{"id":337,"date":"2021-03-22T02:31:09","date_gmt":"2021-03-22T02:31:09","guid":{"rendered":"https:\/\/wordpress-655153-2137993.cloudwaysapps.com\/?p=337"},"modified":"2021-03-22T02:33:36","modified_gmt":"2021-03-22T02:33:36","slug":"msfire17","status":"publish","type":"post","link":"https:\/\/msfiremama.com\/msfire17\/","title":{"rendered":"The Accidental Landlord"},"content":{"rendered":"\n

Kimberly Kesterke\u2019s real estate investing did not start because of a well-made plan or long hours of careful pre-planning research. She didn\u2019t have a real estate background or have any family working in the industry. Her REI emerged from circumstance and self-education.<\/p>\n\n\n\n

In 2006, she bought her home in Augusta, GA, and by 2008, the economic downturn caused the property to depreciate $30,000. Kim was planning to move to another city more than three hours away to pursue a new job. <\/p>\n\n\n\n

She didn\u2019t want to take the loss and decided to rent it out.\u00a0<\/p>\n\n\n\n

\u201cI became an accidental landlord,\u201d Kimberly said. She managed the rental herself from afar while working her full-time job several hundred miles away.<\/p>\n\n\n\n

From there, Kimberly learned how to handle her property by putting systems in place and setting expectations.<\/p>\n\n\n\n

\u201cI learned it was doable from a distance,\u201d she said. \u201cAnd it\u2019s a great way to make passive income.\u201d<\/p>\n\n\n\n

A few years later, she looked at her rental market and realized she was getting above market rates. Kimberly began thinking about investing again and checked around the neighborhood for duplexes and triplexes for sale.<\/p>\n\n\n\n

\u201cI think it helps to spread out the money and the risk,\u201d Kimberly said of seeking out multifamily houses. \u201cIf you have to save up and put 20 percent down, now you\u2019re getting two doors instead of one and two tenants instead of one. One side can pay for the mortgage and the other side can do the cash flow.\u201d <\/p>\n\n\n\n

Kimberly used conventional loans to buy her next few properties. She took real estate classes with her local real estate investing association (REIA) and learned about other methods to acquire properties, such as \u201csubject to\u201d and seller financing.\u00a0<\/p>\n\n\n\n

\u201cThe key with having a full time job and doing a lot is to figure out what you really like doing and where you need help. It\u2019s really impossible to do it all.\u201d<\/p>Kimberly kesterke<\/cite><\/blockquote><\/figure>\n\n\n\n

Today, Kimberly’s 20-door portfolio cash flows six figures while she works a full-time job and has a family. It was about a 10-year process that Kimberly said she worked up little by little. Up until November 2020, she self-managed her rentals.\u00a0<\/p>\n\n\n\n

\u201cIt\u2019s been a slow, steady strategy rather than leverage as fast as I can to get as many as I can. I\u2019m pretty risk averse and wanted to master a strategy before moving to another one,\u201d Kimberly said.<\/p>\n\n\n\n

When she self-managed her properties, Kimberly set up a network and a system of communication to triage issues and help the tenants help themselves as much as possible.<\/p>\n\n\n\n

\u201cI had my particular set of people to call to get in touch with the tenant. The process\u00a0worked from a hair on fire event to \u2018I have a leaky toilet.\u2019 It was [the tenant] managing the communication not me,\u201d she said.<\/p>\n\n\n\n

Kimberly set the expectation that she would respond in 24 hours if a tenant submitted a request via email or text. For emergencies, she had tenants contact someone more local to address issues more expediently.<\/p>\n\n\n\n

She would show the tenant how to turn the water off in the event of an issue whether with the toilet or if a main had to be shut down at the street. Kimberly provided phone numbers for local utilities and had a plumber on-call to help. She instructed tenants to call 911 for fire. Sometimes, Kimberly made videos or provided links to some. Eventually, she turned over the responsibilities of educating new tenants to a contractor or handyman.<\/p>\n\n\n\n

Yes, Kimberly Still Works Full-Time<\/strong><\/p>\n\n\n\n

Kimberly has a job in software sales where she earns both a salary and a commission. She works for a startup company and enjoys the challenge it offers.<\/p>\n\n\n\n

She considers herself financially independent, defining it as \u201cthe freedom to choose the life you want to live whether it’s to travel the world or be with my daughter at cheer and be present.\u201d<\/p>\n\n\n\n

Kimberly doesn\u2019t have a number of properties or a cashflow goal that will trigger her to leave her full-time job.<\/p>\n\n\n\n

\u201cI\u2019ve got the architecture to quit,\u201d she said. \u201cBut, I don\u2019t plan on leaving [my W2] any time soon. I think the moment that it\u2019s not fun anymore or not a challenge anymore, then I can choose.\u201d <\/p>\n\n\n\n

How Does She Do it All?<\/strong><\/p>\n\n\n\n

Kimberly continues to educate herself and network. In addition to recently earning her real estate license, she hosts a Facebook group called W2 Real Estate Investors: Tools & Strategies for Financial Independence<\/a>, runs a website called The W2 Landlord<\/a> and published book called the 30 Day Back to Basics Challenge <\/a>for real estate investing.<\/p>\n\n\n\n

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Kimberly Kesterke – Sales Professional, Real Estate Investor, Mother, Author, Real Estate Agent, Former Property Manager<\/figcaption><\/figure>\n\n\n\n

Her decision to hire a property manager came out of a meeting with another investor in her market.  <\/p>\n\n\n\n

\u201cI realized she had way better connections and a way better network. If I wanted to continue scaling my business, I needed assistance and help,\u201d Kimberly said of the arrangement.<\/p>\n\n\n\n

Kimberly said she is saving 25 percent a month on each property with someone else managing them. But on top of that, it frees up her time to grow and expand her real estate business.<\/p>\n\n\n\n

\u201cThe key with having a full time job and doing a lot is to figure out what you really like doing and where you need help. It\u2019s really impossible to do it all,\u201d she said. <\/p>\n\n\n\n

In It for the Long Haul<\/strong><\/p>\n\n\n\n

Kimberly calls real estate her hobby that she says she grew in “micro improvements.”<\/p>\n\n\n\n

“It\u2019s all in the tiny little 15 minute increments. Making the effort is worth it in itself,” she said. “It\u2019s not taking weeks off at a time. You can squeeze it in a little at time.” <\/p>\n\n\n\n

One example is how Kimberly earned her RE license. She said it took her about a year and she would study while watching her daughter enjoy time at a playground.<\/p>\n\n\n\n

Another is how she started investing – first with traditional financing and using the buy and hold strategy<\/a>. She recently began looking outside of Georgia to invest and has one property in North Dakota and another in New York. Kimberly plans to deploy lease option<\/a> programs that would allow the renters the choice to purchase the property within a certain period. This strategy also removes responsibility from Kimberly to manage the property as the renter is generally responsible for maintenance under these terms.<\/p>\n\n\n\n

Kimberly doesn’t feel pressure to quit her job or hit a certain financial target with her real estate investing. She takes it in stride and will continue doing both until she decides she needs a new challenge or is tired of an old one.<\/p>\n\n\n\n

“I went to a closing the other day. The other real estate agent was dressed to the nines and was probably around 78 years old. I was thinking this lady is so successful because she’s been doing it for 40 years. It wasn\u2019t overnight,” Kimberly said.<\/p>\n\n\n\n

“When I\u2019m 78, I still want to be doing deals.” <\/p>\n\n\n\n

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KIMBERLY’S RECOMMENDED REAL ESTATE RESOURCES<\/h2>\n\n\n\n