?
Lately it’s been a little rough for my wife. Sometimes she questions her ability to be both a dedicated mom AND a full time attorney. She has some mom guilt and she acknowledges it. I can empathize because I have similar feelings too sometimes.
Knowing that you’re not alone is important for coping. Feeling guilt and experiencing social isolation at the same time is tough. That’s why I try to be as supportive as I can be.
I’m pretty sure mom (and dad) guilt is common among many working professionals who are also parents. Barbara of Tired Superheroine wrote about this in a recent post This is mom guilt. Interestingly, she didn’t feel guilty at all when she went back to work after maternity leave. But when her son started school, it was a different story.
Once in a while, my wife and I ponder about potential alternative careers for her. Sometimes we talk about her leaving her job after her loans are paid off. We don’t really need her income. Or perhaps she could find another job that requires less time but is still fulfilling to her. One thing she was thinking about was zero waste vegan food catering with reusable containers.
Or maybe she can work less than part time as an attorney and also become a real estate professional so that we can tax shelter ;).
Just a thought.
Featured photo is at the winery where my wife and I were married
DMF,
Thanks for including me in your roundup, and for highlighting such interesting articles – I thoroughly enjoyed TSH’s article on mom guilt, and additionally I had no idea it was such a rough job market for pharmacists!
Fondly,
CD
No prob! It was a great article that made me think more about real estate. And it gave me a great suggestion for a book to read 🙂
Thank you for bringing me into the discussion and I think your conclusions are so interesting! Real estate as a panacea: could it be?
I mean, if your wife feels she is working too much, I wonder if there is a way that can change without a complete life overhaul. But if law doesn’t light her fire, it could be an answer! For me, the worst mom guilt never made me consider changing careers (although I could understand that it could for many!)
Also I relate to your wishing your spouse would become REPS! If my husband was remotely interested we could be a true economic force together!! Alas he’s interested in music and not RE.
HAHA! Yeah, there is definitely some opportunities for Real Estate investing out in your area! 🙂
And I think you’re right, my wife may not necessarily need a complete overhaul. I think she is considering transitioning to part time in a few years to have better balance. We shall see.
I’m sure she’ll find her way. Has she done any guest blogging yet?!
I was thinking for you but now I’m thinking for Tired! If she feels inspired to 🦸🏻♀️
Hehe. I think she would be able to create content. She’s an excellent writer (being a lawyer and all). But sure has no interest in blogging 😜
Ok I’m here if she gets a bolt of inspo ☝️
🙂
Law is so difficult. My sister is an attorney and she was in BIG LAW for a bit. She stuck with it and works for a smaller firm now, but those years were tough especially having little kids. She works part-time now and remotely and has great work-life balance and does decently financially. I think moms definitely need a support network. I see lots of moms in clinic struggling with this dilemna, return to work or not or new career path. My only advice which I also gave to my younger sister is, no matter what stick with it and as a woman she should not undervalue herself financially. Do something even if its part-time and don’t have gaps in your resume. There is an old book called the Ten Year Nap that my continuity preceptor gave me years ago, and it really was an eye opener. In about 10 years life is so much easier and honestly they need you more when they are older. I know its hard to believe, but you want to be there when they are going through their preteens and teenage years. Good luck!!!