When we (Jim) purchased our first home, I considered the rental aspect of it but not in the same detail as the Frugalwoods (as you’ll see in their update post). When we moved out, we rented it to our friends who needed a place to stay for six months.
I’m not going to lie, it was fun collecting rent. We broke even but it was nice to “build equity” in the house. Also, since it was our friends, there was no risk of them messing up the house.
I think this review by the Frugalwoods is great because of how comprehensive it is (or more to the point, how comprehensive they were in their analysis).
What’s Happening With Our Rental Property? [Frugalwoods] – “When you buy a home to live in with a plan to later rent it out, you’re doing two things at once. You have to consider the property more from an investment perspective and less from an emotional “I love this house” perspective. This isn’t always possible (or advisable), but, if you live in a hot rental market and have aspirations of building a passive income stream, buying a home that can be turned into a rental can be a great option.”
This next one is scary. We’re all just “little” one accident away from financial ruin.
How Ana Paid Off $100K of Medical Debt [Her First $100K] – “I sent the text, washed my hands, and was just about to head back to the table when I stepped on a wet spot on the floor and slipped. The next thing I knew, my date and I were at the hospital and I was unknowingly going to take on $100,000 of medical debt. “A catastrophic elbow fracture” were the exact words the doctor used.” Read the whole thing because it actually contains a solid playbook for how to deal with medical debt like this – this isn’t a “she paid off the whole $100k,” she took steps to lower it and then paid it off. It’s brilliant.
Research: Simple Writing Pays Off (Literally) [Harvard Business Review] – ” Financial writing is full of jargon and complexity. But a series of research suggests that investors are drawn to simple, clear writing with short sentences. The simple reason is that complex writing is off-putting — people tune out and find it dull, a fact confirmed by neuroscience research. The author reviews a series of studies on the financial value of good writing and offers a few tips to companies looking to communicate more clearly with investors, or with anyone else.”