Hi all
I opened an HSA with Health Savings Administrators or healthsavings.com. Flat rate of $45 a year. There was one other one that might have been less cost dependent on how you invest, how much you had in there etc. this was $45 flat and had good Vanguard funds so felt like the easier choice.
Plan is to use this sortof like a 401k and NOT withdraw from it (unless some dire medical emergency) until retirement. This is one I set up individually not through where I work so money put is in AFTER tax but should; be tax deductible. Limit is $3350 this year. Will try to fund this , the 401k and the Roth every year. Trying! I put $50 in it to start the account.
Trying to be financially free in 5 years is exhausting stressful work!.. less than 3 years left.
that rental house is filled. the other house is almost filled. still confirming things (manager is slow)..
New strategy w rentals. I am going to get some outside opinions , use the web and get selling price estimates across the 6 homes so I have a good market value and look to 'swap' some out that and increase the quality of the neighborhood and therefor maybe lower my costs, not be so stressed with management etc etc.. . Step 1.. get market values this week ( I will get the 3 units value even though I can not sell that right now and really do not want too. rents easily, good area, great cash flow but realistically long term mayeb I would want small homes vs apts.. we will see... be interesting to see what folks think it will bring). 2. decide which to sell.. 3. I was going to take a stab at selling at least one via investor contacts and Craigs list (yes, really) have had friends sell them like that. why not me? 3. get a pulse of the market and homes and prices to see what I can buy w the cash 4. run my thoughts by some advisors for thoughts about selling at all, sell now or later. 5. get the new managers thoughts on ease of renting these homes. really we have only had issues with one home..
I may lose some cash flow upfront if I do this.. but steady returns and simpler may be preferred and cash flow will come as it is easier to raise rents on a more highly desirable area.
I can not be 'financially free' when I am stressed w the rentals anyway..
I did go for lower quality areas to 'get in' and do not regret it .. easier to get in.. much more cash flow...now I have somethign to swap... but is that where I want to stay??.. I am not thinking so. I have options now to 'swap' out of them and I think I may take that opportunity.
Anyway. just thoughts right now. got to get some facts, do some research and think on it. no more fast decisions over here!
Onward.
updates, opened an HSA and new strategy w rentals
September 21st, 2015 at 01:44 pm
September 21st, 2015 at 03:35 pm 1442849734
You bought "C" grade properties that needed a lot of work from a landlord that wanted to exit the business. These properties have appreciated, but the "A" grade properties have likely appreciated more. That makes it more difficult to maintain cash flow in an exchange.
You are getting out of the Section 8 hassles and into market based tenants in your holdings. Quality tenant selection and continued improvements will reduce the problems you are having currently.
I would look to add to my portfolio when the numbers make sense. The value-add in your current portfolio are the capital improvements and better, more stable tenants. Leverage or sell these properties once all the major repairs and upgrades are made, but only if you can get real cash flow out of an "A" or "B" property. If you accept significantly inferior cash flow, it's not a good exchange, especially for someone that expects to rely on the cash flow.
September 21st, 2015 at 04:53 pm 1442854381
September 21st, 2015 at 08:29 pm 1442867357
How much of a differential was there when you bought between the different level of properties?
September 21st, 2015 at 09:34 pm 1442871260
September 23rd, 2015 at 02:23 pm 1443018224
September 24th, 2015 at 04:10 pm 1443111035