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6 homes closing update, refinance, financial freedom

August 20th, 2015 at 07:18 pm

HI all

6 homes closing update

set for Saturday at 10am

Payoff so far is $1000 less than expected. so will use that to build back the emergency fund (took some money out to close)

Meeting with other potential property manager tomorrow and will post info to get thoughts from the group

REALLY frustrated with the slow renting of this one house, slow on repairs and all that basically boils down to security of rent and smoothness of house management. Trust!

Anyway. more news soon

I decided that I am ok to to have the mortgage be below $100k and I do not need it fully paid off to 'retire' or be financially independent and feel I do not have to work so hard. My house is $520 k or more. really why do I want this house anyway. I may want to move and I am ok w that. I do not ahve to stay here forever. . house is nice and has a nice SUPER mega yard which I like but really do I need that when I get older??

Dad is 76 and I am still traumatized seeing him decline so fast.. average stay at Silverado is 2 years (I got told that this week.. big shocker) which means on the average people pass away in that time period. Dad is 76 and she said that was 'young' and young people w alzheimers decline faster.. GULP!

So considering a super short timespan. where do I invest Dad's money. bonds, just get a 1.25% saving account.. stocks? I can not afford to lose alot of it. any 'safe' 5% investments out there.

Waiting for refinance news.. locked at 3.25.

Our big go live is this week but we had to cut it down so much we are now doing phase 1 and 2 so still expecting to work over 40 hours a week after thsi but just not 68-70 hrs until phase 2. I get overtime at the straight rate for hours over 40 and trying to bank as much as I can

Onward!


Posted in 6 homes-rentals, Musings | 4 Comments »

4 Responses to “6 homes closing update, refinance, financial freedom”

  1. AnotherReader Says:
    August 20th, 2015 at 08:45 pm 1440103537
    1440103537

    Your dad's money should be set up to cover at least three or four years of care in cash before investing the remainder. There are no safe 5 percent investments. Short term CD's won't get you much more than that 1.25 percent. In your shoes, I would just hold the money in cash and the best short term CD's I could find. That money is not investable, because it needs to be spent in the not too distant future and it must be available. Ladder the CD's for the best rates.

    Any money beyond four years of his anticipated expenses could be invested conservatively, with the idea that it would be cashed out as it gets closer to being spent. Normally that's things like I-bonds and TIP's, but their yields are low as well. Five year CD's are in the low to mid 2 percent range, better than cash, but not much. Check out www.depositaccounts.com for good CD rates.

    I'm finding a large house and yard are a lot of work as I get older, especially since the house is no longer new. Your ideas of where you want to live may change as you get older. The most important thing is to minimize your housing debt and payment so your income is not all going to the house if/when your work situation changes. Flexibility and options are what you need.

  2. livingalmostlarge Says:
    August 20th, 2015 at 08:56 pm 1440104195
    1440104195

    Agree with AR about the cash position. You may decide to pull him and do a different facility or you may decide to supplement care with private nursing in a facility. All of this takes cash. But all of that takes extra cash. My mom did a lot of private placement and she always suggested people keep cash for 3-5 years because a lot of changes can happen quickly. You never know what might arise at that age and already needing care.

    What is the situation with the house? Is that refi or is it the other units? I think it's a great gift you aunt gave you and it's a huge step in getting your financial house in order. Would it be better to focus more money on the primary residence and refi it lower for future?

  3. scfr Says:
    August 21st, 2015 at 04:03 pm 1440173014
    1440173014

    I agree with keeping enough to cover 5 years expenses in cash. If there are funds available beyond that, there are "safer" investments to consider such as the Vanguard Retirement Income Fund.

    As far as my personal cash position, I am waiting to see what happens to CD rates after the Fed meets Sept 16-17. Then I'll be scouring the Deposit Accounts web site for CD promotions.

    Good luck with the refi! I love reading how you used your windfall (gift from aunt) to invest in your future instead of blowing it.

    "Onward!" is one of my mottos too!

  4. Rachael777 Says:
    August 21st, 2015 at 07:21 pm 1440184913
    1440184913

    Reading all your ideas and looking at the market today and realizing i have 2 brothers who will probably be upset if I lose all of Dad's money..my thought is to put the majority of it in something like Barclays or thsoe online savings accounts (makes 1.25%). Thoughts? I already have 4 months pulled out and in Dad's checking account. I will also talk to some other folks this week.

    Already made the decision to pay off the 6 homes so money is targetted towards that (actually paid. .only owe $5k approx more). I AM thinking I will move from my house as I age (or get married) but really nice house right now, lets get it paid down without undue sacrifice to my savings rate and keep it up. House is super well kept right now so perfect place to stay and no need for major fix up that I can see in the near term.. Newer roof, furnace, new ac, landscaping and inside upgraded and in good shape. House is in a great neighborhood so 'value in the house' is pretty safe.

    ASlso talk to a tax attorney (paid on contigency) who thinks they can lower my real taxes. does not hurt to try

    Thanks for the support.

    3 units are at 5.75 but plan to pay those off 6/18 so do not want to refinance that.

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