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.

House rented.. $25 less rent but uppped the utility allowance so made up for it in full and have room to increase rents every year. Looks long term (hopeful look).. I am now putting together a repair/proactive maintenance plan across the 6 homes so I can budget it in. Only 52 months to go to fully paid off.. just hanging in there.

Reading 'the power of intent' and will post here more.... but has to do with directing your thought to what you want vs what you have.. interesting and I think true..

I shoudl hear on the house this week (my own.. my offer w the bank)..

Gettting excited for the new year

closing my not for profit down too. which is where MOST of my stress comes from.. looking to close/turn over to 2 other not for profits in next 2-3 weeks.. sad.. exciting . relieving.

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 think it is going to be fun to read back on this all (later)..so writing whenever I can to document the journey.

VERY BAD NEWS.
The excitement I felt with filling my vacancy?? VERY short lived.. an hour. Section 8 came out.. inspected and said the they would not take the house into the program. This is after the house being in the program for the past 10+ years. Guy said the walls were bowing in on one side. The house in on a hill. I drove out the next day to look and they were. I was told there were water issues and some bowing on the purchase but was also told they were stabilized (cringing.. pls no 'I told you so' or negative comments). Anyway.. turns out they were not stabilized. I got some quotes.. talked to several people and in short it will cost $12,000 to rebuild half a wall and put inside walls for the other two walls, put new center piers and regrade the whole yard and regrade the house next door (which I own). The house next door will cost $5100 to put an inside wall in there. I iwll do that next year or so. All this will be guaranteed by a long time contractor so I feel good it will be fixed for good and not come up again.

So...(stressed look).. the works starts Thursday..should be done by Friday next week. Have a potential renter we are screening now (non section 8). If she works great. if not we will open it up to Section 8 and non Section 8 after the fix. I need it filled asap. Bad time of year to rent property.. Upsetting!

Expensive lesson. GET a GOOD INSPECTOR!!! and evaluate all potential water/foundational issues thoroughly!

That said, I am relieved this is just to the 'expense category' now. but a large one

I am also relieved I had my $8,000 large expense, 6 homes fund which I will fully use up with this and need to rebuild ASAP

So. I need to come up with $4,000 in the next week (after the $8k) and it will come out of savings

**I did check the rest of the homes and the 3 units and no looming foundational/water issues**

POTENTIAL GOOD NEWS

Bank accepted the offer for the 'short refinance'. I have to formally apply for the loan now (will happen today) but if my income is as I said it was on the phone and everything else is hte same (and it is) the loan should go through. But will be nervous until it is 'approved' (week or so?0

I need to come up with $11,000 'buyer contribution' in 30 days and the INTEREST RATE IS 6.75!! I can refinance (and will) but will have at least 1 month or two (maybe more) of large payments at that rate. I will look into refinances after I am approved (but before I close) so the new refinance to lower rate can go as quickly as possible.

However.. loan appears to be low enough that I will already have 20% in. This is a niche loan and only one company does them so they dictate rates, feees, how it works but again no prepay penalty so I can refinance and need too. Payment is HIGH>

So. all in all this year is one of 'closing doors' and 'reopening others' and getting my financial house stabilized and on the right track. I am also closing my not for profit in these next 60 days.

Those who have read some know that I have had a rough 4-5 years prior and am just coming out of that to rebuild. I have a 5 year plan that is more risky up front but less as it gets further along. I am 6 months into that and hitting a BIG hiccup right now.

My plan right now is to 'gather this $20+k' for the foundation and short refinance, establish a tighter plan for the rentals ( I meet with both managers this week, save and EARN as much as I can and rebuild that savings immediately. I can not go with out a fully funded emergency fund and large expense fund across the homes and 3 units. I want to STABILIZE right now and get things under control.. too many balls in the air.

More later.. just unloading and catching folks up.

Thanks for reading.

After a stressful 3 weeks here... we filled my vacancy in the 6 homes.

Rent is $75 less but with winter and holidays coming we felt it was the thing to do. If we did not find someone soon it might be weeks with the snow and holidays.. And it is a good potentially long term renter.

Also we separated out the 3 car wide garage as of this month so are looking to rent that separately for $100-150 either to the current (new) tenant or to someone else. Garage has own access. This may make up some or all of the loss in rent.

Also switching landlords policies to Allstate for some good savings... not all quotes in but estimating $700/year across the 6 homes.

We will go around in the next 45 days and put all the 6 homes on new leases that end in Spring or other times besides the winter.

Feel good we got this filled!! YAY

I have a property manager and we are still getting used to each other. good to learn how we work together.

Hi all,

Lots of questions on the 6 homes deal.

Here are the details.

I bought 6 homes as a 'package' from one guy 4/26/2013. . He was a senior real estate investor who had 'made his money' and just wanted out and was moving to Las Vegas. I used an 'old time' realtor who knew the town and headed up the Landlord Association. He was very well known in town and 'knew everyone'. All homes were rented. 4 had renters who had lived there 7 years or more. 2 homes had renters who were a year old (rental status). Seller owned these homes for 12 years. One home was fully rehabbed (fire years ago). Homes were maintained reasonably well. All homes were Section 8 and are in working class areas. Homes are approximately 1000-1400 square feet. Most have basements.

Purchase price $275k
I put down $30k
SELLER CARRIED the loan (agreement for deed) .. $245k at 3.15% over 5 years (the loan will be fully paid off in 5 years)

I am not able to pull out any cash flow on these in the first 5 years in order to meet the short amoritization. In fact (per chart below).. I may have to put in up to $1000 a month. *I have the income to do this** Currently I have to put in less than $1000/month

Safeguards built in the deal

1. If I default I have 60 days to cure. If I do not/can not cure,. seller can only take the homes back.. no recourse against me personally
2. I worked in the deal that I can pull out 'fully paid off deeds' every 14 months . So in another 8 months I will get a deed to one of the homes and can sell it or do with it as I please at will and it will NOT be encumbered by any debt. If I default. the seller can NOT take these homes (that were pulled out) back. I am 6 months into this deal already.
3. Section 8 gives me some more confidence with rent (thought it comes with pitfalls too)
4. I retained a local management company who runs all 6 homes for me
5. I have placed $6,000 in escrow for large repairs not to be used (this is based on reviewing prospective large costs, roof, water heater etc and the current shape of the homes)

My plans with the homes

1. Remove 3 homes from Section 8 as they come up and folks move out. Section 8 has a rent freeze and homes can attract non S8 renters. We are removing one now -in process
2. Separate out the 3.5 car wide garage and rent it separately (in progress). I get no rent for this garage currently and it not used.
3. Baseline costs and get maintenance repairs slimmed down as much as I can
4. Hang on. This will be tight and scary the first few years.

Chart below.

Hi everyone.

Feeling a little down this am. I get this way when I am overwhelmed or 'stuck'. I found the Dave Ramsey book (good easy reading and sound advice) made me feel I am not doing enough. On top of that one of my 6 homes has a vacancy that we are trying to fill for the first but have not 'nailed someone down yet'. Feeling stressed. I do have 3 months 'vacancy built in' across the 6 homes but feels bad to 'use it'. In either case.. also $1200 costs across the 6 homes last month and the fix up on this one (we sortof threw this lady out.. good move though.. just wish it had not happened this time of year).. .. anyway the fix up on this house is probably near $1000 too.. but I am keeping her whole security. Just upsetting.. lots of costs this month.

Anyway.. Dave Ramsey (and folks here) have given me lots of motivation to Track my Money which I am still not doing and to get 'gazelle intense'. I have basically 2 debts .. the car $20k and a warranty on this other car.. proobably less than a $1000. Also building the emergency fund to $16,000 (only have $2k).. and feeling stresed that I still can not log on to that Obamacare website (has anyone been able too.. insane!)

Anyway .. thanks for listening to my rant here a bit. I need to focus on the positive and will see if I can write down some positive things each day or when I am on a 'high'.. so I remember them for later.,

I am wondering if I can pay off the 6 homes, 3 units and a HOME (my house 'short refinance' has not gone thorugh yet though. no definitive word).. in 5 years.. maybe extend the house to 10.. but want to build up more cash. Feel my income is tapped out. I do well but when I worked before (5 years ago). I made $20k more. I work in network project management. Contracts are less now a days and this job I can work at home..

I think I need to destress and relax(have this not for profit that I need to close and it has been weighing up me for literally years (95% of my stress comes from that) and work has been crazy this past month)

Have a great day everyone.