MichiBama Properties is a Real Estate investment enterprise, specializing in well maintained, affordable rental properties and care for our tenants as well as vacant lakefront properties. Back in 1993, we went to a boat show at the Pontiac Silverdome and put an order in for a brand new Kayot Bow-rider boat. We went home that night and thought about whether this purchase was really a good idea for
us. We had been vacationing in a cabin on lake of a relative in Michigan, and had also been contemplating purchasing a lake-front lot on the same lake. It didn’t take long to realize that we’d be further ahead financially by purchasing the lot instead of the boat. I called the boat dealer and cancelled our order and started the due diligence to purchase the lot. Three short months later, we closed on our first investment property! We spent the next few years raising our children and looking for more deals on lake-front lots on small inland lakes around northern Michigan. We didn’t have a stead-fast plan, but knew that lake-front vacant lots were relatively cheap, were in higher demand than acreage, and appreciated in value. Before too long, we had three of them along with our primary residence. But honestly, our real estate journey really took off when Nancy read a little book called “Rich Dad, Poor Dad” and realized we could do more, and SHOULD do more than only purchase speculation properties. Neither of us have a pension, and although we both contribute to our employer’s 401K plans, investing in cash-flow properties was a better idea for us. At least with real estate, we can have some control over our investment. Our jobs moved us to Alabama in 2008 and we used a property management company to rent out our home in Michigan. Once we moved here, we began a searching for multi-family properties. We came close to purchasing a couple duplexes, but we both lost our jobs in the economic downturn in 2009 and the deals fell through. We didn’t give up and when Nancy got a job in February of 2010, we purchased our first duplex that April. It was a rehab, rent, and hold investment and it worked out great. So great in fact that we wanted to do it again. We had been renting since moving to Alabama and we decided we wanted to set roots, so we purchased a home outside Birmingham in 2011 and settled in, but knew we needed at least one more duplex to meet our cash flow goals. Avoiding debt as much as possible, we took it slow and saved up the money for a deposit and rehab costs for another rental and bought our second duplex in 2014. We sold two of the lake front lots in northern Michigan, and kept our home in Michigan which continues to be rented along with both the duplexes. We make enough money in rental income that Nancy will be retiring in 2017 and will manage our properties in retirement. Investing in rental properties has provided peace-of-mind for us. We hope we made good financial decisions that will ensure we enjoy our retirement.
