. We are learning a lot through requirements, twists and turns-- and what good is an uncomfortable, self-inflicted saga if the lessons learned aren't shared?
"It's not crazy, it's just a big deal."**Read from the bottom up!**
I'll update up top as the story unfolds.
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1-Apr: 2 of 3 tenants paid rent on time without prompting!
30-Mar: This is what $1,000 worth of leaf cleanup looks like (done by 4 Kissells in 3 hrs for a total of $50 in lawn bags and dump fees).
29-Mar: A promising day for the Wampanoag house! We receive an Air BnB booking for the entire month of June, and after being listed for less than 24 hours on Zillow we have some promising long-term tenants for July. Shout-out to our realtor who is still hanging around - now as our listing agent.
28-Mar: What do you mean, someone needs to MEAL PLAN?!
27-Mar: Our first Wampanoag booking on VRBO! This should pay for the permit and fire alarms.
27-Mar: The dog is finally spending time outside at The Estate without crying at the door. He's on an electronic radial fence (the base is a hub in our kitchen). His radius of comfort is slowly expanding and we're finding poops farther and farther from the door.
Add to chore list: Poop-scoop with frequency the paths our tenants travel.
26-Mar: Ants in the downstairs bathroom sink (Estate). Why? Where are they coming from? Where are they going?
25-Mar: A victory! Received our AirBnB permit from Town of Portsmouth for the Wampanoag house.
24-Mar: Today's growing pain in an old house is the sea of floors -- meaning, they aren't level. They gently roll like an ocean. The home inspector wasn't surprised or concerned.
Put "furniture shims" on shopping list.
23-Mar: Slept in the 'new' house. Still fussing around with temporary mattresses and bedroom heat, but we and our support gear are all here.
Why are we so much more exhausted than a normal move leaves us?
Andrew named it: Usually packers are doing the labor and we're doing the mental work of organizing and settling. When we move ourselves, we are doing both. And we haven't moved ourselves since 2016 (shout-out Dova Family + Sierra & Seth!).
Note: We're on partial furniture at the Estate due to the AirBnB project at Wampanoag. We'll be 'glamping' for the better part of 90 days.
Shout-out to Portsmouth Schools for making the bus transition as easy as it could have been. Drew gets picked up at the front door!
22-23 Mar: Days 5 and 6 of moving. First tears are shed as I take family photos down from the staircase which we only hung last November.
What I'm praying: Lord, allow me to recognize my sadness but don't let it turn in to regret.
Lesson learned: Real estate investing, at its best, should be a no-emotions-attached financial transaction. But moving out of our home and starting over is deeply personal, and deeply emotional (at least for me).
I still defend that we needed to start here - and there's a good chance these two properties will enough portfolio for us to manage - but leaving a place is hard and always will be for me.
We love on our homes so hard.
Additionally, I find myself extremely uncomfortable lately. I've ripped apart the comfort zone I created for my family and there are financial and legal unknowns.
It occurs to me: This discomfort is what risk feels like. Avoiding this feeling is what's been holding us back from a project like this all along.
21-Mar: Lesson learned: Get a quote from a tradesman before he(or she) sees the size of your Estate. Surely leaf clean-up doesn't cost $1,000 and moving a washing machine doesn't cost $5,000.
-- I think you think we're people we are not!
21-Mar: Fire marshal returns to Wampanaog: PASS!!!
17-18 Mar: Andrew spends afternoons in the Wampanoag attic crawl space wiring smoke alarms together for each bedroom.
15-Mar: 87C stops by with his rent check and asks if he can have until 1-June to vacate. He makes sure we're aware of his age and his ailments, and he attempts some detective work on behalf of our other tenants who have sent him to find out if everyone is getting the boot.
We are compassionate and firm and friendly, don't answer questions about the other tenants (the can stay), and haven't had interaction with 87C since (written 28-Mar).
15-16 Mar: Days 3 and 4 of moving: closets.
For the first time in years all of our clothes (his and hers) fit in one walk-in. I'm embarrassed by the number of my shoes I can count in one place.
(I'm tempted to purge right then and there, but I have "purge clothes" on my calendar for 1-June as an incentive to lose weight this spring. So far I haven't lost any and this move isn't helping with cortisol effects and meal-planning. There's a good chance I just kicked this purge down the road.)
The physical toll of moving starts to rear it's head and I remind myself that sometimes it's ok to sit down and have a beer in the walk-in closet. (Yes, I know what the previous paragraph says.)
Word is out among our local friends and church family that we've taken on another transition. I feel a little sheepish about it because I don't want to give the impression that I'm not grateful for our home. I'm also reticent to accept more help moving because this is entirely self-inflicted.
I decide to relax in to our community's genuine excitement for us and continue with a grateful heart.
13-Mar: Visit from the building inspector and fire marshal to see about turning Wampanoag in to an AirBnB. The building inspector reminds us that we can only advertise 3 bedrooms (vice the 4 that we have) due to the size of the septic. I don't know why this is so important to the Town of Portsmouth, but it came up a lot when we bought Wampanoag in 2023. Ok, guys. Va bene.
The marshal teaches us requirements for fire extinguishers and interconnected smoke alarms.
My takeaway: I guess we're not making this an AirBnB.
Andrew's takeaway: "I can totally do that myself."
We decide to invest $200 and our faith in him and go for it.
The ultimate goal is to "make more than zero" off Wampanoag while we wait for inbound military families to arrive this summer.
Lesson learned: There are still surprises over my spouse's hidden talents 16 years in to marriage!
10-14 Mar: Utilities, utilities, utilities!
10-Mar: We apply for a short-term-rental permit with the Town of Portsmouth for the Wampanoag house. They require visits from the town Building Inspector and Fire Marshal.
10-Mar: We receive an email from our attorney informing us that they mailed 87C his termination of tenancy and he has to be out by 1-May. While we're relieved that this Band-aid has been ripped quickly, we never meant for 87C to find out this way.
Our real estate agent makes good on a pre-closing promise and sits down with 87C and his adult son, making sure they understand the letter and verbally offering them our 'cash-for-keys' incentive ("Leave sooner and we will give you some money.").
8-9 Mar: Day 1 and 2 of moving. Andrew's crew from work shows up and moves our entire garage and basement to the Estate in under 3 hours! They scarf down pizza and are gone by 3 p.m.
We're deeply thankful for this solid start to the next three weekends of moving our life over piecemeal.
Lesson learned(?): I really don't know what is worse. When all our stuff shows up in boxes and we are forced to deal with it ASAP (I typically take a week off work for this), or this slow Band-aid pull of a move over weeks with life happening in between. Lugging and organizing an hour here and there. Trying to coexist with the chaos.
7-Mar: Closed!
We're entertained for exactly one billable hour by one of Newport's oldest real estate attorneys. He is well versed in Portsmouth's history and knows one of the previous owners of the The Estate. His even-paced storytelling between signing and shuffling documents is methodical and friendly. Once I realize I need to settle in to this transaction, I enjoy it.
The sellers remain a mystery as they've already signed at their attorney's office. I often wonder if the real estate profession intentionally keeps buyers and sellers apart. Surely we could reach agreements faster if we put the actual decision-makers in a room together.
After closing we reach out to both realtors to find out how to get in to the house. We pop over for a selfie with the kids and to make sure we can get in before we start moving the following morning.
4-Mar (3 days until closing): After repeated questions about rent monies and transfer of deposits, I threaten not to sign at closing without these - and magically I'm presented with a prepared document containing all of this information.
The sellers inform us that they'll be leaving the curtains.
Current overall vibe among our party: Alternately excited and terrified.
Late Escrow (end of Feb):
- We learn of some Rhode Island landlord requirements that have not been met by the sellers. Wondering if this is a deal-breaker, we start to ask uncomfortable questions to our realtor and the mortgage company. Our realtor lends me an ear, our lender rep blows me off, and we don't hear from anyone for two weeks.
I hate this part of escrow. Without fail, at this stage no one has our best interest in mind: Every single party in this transaction only benefits only if we close the deal. As my coworker commiserated, "We always feel slimy by the time we get to closing."
I'm very thankful at this point that we at least have retained legal counsel who are in our corner.
What I've been praying: Lord, either bless this or get in our way!
Mid-Escrow (Feb):
- Our family gets sick for an entire month. We cancel a vacation to Florida. Depleted health makes nonstop requests from the mortgage company for additional documentation extremely annoying, and makes decision-making agonizing and foggy.
- The level of detail and badgering from the bank are unlike any escrow we've experienced. Either (a) we chose the wrong bank; or (b) we came pretty close to the maximum someone is willing to lend us!
Silver lining, Andrew's work hours became very important to the lender during this time, and our canceled vacation allowed him to provide the complete pay stub they were asking for.
(This makes me wonder what "preapproved" even means!)
- Multiple requests to the sellers to deliver Termination of Tenancy to 87C go ignored. Instead, they start a back-and-forth over whether they will take their "$10,000 worth of curtains" with them at closing. We've never mentioned the curtains but now we wonder if we should have asked for them(?).
- The VA appraiser determines that the stairs to the barn loft are unsafe and a handrail needs to be installed. All parties concur that Andrew is the handyman for the job, so he spends a day in our prospective barn hammering away while I sit with the flu on the couch. The property appraises for agreed purchase price.
Note: 87C also present for the appraiser's visit.
- While we were waiting out the escrow clock we decided to do some Wampanoag projects in order to make the property tenant-proof. Connecting a hose to the basement dehumidifier (so we aren't asking a renter to empty a bucket every two days throughout the summer). Tearing up the dirty carpet (age unknown) on the screened-in deck and finishing the wood.
Projects we definitely would not want to be doing once we moved in to the Estate and had projects to do there.
The Rear Cabin, "87C"
This topic might become deserving of its own blog.
The rear cabin is 400 square feet of dust, nicotine and mold. The outside is in great shape - previous owners have taken care of siding and roofing - but the inside hasn't had maintenance performed in the 17 years the tenant has occupied it. In our opinion, this is a health hazard and a liability.
This 78-year-old man has been on a verbal month-to-month lease this entire time and is renting at about half market rate. As our realtor remarked, "He's had a good run!"
Knowing full well the condition, we forged through escrow with plans to end the tenant's agreement, gut and renovate the cabin, then rent it at market rate until we can convince my mom to move to New England.
On my sister's advice (she's a real estate attorney in South Carolina and gave me this nugget pro bono): "I'm assuming you're retaining a lawyer who is well versed on tenant-landlord law in Rhode Island. It'll be the best money you spend in this transaction." We took care of this detail the next day.
Follow-on details regarding 87C are in the timeline above. Stay tuned...
What I've been praying: Lord, provide a solution for 87C that none of us have imagined. Make a blessing for him out of this necessary change.
Early Escrow (first week of Feb):
- Home inspection went well. Andrew and our realtor followed along intently. Andrew learned a lot about the home's systems and our realtor got minor frostbite on his feet (snow on the ground). We asked the sellers to fix the [advertised-as-working] dishwasher and continued to move forward.
- Rear cabin "87C" tenant present for the inspection that he told us was at an inconvenient time. (87C was also present when we toured the rentals during our second showing.) Sellers have to step in to ensure he allows the inspector inside.
Spidey sense activated: The tenant refuses to step outside for an hour??
Lesson learned: "Don't inherit tenants." We should have had this non-transfer of tenants written into our original offer and signed contract. Now this is our problem.
Another discovery during early escrow was just how much a VA funding fee costs on a loan this size. A couple of pointed questions encouraged Andrew to begin his disability claim 17 years after leaving the service. If this project stopped in its tracks, this alone would be a useful endeavor.
Before we signed anything:
- Number crunching: What will it cost to live in the new place? And can we rent our current home for the monthly cost of our mortgage?
- Considerations: Influx of Navy families moving to Newport for 1-3 years, mostly arriving in the summertime. If we rent out our current home (Wampanoag), it may sit empty for a few months (Mar-Jun). Should we leave it furnished and attempt to AirBnB it during the gap?
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Wait, so you guys are moving again?
Things that are true as of January 2025, and Why:
- We are home in Rhode Island at least until our kids get through school (2029). It helps that we love it here.
- Yes, we adore the house we bought here in 2023 and yes, we've enjoyed the pickleball court we installed right next to it.
- We have bought four homes along our journey through adulthood and only currently own the one we are living in (Wampanoag). The more we learn about real estate, the more we realize we're late to a profitable long-term game... and that our unused VA entitlement (0% down) is an untapped opportunity.
- I was supposed to retire from the Navy on 1-Sep-2025 and cancelled my retirement for a few reasons. The best way to summarize the decision is "it's not time yet." One part of this calculation was the desire to invest in some more property -- and right now, we're still lendable while I'm on the Navy's payroll.
- I'm taking a 6-month real estate investor course through my service academy network, and it's providing needed resources, encouragement and support to take the plunge on an investment.
- On a Sunday afternoon in January I stumbled on an open house for a multi-unit historical property up the road. Andrew, Levi and I paid a visit. The main house is old (1865) and quirky but everything has been upgraded in recent years (kitchen, bathrooms, electric, heating systems, etc). The grounds are beautiful and the barn was used by previous owners to host dinner parties. The third floor and two external cabins make up three additional occupied residences -- off-setting the cost of my family living here to be near equal to what it costs us to live down the road in a single-family home. The location is accessible by sidewalk to the high school, grocery, and Drew's best friends. Levi (16) ran up and down the stairs, poking through hallways and closets like a child, exclaiming, "I want to move here!" Andrew and I exchanged glances that indicated we were on to the same far-reaching idea.
For fun, in this blog I'll refer to the prospective property as 'The Estate'.
I sent a text to a local Navy/realtor friend asking if he'd represent us. As it turns out, he's intimately familiar with the property, knew the previous owners and placed one of the tenants.
We decided to make an offer and see how far it went. Using a VA loan we could enter with only closing costs and the price of moving ourselves.
Offer accepted and mortgage pre-approved by the end of January... we were off in to the sticky swamp of escrow!