Somehow we’ve already managed to put half of 2024 in the rearview mirror. As a result, I find myself reflecting on and analyzing the goals I set for myself at the beginning of the year.
As tends to be the case, things are moving a bit slower than I’d hoped. I think that’s pretty common, especially for optimists.
And that’s ok.
I’d rather be naively optimistic about how much I will accomplish in a year. If not, I fear I’d never get started.
So this post is dedicated to looking back on the goals I set for myself six months ago, being honest about my progress, while also taking stock of what’s changed.
I break my goals down into three categories: Quality Of Life; Professional Life; Financial Progress.
I’ve made some huge changes in the last bucket as I had a quick trip up to San Francisco that completely reshaped how I’m thinking about my next 5 years.
I realize this post is a departure from what I normally write about. It is largely for my own benefit to better help me work and think through what I’m trying to accomplish.
But I also hope there are some nuggets here for you as well. Maybe I inspire you to do a similar exercise. Maybe a window into how I think about my goals helps or motivates you.
Or maybe I’m giving myself too much credit there ?
Regardless, if you choose to read, I hope you find some value!
Quality Of Life Is Improving In 2024
Grade: C+
Six months ago I gave my personal life a C- grade. This is still my weakest category, but at least it’s improving.
The three things dominating this section are our ongoing home renovation and ADU project, general health, and vacations.
Here’s how those themes are playing out.
Home Renovations & ADU Build
This has been tough.
There’s one certainty when it comes to construction of any type. It will take longer than anticipated.
Our ADU is no exception.
Luckily, I was prepared for this.
Six months ago I said I’d be happy if we finished by the end of the year. Still, I mentally hoped that was a low bar.
Take a look at the before and after of our house below. This is the progress from our old garage to what is now the new garage, addition (behind the garage), and ADU above:
Yes, it looks like we’re nearly done but there’s still a lot to complete. We still need our mini splits in, water heater, balcony railing, front facade of the main house completed, and concrete poured.
Oh, and we have to do the finishes inside too.
We’ve made progress on both the lower level and ADU bathrooms and Kaitlin has been painting and putting together kitchen cabinets. But that still leaves flooring, baseboards, interior doors, and lots of other odds and ends.
It’s just a lot.
And there’s both the front and back yards that need to be done. They haven’t really improved at all!
Ideas/Goals
We made a big decision a month or two ago.
Instead of deciding to take a breather and wait a year to redo our main house, we’re now planning to move into the ADU upon completion and start tearing our main home apart.
It’s going to be a long time before we’re settled and done with construction. I’m hoping by the end of 2025 we can close this chapter of our lives.
Living in the ADU won’t be ideal. It’s only two bedrooms and if we’re occupying it that means it can’t generate income for us.
But I’m willing to make that tradeoff so we can do all the things we want in our primary home. It’s going to be a significant remodel.
It’s hard to swallow that we’re going to be in this construction phase for a lot longer. But I also can’t imagine stopping, getting used to a more relaxed life, and then having to go BACK into remodel mode later down the line.
I’d rather just keep living in the hell we’re currently in.
I’ll be curious to see how I’m feeling about this six months from now!
Knee Surgery Recovery & General Health
I’m happy to report my knee recovery is going quite well after undergoing the MACI procedure some 9 months ago.
None of it was easy.
The first few months sucked because I could hardly get around.
Then, when I could start walking somewhat normal, it felt like I was never going to get back to 100%. That was mentally taxing and had me wondering if I’d made the right decision.
But about a month ago it felt like I turned another corner. I’m now walking pain free, able to get down on the floor and wrestle my kids, and pretty much do everything I did before.
But I’m still strengthening the quad.
And it’s still noticeably smaller than the other one. I also find that I’m hesitant to try and run just yet.
That said, it’s clearly improving a lot and I see the path to full recovery. I’ve been working out a lot more this year and that feels great.
Ideas/Goals
I have no plans to run every day, but I’d like to know that I can take off in a sprint at the beach with my kids and dog and feel confident about it.
I imagine that happens here before the end of the year.
While I’d like to formalize my workouts a bit more and push myself further, I’m ok with the cadence and plan I have going right now. Once the house work is done I’ll have more bandwidth to focus here.
My weakest spot right now is probably my diet. That’s being critical. Our family is fully vegan and eat a lot of veggies, whole foods, etc.
But I find myself getting lazy too often and grabbing processed junk I don’t need. I’d like to be more disciplined there.
Overall, I’m on a good path in this subcategory and it’s likely the sole reason my personal life has improved so far in 2024.
Pseudo Vacations
In my last write up I mentioned Kaitlin and I haven’t had a proper vacation in some 8 years.
That hasn’t changed. And I doubt it will any time soon.
There’s just far too much going on with our home reno and ADU build stuff and we don’t exactly have much help from parents.
Ideas/Goals
That said, we’re doing alright supplementing with little mini-vacations. Kaitlin got out to Florida on a girl’s trip. And we made it up to San Francisco for a couple days with the kids which was a nice getaway.
I was also in Detroit last week. While that’s not a vacation, it’s at least some time away.
We have plans to see some friends in Bakersfield in July. And we’re slated to go to Vegas (with the same friends) in October to celebrate a birthday without kids.
I feel like these pseudo vacations are going to be the norm for the next couple years while we catch our breath. And hopefully, our boys will get a little easier as they get a bit older and we’ll get more help.
Fingers crossed!
Professional Life
Grade: B
Professionally, things are going extremely well. I continue to have more fun from a career standpoint than I ever have.
I’m extremely thankful that my regular job is something that I truly enjoy doing. It’s not lost on me how rare that is.
So why just the B Grade?
Winding Down My Old Company
I looked into winding down my old company. But it turns out it’s far more complex than I even gave it credit for.
To add to the complexity, the company is not actually insolvent. It still produces some, albeit modest, monthly profit.
The legal advice I received was basically that I should allow the company to operate until it can’t, make sure I have a “small war chest” to wrap things up legally, and then dissolve it.
I don’t know how long that might be. And it’s a bit of a distraction.
Ideas/Goals
There’s nothing really to be done here except wait.
That’s tough to accept because, while it doesn’t take a ton of my time, I do have to tend to it a handful of times per day.
Detroit Real Estate Is A Lot Of Fun
I’m still having a blast with Detroit real estate.
I get to analyze deals, talk with people about something I’m passionate about, and shoot the shit with my best friend all day every day.
And I get paid for it.
Wild!
The issue? I’m wondering when the expiration date is.
As prices continue to move higher in Detroit, we could soon see the day where “the numbers don’t make sense”.
If rents don’t keep pace with home values we could see cash flow evaporate.
What then?
Ideas/Goals
I honestly don’t know yet. It’s a conversation Nader and I have quite regularly.
We could go into a new market. But if we do that it needs to be extremely unique. I’d be looking for the “next Detroit”.
I’m not sure it exists today.
That said, I think we have at least 1 – 2 more years before it becomes a “problem”. Or maybe it’s longer. I have no clue and it’s impossible to say.
A New Stealth Project
I am in the very fortunate position of being able to take a step back, consider what few things I absolutely love doing, and nurture them.
And while I don’t know that it’s fair to call this a “project”, it is something I’ve dreamed of doing for a very long time.
While I’m not ready to talk about it, I’ve been working on it in the background and there’s potential for it to be the “next thing”.
Ideas/Goals
My goal here is simple. I want to continue to be successful with this new venture.
But I do not want it to distract from my real estate stuff. Professionally, my real estate activities are my top priority.
For now, this project is simply a hobby that might someday turn into something more.
Financial Progress
Grade: B+
I graded this category a B+ in the previous write up as well.
While my net worth is certainly higher than it was six months ago, it sure doesn’t feel like it!
We are shoveling money out the door with this ADU project. And while that is definitely an investment, it sure doesn’t feel like it today.
I’m also terrified about what we’ll spend on our main home remodel. I feel like I’m working my butt off and have nothing to show for it.
Beyond how I’m feeling here, my attitude and overall plans have changed a lot in this category.
Financial Freedom & Passive Income
Six months ago I noted that the income our ADU will generate, plus our Detroit rentals would get us to true financial freedom.
That’s still the case today.
I also decided I’d start slowly building a dividend portfolio. My logic here was that the day would likely come when I want to exit real estate investments and have a truly passive income.
I even wrote a post about it, Passive Income vs Active Income And How To Make The Leap, where I detailed how I view moving up the passive income ladder.
And I’d planned on adding at least one more Detroit property to our rental portfolio.
Well, I completely killed the dividend portfolio and the plans to expand our Detroit rental portfolio. That’s even after being under contract for a new duplex project and kissing goodbye a $1,000 earnest money deposit.
So what changed?
Ideas/Goals
In short, I want more.
I realize that sounds selfish. But I also realize it’s completely normal.
There are two paths we can take once we achieve financial freedom. We can continue to slowly build on it, and slowly improve our lifestyle along the way.
That was my plan six months ago. I would continue to invest in cash-producing assets, moving increasingly more toward a fully passive income lifestyle.
The other path is to use financial freedom as a fallback plan. Once there, we have the optionality to take more risks and bold bets.
I love to do those things. But I didn’t have a reason. I didn’t have a “why”.
Until I did.
San Francisco Second Home
The other month we visited San Francisco for a short two-day trip for my sister in-law’s wedding.
I hadn’t been back to the city in over 12 years.
I’ll spare you the details for now, but San Francisco holds a very special place in my heart for many reasons. And I’ve always told Kaitlin it’s on my bucket list to have a second home in the city some day.
I can’t describe how intense that desire became when we visited. What’s even better… Kaitlin felt it too.
The trip completely reshaped my goals for the next five years. Instead of building increasingly more passive income I now want to build a ton of active income so we can buy a second home in San Francisco.
Ideas/Goals
This is a massive goal because, well… San Francisco isn’t exactly inexpensive ?
Furthermore, I’m not just looking to have a small 1-bedroom condo downtown.
Ideally, I’d have a 3-bedroom place in the Marina or Cow Hollow area, where Kaitlin and I spent the majority of our near decade living in the city.
A place like that would probably put you back $3MM – $5MM today. That would be hard to justify without a $10MM liquid net worth.
These are very large numbers, at least for me. And I have zero plans to kill the golden goose (aka our Detroit rentals & ADU) to achieve this goal.
Oh, and, ideally I’d like to do this in the next 5 years.
So it becomes a pretty interesting and challenging puzzle.
That said, I have some ideas.
And honestly, half the battle with something like this is being crazy enough to think you can actually do it.
Wrapping It All Up
It’s shocking to me how much my plans and goals have changed in the last six-months.
It’s also crazy to think how much can change in five years. This time in 2019 we had just started investing in Detroit real estate.
What will life look like five years from now?
Hopefully I’m buying my city home in San Francisco, or at least have the option to.
A big part of me fears I’d have the money to do it but hesitate, wanting to shoot for more.
Regardless, I feel like I have something to work for. And I didn’t feel like that six months ago. It’s awesome to once again have a huge, seemingly insane goal to work toward.
Here’s to an awesome second half of 2024!