This week's PhREI guest post is from Ian Cook of Carpe Diem MD. I really loved reading this one because it's such a simple yet powerful message. Investing is way more than just about the money.
Ever since I started my financial education, I realized just how important my financial well-being is to my overall well-being. And that is why I love personal finance. That is why I am passionate about sharing my journey and experiences with all of you.
So Ian, take it away!
There is more to investing than money
Now I understand that may sound ridiculous but that is how Lauren and I approach our STR investments.
In fact, Lauren has been the driving force in this form of our investing. She convinced me to purchase our first STR property for $500,000. That was twice as much as I wanted to spend on a property and we had to move money from our backyard renovation to cover the down payment.
I did not want to spend that much on an additional property but Lauren saw what I was unable to see. The $500,000 property was near the slopes, had covered parking and plenty of room for two families. This property was perfect for us and for rentals…. But most importantly for us. Lauren and I had always dreamed of owning a property in Mammoth Lakes, CA. It was one of our life goals that had almost been completely derailed by my Fall.
Lauren knew that this property would be a great place to create lifelong memories with our family and friends and she was so right. We did not know all that we do now but we knew that this property was great for us.
It was also clear that rent would more than cover the mortgage and if not, we could safely cover the mortgage with our own income. Lastly, we knew that the property sold for $800,000 before the great recession. Therefore, Lauren felt really good about this buy and I agreed.
This is why I say “In Lauren we trust when it comes to STR intuition”.
This property has turned out to be one of our best investments and it has nothing to do with money. We have shared amazing trips with our family and friends at this property.
Our daughters look forward to going to the “Mammoth Home”. It is an escape, a place to unwind, enjoy the fire and play family games.
The daytime is filled with snowboarding in the winter and hiking in the summer. The evenings are spent by the fire playing board games, playing Nintendo Switch or watching movies. Spending time at our STR has been priceless for us as a family…. It is an investment worth more than money.
Ps. it turned out to be a good financial investment as well. The STR rent covers costs and the equity as of March 2021 is over $400,000…. That is a better return then our retirement accounts.
