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Archive for March, 2015

Truck sold. Money in hand.

March 25th, 2015 at 11:38 am

3rd row seats came and fit (sign of relief)

Tahoe sold (very sad)

$30 less for insurance/month. not a big savings.. but saving on maintenance, license/registration etc long term.

Need to figure out another 4 x 4 wheel option or if I even need one when that time comes. Rescue may need one and maybe can help pay for a more used one

Not thinking of that now

For now..

$295 more towards savings
put rental fund up to $15000
and sent check to pay off the car.

Onward!

Update and musing about rentals

March 25th, 2015 at 09:25 am

hi all

unit that was vacated looks fantastic. We will do a quick clean and re-rent. listing it for the weekend

I am going to a local landlord meeting April 14.. meet people and learn. I am looking forward

and finally seeing the 6 homes/3 units for what they were . a good deal but not a 'turnkey' situation more a deal where the sellers were sortof 'done' and rents were lower, management was 'ok' and the places needed some fix up.

I went into it thinking 'oh this will be relatively turn key'

Anyway glad I had the money to fix them up and hang in there through the turnovers (JUST starting on the 3 units this year) and the lack of rent.

I feel very good though that this was a good long term buy and feel I have 'turned the corner' and it is getting easier and easier and smoother and smoother.. and really when I am done I will be in a better position then had I not done the rentals and just 'saved' and actually even better then if I had kept the OLD rentals that I lost in foreclosure(those I paid too much for it. Only thing I wish was I had not used up my IRAs in the past..

that is the past. looking forward to the future

and just did the FIRE calculator thing and with a conservative estimate of savings $100k and my rentals paid off (4/2019 for ALL of them) I have no lines going to zero!

3 unit update-looking up

March 24th, 2015 at 01:17 pm

3 unit update. Looking up!

1. Guy we were throwing out is OUT! Property manager will assess the apartment tomorrow Am for repair/clean up but looked great last week. Will list for the weekend if looks good. Rent will be $650 and we are going to ask for $800-900 security. I will also have manager have Section 8 look at it. to see for the future what they would pay for it. He talked to Section 8 before and they were thinking $700 or so.
2. lady we went to court with today. Court went well. Basically 'we won" and got the judgeent. Move out date 4/14. It was set so far ahead because the tenant's income situation changed and she may be able to pay the back rent, attorneys fees and a higher rent and says she want too. We will see. If we do not work out something her date to get out is 4/14 and she WILL have increased income so hopefully can do that.
3. I also meet with the property manager tonght. We talk all the time but I meet w him once a quarter. I have a list go go through.

Feeling MUCH better w 6 homes/3 units this year. more proactive. less reactive. more in control

ALSO finally did my excel sheet summarizing up everything from the 6 homes/3 units for taxes for last year. Gave that to my accountant. I expect to have news on how much of a refund I will get either this week or end of next. Hoping for at least $10k

I also now have a process (MUCH better process) to track every month, track to goals and this process will allow me to just print it off at the end of the year and voilah! I am ready for taxes.

VERY happy I got rid of the other lady property manager

Put $500 to Vanguard. Rest of car money will towards the rental emergency fund and the Genesis payoff

Tahoe sold! where the money will go

March 21st, 2015 at 07:51 am

Tahoe sold. (fast. and sad to see it go)

$21600.. (Carmax offer was $19k so think I did pretty well)

They put down $500 and need to finalize w their bank .. pick up is set for Thursday which is also when I will have the 3rd row seats. If you recall I sold them on ebay thinking I would keep the Tahoe and then a few months later decided to sell it. I bought seats on Ebay last night so pretty even exchange

Money will go towards

1. $17800-pay off Genesis (this car was $32k to me when I bought). it was a 2011 and bought in 2012. will try to buy older cars in the future.. 2-3 years old vs ONE year old..so I do not pay out such a large amount in the future.
2. The rest will go to finish off the emergency fund (for rentals) and maybe savings

Will put the savings from reduced insurance on an auto pilot monthly investment allocation

Hoping to get these 3 units turned over and filled soon (the ones we are working on moving out bad tenants. one for sure out Tuesday or soooner and then plan is to rerent for the 1st.. one has court 3/24)

Tahoe ad is up and more savings

March 20th, 2015 at 12:39 pm

Hi all

Tahoe ad is up on Craigs list Hoping for $22k for a 2008 Tahoe LTZ w 88k miles.

Fingers crossed.

Brother dropped off $300 this month for the privilege of using my address.. sent itright to vanguard. I should get this every month.

Talked to Section 8 on my rent increases. They are submitting 1 house that is now at $975 in for approval at $1111 a month. Hope it works. (very easy way to raise the rent on long term tenants if it does.. teannt portion does not go up) The other 2 are not eligible as the people in them have only 1 bedroom 'vouchers' but choose to stay in a much larger house so for then I need to move them on to raise the rent.

The short term insurance lady moves out at the end of April. she pays $1435. We are looking to re-rent at $1250 or so. She paid more because her lease was short term. I expect minimal fix up there as we just fixed it up and she has kept it up well. should rent fast.

Other lady (section 8) rent $950 is moving out around the same time. end of April . end of May. We will need to update that house and will expect $1100-12oo in rent when we do. I expect to lose a few weeks here fixing this up.

Things are still in the works on the 3 units. Hoping that one guy gets out over the weekend but if he does not all his stuff wil be set outside (extra $200) on the lawn Tuesday.

Court date for other lady 3/24 too

and 3rd 'slow payer'.. his lease is up 5/15 and we can not apparently serve him for just a late fee. Property manager is going to talk to him and see his intentions etc. His rent will go up to $630 if he stays..if he misses rent we will start fileing.. so his rent will go up 6/1 to $630. if he misses that we will serve him

I think people are seeing we have pretty good units in a nice neightborhood at a good price in town. Which bodes well. We did a random search and really again there are very few 1 bedrooms in town.

reviewing w my accountant I have already raised rents $460 (a month) across the 6 homes since I got them.

Onward.

Investments going up. Musing

March 19th, 2015 at 07:14 am

Hi all

As you know I sortof 'started over in 2012" at age 41. pretty scary at the time and scary now but I am investing and saving all I can and trying to come up with extra money all the time. So it gets less scary and more exciting every day.

In a short time I think I have done alot.

My post though is about the fact that this past year ish my investments (just simple mutual funds) have gone up ALOT and today it made me think 'wow IF I had $500k or something in those funds or even $100k' how much faster the interest rate balance accumulation would go. Exciting and makes me want to save more so I can see some of that and start adding to capital like that in a big way.Like Now when I make 10% on say $10k that is $1000 if I had $100k or $500k that would be $10k or $50k.

Striving to invest wisely and get to those LARGER balances quickly so the market does more for me than it is even doing now.

Currently projecting having $275k in (various retirement and non retirement) investments by 6/2019 (age 48) but that is a projection and may change (down or UP!!)

onward. Smile

I was going to search for that blog. 'Born to Win' or something to get his thoughts on making an Emergency fund and fortifying it with items too. like food... insurance or whatever (he had many ideas) to cut down on the actual cash I need to reserve.

Good news on the 3 units!

March 18th, 2015 at 10:59 am

HI all
Brief good news on the 3 units

1. we got our first renewal!! Lots of people (including the old property manager said I was crazy and did not know how to run my business) but looks like it may just work. We got our toughest renewal. the one with the biggest rent change. $560 to $630 effective 4/1!!
2. guy we are tossing out is moving out THIS WEEK. apartment look immaculate. Goal is to rent it by the first. If he does not move by this week. sheriff comes the 24th. Most move before hand and he knows the date
3. Court for the other lady (who was on the failing payment plan) is 3/24..
4. other guy we do not like and who is always 'slow' w rent and late fees. his lease is up 5/15. We sent him a renewal. if he does not pay late fees immediately ($60) or renew we will toss him as well.

With THAT done we will have gotten rid of ALL the bad renters and can smooth things out. The other 2 folks are newer people and good renters. likely to accept the renewal when it comes up but if not we expect no trouble.

Goal was to raise the rents by $400 this year across ALL units. With these 4 points above (raising rent to $650 on NEW tenants and $630 on the renewals) . we will have raised rents by $280. This assumes the 'slow payer' renews at $630 and straightens up . if not we will put a new person in there at $650 making the total go up to $300 month increase. Of course this comes at a cost but we the cost was worth it (and unavoidable. these guys were not paying anyway) AND now w the new leases in my property managers name (not the old PM) he can file eviction suits on his own on any new or renewed tenants.

feeling good. still a lot of cost this year but feeling like things are getting more and more under control.

6 homes milestone-less than 3 years left

March 16th, 2015 at 07:29 am

HI all

A milestones for the 6 homes. I made my payment this month (it is due the 25th) and now I only have 2 years 11 months left to go.

Feeling much better much more in control w the 6 homes (and 3 units)

in February I can pull yet another house out of the package and get a free and clear deed which would give me 2 free and clear deeds. I can pu1l 1 more in the life of the deal and then get the rest once the full loan is paid off.

Next big (non 6 homes) milestone is the refinance which I will go for in August which should take me from this loan I have now at 5.xx percent (forget) to a 15 year 3.x% loan which actually will only be a few hundred more than what I pay now if that.

Onward.

still saving every dime I can.

My brother should start paying me $300 a month start next week. All of that will go towards savings.

STILL have not done taxes. dad and work have taken all my time. will make time this week. Hoping to get $10k back which will go to the Roth and more savings.

Rachael

LOTS of updates, dad, work, brother, 6 homes/3 units

March 13th, 2015 at 03:04 pm

All,

Lots of updates.

Work offered me full time $100k, 2 weeks vacation (they have room to increase vacation to 3 weeks or maybe more), 3 % 401k match vested in 3 years. I make effectively $120ish now and HAAVE an instant vestd 3% match so NOT going to take this now. I am on contract for a year (January 2016)and will evaluate at the end of thisyear options to go full time, jump to another group who can extend my contract where I work now or get it extended in the group I am in

Dad.. looks lke Dad is deciding to move to assisted living nearby. getting forms and drs evals set up. fingers crossed. He did drive a short distance and was fine. We do not have authority to stop his driving and lettign him drive to the dealership helped him free up to make the decision to move. easier to deal w the car when he has transport options avail (assisted living)

6 homes.. going great.. rents always in .. the short term insurance lady we put in last year is likely moving on in 30-60 days.. so May or June 1.. we will look to rent it for $1200..current short term rent is $1435. Should rent easily. good time of year to rent

other homes.. one section 8 lady is moving end of April. will look to raise that rent by $300 and fix up house (few thousand)

3 units. guy we are throwing out was served by the sheriff. we looked at the apartment. IMMACULATE.. hoping he moves soon but sheriff comes in 3 weeks (most move prior to that). raising rent by $65 (or more if we can)

Other lady not paying rent. attorney was not happy w our 5 day notice (did not include certain wording). we have changed the wording. re-served her LAST Monday and expect to get a court date in 7-10 days after THIS Monday. same time frame with her.. within 4-8 weeks after that court date she should be OUT!! raise her rent by $90

Slow payer. paid all but $50 of his rent.. we are putting him on notice he needs to pay or get out.. and will serve him Monday if needed..

We are trying to clear everyone out in the SPRING. so we can rent them easier..

Put in for s8 increases (of $200 each) on the other homes.. Section 8 did not deny them but asked me to redo the forms etc.. did nto fill them in correctly and clear up this city inspection (due 3/24) and may want me to do some fix up. we will see but fingers crossed.

I have a budgetted $1300 monthly loss across the 3 units and 6 homes ..every dollar of rent i can increase decreases that budgetted loss. My goal is to increase rents $400/month across all. I am hoping to exceed that.

6 homes paid off March 2015, 3 units March 2019

By some miracle still able to save every month.

Did not do taxxes yet.. swamped w work, work trips, Dad. will look to finish the needed data thsi weekend

another update w Dad

March 10th, 2015 at 09:38 am

Another update w Dad. I am so stressed and upset.

Rogene (Dad's girlfriend) JUST sent a text that Dad called the Cadillac place for a new set of keys.. she has hidden them and he thinks they are lost which is why he called them.

I feel helpless and stressed I am out here but it makes me feel like or think (rightly or wrongly). why doesn't Rogene just say he is not able to drive and she is not giving him the keys.. why does she text me and just let it happen??

Will call that attorney guy.

leaving for a work trip very soon and find it hard to concentrate on much else w this insanity going on.

I ahd already called the police on this stuff before and they are not able to do anything unless he breaks the law.. removing the drivers license requires a competency hearing. removing the car from the premises requires Guardianship.. if against his will.

My plan w Dad

March 10th, 2015 at 09:31 am

HI all

Thanks so mmuch for your feedback and just support.

Talked to Dad and his long time girlfriend Rogene (said ROsheen) and really Dad is 'making progress' towards making a decision but sees no urgency because he does not feel Rogene is leaving anytime soon and the truth is Rogene is not being blunt or direct with him and is enabling him. I have no leverage with Dad when she is there in the house soft pedaling around what he needs, and when she is leaving.... and has not set any dates to move out.

My plan. continue to follow through w attorney (but there is not a safety issue with her there) and write a letter to Dad and her .. very direct to the point and call then and then let things be. I have done all I can at this point and until Rogene takes some action (vs complaining to me) and insteads talks to Dad. I mean he can still think,and understand that she is leaving I do not see he will move and really he is not in danger with her there either.

Crazy but can not keep beating my head on the wall and have been taking too much time for work anyway

Hoping my letter and laying it out for Rogene helps and really hoping he decides to sign the lease or show interest by the 18th. Upsetting. These places are NOT easy to come by and this one is close, reasonable and DOES have memory care..and they met him already.

Anyway that is the plan. take the tough stance w Rogene and Dad btu really if Rogene actually sets a date to leave .. Dad will likely move and I am also going to be direct and say that his confusion episodes present a health/safety hazard so he is not able to live on his own (he is talking about staying in the house until it is sold.. hellooo??) and I will need to call services and then since he is out state they will have control. not me.

I will also follow up w the attorney on guardianship but already talking to the first guy unless Dad is an danger (and w ROgene there 24/7 w no moving on date hard to prove) I have no case.. I do not envision this going that route but really is Rogene would just take stand w HIM not me it would be very helpful.

Trying my best but hard and crazy.

Some challenges with 3 units and Dad

March 9th, 2015 at 01:09 pm

HI all,

Just diarying.

3 things.

1. person who was making payments at the 3 units is no longer doing so and has said that. We are filing today on her and are also going to the sheriffs office today to toss that guy who we already won on in court. The brother of that guy is getting 'unreliable too' so may need to toss him. All hard challenging COSTLY news but better to get these guys out NOW.. than later. Also sent out 2 lease renewals at $630.. Really need to clear this up fast and restore income to me.. tough!
2. Dad.. VERY BAD SITUATION. Dad has dementia and some times thinks things that are not the case (thinks he is still in the airforce, thinks he is in trouble may go to jail etc). His long time girlfriend lives with him but is moving out (soon.. weeks/days). She is hiding his keys but every day gets very frustrated with the situation and wants out now. She and Dad were out here Saturday. I found a good assisted living place for Dad right near the house. He does not believe he needs help and in short I am not sure if he is going to sign a lease. I have a room on hold until the 18th. Talked to an attorney and he says my power of attorneys are not worth much and in this situation I need GUARDIANSHIP and since it is out of state it will be a 2 step process (get it in Wisconsin first and then transfer to Illinois). Anyway costly.. lengthy . just bad. Girlfriend is having a hard time living w Dad as he for the past week has been panicked about jail and trying to leave/drive the car (she hid his keys). Anyway. situation is really to explode and just very hard. I expect to learn more from an attorney today and will continue to ask Dad/encourage him to sign the lease at this assisted lviing/memory h elp place near me. Fingers crossed.
3. Kevin my brother called and on a high note wnts to pay me $300/month to use my address to send bills too etc. he is a truck driver and will find that easier etc.. Hopefully that works out.

Work is still ok. BUSY.. 50+ hours a week. and traveling to Nashville again Wed-Thursday

Had a vacation set up for 6 days to Pheonix at the end of this month. likely cancelling to deal with the Dad situation

Onward and hoping for some GOOD NEWS!!