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HOT TOPIC I just put my house up for sale and no one I know understands why

jakeG

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I am a single (well, have a girlfriend but not married) guy with no kids and a dog. I currently live in a 3BR 2.5BA house. I bought this house 3 years ago when I was still within the confines of the slowlane mindset. I am selling my house to move in to an apartment with my girlfriend. Doing so will decrease my living expenses $20-30k / year. All of this money will fund my business while I maintain my current 9-5 or will be saved to a point where I can leave my 9-5 and have enough savings to live and commit all of my time to my business. My current income is at the very bottom of 6 figures.

None of my friends or family understand why I am selling my house. I have received several lectures from my parents on why they think this is a bad idea. They are boomers and still paying off a mortgage. None of my friends actively agree with me on the move either. I know they're all wrong because they're all slowlaners and live inside the typical American Dream box. The only person who fully supports this decision is my girlfriend. She is of the fastlane and entrepreneurial mindset like myself.

Does anyone else have experience with this? My mind keeps going back to Gary Vee and Andy Frisella. Gary talks a lot about how too many people will never chase their dream because they are chained to their homes that they dont need and only have to impress other people that do not care. Andy talks about how no one will support you during your journey, but will say "I always believed in you" when you succeed. These two guys and what they preach is helping me sticky to my guns on selling the home.

Does anyone else have any similar stories or advice on downsizing to fund their business? I'm really just LAMPing for some validation :happy::happy::happy::happy:
 

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Kak

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Dump that house!

I fully support avoiding lifestyle entrapment.
 

Kak

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jakeG

jakeG

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Rent it out?
I've definitely thought about that. But every time came to the conclusion that the couple hundred bucks a month I would make in rent would not be worth the time or effort. I could spend a few hours per month managing plus the burden of risk as a landlord to make a couple hundred bucks, or pick up a few more hours of work. I'm a programmer and charge $100-$125 an hour
 

Bearcorp

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I did this a few years ago and also moved into a city apartment with my GF, cut my living expenses right down, allowed me to quit my job sooner and focus on my business. It's your life, get after it and don't let the naysayers hold you back!
 
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jakeG

jakeG

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I did this a few years ago and also moved into a city apartment with my GF, cut my living expenses right down, allowed me to quit my job sooner and focus on my business. It's your life, get after it and don't let the naysayers hold you back!


Boom!! Exactly what I needed hear. Thanks man!
 

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Suzanne Bazemore

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I was going to suggest renting unused rooms on Airbnb, if your area is near companies that might have temporary employees, but I just checked out Birmingham on Sperling's Best Places, and while properties have appreciated by 11% in the past year, they are down nearly 5% for the past 10 years. The job market is also dropping, and though slated to increase, will do so at less than the national average, but I don't know your area. Also, there is a 20% vacancy rate for renting. I would sell, unless you bought it when housing prices were really low.
Birmingham, Alabama Housing
 
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jakeG

jakeG

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I was going to suggest renting unused rooms on Airbnb, if your area is near companies that might have temporary employees, but I just checked out Birmingham on Sperling's Best Places, and while properties have appreciated by 11% in the past year, they are down nearly 5% for the past 10 years. The job market is also dropping, and though slated to increase, will do so at less than the national average, but I don't know your area. Also, there is a 20% vacancy rate for renting. I would sell, unless you bought it when housing prices were really low.
Birmingham, Alabama Housing
Wow this is awesome. Thank you so much! My area is lower market. Definitely not considered the nice part of town, but also not the worst. Selling seems to be the best option right now. Looking at the average rent rates on the map provided -- the average rate is below my mortgage. Granted, my home is newer and generally nicer than the average home in my area, I would still at best be making just a few hundred dollars a month on renting. In my opinion the risk reward just doesn't make sense for me to rent.
 

BookwormMitch

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If the people who are telling you not to sell your house are not living the life you want to be living then why would you follow thier advice?

Same goes for understanding, if they understood they would probably have made similar decisions in thier life and be living where you want to be.
 

Rabby

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You're doing it right. Sell it or rent it out if it's a burden. Something that forces you to keep a job and makes you intolerant to startup risk... well that's not an asset at all. It's just another liability.

We all get confused looks from on-script friends and family.

Also... with two of you interested in building assets... OMG, that's so powerful. Plenty of people have to argue with their SO over priorities... should we invest in our business, or buy more junk? Aw, but I like junk!

Good luck!
 
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jakeG

jakeG

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You're doing it right. Sell it or rent it out if it's a burden. Something that forces you to keep a job and makes you intolerant to startup risk... well that's not an asset at all. It's just another liability.

We all get confused looks from on-script friends and family.

Also... with two of you interested in building assets... OMG, that's so powerful. Plenty of people have to argue with their SO over priorities... should we invest in our business, or buy more junk? Aw, but I like junk!

Good luck!
Thank you @Rabby !! I'm very much looking forward to the future with my gf :)
 

Ernman

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Outstanding mindset and move. While I'd be inclined to rent it out, only you can decide if that's worth your time and the associated hassle. Either way, you're making a courageous and smart move. Good on you!
 

AgainstAllOdds

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Some life lessons for you:
  1. Only take advice from people you want to become.
  2. 99.9% of people you know don't care whether you fail or succeed.
Do what you want. Make the decisions that you think are right. And ignore the naysayers.

Housing prices are high right now - it's a good time to sell and hold cash... especially if it nets you $20k to 30k a year. Most people buy businesses and make investments to net $20-30k a year. Think about that. Meanwhile you're doing the opposite. How much would you have to invest in the stock market to get that $20k to $30k?

$400,000 to $600,000?

Meanwhile you're doing what? Investing $0 and maybe even getting a check for your equity in the house?

Your approach is the correct one, but note: it won't be easy.

A lot of people will make fun of you, shit on you, and heighten your self-doubt. Ignore them. Your parents and closest friends probably love you, but they're not of the correct mindset to understand success.

As for the rest... they probably don't care about you at all so there's no point to take their advice.

Going off of point #2 above, let me share an anecdote. On Thursday, I stopped in Atlantic City between meetings to spend the night. I hit a poker cash game, played for a bit, and met some characters. One character started telling us that he owed a guy $300 and that the guy was out to kill him if he didn't get him his money back. Do you know what the general response was from the table to that story? The most empathy he got was "damn, that sucks man," and then no one cared after that. People are too preoccupied with themselves to care. Even if someone's out to kill you, chances are that no one cares.

Live your life the way you want to live it.

You're the main character in your own movie.

If you want to be an entrepreneur and try things out "risk free", then selling your house is the absolute easiest way to do it.
 

Kung Fu Steve

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I know several people who would never own.

Hell, one guy I know owns over 10,000 doors... and he rents his own place.

It didn't start with Gary Vee of course... RK said consistently your own home is a liability, not an asset.
 
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jakeG

jakeG

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Jan 9, 2019
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Birmingham, Al
Some life lessons for you:
  1. Only take advice from people you want to become.
  2. 99.9% of people you know don't care whether you fail or succeed.
Do what you want. Make the decisions that you think are right. And ignore the naysayers.

Housing prices are high right now - it's a good time to sell and hold cash... especially if it nets you $20k to 30k a year. Most people buy businesses and make investments to net $20-30k a year. Think about that. Meanwhile you're doing the opposite. How much would you have to invest in the stock market to get that $20k to $30k?

$400,000 to $600,000?

Meanwhile you're doing what? Investing $0 and maybe even getting a check for your equity in the house?

Your approach is the correct one, but note: it won't be easy.

A lot of people will make fun of you, shit on you, and heighten your self-doubt. Ignore them. Your parents and closest friends probably love you, but they're not of the correct mindset to understand success.

As for the rest... they probably don't care about you at all so there's no point to take their advice.

Going off of point #2 above, let me share an anecdote. On Thursday, I stopped in Atlantic City between meetings to spend the night. I hit a poker cash game, played for a bit, and met some characters. One character started telling us that he owed a guy $300 and that the guy was out to kill him if he didn't get him his money back. Do you know what the general response was from the table to that story? The most empathy he got was "damn, that sucks man," and then no one cared after that. People are too preoccupied with themselves to care. Even if someone's out to kill you, chances are that no one cares.

Live your life the way you want to live it.

You're the main character in your own movie.

If you want to be an entrepreneur and try things out "risk free", then selling your house is the absolute easiest way to do it.
Wow. Thank you so much @AgainstAllOdds . This validates everythung I have been thinking and have learned over the last couple years while breaking out of the slowlane mindset. I’m super thankful for this forum. It’s true what they say about entrepreneurship, that it is very lonely. But that feeling of loneliness is a good thing, because it means you’re not like the rest of em.

Thanks again!
 

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jakeG

jakeG

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I know several people who would never own.

Hell, one guy I know owns over 10,000 doors... and he rents his own place.

It didn't start with Gray Vee of course... RK said consistently your own home is a liability, not an asset.
RDPD was the first book I read on my journey. I’ve been mulling over the idea of selling since reading it and now finally moving forward!
 

James Klymus

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If the people who are telling you not to sell your house are not living the life you want to be living then why would you follow thier advice?

Same goes for understanding, if they understood they would probably have made similar decisions in thier life and be living where you want to be.
Yep, listen to the people who are where you want to be in life, not the peanut galley
 

minivanman

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This is exactly why I never tell friends or family what I'm doing. I might get on here and tell something or some place else on the internet but I'd never tell friends and or family.

I'd say when we moved from a house to an apartment everyone thought I was crazy (I am but that's another story). Then when they visited the apartment they said things like.... this thing looks like a magazine.... and they loved the apartment. Now we've moved back in to a house (and they continue to think I'm crazy and that's why I never get their validation) but not because I'm a fan of 'owning a house'. That doesn't interest me at all, the lil woman just couldn't take the noise from the lady next door at 2am any longer.... on the other hand, that was my favorite part of an apartment! ;)
 

biophase

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Do you mind sharing if what your house is worth and what your mortgage is compared to renting an apartment. Why do your friends/family think it's crazy? What is their thought process on why it's a bad idea?
 

Raoul Duke

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If the people who are telling you not to sell your house are not living the life you want to be living then why would you follow thier advice?

Same goes for understanding, if they understood they would probably have made similar decisions in thier life and be living where you want to be.
Seek first to understand, then be understood. by Stephen Covey
 

RazorCut

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Some life lessons for you:
  1. Only take advice from people you want to become.
  2. 99.9% of people you know don't care whether you fail or succeed.
Do what you want. Make the decisions that you think are right. And ignore the naysayers.
Gold studded with diamonds right there.

In fact I would go further. A lot of your friends don't want you to succeed as that makes them feel threatened and insecure. They want you to stay at their level or, ideally, slightly below. It's not their fault, just human nature. They want you to stay in the middle of their pack, not rise above it.

So they give you guidance, their 'wise council' in order to keep you in your place. To limit you to their level rather than see you rise to levels that they are too afraid or comfortable to attempt to reach out for themselves.

Sad but true.
 

Valor

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I've definitely thought about that. But every time came to the conclusion that the couple hundred bucks a month I would make in rent would not be worth the time or effort. I could spend a few hours per month managing plus the burden of risk as a landlord to make a couple hundred bucks, or pick up a few more hours of work. I'm a programmer and charge $100-$125 an hour
Cash flow is only one part of it.

Someone else would also be paying off your mortgage, and it will likely appreciate a decent amount in that time. Don't underestimate these factors--they can add up to a lot more than the cashflow.

Even if you hired a property management company and were negative cash flowing $100-200 a month to start, it may be worth it.

Just something to consider.
 

Raoul Duke

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Cash flow is only one part of it.

Someone else would also be paying off your mortgage, and it will likely appreciate a decent amount in that time. Don't underestimate these factors--they can add up to a lot more than the cashflow.

Even if you hired a property management company and were negative cash flowing $100-200 a month to start, it may be worth it.

Just something to consider.
This.

Maybe @SteveO @G_Alexander @JustAskBenWhy could shed some light on this.
 

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