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Gave both tenants a 60-day notice today.

I've owned the two properties for a hair over 30 days now.

- Rat chewed through PVC pipe under the house leaking gray-water

- Sewage line to septic was completely open (clean out) leaking raw sewage in crawl space

- Capped sewage line, line to septic is completely backed up

- 3 companies have been out to find the septic system for house #2, fourth coming out today with cameras, a backhoe and a truck to pump god willing they find it

- Water line burst in house #1 yesterday with the hard freeze

Lesson? Buy bitcoin, not real estate.

hh 11mo ago

I'l keep saying this regardless of how unpopular it is over here: Bitcoin is a perfect store of wealth. But it doesn't produce income. Real estate does and it can even be a self-sustained positive cash flow -- it's just that it comes with the inevitable risk associated to any sort of profit, as you're experiencing.

So it depends what you want to do with that money you're spending: keep it protected but not growing, or risk some of it trying to create a positive cash flow.

"Just buy Bitcoin" is not good advice in the void.

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Discussion

WhiteRabbit 11mo ago

To each his own. I'm not built for real estate investing or managing tenants. Some people play the game smarter then others. For me, it's bitcoin and chill.

SwBratcher 11mo ago

Two properties are going to be painful with all of that stuff. 10 times that puts you at a scale that would allow all of these little repairs to come through each month without really impacting your revenue by a large percent. Once your portfolio is stabilized life gets better at volume. However, you are 100% correct. If that’s not the type of business you want to run, now you don’t have to. Bitcoin offers the good features without the bad features. But no income. Alternatively if you do want to grow your wealth with a real estate portfolio, coupling it with bitcoin creates tremendous advantage. Leverage your properties to 80% with 60% being asset debt and 20% a purchase of bitcoin that is coupled with the portfolio and you start to have a magic formula for growth. Being able to do this of course depends on your starting cash position and your purchase prices. Can be hard to pull off, but with focus on that frame, you only do the deals that allow it, and that growth can make a difference in your trajectory.

SwBratcher 11mo ago

But see my first above comment on the “income“ category. You’re going to see gains that far surpass any property income (cap rate) for the next 5 to 10 years. With none of the headaches.

hh 11mo ago

But how do you pay your bills by just holding BTC?

SwBratcher 11mo ago

In my world, you don’t. Here’s what I told myself:

Focus on revenue. Look away from the bitcoin you buy with it. If you have access to an asset that will safely leverage and pay its own way down (real estate), then lever it, in today’s cheaper-tomorrow fiat. Then buy and hold bitcoin with those funds at today’s more-expensive-tomorrow prices. Hold that while your asset pays itself down. If this model is out of reach, then you’re in the classic model. Earn as much as you can. Spend as little as you can. Buy Bitcoin with everything you can. That is your 401k and your social security that can’t be fucked with by anyone while you’re focused on earning in your job or business ventures or both.

hh 11mo ago

OK then, yes, that was my point too.

SwBratcher 11mo ago

This is my take. The growth opportunity right now is different in a decade. Right now, it’s effectively delivering income because of the added growth. When adoption rate stops mattering. It’ll level. If inflation slows, it’ll stabilize further. As supply and demand start to neutralize it’ll slow. You’re right that bitcoin is not a business that creates income. Real estate is a business that creates income. But most people that own real estate don’t want to be in that business, and just do that because there’s nothing better to preserve the value of their savings and long-term wealth accumulation. Bitcoin is an alternative to that. But it’s not an alternative to running a business that creates income. Do both. Bitcoin is definitely lower maintenance than a real estate portfolio.

hh 11mo ago

Fully agree with all your points.

SwBratcher 11mo ago

We’ve achieved something very rare on the internet. But more common on nostr. Agreement. The unicorn of conversation.