house hacking Archives - CLIPPING CHAINS

January 29, 2024January 28, 2024

A Unique Form of Real Estate Investment in a Tough Housing Economy (with Michael Farnsworth)

If you follow economic news at all, you’ve taken note of the changing conditions of the American housing economy in the last few years. First, high demand, low supply, and cheap debt fueled an extraordinary (and unhealthy) price surge. In response, the Federal Reserve ratcheted up interest rates to cool an overheated economy in the wake of pandemic-related disruptions

In years prior, economic conditions supported a vast proliferation of real estate investment. Individual investors to multinational corporations scooped up properties across the country for cheap. The returns were fantastic. But in my mind, those days were decidedly over.

When my guest today, Michael Farnsworth, discussed his novel concept of real estate investment, I was all ears. Do many of the real estate investment rules-of-thumb still function in a world of 7%+ mortgage rates and all-time high prices? Is now really the time to start a real estate investment portfolio? Is this even the time to buy a personal residence? And when it comes to short-term rentals, what are the ethical considerations for local economies and community fabric? We cover all this and more in today’s episode.

January 22, 2024January 21, 2024

QA12: Will A Life Of Financial Independence Meet Expectations?

We’re back to the digital mailbag to answer your questions!

For this week:

An update on markets and our personal finance situation
The role of dividends in growth and withdrawal assumptions
Expectations vs reality on a life of financial independence
Our experience with health insurance without employer-sponsored plans
Real estate investing: an update on our experiences and economics as remote landlords
Health insurance considerations for long-term travel
Short- to medium-term savings goals (like a house) versus saving for retirement
Loss of purpose without a traditional job
So much more!

July 10, 2023July 9, 2023

The Real Cost of Home Ownership (and a Life Update)

In the summer of 2020, we sold our home in Denver, Colorado, where we had lived for seven years. Once all the costs were tallied, we were shocked to see the return on our home ownership investment. Should we have rented instead? Today we revisit this post in light of our recent move.

March 27, 2023March 27, 2023

Brent Barghahn: Real Estate Investing and the Future of Home Ownership

Today on episode 59 I’m pleased to host Brent Barghahn, a 29-year-old elite climber who used real estate investment as a way to effectively “retire” from his career as an engineer in the outdoor industry in his late twenties.

Brent and I discussed a fascinating reality on the idea of dream jobs, the growing trend of short-duration careers (and what that means for society), and of course many details on Brent’s path to financial strength and community building through his preferred method of real estate investment. Of course, though, I wanted to discuss the stark differences in today’s high interest rate and sky-high price environment, which has changed markedly in the last year. It begs the question: can someone still be successful as a real estate investor today? I have my concerns, so we aired out some of them in today’s episode.

Finally, we take an interesting look at the realities of full-time climbing and why Brent has found he needs more. Also, Brent and I admittedly harbor negative sentiments on the world of social media, especially in climbing. What narratives and stories are being missed by the modern form of shallow media consumption?

June 6, 2022June 5, 2022

Is the Real Estate Investment Boom Killing US Housing Affordability?

Find me a person who can talk and you’ll find someone with an opinion on the housing market or real estate investment. And most of those opinions—even from happily settled homeowners—bear the tones of suspicion at best and downright defeat at worst.

Housing prices have skyrocketed a staggering 34% nationwide over the past two years. This rate is essentially an order of magnitude higher than historical home price appreciation. Certain markets are arguably out of hand (to use a technical term). Take Boise, Idaho, where prices are considered 73% overvalued.

Is the booming real estate investment trend at least partially to blame?

March 28, 2022March 27, 2022

EP 27: Homes and Vans with Tien and Brandon Rooney

Today on episode 27 we are taking a deeper dive on real estate investing with climbers Tien and Brandon Rooney of Five Twelve Real Estate. This couple shares a very intriguing history, spanning from college athletics to corporate world wake-up calls, the latter of which inspired them to uproot their lives and teach and travel throughout Asia.

Eventually, looking to rekindle the youthful days of travel and freedom, Tien and Brandon turned to real estate investment as a way to fast-track their path to financial independence. They even moved into a van full-time to further optimize their financial journey.

We carefully examine the many methods of real estate investment, including some key tips for first-time home buyers. Find out if this path is for you!

February 21, 2022February 20, 2022

EP 23: Erik Jenson: Real Estate Investing with Training Wheels

Today on episode 23 I’m happy to welcome climber, dentist, and real estate investor, Erik Jenson. In addition to paying down hundreds of thousands of dollars in student loan debt, Erik is now living rent- and mortgage-free through the process of house hacking. This form of real estate investing involves renting out rooms in the home where he lives, allowing him to build equity and repeat the process with additional properties. Referring to this process as “real estate investing with training wheels,” Erik is generating an outsized return compared to the single-family home so many of us consider “investments.”

November 15, 2021December 12, 2021

EP 13: Mike Doyle: Remote Work and the Climbing Life

Now seems as good a time as any to welcome back climber and software engineer Mike Doyle. Mike appeared on Clipping Chains for a written interview in February of 2020. At the time, I was curious as to how he managed to climb at an elite level while juggling a very demanding remote job. Mike was still managing to travel to multiple places a year for months at a time, taking his full-time+ job along with him.

After the arrival of the pandemic and surge in remote work, Mike’s original interview feels so much more relevant. In the intervening time, my wife and I have also experienced living and working while traveling, so my thoughts on this lifestyle have evolved dramatically. With all this in mind, the timing feels right to have Mike on for a deeper dive on the realities of the remote work lifestyle.

November 1, 2021October 31, 2021

EP 12: Paige Claassen: “This Was a Big One for Me”

I’m happy to announce that today’s guest is pro climber and all-around genuine person, Paige Claassen. Paige is one of the top sport climbers in America and the world, having sent multiple 5.14+ routes, including her latest send of Dreamcatcher, a 5.14d in Squamish, British Columbia.

Pro climbers are paid in large part to climb, at least for a portion of their life. But Paige does so much more than climb. She’s worked insane hours at a packhouse in Namibia harvesting grapes, she founded and promoted nonprofit projects across the globe, and she’s heavily involved in making a more equitable world.

That said, despite all these achievements, Paige admittedly struggles at times with issues we all face: self-disappointment, a hesitation to celebrate victories, and a feeling that the anticipation of the thing is greater than the thing. Paige is learning to recognize wins and take compliments, with simple refrains, like, “this is a big one for me.” Her thoughts here gave me a lot of room for self-reflection.