Our net worth now sits at $2,156,341:
The money breaks down like this:
- $755,264: Real estate including one private loan, one trailer park and multiple syndication deals
- $866,077: Stocks and index funds
- $515,000: Home equity, cars and dinosaurs
Mo’ Money, Mo’ Problems?
We have enough money to never have to worry about money. We don’t need any more. However, last weekend, I considered two new investments. The first was a condo and the second was an
trailer park elevated home park* (EHP).
Condo (Adventures in Airbnb)
I’ve always thought that owning a place in the mountains would be fun. We could mountain bike in the summer and ride the snow in the winter.
- Mountain properties are expensive
- There are recurring costs like association and HOA fees
- A second property is another thing to worry about
A friend recently bought a condo in a small mountain town near us that didn’t break the bank. The studio unit in Granby was far less than $100,000 and it’s only a mile away from a ski area. Our friend fixed up his condo and threw it on Airbnb. He’s doing well with rentals, so we decided to have a look a similar unit in the complex.
Before I tell you what we decided to do, I’ll tell you about the other potential deal we’re considering.
Elevated Home Park #2
We bought an elevated home park earlier this year with two other partners. The investment is doing well. Really well. It’s doing so well in fact that the other partners started looking for another EHP to buy. And they found one.
EHP #2 is a nice property that would cost close to $2,000,000. Similar to EHP #1, the owner has agreed to hold the mortgage. There are many more details and I’ll provide them in a stand-alone post.
The Decision: Mo’ Mental Space
The unit we looked at would require considerable work:
- It needs to be rehabbed
- We’d have to partially furnish it
- There is the administrative work that we’d have to complete before renting it out
It’s too much right now. We have a lot going on and it would add complication to our lives.
Decision: Just last week, I wrote about the importance of mental space. I’m going to take my own advice and skip the condo. We may reconsider when life settles down.
Elevated Home Park
If we move forward with the EHP, we’ll purchase it with our self-directed solo 401(k). This is a special type of 401(k) that lets you invest in real estate (and other stuff too!). We bought our EHP #1 with the self-directed solo 401(k).
While the self-directed solo 401(k) is a fine way to invest in real estate, one of the rules is that Mrs. 1500 and I cannot be involved in the management of the investment. In the case of the first EHP, the other two partners have taken on more of the management while we take a smaller cut of the profits in return for their services. And this is a good thing. After we vet the deal, there is nothing else to do except watch our money grow.
Decision: We may move forward with EHP #2. We’re still waiting to hear about certain details, but the deal has potential.
This discussion begs another question:
Dude, why are you bothering with any of this? You have enough money. Hell, you even wrote a post called Enough.
I’m content with life. I don’t need any more ridiculous cars. I’m fine with our primary home. My underwear and socks are in good shape. I just don’t need much else. However, I enjoy earning money:
- I like looking at deals
- I like watching my accounts grow fatter
- I like the thought of giving back in big ways
A reader named Steve left this comment a long time ago:
I can attest to two things: work is more fun when you don’t need the income and it is still fun to earn money even if you don’t need it.
So, I don’t need the money and I have no idea what I’ll do with it, but I’m still going to earn it on my own terms. At the moment, the main term is this:
The investment must not add complication to my life.
I need my time. Once summer is over and the girls are back in school, I’ll have more bandwidth. Right now, I’m going to enjoy the summer.
I still think about the condo every once in a while. Maybe we’ll reconsider later. While it would be work, it would be fun. I could decorate it with dinosaurs. And let me tell you, I’m no stranger to dinosaur themes:
*Readers tell me that trailer park is a derogatory term, so I came up with elevated home park…
Join the 10s who have signed up already!
Subscribing will improve your life in incredible ways*.
*Only if your life is pretty bad to begin with.