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Talked to property manager and ? on Roth/HSA

March 28th, 2014 at 07:36 am

Hi all,

This is a big month for me. I lose the 2 flat.. and all the rental income that goes along with it. I meet w the tenants today and this weekend to settle up. I am trying to settle up through 5/31.. I have little leverage but things look good.

Without the 2 flat.. my first paycheck does not cover the payments due from the 1st through the 15th so I have to save from the 15th check or in general. Cushion I need is $1200-1500. I will build that now and leave it in my account.

Put $4000 more towards the rental emergency fund. I decided (barring major issues or uncertainty) I will keep the rental emergency fund at $30k (after I pay for 2 roofs)..so I still need to come up with $37b total but will then leave it at $30k..

Talked to old property manager (it is done!) and will follow up in writing. he is not happpy to lose the account... wanted to know what he did wrong, can improve. I said we can talk next week if you want. He wants (and per contract) gets 60 days so means new one takes over as of June 1.

I do not want to ruin the relationship w him and am checking with new PM if she has a person to refer me too should she no longer be able to property manage for me.

I am looking to turn over one of the homes from Section 8 to non s8 in the meantime for a rental increase of almost $200+ a month. Old PM wil handle that because time is so good to rent to folks.

Maybe not a good time to introduce more uncertaintly but I am doing it. S8 is guaranteed til the lady is out and we gave her til May 1. House should be easy to rent. Only caveat is if she causes problems showing but we will find that out next week and can bring S8 in to intervene if necessary (fingers crossed)

Still need to talk to Ma and aunt for $7k
No new news from guy who owes me $6000 but he is in regular contact so feel once it warms up his motorcyle will sell and I will be ok.

Does it make sense to contribute to the Roth/HSA now or wait til rental emergency fund is built? my guess is wait but wanted thoughts.

Thanks all.

Smile

Just had idea. I can offer current tenant $100 incentive as a 'sorry for short notice' and be cooperative w showings. We are basically terminating her lease suddently with 30 days notice.

thoughts??

2 Responses to “Talked to property manager and ? on Roth/HSA”

  1. Another Reader Says:

    In your shoes, I would wait until my contract is renewed before allocating cash to the Roth. If you don't foresee a need for the HSA funds before the contract issue is resolved, I would hold off on that as well. Overall, I would tend toward hoarding cash until things are more stable.

    I probably would have kept the Section 8 tenant another year if the place is being maintained and she is paying on time. You can't predict how long the unit will be vacant and a vacant unit with the loss of the duplex income and uncertainty about the employment contract is not good.

    If you get the money from family or the money that is owed, I would top off the E-funds and get the roofs done.

    Once the year is out, your house is refinanced, your income is secure, and you start pulling deeds on the six houses, I would go full scale on the investing. I know, it's hard to be patient (I have the same problem), but it's going to put you in a much better position.

  2. MonkeyMama Says:

    I would put money in the ROTH. You are thinking of April 15th deadline for 2013 funding? You can keep ROTH money in cash. I wouldn't put it in there if I thought I'd very likely need the money, due to red tape and so on. But, for emergency fund purposes, which is often unlikely to be needed especially RIGHT NOW, I would take advantage of the ROTH space. The reason is because you can easily pull out the cash at any time. If you don't need it, you can invest that cash once your other cash reserves are where you want them to be. {I have personally done this while building up cash reserves. Which means way more in ROTHs than I would have felt comfortable "tying up for retirement" otherwise. I never needed the cash, and so those funds have since been invested aggressively}.

    I would not fund the HSA.

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