Disclaimer: All sexual activity described in this story is between fictional characters over the age of 18.
~~~~~
The hour-long property tour went well, but is fairly boring to talk about. The takeaway was four one-bedroom one-bath units, about 1000 square feet each, to either side of a badly deteriorated gravel driveway, with parking for one vehicle next to each unit, and several more spots behind. Faded wood siding and chipped floor tiles in the entryways, that were a problem in all four units, filled out the list of needed repairs/replacements. Jack estimated a budget of $21,000, not counting lost revenue from having the units vacant simultaneously while the work is done. The earliest the work could be done was the end of May 2018, due to the existing reservations.
Back at our house, we sat down at the dining table. "Okay, what are your thoughts?" I asked.
"Kinda small," Annie said.
I responded, "Bigger than my apartment in Boulder, by square footage. Because it's detached, there are more windows than the apartment. Feels more open, in the daytime at least."
Mom said, "That's fine, if you're the only one there, or even if two people share it. But having four of us, even for the weekend, might feel crowded. Having only one small bathroom, especially."
I said, "I get that. Let's separate the decision of whether to purchase them as an investment opportunity from the decision of whether to live in one of them. We can get into the bigger questions that will determine residence after that."
Annie said, "As an investment opportunity, I say yes. Great return for the asking price, and part of the management fee goes back to our trust. More, if the trust increases its investment."
Mom said, "I agree. If I had the spare money, I'd go into something like this in a heartbeat. Most of my savings are in IRA and 401(k) accounts for retirement."
I asked, "Are we not married to each other, in our hearts at least? However we need to manage it, it's
our
money, now, so we all get a vote. Marissa, what's your opinion?"
"Seems good to me, on the investment question at least," she said.
"Make a cash offer of $475,000?" I asked, getting agreement. I called Jack and put in the offer. He said he'd get back to me.
"Okay," I said. "On to the thornier questions. After I graduate next year, can the four of us be in four different places for the next few years? Let's start with Marissa and Annie. Do either of you see yourselves transferring schools to Reno to be closer to here?"
Annie said, "Not really. I picked Sonoma State for the nursing program and for the proximity to San Rafael. Reno's nursing program wasn't even on my radar."
"Same here," said Marissa. "After none of the California business schools appealed to me because the cities they're in are so crowded, Boulder was a great choice. Small city, the mountains. I wasn't even aware you were going there when I made my choice, but I considered it a bonus when I found out from Annie. To have you be there as my husband is just beyond anything I expected. It will be hard being there without you for three more years after you graduate, but that's where I want to get my education. Even if it means flying back and forth frequently."
I said, "That gives me a decision to make. Do I accept Jack's job offer for next summer, put him off by saying I'm going after my MBA or even a Master's in Real Estate at the same time, or do I just get a short-term job in Boulder to stay close to you. I'm actually leaning towards the MBA option, because the trust would keep paying for my housing there and I would have the beginnings of its distributions to live off of as well. You should check whether being married exempts you from having to live in the dorms as a freshman."
"I hadn't thought about that," Marissa said. "That would suck, having to leave your arms every night, to avoid getting in trouble with the university. I was about to say my dad would be happy to not have to pay for the dorm room, but if we're getting married, he's going to want you to pay for my schooling, too."
"Not a problem, Riss," I responded. "I expect it."
Mom said, "I guess my decision is the next to discuss? Do I stay in San Rafael or move closer to Sonoma State for Annie?"
Annie said, "No, Mom, it's not that far away to begin with, only 30 miles, even if Highway 101 sucks some times. I would rather live at home and commute than ask you to sell the house to move away from your job. Sonoma State doesn't require freshman students to live in dorms because there isn't enough housing available, so letting someone on the waitlist have my spot makes more sense."
I said, "So, we're settled on living in two places for the next four years and only being together on vacations and the occasional weekend. What about after that? Is living in South Lake Tahoe still our goal? Should Marissa and I come back to San Rafael, taking over Dad's house instead? I need to give Jack some answer on his job offer, whether that's 'No thanks' or 'After my MBA'.
Mom said, "I vote here. I love the area and this house, always have. As your income from your trust and investments rise, my need to be the breadwinner for the family goes down and that could let me go back to teaching. I stopped, because I could make more money writing documentation for an I/T company and needed to do that, after the divorce. Or maybe I can switch gears and write romance novels instead of manuals."
Marissa said, "I vote here. I love the mountains, can't wait to spend a winter where it actually snows. To live here in the winter, here or somewhere else in town, would be perfection."
Annie said, "I'm not so thrilled about learning to drive in snow, but I'll manage. I love it here in the summer. Small communities like this always need nurses, too. Besides, you taking over Jack's business seems fated. The synergy between owning rental properties and the business that manages them pops out at me and I'm not a business major."
I said, "I know. Combine that with a real estate license and a big pool of capital and it really opens up some possibilities, maybe even to get into home building. I hope Jack is okay with waiting."
My phone rang and it was Jack. I put it on speaker. "Hey, Jack," I answered. "What's the answer on the offer?"
"They accepted it, Tyler. You'll need to come by the office to formalize that offer and sign some other paperwork. How soon do you want to arrange closing? Assuming you come by tomorrow, the soonest the title company can have everything ready is three weeks from Friday, July 7th."
I asked, "Since my sister and I are buying the property together, we both have to come back to Tahoe to sign closing paperwork, right?"
Jack said, "No, not at all. The title company has an office in San Rafael. You can do your signing there with their notary public, or even have the notary come to your house, then the paperwork comes back here to be filed with El Dorado county. After that, we will change the locks as each rental finishes and your copies of the new keys will be here at the rental office when you visit in August, or if you decide to visit sooner to pick out which unit to live in."
"About that," I said. "I've reached a decision since we talked that I want to pursue my MBA, maybe combined with a Masters in Real Estate, after my Bachelor's. Would there still be an opening for me with your company, four years from now? If so, I will probably purchase something larger to live in than one of those townhouses."
Jack said, "I can work around your graduate studies. I wasn't planning to get out of the company completely for five years, then work the real estate job for another five. Have you and your sister reached any decision about whether to take the company over through your trust? It would be a lot easier to start the transition if the trust increased its ownership percentage to 35% this year, at a price of $50 per share? If you increase to 51% by the time you have your MBA, you don't even need to ask me to hire you, you'll be asking me to stay on to show you the ropes."
Annie nodded, so I answered, "We'll agree to the 35%, for now. I'll have to check the financials to see if $50 per share is fair. I seem to remember the valuation being closer to $45 at the end of last year."
Jack laughed. "I think when you take a look at last quarter, the preliminary numbers from this quarter, plus the bookings for the next 12 months, you'll agree that we've grown enough to support that valuation or we soon will. We can haggle after that. As I said, I'm in no big rush. Have a good night and give those pretty ladies a hug from me."
"Good night, Jack." I disconnected the call.
Annie laughed. "Hugs. If he only knew."
I grimaced. "Just what we would need, rumors swirling around Lake Tahoe, before we've even moved here."