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Stress testing-Scenario no job past 12/2017

October 6th, 2017 at 08:47 am

Hi all

I work on contract as most folks know. Today I am stress testing my plan if I was NOT renewed and did not find work for 6 months, had no 2 flat rent and 30% vacancy across the rest with no 'other payments' coming in.

Enlightening!! Makes me feel grateful to have a job. I encourage all of you to do a similar exercise.

Attached.

6 Responses to “Stress testing-Scenario no job past 12/2017”

  1. Bluebird Says:

    I also keep a spreadsheet of worst case scenario (if I was unemployed). You mentioned that you have about $250K of equity in your personal residence. I highly advise that you open a home equity line of credit. If you need it, it's there. Your current lender should be able to do this at no cost and very quickly.

  2. Rachael777 Says:

    I think it was such a good idea to stress test and actually you reminded me I ALREADY have a line of credit open for $73k on a rental so I could pull from that if needed. Thanks!!

  3. AnotherReader Says:

    The problem with HELOC's is that the bank can pull them at any time. The banks pulled a lot of them on perfectly solvent people when values dropped in 2009 to 2012.

    Risk is such a vague word. Putting numbers on paper make it much clearer what is really involved.

    Change any of your plans after doing the stress test?

  4. LivingAlmostLarge Says:

    That's amazing

  5. rob62521 Says:

    Very interesting...looking at this, it does make you appreciate your job and what you have.

  6. Rachael777 Says:

    All.. thanks for the feedback. Do my plans change based on this stress test? not so sure. What is sure is that I have a MUCH greater understanding of my risk. My emergency fund for me is smaller than needed and I better hang on to this job. NO way out of this '2 flat' but through. Still trying to find an electrical contractor but hoping to start the rest of the work this week while that waits. More update in the days to come.. I REALLY want to get more work at work to just have something to do and for the extra hours and sense of satisfaction.. Thanks everyone!! Stress testing was a GREAT IDEA!!

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