I’m a 30-something Structural Engineer by day, a real estate investor, cat mom, and a writer by night. I write mostly about what I have learned in the world of personal finance and real estate investing, and I hope that sharing my lessons learned will help others avoid mistakes and have better financial futures.
You may be familiar with the tax benefits of retirement accounts like a 401k, Roth IRA, and Traditional IRA that allow you to grow your investments tax-deferred or tax-free.
What if there were ways to defer your capital gains tax when it comes to real estate?
If you are selling a primary residence, you will pay no capital gains tax on the first $250K of profit for single filling status, and $500K for married filing jointly.
For a property to qualify as a primary residence, you must have lived there 2 out of the last 5 years.
No problem, right?
Have you ever wanted something expensive and saved up to buy it, only to regret your purchase? Welcome to buyer’s remorse.
I have felt buyer’s remorse on everything from a pair of shoes to a full-blown house. Actually, I have felt buyer’s remorse on both houses I bought at some time or another (Currently, I feel no remorse on either — however if you ask me at some point in the future I may feel differently.)
There’s no return policy in real estate
It’s easy to return a pair of shoes, or resell them and make most of your money…
Real estate investing is intimidating. Unless you want to invest in REITs (real estate investment trusts) there is a large barrier to entry taking the form of a downpayment.
I never set out to be a real estate investor, but after buying a house and deciding to move and rent it out, I fell into becoming one and realized all of the benefits that come with real estate investing.
Not everyone has to become a huge real estate mogul. Even growing to 2–3 good, cash-flowing properties can provide substantial wealth over your lifetime.
Investing in real estate takes money, and…
Real estate can be a great investment, not only to diversify your portfolio but to build wealth faster through cash flow, home equity, and appreciation. However, real estate can also be a depreciating asset and could easily drain your available capital.
Evaluating a property is the most important step to deciding if and where to invest your money. Forgetting one cost could lead to years of lower profits or losses on a property. At the same time, one cash-flowing property can provide extra income and help grow your net worth.
Just like buying a primary residence, buying a rental property…
There are a lot of anecdotal stories on Medium about Real Estate. As we go into 2021, I thought I would share real numbers on how much I made (and lost) on my rental property last year.
Let’s start with a little background. This house was never supposed to be a rental property, it’s just something I fell into after buying, living there myself, and ultimately deciding it was not for me. Thus I became a landlord and found all of the stress and benefits that go with that title.
Let’s get into a full income assessment for the property…
If you had asked me what my best financial decisions were as a 20-something recent graduate, my answer would probably be pretty lowkey. Something like “I google an item and shop around for the retailer with the best price before I buy it” or “I’m only allowed to buy coffee from the coffee shop on Wednesdays.”
Sure, decisions like this make an impact, but I made other financial decisions as a recent grad that had a much larger positive impact on my financial future.
As soon as I graduated college and started my first job, I opened one credit card…
Have you seen the “What I spend in a week” trend? Whether it’s here on Medium, YouTube, or another platform, the audience gets a little glimpse into the everyday spending habits of different people.
I know from my own spending habits that weeks vary. Some weeks I eat groceries from my pantry and never leave my house (a lot of those weeks in 2020), whereas other weeks, I have large, one-time purchases.
So I decided to summarize and come clean about exactly how much I spent in 2020—every single cent.
I’m not sharing this to say that I do anything…
Many are considering 2020 to be a completely lost year — a year where we did not (and in a lot of cases, could not) accomplish our goals. While in 2021 we still may not be able to travel, visit family and loved ones, or make that big career change, there are many things we can still accomplish this year from the comfort and safety of home.
I read a lot of articles on Medium claiming “Homeownership is a Trap.” Every time I read one of these articles, I cringe a bit. The arguments in these articles are always well laid out but missing a fundamental principle:
Correlation does not imply Causation.
I will use Ben’s article on the Death of the Pensions as an example. Yes, few people now retire with pensions. Yes, there are some people who are underwater or have lost a huge portion of their net worth due to their house losing value. That does not mean there is a cause-effect relationship.
Real Estate Investor sharing my journey