Homeownership awaits: My transition from renter to landlord
Making my dreams a reality.
I didn’t achieve my No. 1 goal for 2024, which was to become a landlord.
But I received great news over the weekend — I qualified for a mortgage! It’s from the Neighborhood Assistance Corporation of America, or NACA as it is commonly called.
The nationwide, non-profit organization fights for economic justice through affordable homeownership and community action. I’ve planned to purchase a multifamily home through NACA for more than a year. It’s a critical phase on our wealth-building journey, perhaps the most important vehicle for taking us where I believe we’re going. My next step will be attending a purchase workshop tonight. During the 5 a.m. club on Sunday, I invited Parker.
“I think you should come with me,” I said, piercing our meditation time by preaching life lessons.
Parker didn’t even let me finish my thought: “Yeah, I was going to ask, can I come?” she exclaimed.
Nothing would make me happier.
You’re not just spending priceless time with your father, sweetie. At the tender age of 11, you’re about to get a masterclass in real estate, business and investing. You’ll learn so much as you watch me continue to stretch myself and push my limits, all to lay a foundation for our family’s future and ensure that your kids’, kids’, kids can have some cheese.
Following today’s 90-minute workshop, we’ll receive our qualification letter and can begin our home search.
That’s really what Parker has been waiting for.
She has reprimanded me for months for my procrastination in securing our next place. Parker loves our humble abode, the only spot we’ve called home since I moved to Chicago in 2017, but she’s ready for something bigger, something better. She’s not alone.
I’m laser-focused on crossing the finish line as a landlord by early 2025. My NACA qualification expires on June 25, giving me a clear deadline to finalize the purchase. No more procrastination.
The goal is to eliminate our biggest expense: housing. By purchasing a duplex, triplex or fourplex, we can live in one unit and rent out the others, significantly reducing or eliminating our mortgage payment. With just a few strokes of a pen, our biggest expense could become a steady revenue stream.
NACA’s incentives make this approach even more appealing, as there’s no down payment, no closing costs and no credit score requirement. Qualified applicants also receive below-market interest rates.
Armed with that information, you’d think I would have been collecting rent rather than paying it for the past year.
Work and life slowed me down, but I refuse to allow those routine challenges to stop me. My delay can also be attributed in part to my unyielding commitment to being present and intentional every day as a father and now a bonus dad. That’s why I preach so much, Parker. It’s why Tiffany, in short order, dubbed me, “Drippy Faucet.”
Learning how to trade stock options captured my attention for the last quarter of the year, and I’ve juggled my responsibilities for Money Talks between two publications each week. The rest of the pie — the largest percentage — was me simply failing to act promptly.
I allowed three months to pass before even following up with my NACA counselor after our Sept. 11 appointment. The qualification process is long and exhausting, and after my first round, I was exhausted. I completed 48 action items ranging from categorizing every expense and payment from each of my accounts to uploading my account transcript for the 2022 tax year.
It took time, patience and dedication to complete the process.
Little did I know, here’s how deep into the home stretch I was: I reconnected with my counselor on Dec. 19. It took me only eight days to handle the remaining paperwork. Late this past Friday night, I qualified. I got the call Saturday afternoon.
Becoming qualified is the exciting part. However, landlord life is not for the faint of heart. I’m not expecting everything to be perfect. From here, I actually anticipate a slew of headaches with everything from the home search to inspections to tenants.
But when I look back on my procrastination, I believe it led me to proper preparation for what I’m stepping into.
I’ve paid off my car and eliminated other minor debt. I’ve used this time to strengthen my financial footing. Meanwhile, the 5 a.m. club has made me mentally stronger than I’ve ever been. When the phone rings at 3 a.m. because of a busted water pipe, I won’t panic. It won’t even be a struggle to climb out of bed.
I’ve encountered various experiences over the past year in close relationships and casual run-ins that have hardened me. I believe those moments will help me when difficult conversations and decisions are needed.
And I’ve become more resolute as an investor. My mindset for homeownership has changed dramatically over the past year. No longer will I pursue perfection. I plan to continue to live below my means. That means purchasing a home well below the amount I’m approved for. It means I’m OK with putting in a little sweat equity and slinging a hammer in the name of home improvement.
I see dollar signs in door hinges and value in vent covers now — no lie.
So, with Parker by my side, I’m excited to take this next step in our journey tonight.
We’re about to buy a house, and as only my darling daughter would say, “Finally!”
