What's in store for you:

1. Photo From My Life
2. Financial Thought: Selling the Starter Home
3. Life Thought: Accountability
4. Good Sh*t: Actions Overpowering Thoughts

Subscribe to this Newsletter

Photo From My Life:

Financial Thought:

Selling the Starter Home: A question I’ve been getting more frequently: Should we keep our starter home and rent it out after buying our forever home?

As with most personal finance topics, the right answer is... it depends. Everyone has a unique situation. Purchase price, mortgage rate, rental income potential and most importantly, different financial goals. So it's hard to provide one size fits all advice.

All of that being said, in the vast majority of scenarios I’ve run, I recommend against holding on to your starter home as a rental. Here’s why:

1. The math usually isn’t compelling: If you assume realistic price appreciation and factor in repairs, vacancies, and property management fees, the return often doesn’t beat an equity investment portfolio. In many of the scenarios I model, you’d be better off taking your sales proceeds and building a dividend-focused equity portfolio. Similar cash return, arguably similar long-term appreciation, and no tenants breaking a window when they lock themselves out.
2. Headaches and liability: Even with a property manager, you’re still the owner. A 3am call about a flooded basement or broken HVAC isn’t hypothetical. That stress and cost eats into your financial return and quality of life.
3. Rising costs are real: Property taxes, repair costs, utilities, and insurance premiums have all increased (sometimes faster than rents). That $850/month cash flow can evaporate quickly when the insurer triples your premium.
4. Lack of diversification: Most families I talk to are staying in the same city, which means they now own two high-value assets in the same geographic market. That’s not exactly a diversified portfolio.
5. Liquidity matters: Real estate isn’t as illiquid as some investments, but it’s far from liquid. Selling a house takes time, comes with transaction costs, and usually involves emotions. Stocks? Not so much.

Real estate can be a great wealth-building tool, but as with most things investing related, you need to run the numbers, be diligent, and compare the alternatives.

Life Thought:

Accountability: Responsibility and accountability have been on my mind lately.

If you’ve followed along, you know I love boating. Over the years, I’ve found myself jumping into more than a few real-time rescue situations. Flipped boats, tangled kiteboarders, unexpected emergencies on the water. As bad as it might sound, I’ve loved every second of the rescue missions. There’s a small part of me that wishes I’d joined the Coast Guard. Yes, I’ve looked into becoming a helicopter pilot. I’m officially too old.

But when I zoom out, I realize it’s not just about the boat or the rescues. I get real fulfillment from being the person others can count on when things go sideways. I value being dependable. I value showing up. There's something deeply rewarding about being the one people call when everything's gone wrong.

Which brings me to our summer nanny......who, unfortunately, has been the complete opposite of that ethos. She’s canceled on us repeatedly, sometimes at 1am the night before. I’ve found myself getting unreasonably upset, and I think it’s because it clashes so directly with how I try to live. If you say you’re going to do something, do it. People are counting on you.

Being trustworthy and accountable may not always be glamorous. However, I believe it’s one of the most important traits you can have.

Good Sh*t:

Actions Overpowering Thoughts:

We all have a constant stream of thoughts running through our heads. What truly matters is choosing the thoughts that lead to the actions we want over the long term. It's not always the easiest path, but it's the one aligned with who we want to be.

I’ve shared Kevin Dahlstrom’s content before, and I’ll probably do it again. He might not call himself a philosopher, but his writing blends practical wisdom with everyday life better than most. This post is a perfect example.

I'll try to mix it up more in the future… but this one was too good not to share.

Disclaimer: VDB Wealth is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance is not indicative of future performance.

‍