Now that I have permanently moved to my new city, it’s time to start looking for a multi-family rental property to buy!
I am determined to succeed this time after I failed to buy a property in my old city earlier in 2016. I love only paying $400 in rent to live in my friend’s basement, but I’d much rather have a place of my own that earns me money. Plus, the basement gets a bit cold when the high of the day is ‑1.
The path going forward seems perfectly clear after coming back from Camp Mustache SE in January:
-Find a realtor.
‑Look at properties
‑Buy a property
‑Do any renovations
But there’s this tricky thing called my heart getting in the way of The Plan.
Every day on my way to and from work, I pass a house that’s for sale. It’s on a deep lot that ends in trees, which is what I prefer for a backyard. The price is very reasonable ($129k or about $750 a month). It’s been recently updated. More than enough space for my stuff and all my hobbies. So what’s the problem?
It’s a single family house. I couldn’t rent it out unless I wanted to get a roommate, which I don’t.
This is the first real challenge to my FI principles I’ve encountered, and I’ve got to say I don’t really care for it. All the Mustachian or FI-related things I’ve done in the past have aligned with what I would have done otherwise and so haven’t been a problem. Max out my 401(k)? Done. Max out my Roth? Sure. Keep my reliable car from college instead of getting a shiny new car? Yeah sure nbd.
I feel pressure, sometimes, as a younger FI blogger to be perfect. Several people have joked I’m a real life guinea pig for the bigger bloggers out there (Mad Fientist, in particular, as he actually has a real time guinea pig tracker going for an imaginary person that is more or less exactly at the same point in life as I am.) I actually like that title most of the time. I’m pretty sure I’m the only one putting pressure on myself but I still am stressing out over this choice.
Do I continue along the path I’ve set out for myself- accelerate my timeline by getting a multi-family rental property- or do I continue along the slow and sure path and get an incredibly adorable SFH?
Either way, I wouldn’t be setting myself back from where I’m at. This choice is about the speed of hitting FI. I would love, love, LOVE not to be tied down to this particular area due to my career. If I could be FI tomorrow, I would take it in a heartbeat despite the fact I’m very happy with my new job. I have so much I want to do with my time that doesn’t involve having a career. Getting a multi-family rental property would allow me to reach that so much faster (something like hitting FI at 30 instead of 35).
Being FI would mean I could tell my sister, yes, I will go with you on a last-minute ski trip to Canada instead of sorry, I used up all my vacation already this year to go see you in England.
On the other hand, if I continued on this same “slow and steady” path, I would have all the space I needed for years to come to do whatever hobbies my heart fancies. The basement is perfect for stained glass work and a work out area. The upstairs bedroom could be my craft room. One bedroom downstairs for me, and another for a guest room. That still leaves me a living room, dining area, and kitchen. I don’t really need a family room, formal dining room, or a formal living room. The backyard would be perfect for bonfires with friends, a big garden, and even room to play yard games like bocce ball, bags, or croquet.
So, my readers, I ask for your advice. What would you do in this situation? Buy the cute SFH or get a multi-family property and accelerate my FI timeline?