Hi all

Quick note here. I got the PC.. $477 (with data transfer and they were able to recover all my data) I feel good. and WOW.. fast.. more efficient all of that.

3 unit status

goal- raise rents this year across the board at the 3 units so my negative cash flow is reduced by $400 a month
goal-raise laundry income or pull out laundry coin op

1. 4 rents are in in full
2. 1 rent is $10 short and is on a payment plan for $766 back rent
3. one guy has not paid at all. coincidently it is that guy the old property manager put in last month with the long delay to move in, upset, angry calls etc. I am contacting her about breach of duty. this guy denies filling out the application (which means SHE filled it out which I suspected) and his financial situation has not changed yet he has not paid the rent and is unable too. Clearly no due diligence was done and just lies and lies. I called to confront her on other stuff last Friday the conversation got heated and she eventually hung up. I will contact her again today. she is refusing to provide receipts and I believe stole supplies. This lady is like 65 year old.. crazy!!very upsetting. In addition the lease is in the name of the old property manager so it is hard for my new property manager to do the court paperwork for me. I like to avoid court though anyway.
5. currently late fees are not being charged at all
6. rents average around $570
7. all units are the same, large light and bright one bedrooms


PLAN
1. notify everyone late fees start Feb 1
2. have new PM evaluate laundry usage thru March to either raise prices or close and sell equipment (does not pay for itself now)
3. get person with a rent backlog on a written payment plan-encourage her to move out
4. make contact with non paying guy. get whatever we can from him and encourage him to move out
5. let everyone else know all rent renewals will be at $630 and new move-ins at $650. Advise if they want to move out early before lease end date there will be no penalty if we get 30 days notice and can show while they are in there.. otherwise we take full security

new tenants will put down 1.5 months security.. $975 so we are better protected or maybe $800

A little rough sailing ahead but onward

Hi all

I have been quiet here as I have been in major job search mode and after so many disappointments did not want to share news until I had something. I DO.

$57 hour plus INSTANT vested 3% match.. at my old company. either work at home or in Lisle (10 minutes away tops). Contract for at least 1 year but they are already talking full time. This is the largest financial services (to banks direct) company in the world so a great place to land full time if the pay is right. I am going in as a senior project manager working directly for the office of the CIO. I give notice Monday. Job is for a senior PM so have to look at payrates etc.. but either way.. GREAT NEWS! also JEANS when I go to work. all good!!

6 homes going great
3 unit transition going great. feel really good with the property manager I have and we are working so well together. this year the goal is to raise rents across all the 3 units by $4-500 a month. this will completely close the negative cash flow gap! PM has already talked with all tenants and we have 3 that look bad or iffy but it is in the plan to turn over 3 units. HE is getting better rent collection though on these 'iffy' tenants then the old PM.

He sees the apartments as I do.. very nice easy to rent and can definitely see the increased rent potential. We are looking for $630 for existing folks and $650 or more for anyone we turn over.

feeling really good. speech is coming back.. less stressed.. real nice day out. all is good..

other stuff. need a new pc.. $350-450? .. old one crashed
new job pays the 15th and lsat day of the month which means my first paycheck from them will not be until the END of February. I currently get paid every week. the last check from my existing company will be Jan 30th so I have essentially 4 weeks with no paycheck. I need to figure out how to do that and not draw from savings etc

I feel energized and alive with the new job opportunity. 401k option again with match and being on track w the 6 homes and 3 units..

April 2015 marks 2 full years of the 6 homes. only 3 left after that on the current pay schedule but looking to move that up

Goal now is to pay off the 6 homes by 2/2018 or 3/2018 vs May, 2018 or with my newly gained more free time (with the new job) exploring options to get a larger lump sum and pay them off years early

I now can make decisions on the Tahoe soon too with the lack of a 100 mile roundtrip drive every day

Life is good. onward

getting new PC today hopefully

the month of no paychecks is likely to impact my savings for this month and next month.. trying to minimize that impact

Checking in.. Clarifying goals for the 'not for profit, personal goals and financial goals tomorrow. I work at home tomorrow.

Still at that job but kicking up job search again thsi week. I am in for 2 jobs. fingers crossed. Got word on another work at home last week.. called.. submitted and then put on hold. Crazy!

6 homes property manager officially took over the 3 units on the 1st. VERY excited w him and encouraged but Very disappointed with old 3 unit manager.. apathetic towards rents, costs way overbudget, dishonesty.. etcv

Anyway.. LOOKING FORWARD.

She put in a problem tenant that she gave $20 off too (without asking) and that tenant is now not paying rent and owes $746 + late fees + this month rent. We are doing a 5 day notice tomorrow am and my guy has dropped by 3x. Upsetting but 'part of the business' and 'part of smoothing' things out. I forecasted turniing over 3 of the 6 units this year due to raising rents so this is not 'out of the budget' totally.. .though the back rent is.

I find out tomorrow which rents are inm at the 6 homes and 3 units. One thing I like w this guy is that I have certainty w rents and information.

I am also thrilled that I am managing him and the costs better.. Feeling very good.

Work is 'ok'.. my speech has taken a major hit w the stress at work. tyring to get it back. If I was not so threatened at work I could stand it a few more months. even the 2 year term (but likely only have work thru June) just every day is SUCH a nightmare right now w layoffs, and so high stress and hostility.


I will petition to work 5 extra hours a week again starting next week.

Not for profit cat rescue is coming together too.. setting goals and managing people and finances better. Tough 'health' month.. Lost 3 kittens..FIP, lost 1 adult..liver/anemia issues .. and 2 kittens have ringworm. Crazy days but nothing we have not seen before. BIG #s this year and lots of volunteer engagement. I have our annual party this Sunday with all (most) of the volunteers.

Other rescue who wants our cage bank (we have 3) says they will have the $ in 3 weeks. Fingers crossed.

Have not sold the Tahoe or really tried too. Hard for me to list the Tahoe when a snow storm (like today) could crop up any second and my job depends on driving 100+ miles a day.

I will either hold off on selling until March or see if I can figure otu another 4 wheel drive option for snow days.. I can get an older SUV for $7k.. still in good shape...and the rescue is primarily who needs it so can kick in something. I WIll be selling that Tahoe at some point soon.

My boyfriend grew up on a farm and is one of those crazy handy types and an engineer. He is also 'more practical' then warm(?) with his gifts.. He got me that snow blower for Christmas but then what was super nice. I am Christian. he got me this super nice house thing from a Christian store and (drum roll please). I had just lost that adult cat (very sad upsetting case.. I only foster the tough cases so I lose more than most) and he built me a kitchen in my 'back-back room' in the basement. I have a 3/4 finished basement and 1/4 unfinished.. The unfinished side is 30x 17 space unfinished (its own room). he carved out 10 x 17 of that. installed cabinets, sink, mini fridge, microwave, lights, counter top.. very nice. I am going to paint that tomorrow or something. This will make it much easier for the next hard case so I do not have to run up and down the steps to the fridge, microwave, blender. I can just hang the sub q fluids. Easier to clean, isolate all sorts of stuff.

Made the first payment on the new home mortgage!

Onward. I so enjoy reading everyone else's info and updates.

hi all

This is the first of probably a few posts as I go through the numbers

General results this year

1. $40,207 total savings (went to Roth, rentals, emergency fund and investment savings) .. still .. wow.. lot to save!
2. $249,882 increase in networth off of last year-mostly from primary home ownership and rentals
3. only $1099 OVER yearly budget for rentals for maintenance/repair and vacancy budget. BUT did lots of long term repair items this year.
4. $31,595 in long term improvement to rentals-includes 2 new roofs, fixing 2 roofs, water fix at that one house, and updating 2 homes and updating 2 3 units
5. $220 DECREASE in negative cash flow over last year on the rentals
6. ABOVE decrease is primarily in 6 homes. 3 units had INCREASED negative cash flow to budget

Will study some more and list accomplishments. trying to diary the journey. this was a big year..

Set some new financial goals to the left

I get my next free and clear house 2/2016

My main goals continue to be to smooth out the rentals, keep my job and have enough cash reserves. there is no leeway in 6 homes/3 units payments and the deal was signed assuming I would NOT have a primary mortgage payment until 2016 or later. That is why things are so much tighter than expected.

Need to rebuild rental emergency fund to $15k asap and considering increasing the personal (lose my job) fund to 4 months which would be $14780. 5 months is $18475

Need to sell this Tahoe

Rescue interested in the cage bank has not been in touch lately and I am thinking they are struggling to get the funds. I put in a call today.

Hi all

feeling better today.. almost Christmas too.

I have been wondering why I am so much 'shorter' this year. I took off time last year and felt good about it.. this year I need to impact savings to take off and am only taking off a few days.. but it is good for the soul to have rest and take off from thsi insanity

Anyway last year I had no mortgage and full income from the 2 flat.. so I must have been rolling in cash

I want THOSE days back. haha.

3 unit update. Talking to the NEW property manager (that has the 6 units) felt very good with our talk. he is calling people next week w transition info and sending something out

No blips in 6 homes and I PAID off the roof and gutters so I have done an insane amount of upgrade/fix up work on those 6 homes and survived (and saved some)

Next year we may have to turn over a few of the 3 units which is fine.. if we can get them turned over quickly w good tenants and HIGHER rent.

I discussed the issues now w the 3 unit so this new guy is prepared

We are not going to be lenient like the other PM was..

My phrase (said partly in jest) 'nothing is up but the rent' (from an eddie murphy movie) and the old PM was very bad with collections and running a tight ship.

Anyway. goal is to markedly close the gap w those 3 units so i have little to no negative cash flow

and maybe turn over 1 more section 8 house to raise the rent by $300

We shall see what makes sense and how the 3 units go

In for 3 jobs but not expecting news until after the new year

One in Naperville. One in Warrenville and one at my old company (REMOTE!! or work in local office which is 5 minutes away)

Fingers crossed.

Hope everyone is having an exciting close to the year.. can not wait to calculate results and set new goals for the new year

HI all

No interview results yet. Tomorrow am they say. Got a lead on what looks like an awesome job. infrastructure project manager at a company I used to work full time for in 2004. Pays more than the 'interview job'.. I know people .. fun atmosphere, close to home and contrct to HIRE! I am being submitted for it

3 units news. been quiet about that as I am getting so frustrated. 3 units turn over at the end of this month. That vacant unit. STILL NOT filled.. well sortof filled.. Property manager said it was filled and move in date was 12/1..that date came and went.. Pm says he can not come in due to work . then each week he was going to pay something.. and move in 'that weekend'.. today I call PM (he was going to pay thsi weekend and move in). did NOT pay in full..I told her the unit should not have been taken off the market if rent was not inn hand and security deposit.. she says she knows this guy etc.. and this is a one time case.. a large expense last month...child support mix up.. I asked her to send me his application in the am, lease and proof of income. She gets huffy and asks if I want to rerent it > I said I would let her know in the am and if so I will transition immediately. I said I do not care what issues he has or that she knows him I care that he is going to pay the rent on time on the first for the next year. She says she knows what is going on and that is why she feels comfortable. I said I do not and it is your job to convey what is going on so I do understand and feel comfortable if it makes sense to do so. Someone else is paying $100 late too and I asked when that was coming in and she says 'it was either that or the electric bill.. it will be in next week'


I said I wish I could solve everyone issues but I can not .. I have bills too and I need the rent.

Crazy..

The issues with her if you recall have been RENT COLLECTION and filling of units quickly! I can not stress how easy these should be to rent.. and to thikn she held it without a dime after saying it was filled. lease signeed.

Only possible good thing is the she SAYS (we will see what she sends) but she SAYS lease is signed for Dec 1 and so he is paying in full for this month. (or so she says)

Hopefully job news tomorrow..and get this 3 unit straightened out.

I am expecting some turnover at the 3 units next year.

Onward.

HI all

a NON real estate post for once!

Closed my yearly fee credit card (only had 1.5 years in it so no big impact to my credit score) and swapped it for a no fee.. low rate.. 1.5% reward card . I am charging all my food, general stuff now so I can keep track and get rewards.

Switched my retirement investments to a health care fund.. hopefully long term and getting good returns..

I will be so happy when all my 3 accounts (roth, ira and personal investment) are over $10k. One just passed the $10k mark. Definitely starting small (after the big fall) but stabilizing and accelerating

Looking forward to another possibly wild ride next year and some more increased savings. Despite the craziness this year I really felt I came out well with still managing to save through it.

Have pretty much cut costs to the bone except food and misc which this 'put all on credit card' idea will help me track and cut that as I can.

Have a good day all.

talking to 6 homes guy for roof status today (warm enough now) and the 3 unit lady to talk on that transfer and see if her renter ever moved in

Onward.

Got to get a job now.. layoffs and terminations are accelerating at work.. 5 gone last week... 2 of them on MY PROJECT TEAM.. and I was involved in the budgetting last week for my project.. main budget ends in March . I was budgetted for 45 hours but it goes to approval (I have to present it) Tuesday.

HI all

I cancelled the 3 unit property management contrct today in writing. Cancel date the end of the month. I expect to talk to her tomorrow. Contract calls for 60 days notice but betting she will not hold me to it. No word on if the new renter moved in. Last I talked to her which was Monday pm. she had the lease signed and almost all monies and he was going to move in this week

This is a REALLY long time.. to wait to turn it over and cost to turn over. $1400.. crazy!!

One of my goals for 2015 is to raise ALL rents there to at least $630..$650 each will Completely close my negative gap.

Trying to wind up the year strong .. trying to get that Tahoe sold.. and wind up some other stuff.

Roofs WILL be done this year and PAID for and I expect to be able to get the real estate emergency fund back up to at least $13k by year end (goal is $15k). I have already remmoved the roof funds from the #s to the left by the way.

IF I have to turn over multiple apartments out of the 3 units that will be a cost but I think a well worth it one with high benefits

Also may turn over one more house.. current rent $800..market $1050-1150.. section 8. That person has lived there 8-10 years and no longer qualifies for a 3 bedroom (only a 1 bedroom) so her portion went way up and she is not able to pay it long term. in fact right now.. she gets a $100 personal discount because I did not want to turn it over during the "property manager switch over-2homes vacant-esclating costs fiasco in July-August" so a few thousand there to turn that over.. but after this main updating in the homes is done (and 3 units) any future near term turnover should be less.. also will start to request 1.5 months security from now on on the 3 units. Section 8 rents are frozen due to the sequester on existing tenants so I can only get rent increases if I turn the units over.

Semi-word on that one job. they ARE going through a re-organization and the recruiter is still trying to find out info.. Meanwhile I got a phone screen for a network project manager job at a hgue Naperville company.. $56 an hour but part at home. and 5-10 minutes away when I am at work.. long term contract. I make $65/hr now.

That is Monday at 2pm. I will study up before hand.

Excited for the new year.

Have a great day everyone.

HI all

Talked to 6 homes property manager. He was about to refer someone for my vacant 3 unit (that the current pm says is filled and moving in) for $650 rent.. bodes well for higher rents.

With each at $650 I fully close the negative cash flow gap at the 3 units. that is the goal for next year.

I will switch from the current 3 unit property manager as soon as verify this unit is filled etc..

Main home refinance CLOSED tonight!

I am officially out of my hard money loan! thanks all for the support. it has been a large (curvy) road.

HI all

Main home refinance is proceeding as planned.. looking to get a close date in the next 48 hours and they are trying to close Monday so it funds before the end of the month.. 3 day right of rescission on the loan

payoff estimate was slightly off.. I will have to contribute approx $1050.. rate is 5.375 do you suggest I roll that in (I can) or pay it.. I am thinking roll it in as I am trying to conserve cash

Job update.. talked to headhunter. they followed up last week and were told that they should get a positive response shortly.. no word since.. they are wondering if the company is determining where the funding will come from, start date or which supervisor this position will report too or something else happened. Current job cut hours back to 40.

So job NOT in the bag yet.. still hopeful and praying..

Talking to 6 unit property manager more.. feeling satisified and in control..

Not as satisfied w 3 unit lady and may end contract after 3 months.. and switch to 6 homes guy.. she tells these little 'lies' frequently .. saying somethign just to appease me when it is not true and then having to back down from it later.. and lack of complete communication

new tenant moves in Saturday she said but this is delayed from the 17th, delayed from the 18th, unit is STILL not finished (18 days after move out.. all we were doing was touch up paint, clean carpet and clean unit).. not a huge deal but adds up and overpromising under delivering gets old.. more to share here

Feels good to learn more and grow in these rentals and be able to think ahead and be proactive, raise rents, fix up.. proactively control my net cash flow.. really feeling these are good for me long term.. just waiting for time to go by so I can get out from under this high mortgage and cash flow pressure.

I am already running $300 LESS in projected negative cash flow a month across all units then I had in year 1.. w significantly RAISED reserve amounts for vacancy and maintenenance.

Hoping to close the $450 monthly cash flow gap on the 3 units w the new property manager.

6 homes gap will be harder to close (or not as fast) .. as homes have people who have lived there for 8-10 years and if I turn them over I can expect $3-6k?? updating fix up costs each. That is based on the turnover cost of the first two. I do not want to spend that cash right now (and do not have it) so am fine w the lower than market rents and steady income

Obtaining that free and clear deed to one of the homes is in the works!

All

Quick updates

Called seller on the deed.. no issues.. he wants me to fax him a note and he will call his attorney to get that working.. YAY

no word on job yet.. hoping to hear GOOD NEWS today.

My job now is very political..stressful and w this high profile program risky.. IBM guy said last 2 people who tried to turn it around by resolving highlighting issues were let go. I am already feeling the heat.. not good at all

hope to have a closing date on that loan today

$3200 more to savings (went to real estate emergency fund and will immediately go towards roof)

Boyfriend bought me $900 snowblower this weekend. NICE.. savings and a quality unit.

Saw 3 units today and took pictures.. made a list of long term items (sealcoat parking lot, trim trees back and either siding or repaint current siding).. I will get quotes and budget for next year

FEELS good to get involved and KNOW my worst case and costs

I DID sign up for 6 months w that lady (existing property manager) with a list of concerns I want her to address etc.. I will cut it down to 3 months if possible..caught her again fudging costs and she is simply not set up to turn these units over fast..I saw it on the 15th.. it was vacated on the 1st and NO WORK was done.. her goal is to have someone move in (already approved and waiting) on the 18th

Units were LARGE, well lit, updated, front and rear door first floor units, nice area of town.. rents are only $565-585.. she does not want to raise rents and is conservative in that way but the research I and Matt (other property manager) has done shows those could go for at least $50 more maybe a $100 more each and they are so small (500-600 sq feet) that turnover costs should be low. I have a $500 loss on those every month (on 5 year payoff).. It appears I can close that gap maybe in full in a yearish w raising rents.. lower costs. thatt would be a HUGE WIN.. this means more savings or more breathing room..

Onward to work!

HI all

Main home refinance update.

1. have not heard from that broker after he emailed me that he was doing no more work on my file unless I paid him his fee up front. He was at 6.75 points, 6.375 rate, 5/1 arm

*I decided not to worry about that.. got too much other stuff w Dad and getting a loan, so i have not contacted him since*

1. FHA loan..Looks like I can prove continuity of obligation (title is currently held in an LLC) to do a refinance. House is in a single member LLC w me as the sole member. Also looks 'good' for meeting extenuating circumstances. I am doing a mini-submmittal to get a real underwriters opinion. IF this loan looks good I may be able to wait for this and go straight from my hard money loan to this (need 90% certainty though to wait t hat long and cut it so close)
2. one day out of foreclosure loan (this is the SAME loan that broker #1 was trying to do and then got crazy).. Anyway new larger broker FIRM (not single guy) I submitted a mini application w credit. He is sending it in tomorrow to see if we get a pre approval (he thinks we will).. news next week Wednesday.. estiamted rate less than 5%, 2 points, 5/1 arm. this broker does VOLUME in this kind of loan. they require 12 months PITI in LIQUID funds.. that is going to be a stretch and they may be able to use the appraisal I just had (but the 1st broker is specifically refusing to help me so not sure I can get it from him.. may contct the actual lender agent he was working with. THoughts??)

No job news.. applying for one more but things REALLY slowed down

6 homes going AWESOME.. got an awesome tenant for that vacant house.. costs being contained I am working so much better w the PM. the break (switching property managers) even though it cost me was a good learning experience!

Meanwhile 3 units.. I am looking to see if 6 homes guy want those too.. we just had a tenant vacate a unit and the current PM inspected it (for $40 extra fee) and says the unit looks PERFECT but yet she wants to spend almost $1500 fixing it up for paint, recaulk tub and hang blinds. Unit is 500 sq feet 1 bedroom.. Costs seems insane. I have her for 1 more month so I got a hold of the estimate and am contacting the contractor.. I need to understand if it is so perfect why do we need to spend $1500.. repainting the whole unit seems crazy.. ceilings too.. but I do not know the exact condition... will get more info tomorrow...and the same contractor painted a whole house for $1500 (3x the size) these rent for only $585 .. but I thikn they can go for more. .just riding it out.. do not have a lot of energy to expend on this right now. will call contractor, find out condition, talk to PM, make a decision and get it filled.

I see Dad over the weekend (stroke).. been stressed and swamped

Prayers for good loan news in the next several days and ENERGY and PEACE!!

Hi all,

Feeling a little discouraged.. probably because I am SO TIRED and waiting for all these things to finalize

1. jobs. submitted for probably 4-5 more. all in town or nearby. got one phone interview. no word yet on 2nd interview. got turned down on that one job. Job cycle is MUCH SLOWER this time of year.. 4 of the jobs I applied for went on hold.. Crazy!
2. Loan.. on pins and needles waiting for the 'clear to close'..I guess i was expecting it in a day or two after the appraisal. broker says it can take up to 2 weeks and they do purchases first. mine is a refinance.
3. 6 homes. I am looking at that vacant house we are fixing up on Saturday. supposed to be done or almost done.. looking to start showing it next week to rent. rent $1050 up from $1000 but may go down to $1000 dependent on reaction. this is a SLOW season
4. foundation guy (on that same house) appears to have found a solution for the lingering water issues... $1800. down from estimated $5k
5. looking to do at least 1 more roof this year on the '6 hommes'
7. 3 units property manager contract is up 11/1 (and it is w the lady who was managing the 6 homes who I jsut switched from) I am thinking of switching that to this other PM who manages my 6 homes now. I am acting different w him, different expectations, less anxiety and it is really working out great.. plus his contacts are thousands lower for the same or better job..also he is creative and has so many homes he has ads out all the time. he has already referred folks for the house we are fixing up so hoping to fill that asap

Basically my two biggest stressers are the job and the loan not being finalized. the loan is a big stresser as I want to settle and relax in the house and I am holding off on all sorts of things pending the exact numbers on that

Onward.. but resting tonight.

October will mark a year on SA and I am going to do a wrap up time capsule of the year. I am hoping it includes closing this loan!!

Hi all,

Updates..

I ,in general, (although trying very hard) have been doing very bad, crying, hard to sleep, ANGRY, just bad... out of control.

Updates... just the facts..

1. Main house refinance.. no real news... several more back and forth faxing documents episodes.. board did approve the loan and we are waiting for the appraisal to be ordered.. nailbiting times waiting for it.. broker says he has 2 more possibles if this one falls through but both higher rate and higher fees. Until the appraisal comes through I will not know for sure IF they can do the loan and how much my fees/contribution is. Hard to wait. Should hear from the appraiser this week.
2. Job.. Nightmare. New policy. NO WORK AT HOME for 3 months! I cried in the car after that conversation. Job is not hard. In fact I have little to do. How do I find these jobs where I have nothing to do? Days drag. I will ask for more work next week. Speech has taken a MAJOR HIt w the stress I am under. Drive continues to be an hour and half stop and go each way. With my deductions changed and no 401k I am bringing home almost the same making $65/hr as making $55/hr (last job). Thsi is with putting $1100 a month in savings. the amount I was putting w the 401k. Accountant will check deductions this week. Gas costs are SUPER INCREASED. I am actively searching for jobs but none yet locally.. LOTS downtown and out where my current job is.
3. 6 homes/house I am turning over--.. the house I was so excited to see last week? I got there and it felt like nothing was done. I was so upset, stressed and disappointed. and UPSET. Current update. House is commplete (except for fridge, washer/dryer. I will buy if I have to but renter may have his/her own). House for rent at $1250 (old rent under s8 was $925). It just went up YESTERDAY!!!!!!! a month to get it fixed up and on the market. INSANE! Anyway.. 6 calls the first day and showings today. Neighbor next door has a nephew she wants to recommend. This is the 3 bedroom w the MASSIVE garage (3 car w office/workshop). A section 8 person called w a voucher for $1300 who wants to see it. I want it filled iwht someone LONG TERM who is going to treat this and maintain it like their home. I am proud of how it turned out and the response (from neighbors even!)
4. 6 homes/house not paying rent--I am still very frustrated w this and how the new PM is handling this. We had a very clear conversation last week that I do not feel she is handling it and I need to have her get a handle on things. I said I feel I am running things and I do not havve the time to do so. She said she is used to being in control and I need to step OUT. I said I would not feel the need to step IN if there was not such a void of leaving voice mail messages and never actually getting in touch w the tenant. Either she can pay or not.. not 'well I left voice mails'. ANyway...$$ summary .. with this month.. she owes over $2000. I gave new PM until Wednesday and then will either handle it myself or turn this house over to someone else. We got $520 last week and she said she applied for help and is trying to make up the rent (she said that to ME. when I stopped by ) but the new PM has no new updates. I do not want her sitting there while she is trying to find a place not paying rent. Renter seems sincere when I talked to her but I have no money in hand... so words do not really matter. I reclaimed her security deposit already to help w cash flow and can pay it back if she pays. This house (based on the reaction next door) looks like we could fix it up and get rent increase too. currently charging $1000.
5. Other section 8 house. havving s8 adminstrative issues.. new PM says she will straighten out but another thing hanging over me and may make the tenant lose her section8. I can not afford another turn over right now.
6. 3 units continue to flow easily along. nothing to report. These are the ones the new PM has run for years.
7. new Property Manager. Mixed feelings. Higher priced help but things are getting fixed right. But realistically if I was more involved w the homes w the old PM (and I see the need to be upfront to learn the homes etc) wouldn't that be happening anyway? VERY VERY UPSET w lack of urgency, slow turnover of homes, and this passive 'I called, left voice mails' stance and NOT stopping by the house and lack of progress on the s8 issue above and the house not paying rent. Whatever deficiencies the old PM had.. I sincerely doubt I would have this situation going on. New PM is a 'by the book' manager and her solution to the renter not paying is to 'send her a letter, serve her now w a 30 day notice and then wait for court'... NEVER actually speaking to her face to face or dropping by to ' work something out' or get the scoop. I can not do that.


So in general.. very rough and I am stressed. I am coping by doing my treadmill before and after work and trying to tire myself out so I do not think about this stuff (or throw stuff at the wall). I am trying to be clear w new PM and set timelimits, boundaries and investigate other options before moving on. I am trying to give her a fair chance and be reasonable. I need someone though who can go out to the homes as needed and help me w contractors etc and can deal w non paying tenants in creative ways.

For now I am hanging in there money wise but have used up $15k of my rental emergency fund (have $1300 of that $15k left) and that is WITHOUT paying the 6 homes principal payment last month. I need to come up w $3900 to be on track w the loan. Seller is ok if I come up w that in payments next year. I want to come up w it THIS month so I am on track so take full deeded ownership of hte house I fixed up next month.

I need this lack of rent situation resolved, this house filled and this s8 issue figured out ASAP.

I know she does a great job w the 3 units. but those are simpler, smaller etc.. She says she came into alot of issues which is true but this wanting to handle it all via phone just does not work and lack of urgency does not work.

Gave her til Wednesday to update me on the 'lack of rent lady'

Side effect of all this treadmill walking and getting my anger out is I am toning up nicely. This week I am cooking all my food for the week today so I can eat well. I thankfully lose weight easily so if I keep this up I can lose some quick weight and fit into my size 8 clothes easily. They are tight now and I got some new slacks in size 10 at Goodwill so I do not have that added stress (of tight pants) but it would be nice to lose 5-10 lbs and have them fit again. 10 are loose but more comfortable than tight size 8's.. so right between.

About it for now. I need to check in more often.. it helps me to vent too.

So for this month. I am NOT adding to savings. I am instead trying to pay taht $3900 payment from last month to the 6 homes seller (provided I feel secure Wednesday that the s8 issue and the non paying tenants are under control)

Coincidentally the house w the s8 tenant (admin issue) has very low rent too (but has not been updated) do not want to turn it over now.

THANKS to all here on this board who suggested I increase my rental emergency fund and encourage me. I would NOT be surviving without your suggestions and support.

Onward.

Continuing to believe in these homes and just focusing on 'SURVIVING' right now.. even if it means holding off on savings in the short term. They are small, incredibly easy to rent, solid, and should be good long term and allow me lots of options once paid off (3 years 8 months) to keep/save/invest the cash flow.. or swap the homes out for other/differnt/better ones. I would not be stressed at all. if the non paying renter was 'stabilized or w a plan, move out or pay" and I did not have this vague s8 issue AND I did n ot have this main home refinance where I do not know how much money I need to come up with hanging over me


Thanks for reading

Just did a quck look at my 6 homes/3 units costs and I guess MY PROGRESS (need to feel good)

I have owned the 6 homes since 4/2013 and the (2) 3 units since 11/2013

My plan was to switch 3 (of the 6) homes out of Section 8. I have one switched over and one on the way to switching. This shoudl result in higher rents and cost savings. I cut insurance costs by $2000 a year and increased my vacancy allowance.

Total repair vacancy allowance per month is $970 a month. This is budgetted but NOT saved to the rental emergency fund each month if not spent. If not spent . I simply save more in the NON real estate fund. I still have the $21k emergency fund for the rentals. After the 6 homes feels smoother...if I do not need that $970 in a month. I will throw it towards the rental emergency fund.

I have gone through one property manager (learned a lot) and am on the way to a new one and more learning

My net across all (if paid off) has gone up $220 so far a month (and I increased repair/vacancy allowances).. so if these were paid off (and they are not but the 6 homes will be in 3 years and 10 months and the (2) 3 units in 6 years 3 months unless I ramp it up after the 6 homes are paid off or refinance jsut to increase cash flow) ..I would have $5666 a month net income. I expect a $2-300 a month increase after we turn this next one over and OUT of section 8 and expect a DECREASE in misc repairs/costly errors with an increase in long term fixes/improvements (which may cost more up front but will minimize issues/costs long term and makes homes more attractive to buyers and renters)

I SURVIVED the first year and get one home pulled out free and clear in September (3 months away).

i have 5 more rents to raise this year at the 3 units (but likely only $10-15 each)

Thanks for listening. counting my blessings but lots of hard work left to do and the most important I thikn is just making the payments on these homes/3 units and getting my house refinanced ASAP and KEEPING employed with no breaks.

HI all

bad news but using this as a diary too

Bad news

I 'assumed too much and too positively."" on items that were out of my control

Assumed tenant (who moved out of the 2 flat early) would pay me $810 on time.. it is late and may be a week or more out or I may have to fight for it. I have to pay utilities on that the 2 flat til it sells and this would have gone towards it. potential $2-400 utility bill outstanding??

and assumed 2 flat would not confirm til the end of May. it is confirming on the 13th

also roofs will likely be $2000+ more than I budgeted (low budget!)

Thsi means I have an $800-1200 hole for this month (plus roofs) and owe the other 2 flat people $400 out of their security (which I already reclaimed)

I already used the security..so this represents $400 i have to come up

BAD assuming..

Here is my plan

1. sell my stuff (sold $310 worth so far.. got more to sell and appointments this week).. potential of $300+ more and may list other stuff ($300 more.. but not this week likely)
2. stop 401k for next check. potential $730 more $ to me
3. stop unnecessary costs (getting refund on 'just answer' website subscription and stopped that, stopping my fico.com, getti8ng refund of $120 on something else (potential $175 but refunds not coming instntly)
4. see if I can delay confirmation one more month (got a call into the bank).. worth $1025
5. start consulting ASAP (now).. probably can do $200-300 by end of the month
6, take $2000 out of rental emergency fund to pay for roofs AND maybe delay unti that one house is turned over
7. call that guy who owes me $6000.. see where that is at.. that will go towards the rental emergency fund by the way
8. stop auto savings plan for this month or next check

and lastly DO BETTER next time.. stop cutting things so close with stuff out of my control in the air

Onward.. hoping to update with good news.

tenant who owes $810 contcted me today but says they are short and do not have it.. trying to come up with when they will

also my not for profit is in a cash crisis.. which is stressing me and I have very little time to deal with it.. want to close that thing.

with the money shortage..'Necessity is the mother of invention!". I do not want to reduce my emergency fund accounts.. trying to make up as much as I can with adjustments etc.

Hi all,

Outstanding news.. Tax refund is over $13000.. Why so high? my accountant had all those loss carry forwards from the years I did not work

Wow.

$9600 came today

Plan.. put $10,000 into the real estate emergency fund.. maybe more. I lose the 2 flat in 2 weeks (4/17- and then 30-45 days to confirm sale)and am settling up w tenants so need to figure things out.

The 'ok news'.. I asked for a renewal. boss was in a bad mood.. stressed. has been for weeks (he leaves town for 4 weeks tomorrow).. anyway.. I did not get a yes but I did not get a no either. I got a vent about random things w work.. he said budgets are finalized in April and he will know when he gets back or before (he will log in from time to time) and he said they are letting go 2 people (contractors on specific non important projects. not a big deal) AND hiring 2 more people in our group. I am well liked and they have all sorts of work so I am feeling good but conversation was not 'super awesome'.. He ended with 'you are not on the list to be let go" Well.. glad I got that reassurance! I then had my major migration this weekend so have been working a lot. I coordinate all network across 15 engineers.. insane..47 banks.

And FEELING STUCK!! 3 Unit property manager is all set to go. and I have called the old PM but have not reach ed him and I feel this HUGE WEIGHT from not getting that resolved. I also have not called my aunt. So on the agenda today is calling both and reporting back

My stress will be 10 thousand times less w those 2 things resolve or at least 'done'

Thanks for the encouragement guys.

Still plugging forward.

I can pull a fully paid off deed out from the '6 homes contract' in August and the other (new one) property manager who is a realtor will help me figure out which one.

I need to make those calls today (prop mgr and aunt) so I can move forward. feel frozen!!

Next month will be my first month paying the hard money loan without the 2 flat income. Got to get thsoe 6 homes stabilized. I have $1000 worth of cushion built into the 6 homes budget but w the current PM use that almost every month.. with the new property manager I hope to save that cushion or some of it and throw it to the rental emergency fund or once that is funded somewhere else. (invest/savings)

So the rental emergency fund should be almost $21000 in the next few days (only $15k left to go to hit $36k) but seriously considered stopping at $30k especially if I do those 2 roofs shortly here and then leave it at $30k (w 2 roofs paid for and homes w new property manager). I will continue aiming for $36k in the meantime though.

HI all

Busy time and INSANE at work. Been feeling scattered and a bit stressed.. up and down...

Updates

DENIED for Chase Freedom (big mistake to apply. hellooo.. what was I thinking)

3 unit lady (who I love) drove by the homes, likes them, had several questions and will let me know by end of week which she can take (if if I go that route)

In the meantime she showed her prowess by getting the 3 unit guy who was late to pay FULL rent and $210 late fees and March rent. awesome! He is back on track now and looks good for the future

6 homes. another story. No good news on water issue (not resolved, but water company is working on it, digging, trying to find well, insane, saying it is too cold for a backhoe) .. they almost got it in last week w the warm up but did not.. I am asking them to put in writing they are reimbursing me for my costs.. $ TWO THOUSAND!! (yes big costs.. that was to dig up to the street and prove the water issue was not with us). I want this reimbursement!!

Also that guy who moved in 2 months ago and lost his job. He is moving out at the end of this week. Packing up as we speak. BUT we had 4 showings so far and have a tenant who looks good on the line (and she wants to move in on the 1st) AND it is good this 'lost job guy' is voluntarily moving out. I will keep at least 50% of his security to pay to fill it.. Hoping to come out ok here and rent was raised $100 and STILL getting showings. awesome.

The other potential property manager. i have asked for refernces, rates and costs.

Accountant is swamped (he is super good) and have not done taxes yet.. want this $ and to know how much it is. calling him today again..

Should end the month w $2500 to go towarrds emergency fund. would put me at $16000 so $2k to go for normal emergency fund

AND guy who owes me $6000 may have it 'soon'.. he is sellng his motorcycle and has a showing today. And HE called.. fingers crossed.. all goes towards rental emergency fund.. he will give $5k after motorcyle sells and the rest later. Thsi will go to the rental emergency fund.

$4-8k tax refund will go to rental emergency fund as well

and may have $5000 from another source

Have not sold car yet but am definately warming to the idea.

Been doing odds and ends on the house.. tightening things up. have a SUPER handy boyfriend (engineer and grew up on a farm.. good combo).. put in new lights in laundry, and back room, fixed shower faucet and other random things, helped me move and throw out things, set TV in exercise room.. overall house looks 'neater/ cleaner' and definately more tightened up.

Can not wait til Summer to tighten up the outside..

I paid an average of $45k for each of the 6 homes and pulled comps nearby for a friend and my two homes on 1 street should sell for near $100k each or one over that price..

and lastly.. 'the 2 flat'.. told tenant she had 30 days to leave.. (based on not doing egress window.. city says apartment is not legal etc).. I am concerned I am going to get some push back from her(already have). City can fine me if she is not out on time.. (April 1).. I will follow up w her every week. Told her if I get any sense of an issue I will have the city 'sticker' her unit at which point she must leave immediately.

have not started consulting work and need too.. $120 hour..I want to get over this emergency fund hump asap!! I will be more relaxed then.

Hi guys. IN an effort to be prepared and reduced risk. I have been looking into other property managers.. so if one does not work out at some point I have a back up. I can not run these homes, 3 units myself.. nor do I want too. I am also not satisfied w the 6 homes guy and wanted to see what else was out there.

Ok. .I have woman A on the 3 units. I like her a lot.. Strict no nonsense lady. People including tenants respect her. Very communicative so I am not worrying or asking questions. Sortof a 'get it done' type which I like. I give her guidelines and she gets things done within those. If there is an issue she communicates (tree fell on one of the 3 units, late rent etc). She is a realtor w an active real estate office and has been around for a long time. I trust her. Her personality is similar to mine. She has a brick and mortar office in town. She also, if my suggestions thoughts are wrong, is not afraid to point it out.

and I have man B on the 6 homes. B has 26 units of his own and also property manages full time. He is also head of membership of the local landlord association.

Problem is I do not trust person B and was thinking of finding options to him for now and 'just in case'. B has said things before that he has not done. When there are issues I am 'surprised' w the bad news or asked to 'help' and feel I have to take the ball (example the water issue at the one house). I am told things are handled and they are not. Tenants saying they are not getting called back. Several times when appointments were set w tenants and he did not show. Seems like life stops on the 'weekend'. Had a electric issues at the 2 flat and the tenant ccalled B first and then called Me because B 'does not respond'. I called B (got no response all night) and ended up sending someone over there to fix the issue. I feel the tenants do not respect him and I am not sure I do. I HAVE talked to B on this with really no results. I however have not been as strong w my words as I could be because I had no back up. I feel he may not have be up to it or too swamped. He appears 'swamped' all the time and overwhelmed. He has 'fixed' things 2-3 times that should have been replaced..costing me more $. Late fees being dropped etc etc.

Options so far

1. person A has the address list and is driving around (when the snow clears up) to see if she can take all or some of the homes. News this week.

2. Went to meet w this guy Saturday, ex marine, has 50 units and manages 50 more, office in town, investor and more of a 'get it done' attitude, I felt more of a fit with himn. He charges 1% more and some other costs but if things are 'handled' and I can trust him .. seems worth it.

Plan is to wait til Wed/Thursday and see if A has time for more units and write up what I really want.. so I am clear and then get some input, talk to these folks (new guy and A) and decide.

Maybe I talk to person B first .. probably.. but just feeling he is not up to it. If the tenants do not respect him.. they take advantage and in so doing take advantage of me

In general I feel the 6 homes are not run 'tightly' and some of the things that have occurred just make me not feel 'secure' that he is handling things and I am always feelgin I have to call him.

So.. news this week.

Hi all,

updates.

We think we have a good renter for the house (remember the insane-foundation-work house).. fingers crossed.. will finalize and likely know tomorrow. they live somewhre else now and have asked to move in Jan 1 . We are saying we have someone else that wants to move in now (which we do) but she is w Section 8 and will likely take a few days etc and will pay less rent and rent is fixed at the low rate for a few years and we have these insane 'inspections' every year so better to take this house out of s8.. Goal was to take 3 of the 6 out of Section 8 anyway. . Anyway I need RENT NOW...

3 units calming down. no new news.. just large expenses last month w tree falling

Put $25 savings from car insurance switch to Allstate into an auto withdrawal into my emergency savings

No news on my house yet (trying to see if bank will take $260k) should know late next week then havve to get money. Zillow says it is worth $433k..PRAYERS

Also I have my security deposits and tax escrow in a essentially zero interest account right now. I am switching over $10k of that into Barclays (.9 interest) to make some money off that large amount.

I do NOT show that on the left as it is technically just money I am holding for taxes or renters... not mine.

Hoping to have SUPER AWESOME news soon on the renter and my own house.

take care guys. Onward!

Hi all.

Updates

Not out of the wood yet and PRAYING to stabilize.

HOMES
1. got a good prospective tenant for the house.. should know today or tomorrow if Section 8 approved
2. Foundation guy did SHOCKINGLY awesome work.. house looks strong stable.. very pleased ($12k worth of pleased)

3 units
1. tree is off the roof ($500) + $1000 worth of damage.. upsetting but done! I have room here to raise rents and it runs very well.. just a hiccup.. I like my property manager!

SHORT REFINANCE-sad news
1. short refinance for $302k fell through. new FHA laws say there is a 3 year waiting period to refinance after a foreclosure... EVEN if you bankrupted out of the homes.. (why did the loan people not tell me this upfront) one of my past homes is still in forclosure and has no sold yet. Expected sale within 6 months. Loan cancelled
2. potential good news. bank agreed via phone (will have in writing next week) that they will STILL take $265k for the house (house worth $400)
3. The difference between my loan from the refi firm ($302k) and the banks acceptance reflects the upfront profit the refi firm was going to take. So if I can get the funds I will actually come out ahead! WAY AHEAD

Now I can (once bank puts acceptance in writing) buy the house for $265k but (due to above) can not get a bank loan (FHA or conventional). I have made several calls and hard money in Illinois on owner occupied residences is hard to get.. very hard.. have not and will not give up.. once acceptance is in writing will approach creative lenders and friends

I CAN buy within a year of the last sale and already fit (credit score etc) the criteria for an FHA loan expect the waiting period. Talked to brokers already

My 2 flat in foreclosure (owned w ex) I can get rid of within 6 months

I am able to pay 2 points and 5-8 percent for a loan for up to 2 years

If you have idea for hard money lenders or finance firms.. let me know.

House worth $400k (firesale), 700 credit score.. can prove income.

I want the home because it is a good deal and I want to settle long term

Put $1500 in the Roth IRA today!
Took entire $12k out of savings so savings down.. but retained entire homes/units emergency fund

PRAYERS the house rents this week!

Been reading Rich Dad Poor Dad and getting more ideas

I need to invest more, get the 6 homes/3 units cash flowing more and cut unnece expenses and make more money

I am 43 and want to be able to quit work in 5 years!

HI all,

I am struggling here.

Good news

1. house foundation work will be complete tomorrow (that was the update Saturday) we just had a massive storm though.. PRAYING HOUSE IS OK
2. looking good for a renter in this place next week
3. also looks good to rent the garage separately.. means an extra #100 a month
4.short refinance is looking better.. not for sure yet but looking better.. (scary times). appraisal Thursday (should pass) and then I have to pay 3 trial payments in a lump sum(see below bad news) and then it goes to the underwriter for final approval and close date

BAD NEWS (keeps coming)

**I am feeling INCREDIBLY SHORT OF MONEY**

1. still have to come up with the $6k (rest of payment) for the foundation work
2. short refinance requires 3 trial payments.. 2 upfront $6k and one certified check brought to close
3.short refinance also rquires $11k 'buyer contribution'
4. a TREE fell across the 3 units. I have owned them less than 3 weeks and a tree falls on them?? crazy...They are insured but my deductible is $5k (more standard on rental polices).. looks like that
did not pay off.. so more money but talking to the manager and looks like here are the costs (1) remove tree (2) check roof and fix small crack in drywall (hoping there is no major roof damage!!.. roof new as of 2008). I am seeing the damage tomorrow..

Just keeps coming. I need to have these extra costs stop! and get some extra income and stabilize..

Too much money to have to come up with in such a short time frame... essentially $26k.. if you look I have only $30k savings....scary.. need to stop the bleeding

talked to my accountant yesterday (pre-tree falling) and I was feeling stressed then with the short refinance money requirements and he said (paraphrasing) you are trying to set yourself up in 5 years to retire.. it is going to be hard and you are going to be short.. just hang in there.

Vote of confidence felt good but SCARY TIME right now

need the rental filld and no more large expenses and to 'settle' and start saving again.

Crazy

A friend owes me $5750.. hopig praying he comes through soon

Someone else owes me $5k.. asking for that too

and with the closing of the not for profit business.. I should get $8-11k..

Prayers!.. (looking around for stuff to sell now)

Hi all. I feel so much better reading these blogs and hearing from REAL people with real ideas, answer and situations. Need to blog/read regularly.

Ok here. is mine.

Attorney called.. 3 units close 11/1. Scary. These I am taking on a 7 year term and will try to pay off in 5 (*will need a $69k 10/2018 payment to do so)... otherwise will keep on the 7 year term,

Whole plan calls to sacrifice now.. have income later.. (goal is to create $8k monthly rental income by the end of 2018) so these will NOT add any income now. My plan is scary to me but I have worked with people and made it as safe as I can.. These are the last homes I will take on an extremely short amortization. Anything else will produce cash flow now.. but will let these settle for a while and get under control before taking anything else on. I am retaining the existing property manager so any hiccups should be 'less'.

Did my networth and here it is... I used to have $125k in a 401k so feeling a little bad but feels GREAT to start and do it right/safer this time. I want to build up my cash so my networth is more cash or accounts vs real estate and will gradually trend towards that.


Value in 6 homes $52,802.51
Value in 3 units $5,000.00
Savings $83,160.15
Emergency Savings $4,000.00 (added $2k more!)
401k-3% $135.31 (started as of 10/15)
401k-my own
Net worth $145,097.97