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Dad's estate and 2 flat update

March 31st, 2018 at 10:58 am

Hi all

Looks like I will get approx $80-$83k from Dad's estate. Funds should disburse in these next 2 weeks. All will go into Vanguard


2 flat is renting and we are getting applications.. QUICK!

If I sell the 2 flat I will pull out approx $73k
If I do not sell I have to pay off approx $23k in'fix up debt' and then the rest of the mortgage ($17k) and will still own a property that I have sortof 'bad feelings' about

I will decide the plan once it is fully rented.

Nice to have options

Selling it puts me at approx $500k investments..

I am thinking of working w a life coach. feeling a little lost and directionless lately

I will pay off the 3 units next week.. we are settling up water bills which we need to do to get the tax stamps. Some tenants are late w their water bill. We are giving htem until Monday and then I will pay them and seek reimbursement.

I did not do my monthly tax escrow for real estate taxes until this month so with owing approx $33k in expected taxes across all properties (including the 2 flat which I may sell) I need to significantly up my escrow to make the June 1 first payment date and 2nd payment date of September.I have $4572 saved now.

My plan is to put an additional $4k in escrow this week and then $7k once I get the rents for April and then probably do that again next month.. and then reduce it to something like $4500 a month for future months.

I will have true numbers for cash flow after September (right now I have to subtract all these costs that would not normally happen)..I will track cash flowfor 6 months to get accurate numbers and continue to work this high dollar job and sock away whatever I can in that time period.

Happy Easter everyone!

Rachael

2 Responses to “Dad's estate and 2 flat update”

  1. AnotherReader Says:

    I think I would pay off the two flat with the estate money and keep it. Put the leftover funds in the market and start escrowing the taxes. Profits from the real estate portfolio can go into the market as they accrue. My approach is "more of everything" when it comes to investments.

  2. Bluebird Says:

    Hi Rachael, I agree with Another Reader. Great advice. The 2 flat is in perfect condition now. It will be a successful rental. You need cash flow, not just cash. Excess cash flow can be invested.

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