I paid $65,000 for the 2 flat
$25,000 from seller financing, 5%, amort/24 months
$40,000 I borrowed from myself from another account
In addition I am estimating incurring approx $40k for fix up.
$40,000 fix up
$4,500 already paid off
$5,500 incurred and not paid on a 0% credit card
$10,000incurred and not paid on a 2.9% equity line
$20,000 NOT incurred yet but estimated to be needed (will go on line of credit)
My plan to pay off involves the following chart and assumptions.
1. defer my $3500+ rental real estate tax escrow until January so I can use that 'escrow money' towards debt. Restart the escrow in Jan at a higher amount
2. assuming $2k/month from rental
3. assuming $1600/month savings from me
4. I get paid $300 a month from my brother
5. $8k tax refund estimate from accountant
6. birthday/christmas money
7. the 3 units pay themselves off March 2018, use that $5k mortgage money towards debt
if I can make this payoff I will have paid off all fix up costs and will only owe $30k total on the 2 flat by June 2018
Assumptions ARE aggressive and assume no further big snafus. They do assume 40 hours per week. I have been pulling regularly $2k from the rentals after costs.
Please note: chart has me bringing rental real estate fund back up to $18k by year end too
2 Flat finances