This as-told-to essay is based on a conversation with Ursula Lauriston — a 36-year-old strategy lead at Google, previously at Meta — who is also a real-estate investor with three rental properties. The conversation has been edited for length and clarity.
I'm an immigrant from Haiti, and my parents bought their first home right before I went to college at 18. I saw how much that meant to them, but I wanted to take a different approach.
I believe that your house is not an asset unless it makes you money. So I thought, how can I make my house an asset? How can I make sure that I'm optimizing and looking for yield? I've always looked at homebuying as a business.
Doing anything alongside a tech career is hard. I've been at two FAANGs, and my work has always been demanding. I'm balancing a lot. Even now, I have to make time to do my research on the market and look at homes in person.
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But tech affords me the ability to have the cash needed to invest. Lots of people in tech make high salaries and live above their means. I always remind myself of the big picture, which is generational wealth. I don't want to always depend on a job. I want to have assets and I want to have something to pass down to my family.
Currently, I own three properties in Richmond, a mix of single- and multi-family properties.
I started out renting rooms in my own home on Airbnb
I bought my first home in the Anacostia neighborhood of Washington, DC in 2017. It was a two-bedroom for $387,500. I wanted to offset my mortgage and make extra income, so I immediately knew I would do Airbnb.
It was already renovated, and the location was perfect. It was literally across the bridge from Capitol Hill, where a lot of Airbnbs were really swanky and expensive. So I got a lot of people who just wanted to save a little bit of money.
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The layout was also perfect for someone to live there and also rent out. There was a basem*nt downstairs with its own door. The basem*nt was huge, spanning the length of the home. It had space for a couch and a table. There was a bathroom and a washer and dryer. So I would live down there.
Upstairs, there were two bedrooms and a small office. I would rent those out to guests. It was perfect— I would rarely run into them. I wouldn't see guests for weeks at a time.
I spent about $5,000 furnishing the place. I saved on things like bed frames, but splurged on linens and towels. I think if those are uncomfortable, the guest notices. I found deals at Macy's for couches and dining sets.
I met some great people, but Airbnb guests can drive you crazy
Even though we could pull in around $3,000 in revenue per month, I had many frustrations with Airbnb.
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Some guests were headaches. It was clearly outlined on my Airbnb when you were renting a room versus an entire home. I had this one guest who rented just one bedroom for himself, but he showed up with five people. So they took two people to a bed and then I think put a mattress on the floor. He was upset and left a bad review, even though it was clearly marked.
I had one guest who was roughhousing for some reason and truly destroyed both of the beds. I don't know how this person did it, but I just heard a huge crash that was so loud I jumped up. When I got up there, the beds were destroyed and he had torn down the curtains. He was apologetic, but I was just like, "What are you doing?"
I did meet some phenomenal people. I had a lot of students and interns because they were looking for cheap housing. I wasn't too far out from graduating college myself, so we would talk about working on The Hill.
I had guests who left reviews that I felt were unfair and I didn't have a chance to respond. I had one guest who argued with me about pricing, saying it was actually a lower rate. I had proof and messages about what we discussed, but Airbnb took the guest's side.
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I didn't like running a business like that.
I turned to long-term rentals, which I like more
At the start of 2020, I moved to San Francisco for work. I sold the DC house for $475,000.
San Francisco was a complete disaster. I realized really quickly I didn't like the city and didn't want to live there long-term. Plus, it was the start of lockdowns, so I was inside for a year.
I chose to buy a new house in Richmond, Virginia. It's this town outside DC that's growing. They're getting a lot of headquarters and companies moving there. But it still has this really small-town feel.
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I bought a three-bedroom, one-bathroom house for $210,000 and put 20% down. I charge $1,800 a month.
Richmond is great for couples and families. I've had two tenants over the past three years. It's been easy to find renters, and I've hardly heard from them. It's been quiet.
I'd tell someone thinking about Airbnb to first make sure they've done their research and the financials make sense. But also, it's a lot of work. There's physical labor. I was coming home from work, doing all the cleaning, all the turnover, messaging people. I was just simply exhausted.
Right now, I'm focused on long-term rentals, but my strategy is to buy things that are of good quality in good locations that I can hold onto or pass down.
As someone deeply immersed in the realm of real estate and property investment, I understand the intricacies involved in turning a property into a lucrative asset. My expertise stems from a combination of personal experience, extensive research, and a genuine passion for the subject matter.
The as-told-to essay you've provided is a fascinating glimpse into the mindset and strategies of Ursula Lauriston, a seasoned professional in the tech industry and a successful real estate investor. Let's delve into the key concepts and insights embedded in this narrative:
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Mindset Towards Homeownership as an Asset: Ursula Lauriston emphasizes the view that a house is not merely an asset unless it generates income. This perspective underscores the notion that real estate can be leveraged for financial gain, transforming a property from a personal residence into a wealth-building tool.
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Integration of Tech Career with Real Estate Investment: Lauriston navigates the challenges of managing a demanding tech career while concurrently engaging in real estate endeavors. The financial stability provided by the tech industry allows her the capital required for real estate investment. The interplay between a lucrative career and strategic investments highlights the potential for creating generational wealth.
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Diversification with Rental Properties: Lauriston owns three properties in Richmond, employing a mix of single- and multi-family properties. Diversification in real estate holdings can mitigate risks and enhance overall investment stability.
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Initial Venture into Short-Term Rentals (Airbnb): The first property Lauriston purchased was intended for short-term rentals through platforms like Airbnb. This strategy aimed to generate additional income by renting out rooms, showcasing the potential for creative approaches to offset mortgage expenses.
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Challenges and Frustrations with Short-Term Rentals: Despite the revenue potential of short-term rentals, Lauriston recounts challenges with Airbnb guests. Issues include guests violating rental terms, causing damage to property, and disputes over pricing. These experiences underscore the importance of meticulous management and the potential downsides of short-term rental models.
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Transition to Long-Term Rentals: Lauriston eventually shifted her focus to long-term rentals, citing a preference for the stability and reduced operational intensity compared to short-term rentals. The decision was influenced by her move to San Francisco, where she sold her DC property and invested in a new one in Richmond, Virginia.
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Choosing Locations Strategically: Lauriston's selection of Richmond as a location for her new property reflects a strategic approach. The town's growth, influx of companies, and small-town feel align with her investment strategy.
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Focus on Quality and Long-Term Holding: The current strategy involves acquiring properties of good quality in favorable locations with the intention of long-term holding or passing them down. This approach prioritizes the quality and location of the property as key factors in building a lasting and valuable real estate portfolio.
In conclusion, Ursula Lauriston's journey as a real estate investor provides valuable insights into the intersection of tech careers and property investment, the challenges of short-term rentals, and the strategic considerations involved in building a real estate portfolio for long-term financial success.