[MUSIC PLAYING] Brought to you by the Every Dollar App. Start budgeting for free today. Just a couple questions. Been listening to you guys for a few months. I like and agree with everything, but I'm in a weird situation because I can't get past baby step six because I don't own a home. We've been renting my wife and I've been married for seven and a half years, and we've been renting for seven and a half years. We were kind of waiting for house prices to go down and they never did. So I ended up starting a business with my sister. She lives in Iowa, and we buy like three condos with her that are rentals. And I also bought a place with her down in Yuma, Arizona, the winter there. And so I have four paid for income-producing properties. I have a couple hundred thousand dollars in the bank. My wife and I both make a good income. She makes around 100 grand. I make around 100 grand. I'm self-employed. She has a 401(k) that she pays 6% to the company, matches 6%. So we're sitting in a good spot. Here's my dilemma. I want to continue to grow my rental properties. I want to buy like a duplex, move into half of it, pay it off for the couple of years or less, and then buy our dream home. Every house I show her, she doesn't want to live with anybody. She doesn't want to rent out any part of it. And the median house price in Minneapolis, say Paul, we live on the outskirts, is probably close to 400,000. Right now we rent and we get a great deal. We probably live in a $400,000 house and we pay $2,150 a month, which isn't terrible. It's not breaking the bank. We're able to save every month. And obviously I'm able to grow my rentals. But I know that I'm sitting here wasting time paying that $2,100 every month. Lance, can I say something controversial about the city? You want to grow your rentals more than you want to grow your marriage. Get your wife a home. When is she going to-- you've been married eight years. Get your wife a home. I told her 10. I said, 10 years you buy whatever house you want. But you guys have the money. Get her a home today, today. I think she wins. OK, what kind of house did she want? Let's talk about the house she wants. Hold on, hold on. This is more fun. A house, man. I know she does. But you are caring for four other families more than your own. What are your properties worth altogether? So they're condos in Iowa. They're worth around 90 grand a piece. And the one in Arizona, we just bought it for $130. But that one's probably, I think we're coming into it with a little bit equity, maybe $10,000, $15,000. So you have over half a million dollars in investment properties? Well, I got half over half a million dollars. My sister has been on the other half. So I have a plus few hundred thousand. It's probably $230,000 to $200,000. And how much do you have in cash? $200,000 plus. And you would be uncomfortable putting down $200,000 on a $500,000 home. Yeah, because the $300,000 at that interest rate is still looking at like a $2,800, $3,000 payment. What's your take home pay after taxes but before other deductions, like investing in health care? What would your take home pay be? Y'all make $200,000 a year? Yeah, it's probably like $9,000, $10,000 in a month. OK, let's say it's $10,000 a month. We'll take 25% of that that's going to go toward the mortgage. So $2,500, let's say, is the max, right? Well, toward the mortgage? Yeah, I don't know what the math works out to at $300,000. It's probably $25, $2,800. Yeah. Well, I'm saying as you go find now we know, OK, our goal is $2,500 payment on a 15-year fixed rate mortgage. That's what we're going to do. Well, now we have the home price and down payment numbers to go, all right, if we put $200,000 down, we can afford a $420,000 home. And so it's less about our Lance's emotions versus her emotions. And it's based on a parameter we agreed on. And then we're going to do it when the math makes sense. And by the way, retirement and taxes take up $80,000? Well, you're bringing home more than $10,000 a month. I'm a-- well, she does pay a lot towards her HSA. She's trying to tap that out, so we have that. And then I'm self-employed. So some months I bring home a lot. And other months I bring home, not as much. What about the rental income? Is that not counting? Yeah, the rental-- no, that's not calling the rental income. I didn't even put that in. Well, where's that going? The rental income right now is probably around 1,500 a month. My portion that I bring home. Have you done the math-- Where's that money going? Have you done the math on how much this divorce is going to cost you? It's going to cost you half of everything you own. I'm just saying, if we were a patient for two years, we would have another duplex before. One thing that's going to be, but babe. I just got an amazing deal on this investment property. So I'm going to put the money towards that. But next year, babe, it's going to be your year. I already tried that. That doesn't work. No, get your wife a home. Tell your wife-- Hey, listen, take her out to dinner tonight with some flowers and tell her, I want you to have a spreadsheet. And I want you to put it on the table. And if you're really romantic, I want you to hang it over like the little candle and let it just burn up. And burn it. And let the spreadsheet burn up and say, I love you. And I have turned our marriage into a ROI. And it should be, and I love you. Ooh, that sounds kind of good. Me, and I am. I'm driving a 2003 regular cab Chevy pickup with 181,000-- Hold on, Helen, you hear this, America? Listen. The label follows money. Listen, America, listen. It's the world's smallest violin. Nobody cares. What does she drive, Lance? Buy yourself a car. [LAUGHTER] Buy your-- Is she driving around here? Me too. What is she driving? I can buy a car. I just can't buy a duplex. Jeez. Well, you know why? Because somebody else lives in there with you. Oh my gosh, you watch way too much Instagram. Dude, get your wife home. I was going to let her listen to this episode, but now I can't. We'll make sure she listens. Hey, it's already in the record. So when y'all go to court, it's going to get played anyway. Lance, you know what you can't put an ROI on? The joy on her face when you tell her, honey, we're going to buy a house. We're going to buy a house. Not for someone else. For us. Let's go to house shopping. Let's go house shopping. No, even better. Let her go house shopping. You have been house shopping. That's great. Because you're going to make it miserable. You're going to go, no way. I can find a much cheaper house. Let's go to Tile Depot. Let's go to the Tile Depot outlet warehouse and see if we can get that same tile for-- dude, just get your wife a house. Get out. Dude, you have done an amazing job. You're crushing-- how old are you? 45. You're amazing. 38. It's amazing. Like, this is like-- She's never owned a house. Dude, so I don't want to do three. See, you're laughing. You know how expensive divorce is. All right. Get her a house. Get her a house. Has she ever owned a house? Nope. And she's 38 years old. She's only the rentals. Yeah. She's never owned one. And you guys make 200 grand. And you have 200 grand in the bank. Are you seeing what I'm seeing? I don't like that. I don't like that. I tell you to buy a house. My taxi, I tell you to buy a house every year. Wow. He knows how expensive divorce is. He's seen some things, Lance. Oh, man. We're having fun with you, Lance. I want to see you win. I want to see your marriage win. And part of that, which is hard for guys like us, Lance, because we love doing the math and the ROI. But you know who doesn't care about that, is the person who loves you the most in this whole wide world. They want a great life with Lance. And at some point, they just don't care about another investment property that'll bring in another 300 bucks a month. They just want a place to call their own. And at the end of the day, often people want to know, do you love me more than golf? Do you love me more than your business? Do you love me more than the spreadsheet? Do you love me more than the good deal on the duplex that we can move in and someone else can live next door to us and listen to house music all night long? Whatever the things, buy our house and you better let her listen to this episode, my friend.
