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Archive for February, 2014

2 flat status and other property manager

February 27th, 2014 at 10:20 pm

All,

For those that do not know I have a 2 flat ( is not listed in the side or any calculations as it was known it was going away)that I am letting go via foreclosure. It does not impact me or my credit as I filed for BK Chapter 7 years ago. I thought I had til May though .. looks like the sale date was set for 4/17.. wow..earlier than I had thought.

The other property manager.. the guy who did not return my first call etc.. said he did not want the homes (via text!! disappointing). I asked him why and it appeared he did not want stress trouble etc as they are already managed by the other property manager who he knows.

Upsetting. I sortof took it personally.. I am waiting to hear if the 3 unit property manager wants to take all or some.

In the meantime I need to work on a way of how to get the original PM for the 6 homes to be tighter . He is (hopefully_) getting this one house rented super quick which is nice. Maybe more written communication vs verbal.. guidelines for when I am involved.. will think on it and ask some folks to help me draft some stuff up.

Maybe I need to be more involved. give him more guidance.

I do not know. upsetting. feeling down. I hopefully talk to my accountant today and he is always 'logical' and 'black and white' which helps me. I can be more emotional at times and forget the positive.

Updates, musings,. good and bad news on rentals

February 27th, 2014 at 05:09 pm

Quick update

I have been working w this Mint.com site and it is helping me see sortof hidden areas (fastfood, misc stuff, auto withdrawels) etc.. Very good for that

Having a hard time getting my transfers to show up correctly in an easy way(I do all sorts of transfers from account to account to savings and the LLC for the real estate..) but working on it. I may just drop them from the budget.. do not to waste time and I am using mint to get a handle on my unfixed costs.. food, misc etc..

Good idea to do.. and will definately help me track things in the future. Overall food costs (w fast food) probably will end at $390 for the month (includes grocery misc). I think this is super high.. $28 a month for more auto withdrawals I need to cancel.

New renter for that one home is looking positive. Income proved out. Hoping to sign a lease tomorrow or Sat. I will keep all security for current tenant (current property manager says we may need to do some misc cleaning but overall looks good)..I am going to suggest we give the renter a break of some amount and have them clean.. I will use this extra windfall (security deposit) to build back up the repair escrow (that the prop manager holds) which suffered that large expense last month of $2000 for water.

Asked good property manager which homes she is intersted in..

Still waiting to hear from other guy. Maybe he did not get message? not good sign.

Water company is 'waffling' on reimbursement. Talking to president tomorrow. This is the EXACT reason I do not like the current property manager. I may be stuck with this $2000 bill because things were not run tightly. Upsetting. Bill he gave me was not detailed. I will ask him for a detailed bill and then call water company president. VP said 'you know we are just a small company. we do not have a lot of money.."

Will set up consulting work this weekend (start getting that organized)

Doing taxes MONDAY!! (or sooner)... fingers crossed .. hoping I get a LOT back. total Fed tax paid was $14k. so I will get some percentage of that back.

and my FIRST hard money mortgage payment comes SATURDAY. $2970. Everything is on hold til I see how that works... so thinking I will end the month w $2800 to go to the personal emergency fund but holding that in my account into this big withdrawal goes through.

About it for now. I want to hear back from these other property managers. Upsetting that I have not.

updates rentals, and other income etc

February 25th, 2014 at 07:47 pm

HI all

Busy time and INSANE at work. Been feeling scattered and a bit stressed.. up and down...

Updates

DENIED for Chase Freedom (big mistake to apply. hellooo.. what was I thinking)

3 unit lady (who I love) drove by the homes, likes them, had several questions and will let me know by end of week which she can take (if if I go that route)

In the meantime she showed her prowess by getting the 3 unit guy who was late to pay FULL rent and $210 late fees and March rent. awesome! He is back on track now and looks good for the future

6 homes. another story. No good news on water issue (not resolved, but water company is working on it, digging, trying to find well, insane, saying it is too cold for a backhoe) .. they almost got it in last week w the warm up but did not.. I am asking them to put in writing they are reimbursing me for my costs.. $ TWO THOUSAND!! (yes big costs.. that was to dig up to the street and prove the water issue was not with us). I want this reimbursement!!

Also that guy who moved in 2 months ago and lost his job. He is moving out at the end of this week. Packing up as we speak. BUT we had 4 showings so far and have a tenant who looks good on the line (and she wants to move in on the 1st) AND it is good this 'lost job guy' is voluntarily moving out. I will keep at least 50% of his security to pay to fill it.. Hoping to come out ok here and rent was raised $100 and STILL getting showings. awesome.

The other potential property manager. i have asked for refernces, rates and costs.

Accountant is swamped (he is super good) and have not done taxes yet.. want this $ and to know how much it is. calling him today again..

Should end the month w $2500 to go towarrds emergency fund. would put me at $16000 so $2k to go for normal emergency fund

AND guy who owes me $6000 may have it 'soon'.. he is sellng his motorcycle and has a showing today. And HE called.. fingers crossed.. all goes towards rental emergency fund.. he will give $5k after motorcyle sells and the rest later. Thsi will go to the rental emergency fund.

$4-8k tax refund will go to rental emergency fund as well

and may have $5000 from another source

Have not sold car yet but am definately warming to the idea.

Been doing odds and ends on the house.. tightening things up. have a SUPER handy boyfriend (engineer and grew up on a farm.. good combo).. put in new lights in laundry, and back room, fixed shower faucet and other random things, helped me move and throw out things, set TV in exercise room.. overall house looks 'neater/ cleaner' and definately more tightened up.

Can not wait til Summer to tighten up the outside..

I paid an average of $45k for each of the 6 homes and pulled comps nearby for a friend and my two homes on 1 street should sell for near $100k each or one over that price..

and lastly.. 'the 2 flat'.. told tenant she had 30 days to leave.. (based on not doing egress window.. city says apartment is not legal etc).. I am concerned I am going to get some push back from her(already have). City can fine me if she is not out on time.. (April 1).. I will follow up w her every week. Told her if I get any sense of an issue I will have the city 'sticker' her unit at which point she must leave immediately.

have not started consulting work and need too.. $120 hour..I want to get over this emergency fund hump asap!! I will be more relaxed then.

Getting property manager options-thoughts?

February 17th, 2014 at 11:23 pm

Hi guys. IN an effort to be prepared and reduced risk. I have been looking into other property managers.. so if one does not work out at some point I have a back up. I can not run these homes, 3 units myself.. nor do I want too. I am also not satisfied w the 6 homes guy and wanted to see what else was out there.

Ok. .I have woman A on the 3 units. I like her a lot.. Strict no nonsense lady. People including tenants respect her. Very communicative so I am not worrying or asking questions. Sortof a 'get it done' type which I like. I give her guidelines and she gets things done within those. If there is an issue she communicates (tree fell on one of the 3 units, late rent etc). She is a realtor w an active real estate office and has been around for a long time. I trust her. Her personality is similar to mine. She has a brick and mortar office in town. She also, if my suggestions thoughts are wrong, is not afraid to point it out.

and I have man B on the 6 homes. B has 26 units of his own and also property manages full time. He is also head of membership of the local landlord association.

Problem is I do not trust person B and was thinking of finding options to him for now and 'just in case'. B has said things before that he has not done. When there are issues I am 'surprised' w the bad news or asked to 'help' and feel I have to take the ball (example the water issue at the one house). I am told things are handled and they are not. Tenants saying they are not getting called back. Several times when appointments were set w tenants and he did not show. Seems like life stops on the 'weekend'. Had a electric issues at the 2 flat and the tenant ccalled B first and then called Me because B 'does not respond'. I called B (got no response all night) and ended up sending someone over there to fix the issue. I feel the tenants do not respect him and I am not sure I do. I HAVE talked to B on this with really no results. I however have not been as strong w my words as I could be because I had no back up. I feel he may not have be up to it or too swamped. He appears 'swamped' all the time and overwhelmed. He has 'fixed' things 2-3 times that should have been replaced..costing me more $. Late fees being dropped etc etc.

Options so far

1. person A has the address list and is driving around (when the snow clears up) to see if she can take all or some of the homes. News this week.

2. Went to meet w this guy Saturday, ex marine, has 50 units and manages 50 more, office in town, investor and more of a 'get it done' attitude, I felt more of a fit with himn. He charges 1% more and some other costs but if things are 'handled' and I can trust him .. seems worth it.

Plan is to wait til Wed/Thursday and see if A has time for more units and write up what I really want.. so I am clear and then get some input, talk to these folks (new guy and A) and decide.

Maybe I talk to person B first .. probably.. but just feeling he is not up to it. If the tenants do not respect him.. they take advantage and in so doing take advantage of me

In general I feel the 6 homes are not run 'tightly' and some of the things that have occurred just make me not feel 'secure' that he is handling things and I am always feelgin I have to call him.

So.. news this week.

Talked to my accountant. poss tax refund

February 14th, 2014 at 10:13 pm

Hi all

That 3 unit guy is paying and getting caught up in full next week. Love my property manager on this one!

Testing day at work went well (I run datacenter migrations for this company for banks.... crazy insane job!)..I will ask for my extension in mid March though. Boss is gone ALL APRIl so I can likely work at home more then.I currently work at home 2x a week.. but lots of people work at home there. normal for company..

and talked to my accountant. he thinks I can get between 4-8k back on my taxes. Hopeful look!! that would be awesome. News next week. We will meet then.

I want a cash cushion... used up all available cash w that short refinance. After the 2 flat drops... unless I pick up some consulting jobs (which are fun and have 3 possibles in the works) I am going to have a BIG drop in savings and my plan is to fund BOTH emergency funds this year and breathe a little easier.

Happy Valentines Day all. The sun is shining .. feels good and fun to see it through the windows...and I got a free coupon to wash my truck (filthy!).. and am then going to dinner.

Smile

Rachael

Updates.

February 13th, 2014 at 07:40 pm

Updates

Chase Sapphire . did not apply for.. afraid I would get denied

Did apply for Chase Freedom

Going to Costco Sunday to check it out

Having a good rental month. all mortgages paid and costs were low.. putting this monies toward my emergency funds once I get paid tomorrow and have final accounting on rentals.. (early next week) and setting up a better routine and filing system.. feels good .. more in control..

6 homes person (who lost his job). looks good to find another one and stay on.. (not sure yet though of course, til rent is paid)

and news on 3 unit person tomorrrow

I want to work on extra income here (that side work I do) .. get my 2 funds funded faster.Be So happy when I have these emergency funds funded!




the good the bad the ugly

February 11th, 2014 at 07:15 pm

hi all,

Back to tracking things so I can review this later and learn some stuff and maybe you can learn from watching.

Smile

k.. starting Dr Atkins for a week. get a jump start on things.. I am working out which feels good but got to lose those 8 lbs I picked up w the short refinance 6 month saga

GOALS.. (still firming these up) but for sure $18k to personal emergency and $36k to rental emergency fund

Should be able to complete personal emergency fund by April 1

I will be so much more secure these funds built.. hello??!!.., why did I not think of this before

I DID contribute $3500 to Roth this January and for now keeping 401k at 10% (get 3% over that from work too) will likely decrease once 2 flat drops off (3 months??)

'6 homes'.. one renter lost his job.. paid his rent but represents a risk.. property manager is talking to him today to see how we look for next month or if we need to take aggressive action. I talk to Prop Mgr at 6

'3 units'.. one renter did not pay rent this month. these are the buildings I have that super old timer prop mgr on. nice older lady. straight as a whip.. she says she will have it worked out by Friday. she knows this guy and his Mom and he has lived there for 6 years already. 5 day notice given...so hoping for resolution in some way. also discussed raising rent strategy. we will start raising w the first renewal in April and have many in the Fall. also going to get the Fall ones to renew on a year and 1/2 or something so they are stagggered. right now 4 people have leases ending in November. not good.

My house is a ranch so lower angle roof.. had to install gutter roof heaters last week ($290) to prevent water dams etc.. VERY bad winter

one of the 6 homes (they pay rent). the water companies lines froze (theirs not mine) and they have been out there trying to fix it for the past 2 weeks but bringing water in the meantme.. they are digging up all sorts of holes in the yard but the city attorney is involved (I called) and they will be fixing the landscape, giving this lady 1 year free water and reimbursing my costs to prove it was not my pipes that froze. Why don't I get 1 year free costs!! Smile

So.. some excitement and risk but to be expected w 6 homes and 2 3 units and being managed but would be AWESOME if I had those funds built and of course had these paid off, had thousands in investmnts etc etc.. but I am where I am at

May sell Genesis.. still thinking but can not even get it down the driveway right now or on the street w the snow... so on hold.

MONEY

Goal this week
1. visit costco. see if worth it
2. look into Chase Freedom/Sapphire, see if worth it
3. form a plan to start my consulting again /$120/hr.
4. pay all rental bills.. and GET ORGANIZED w a routine.. way disorganized this month.. crazy w the house and work
5. figure out an easy plan to track unfixed costs.. tried Mint. not liking it. may do Excel.

Some random thoughts. power of intent

February 8th, 2014 at 12:34 am

Hi guys.

Been quiet a while as I am SWAMPED at work (from doing very little the past 4 weeks) and getting over the shock of this house I bought.. also was getting a little down and started losing my confidence a bit w my plan. I want the advice but can not lose my confidence so took a break there and learning.. growing on my own too.lots of good resources folks have referred me too.I would not have started the 401k, Roth and some other stuff without the support of this blog or accountability

I strongly believe in the power of intent (the book by Esther and Jerry Hicks) and the phrase 'if you beleive you can you can'.. can not really get super far when you are afraid you are going to fail or focusing on negative.. so acknowledging the challenges but shifting my focus towards 'I can do it' and solving them

This years goals are in flux.. but I am starting to think about the following
1. Finish personal emergency fund by April 1
2. Build rental fund to $36k AND THEN start saving/investing

so until then.. pretty much all savings goes there

I feel comfortable w that... actually having a $36k rental emergency fund would feel SUPER AWESOME!! WOw!! Very good ideas (thanks to the readers who suggestd it)

Also will ask for extension in March (boss is gone all month April) feel good I will get it but will know then so can start looking if need be

Other than that.. gained (cringe).. probably 8 pounds these past 4-5 months ( I tend to stress eat .. shhh! Smile )of the 'house saga' but on a good note I tend to be fit and trim and already got my work out room set up.. and been starting again so feel it dropping already. I am so excited about my workout room and that I can settle in the house. already having folks over.feels good

Feel like calling my ex (I will) and say I got the house. We are on good terms and he knows how hard/insane the road . So excited!

Life is good.. getting 'settled'.. and figuring out 'the plan'.. need to get that emergency fund built and work on tightening up the rentals.. being proactve... learning and getting ORGANIZED.. Lot to do but also want to enjoy life a little.. Wow I did it (w the house)..

All rents in though so feeling good..and winter is almost over (feels great!)

Here is to living and learning and moving on.

Good to read everyones posts and blogs.. lots of success out there. immpressed w Petunia100 and her month budget and actuals. I need to post that!!

Income and expenses-I want feedback on making things 'safe'

February 2nd, 2014 at 06:03 pm

Guys,.

First off THANKS for the advice.. thoughts.. sometimes hard to hear . special thanks to 'Another Reader' for great points

Ok.. for those who have not been following me. I have a 5 year plan... started approx 6 months ago.. goals for that plan are to the left. As part of the plan I bought 6 homes and 2 3 units on aggressive payoff terms (5 years-6 homes, 7 years-(2) 3 units). I can not now change these payoff terms and they were based on the fact that I would have no big expenses (house)on the first 3 years. I DID NOT expect to be able to settle on my house or buy a house for at least 2 years. I just closed on my house (bought out the mortgage at a discount.. all good but leaves me VERY cash poor and in a risky position). Doing a short settlement w the bank for the house (I live in) was at 12% and I can not refinance out to normal rates for between 12-18 months. I used up all my liquid savings for the points (6) and fees for this loan and tax escrow. I Retained my emergency funds (rental and personal). House I live in is in very good shape. 3 units in very good shape. '6 homes' are in 'ok;' shape and more volatile right now until we 'smooth them out'. All are run by a manager. I have full taxes escrowed for this year for MY house ($10k) and escrow for the 6 homes/3 units in the payments.

Other background. I founded a not for profit years ago that I get paid approx $1500 a month for (I was going to turn that over to another NFP this year but with the house payment. thinking maybe I should wait a year). I also have a 2 flat (in foreclsoure being sold in next 3-4 months).

ok. Income and expenses attached

Note: salary is NET (including 10% 401k)
Huffman is the 2 flat (dropping in 3-4 months)
Utility reimbursement will drop w Huffman
Not for profit I can control when I drop that
I DID drop the Genesis car payment for a year

Please let me know your thoughts

I want to SAVE (if poss) build cash reserves and build portfolio so I have more cash (not almost all real estate). I also need to be SAFE because if I miss a payment the entire house of cards may fall down.

Dropping Huffman subtracts 2093 from my income
Dropping the NFP subtracts $1558 (1000 less income, pick up $558 costs)
Dropping both subtracts $3651 from my income and I AM NEGATIVE (I can decrease 401k and can take side consulting jobs. have not pursued that at all but have 2 people wanting help now.. $250 for both..estimate can make at least $500 a month w that.. cash )

Full salary/no 401k is $6776

Contract (for work) up 6/2104 but looks good (tho not guaranteed for renewal). Estimate 3 months to find a job if I lose this one. I will know on renewal in Aprl and can start to look then if necessary. This is right in the middle of a big Migration.. so possibly unlikely they will want to give me bad news then.

Networth is correct ('left' next to reserves meant what was left to meet the max reserve I need)

Attached net worth, income/expenses, paycheck distribution. yoou will see costs for paycheck 1 exceed my paycheck so I must save part of paycheck 2 to meet paycheck 1's costs



Networth update

February 1st, 2014 at 05:43 pm

Net worth update

House added a lot of equity

house value at lowest of realtor sales estimate - commission
everything else at purchase price

Goal this month..stabilize.. rebudget.. count my money and adjust my plan. I need more CASH LIQUID savings

Upped 401k to 10%.. if I change it to 12% I will max out at $17500 w the employer contribution.

Goal to get emergency funds at max.. I am approx $12k short across both.

Also want to find money for hardwood floors in this house.. got a friend who can help install but got several thousand in materials.. (not figured that out yet) and I feel since the house is now mine.. I want to 'fix improve' several things. most small. some larger.. but just excited. I will make a list and prioritize. i want to enjoy my 'new house'.. got to save money for the yard.. I need some help this year.. getting it in maintainable shape and l ooking nice.. how exciting!!

MOre updates/questions later as I figure things out.

SNOW DAY TODAY Smile