I'm shifting gears. I don't want to be a landlord forever. For those of you who have been doing the same thing for many years, have you ever had a bad day at your job and dream about a new career? Some time ago I started thinking about whether I wanted to commit to being a landlord for the rest of my days.
I have done exceptionally well with real estate. Tell me what else you can invest in with a 33% annual return net of expenses? Who would give up such a thing. Here's the deal: I value my freedom more than anything. Having tenants is having golden handcuffs. They pay my bills, but I have to jump when they say jump. I have invested thousands of dollars and hours of effort into making a house nice - better than my own - only to have my tenant trash the place and leave owing back rent. I had a tenant forge a check to pay her rent, two tenants have died (one of them inside my house), others give me the runaround about why they can't pay rent - all while subscribing to a platinum satellite TV package, smoking premium cigarettes, and buying a second car (let me clarify - a brand new second car, for a single tenant who already had a perfectly drivable vehicle).
What I have decided is to curtail future real estate purchases. I plan to buy a permanent residence for my family and will only buy additional rental properties when the deal is hands-down, an absolute no-brainer. Truthfully I hope I don't find any deals. Tomorrow I will let you know how I plan to earn my income moving forward.