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Archive for February, 2018

Running scenarios on rental income, stress test was wrong

February 19th, 2018 at 03:10 pm

Hi all

I figured out finally why my stress test looked so low. (been a stressful few months.. must have gotten mixed up). I multiplied my total rental income by 30% instead of 70% to get a rental income with 30% vacancy (dooh!!)

Anyway here is where I am with vacancy at 33% and current costs.

I check every year if I can cut utility costs and food and misc. I will check that now. I generally do not run credit card debt but have some now w the 2 flat. Also should be able to reduce health insurance

Intersting to run #s. Final punch list for my 2 flat happening now. Have some good interest on that vacant house..

The scenario below does not change my plan to work ALL of this year.. With that said I still expect to be working and putting all funds through August to pay off the 2 flat debt (home equity, $16k) and 40k I took from other accounts) down so I only the seller financed mortgage..currently standing at approx $18981 but going down approx $1000 a month... by August this seller financed mortgage will be approx $12k. The seller financed mortgage pays itself off June 2019 with regular payments.

My mortgage (over $3k, 15 year loan) makes up the bulk of my monthly costs. I am no longer looking at refinancing but might be open to moving if the opportunity makes sense and the housing cost is LESS than what this would sell for. Need to move while I have high income. I have $205k equity approx in the house.

Of course if I sell the 2 flat all the 2 flat debt will be wiped and I will cash to invest. The plan is to rent it immediately and decide on selling it based on the market in April

It will be so nice to lay off having to payoff so much every month and thsi crazy treadmill. I can sortof feel myself semi relaxing now and starting to give a little and 'enjoy' a little bit without being so stressed with money, costs etc

It would be fun to start some small business again doing something I enjoy (part time) and NOT NOW. I know I have way too much going on w school. But that not for profit I found netted me I think a little over $30k.. (gross) and was part time and fun (for a while)

I look to get over $2MM net worth by the end of this year unless we have some MAJOR MAJOR crash in markets.





I resigned yesterday

February 15th, 2018 at 12:31 pm

HI all

News.

Cabinets are IN. punchlist at 2 flat is being done this weekend. Hoping to get the city through Tuesday for final inspection

I resigned yesterday( scary tense day). Response was surprise from my current company and wantnig me to stay. I am still leaving but am leaving on VERY good terms Feels good.

New job starts 3/5
Last day 2/28

I am taking 2 days off

I have a vacant house that I really need to get rented and them some guy in the 3 units did not pay rent since Nov, we got possession at court but he has til Month end to get out. This guy told my attorney he wants to work out a payment plan to pay the judgemetn off.. fingers crossed but we stil want him out. Really wanting rentals on solid footing again. 3 unit rent is $650, house is $1275. That is my loss of rent every month. Maybe if the blizzards and sub zero temps would moderate some Smile

2 MORE PAYMENTS for the 3 units
One due March 15 then will pay the April payment at the end of March.. then all my rental income will go to the 2 flat payoff (for fix up debt)

I an doing all sorts of supplies returns tomorrow and getting supplies for the punch list so will figure out final 2 flat debt after that

THANKS to this team for helping me get the courage up to make the job transition!!

I can expect a $1000 net increase in take home pay on a 40 hour week, FRIENDS/social during the day and challenging while retaining some work at home and JEANS when I at work. 401k no match but I can start contributing in July

Still nervous but getting a 'little' excited too

Rachael

I got the offer! I have to let them know today, thoughts?

February 6th, 2018 at 06:44 am

Hi all, I had my 2nd interview yesterday and an hour later got the offer. Pay $18k more per year on a 40 hour workweek. I can wear jeans to work. WOrk is in town (15 minutes away). Work is similar but would be net busier than what I am doing now. However I am doing very little now and have been doing very little for the past 6 months (waiting on a large project to assign me too). I have been disorganized with school and other things and this 'having nothing to do' has allowed me to do that.

I told them I would let them know this afternoon. I am stressed and unsure. Stressed because it is NEW and a change. What if it does not work out? I am in school and this is a very taxing semester. What was I thinking? quarter ends in 4 weeks. I would lessen my load regardless for next quarter. A large part of why this quarter is difficult is I am not spreading the homework out throughout the week

Snafu so kindly pointed out the changes a new job would pose to me "I see the net benefits of the new job. I think there will be a period of adjustment as you get used to working rigid hours and the prep time to get ready, business attire, more laundry, more shopping, higher grocery cost for added convenience, AM traffic, taking your lunch and no longer controlling your time. There are expenses associated with work like the cost of gas, more frequent vehicle maintenance, costs associated with social activities like coffee, snacks and restaurants, make-up, clothes, shoes, accessories and possibly parking fees. "

I did talk about hours. We will have 1 work at home day a week sounds like and can have somewhat flexible hours as long as we get the work done. ie 9-5 or 7-3-4.

I actually eat MORE when I work at home or at least now as I am so bored. I eat out all the time.. bored..gained weight due to 2 flat stress . do nto work out as much.. sortof flattening out with this unmotivated streak. I think going out to work and meeting people would liven me up. I am socially isolated which I do not like. This new job will not be that far and sounds like it will allow me to go downtown to school on school days.

I would have to wake up earlier, get dressed and ready but do not have to buy a new wardrobe and can come in jeans. I need to organize my time better but I think I am actually less productive with nothing to do as I sit around all day and am really unmotivated. getting up, dressed, with a role, friends, social would probably be more energizing and jeans is a real plus. Maybe I can work out at lunch or on the way home> All good things. I drive right by the gym

Not sure. I will write the pros and cons down this am, talk to people and talk to people I know at BMO about hours, stress, work life balance etc

Any thoughts from the folks here? Any thoughts are really appreciated.

Risks with where I am at.. may not get renewed at work in June. I am well respected there but currently under a GREAT senior VP but he has brought on 70 some contractors... not sure if he has room for me and currently has no work for me so I am 'on loan' to another department. Much less pay. Work at home basically forever. little social at work. Thsi senior VP only does internal projects. I would be in a better position if I was back under my old boss wh did client projects.

The pros with staying are basically 'comfort, avoidance of change' and potentially more flexibility but was I really any more flexible when I was super busy at my current job?? probably not .

And either I need to get super busy at my current job or I am not sure it makes sense for my boss to renew me and continue loaning me out to someone else who contributes zero to my expense

mixed feelings and stressing a little.

Rachael

Potential new job? thoughts welcomed!

February 2nd, 2018 at 11:03 am

Hi all

I am not looking for a new job but open to it for a few reasons. One. I work at home.. no socialization at all. sortof a BIG downer. Two, I do not have much to do and am being 'loaned out' to another department while the other department is paying for me (risk to renewal?). Three I have no work to do. maybe 10 hours of work for a 40 hour week. I can still bill 40 hours but no chance to make more.

I got a call from a contracting firm/consultant to work for a large bank that I worked with through the company I work at now (this bank is not subject to the non compete agreement I have with my current contractor firm)..

Pay $11 more than what I make now which is $22k more on a 40 hour a week job. Job would be back to leadership again. They are local to town and I can work 'at work' a few days a week AND at home..jeans when I am at work and working with at least some people I know.

I have a second final interview Monday at 3pm. First interview was yesterday.. it was sortof informal as I was 'presold' by the folks I had worked with already at the bank

the new contractor firm does NOT match the 401k (where I am now matches 3% of my gross) so you can decrease the per hour increase to lets say a net of $9 an hour MORE than what I make now.

The current job I have I am renewed every 6 months (or not) This job is the same role for 2 years and a 2 year contract..and then if I want to go full time they say they want that. Less risk of being cut loose unless I really mess up.

I have already decided in my head to work through the end of the year and maybe a little more. not sure... I am likely not going to score more than 40 hours where I am now, my pay is below market and no work at an office option really. With the new job I can move, make more, similar work, in town, still some flexibility and make significantly more. and they may ahve more than 40 hours. It seems too light nowadays to only work 40 hours and being a consultant gets me paid for every hour I work. Health insurance through the new contractor would be $200/month less for roughly the same plan

Thoughts everyone?

Still finalzing the 2 flat, counter tops next week, punch list today and weekend or Monday,

1 house vacant but getting interest (water STILL not turned on from pipes freezing) but fixed and we are showing the house. Water company wanted to redo their meter etc etc..crazy! what if someone lived there? anyway they are turning on the water Monday

And 1 eviction underway for one of the 3 units. rent loss $660 a month on that.

I did not get my refinance so my house payment (at my current job) making 40 hours a week exceeds my take hoome pay on the first.. which means I have to escrow from the 2nd check for the following month.

2 more 3 unit payments!!!

Rachael