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Rental updates, job updates, misc

May 10th, 2016 at 04:34 pm

Hi all

I got the 2 flat.. 14% CAP rate. upper unit is up for renewal and wants to stay. She currently has until the 15th to pay her rent and gets no late fee until the 30th. I do not like that at all. We are going to give hew a new lease and set it for rent due date the 1st, late after the 5th and if she can not accommodate that the latest we will go is the 8th for rent due with no late fee. I need to be able to depend on the cash flow. Currently she has not paid rent and I feel angry with it but we will fix it with her or find someone else. REAL good time to get new tenants. I will raise the rent slightly on her too.. so far rent increases for the year have totalled $110 and we are listing that house at $90 more rent than what it was and the 3 unit at $50 more rent so hoping to get good increase there.

Other than that all rents in.. and homes are going very well.

They are showing the 3 unit that is up 6/1 now and getting lots of showings at a $50 increase in rent
and will show the house that was recently vacated starting Thursday (have a list of people who want to see it). House is being repainted and minor fix up and cleaning. Turning over this house with top/bottom paint and cleaning, minor fix and carpet clean is expected to cost $2000+. I am so glad this firm is getting better long term tenants and so glad I am LEARNING about costs and how to cut them. Feeling the best I have ever with the homes and plan.

Speaking of the plan. I need to increase my rental emergency fund with all the homes to $25k. I will work on that gradually but that is my new goal. I need that to avoid cutting in to much my cash flow per month when I start to rely on it if I do major fix up works

Still looking at $7-8000 net based on CURRENT RENTS (now).. Wow. did not think I would come so far so fast

Still no plan to pay down house (my own) or reduce housing costs.. monthly mortgage is $2700 but I pay $450 extra.. that is a big chunk if I only rely on the rental income.. I want my housing cost lower.

My contract at work is up July 7.. project I am running is expanding and has at least til November to go. I iwll ask for a 6 month or more renewal. Actually my plan is to talk to sales and get a read on what else they are trying to sell to this customer and get an extension for a year or past Christmas.

Paying back my rental emergency fund has crimped my savings for last month and this month but will resume regular savings next month.

About all for right now. Have a good day folks


4 Responses to “Rental updates, job updates, misc”

  1. LuckyRobin Says:

    Wow, you are doing amazing.

  2. LivingAlmostLarge Says:

    What happens after 5 years? Only landlording and no property manager?

  3. Rachael777 Says:

    I plan to have these homes managed basically forever . I do not want to take on management at any time.. that is like another job...I am working so hard on them now though to learn and get costs under control, create systems, a team of folks I can count on and learn the finances of them (managing big fix up etc).. just learning as much as I can while I have this big income.. so in 5 years. (June 2018) I think my plan is to figure out a way to get the personal residence debt under $100k (if not already) and explore, live a little, and enjoy. I would like to try a new career(s), take some courses, travel, etc. I actually want to be doing more of this NOW too but am not (another story not money related). I do expect to work and probably have a 'good salary' but not be killing myself or making what I am doing now and working because I want too more than I have too. I am actually trying to do more to relax and have fun now... I expect to have flexibility to try things out. i want a physically active job. love being outdoors. love speaking in front of people. teaching. giving tours etc. I think everyone has a different idea of financial independence and I am not sure mine is crystalized yet but I want to have all living costs AND THEN SOME covered, live in a nice house and be able to feel free and live a little. I read your post on FIRE and I do not want to scrimp, save, kill myself to 'be financially independent' and then live have to constantly watch money (even when I AM 'independent')

    I have insurance via Obamacare (single person though) and WITH $3174 going towwards the mortgage my budget is $4674.. paying off or lowering the house debt or movimg is a big chunk of that. I do not want to move just to move and not even sure if I want to move but if I did I would move to an older home with hardwood floors, all sorts of nooks and crannies, built in shelves etc and a large covered front porch and rear porch where I can sit out and watch the rain storms. I can get that for less than where I live now. .so just thinking but right now I am pretty 'heads down working' for these next 2 years.. no big moves planned and I do have a very nice house just no front porch and not as 'friendly'


    So if you look at my blog, I am aiming for 80-90K cash flow from the rentals. not $20-30k so I can live as I am and do stuff with my life

    Most important thing to be is maintaining my health

    Also with Dad having Alzheimer and the research I have done I am well aware of the importance of keeping active.. mind, body and socially as a means to keep your brain healthy

  4. LivingAlmostLarge Says:

    I wasn't sure if you were getting passive income to manage it or for something else. I figure we'll probably consider ourselves FI when our money hits $80k passive as well. That should be in 5-7 years even with our setback of spending this year. But what's money for if not to do what you please?

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