HI all

rental updates. All units filled. (thankfully)

Existing project manager has taken price gouging it appears to a new level after my giving notice. I had to speak to an attorney and really just out of control. I finally got him to stop (I think) just removing whetever he wants from the rents. We are supposed to meet this week on over $2000 (OVER TWO THOUSAND DOLARRS) of unauthorized, unapproved, repairs that I had no knowledge of. Attorney says to just settle, not worth it to sue and hard to prevent him taking the money on such short notice without disrupting rents. Crazy.

Anyway. swapping homes on hold. too much going on. person who runs my not for profit has been in the hospital this week and may need an angioplasty! and be out for a a few weeks. REAL bad news. not set up to run this in her absence very well

Dad doing well but steady decline. now it is hard to hold his fork so he eats sandwiches, he thinks he works still and gets $9000 a month. We normally go along w him and do not contradict just 'redirect'. however this time (as he asked me to go over his finances) it was awkward and sortof accusatory as the $9000/month was not in his accounts. Stressful. Facility says to keep conversations short on finances, do not bring it up, if he asks reassure funds are safe etc etc.. and redirect. They said accusations, suspicions are common. Uncomfortable.

Anyway. I am grateful I am able to contribute $2k a month to the 3 unit fund (payoff w $69k in June 2018 and I already have $4k saved) and save even more after that. Still paying back various funds for the 6 homes but feeling better

REALLY praying the new property manager is better and he should be. main issue is renting these harder to rent ones (which we just did and this new manager is definately going to be better at I think) and stopping unnecessary or made up or just 'unknown' costly repairs all the time. New PM notifies me w costs of ALL repairs up front and takes photos as his NORM. He also logs all tenant calls

New tenants both look good . both have family and friends in the area and both want to stay a long time

Hopefully that is the case.

Existing manager still has not renewed those leases. What is he doing.

Just his quality of service has gone way down

I only have 2 section 8 homes now.. vs 6 originally. this should cut some of my repair costs too as I was having to have yearly inspections on all before

HI all

First hearings for my rentals start Oct 22. I have seen the comps and we have some good comps that really might slash my tax bills on these considerably PLUS.. where I live.. Naperville. the dispute period opens next month but in just perusing the assessor website myself I found a house 2 homes down with 700 MORE square feet w an assessed value more than $50k LESS than mine. Hoping to get major tax decreases through this appeals process. Dropping $50k off my assessed value has a $3500 impact.. and that is still 700 square feet more room than I have.

in other news..last unit filled w the rentals AND got 1 renewal at the 3 unit, pending 1 more and pending the new renewal lease on that one house

the existing property manager and I are under tense relations as more and more stuff, inattention, errors come out. double billing, missing credits for rent payments, charging me $2500 last month for 'repairs' I was not aware of and am disputing.. and he is struggling to substantiate and now trying to settle w me for a lower amount. may have to get an attorney involved... also these renewals should occur BEFORE the lease term ends. just on and on . anyway.. one more month w him and then hopefully improves and really one of the key areas was repairs (not knowing about them, price gouging, inability to trust the repair was actually done not just made up etc etc). New property manager gets my approval BEFORE starting work and gets an estimate up front and takes PICTURES! and I can talk to the repair people if I want

again I looked through my notes. this did NOT occur w this properrty manager upfront. just got progressively worse..

Both tenants we moved in want to stay a long time and have friends/ family in area by the way.. hard to get cheaper fixeed up homes then the ones I have so may hang on to these.

So have a lot of people wanting to stay in these 'hard to rent homes' and have only 1 house that may makes sense to sell right now and investigating doing so. apparently per realtor and new property manager though, there are people starting to buy up to live in this area so area may be going up.

Totals are in. I raised rents $306/per month this year but vacancy (evicting 2 from the 3 units, and 2 slow to rent homes ) has me way over my vacancy budget and all these unexplained repairs and what feels like price gouging has me over my repair budget. The rehab I managed myself was over $2k less to do MOMRE work than through the property manager and I hired actual tradespeople not folks off the street

Upsetting news today. Refinance declined. My original loan officer was let go and left the company. He also left the file in disarray apparently and they submitted it for the wrong loan type. I should have been submitted for Fannie Mae.. anyway.. waste of time and money (appraisal, credit report)... very upsetting. and they do not with to resubmit as they do not 'own the loan'.. guy who left the company does so it poses problems. Maybe that was why service was so bad after he left.

Crazy.. anyway. re-starting trying to get a Fannie Mae refinance. i was approved last year (except had to wait 1 more year per their waiting periods).

Goal rate is 3.25 and this guy is speaking w underwriters up front .. a Fannie Mae one! he can use my appraisal if we act fast.. they expire after 90 days

I am on a 5/1 arm right now at 5.75

Onward

Hi all

I opened an HSA with Health Savings Administrators or healthsavings.com. Flat rate of $45 a year. There was one other one that might have been less cost dependent on how you invest, how much you had in there etc. this was $45 flat and had good Vanguard funds so felt like the easier choice.

Plan is to use this sortof like a 401k and NOT withdraw from it (unless some dire medical emergency) until retirement. This is one I set up individually not through where I work so money put is in AFTER tax but should; be tax deductible. Limit is $3350 this year. Will try to fund this , the 401k and the Roth every year. Trying! I put $50 in it to start the account.

Trying to be financially free in 5 years is exhausting stressful work!.. less than 3 years left.

that rental house is filled. the other house is almost filled. still confirming things (manager is slow)..

New strategy w rentals. I am going to get some outside opinions , use the web and get selling price estimates across the 6 homes so I have a good market value and look to 'swap' some out that and increase the quality of the neighborhood and therefor maybe lower my costs, not be so stressed with management etc etc.. . Step 1.. get market values this week ( I will get the 3 units value even though I can not sell that right now and really do not want too. rents easily, good area, great cash flow but realistically long term mayeb I would want small homes vs apts.. we will see... be interesting to see what folks think it will bring). 2. decide which to sell.. 3. I was going to take a stab at selling at least one via investor contacts and Craigs list (yes, really) have had friends sell them like that. why not me? 3. get a pulse of the market and homes and prices to see what I can buy w the cash 4. run my thoughts by some advisors for thoughts about selling at all, sell now or later. 5. get the new managers thoughts on ease of renting these homes. really we have only had issues with one home..

I may lose some cash flow upfront if I do this.. but steady returns and simpler may be preferred and cash flow will come as it is easier to raise rents on a more highly desirable area.

I can not be 'financially free' when I am stressed w the rentals anyway..

I did go for lower quality areas to 'get in' and do not regret it .. easier to get in.. much more cash flow...now I have somethign to swap... but is that where I want to stay??.. I am not thinking so. I have options now to 'swap' out of them and I think I may take that opportunity.

Anyway. just thoughts right now. got to get some facts, do some research and think on it. no more fast decisions over here!

Onward.

hi there.

Updates. I think we have that 'harder to rent' house filled with a tenant I like. Manager is setting up a lease appointment. She has family in the area and wants to stay long. Fingers crossed.

House we rehabbed. we have someone lined up for that as well but she wants to move in on the 1st. We will do final checks and then sign the lease w her.

New manager starts 11/2. Excited.

Renewals notices are out for that one house..and one apartment. should have news this week

I am thinking of doing an HSA as another tax savings retirement vehicle. Any thoughts of where to put that. Healthsavings.com looks very good and has a $45 flat fee each year. $3350 per year limit

Still trying to max out the 401k. got $3200 left to fund.

Thoughts welcomed.

Onward.

ON the 2nd round w the refinance underwriter.. got another 'condition letter' w items I have to fulfill. Will work on that tomorrow and hopefully close it next week.

I will NOT fully pay myself back this month. I had hoped too but looking like I may end up short.

HI all

thanks for the feedback on the property manager issue. here is where we ended up

1. Current PM will terminate 11/2/15. Rents for November will go to new PM. I need to send the new PM an updated contract to sign. he did sign the one calling for him to take over as of 10/1
2. Current PM will keep the vacant homes until that time. The one I am rehabbing is done and BEAUTIFUL. he has showings tomorrow and one person we took an app from who wants to move in who has family in the area and is likely long term, Other vacant house, he has showings tomorrow and had a good one yesterday. Fingers crossed. we went over what he is doing and the only thing I can add is to put it on the list at Section 8 whch he should have done already.


Meanwhile we have 1 house and 1 unit coming up for renewal. Both look good but he did not send renewals out yet (hello??) but claims to have talked to the house and they want to stay another year. He has not called the unit yet but send out the notice today. He will have updates next week.

All rents in except vacant homes

Paying off the 6 homes makes a MAJOR difference in the cash flow across the homes and my own budget. I had a mortgage of approx $5500..

I am still however catching up after paying my part of paying off the 6 homes so super tight this month making my savings goals.

Work hours are slightly down w the holiday and took a day off here and there. I should average 48-50 again as of next week

I have had contact with the office of the new property manager and they are very professional etc.. organzied really excited. AND they are 2% less.. over $2k a year difference and will work w my contractor.

For this 'hard to rent ' home. the new property manager did not feel it should take 3 months and talked to some folks who felt the same way 'unsure why it is taking so long'... Regardless, IF this house IS this hard to rent, I will look into selling it and others on that street and buying easier to rent homes/units with the money.

Calm and continual cash flow is my goal

I will hear on my tax dispute in November across the rentals. Hoping for a $625 decrease each month in taxes but have no experience or facts to base that estimate off of

Still trying to reach $8000 stable monthly cash flow by 6/18

Did second submittal for refinance on main house. should hear next week. (had to submit a bunch more docs)

onward

Hi all

My property manager contract calls for a 60 day cancellation notice. I talked to the current PM yesterday and he was saying he will hold me to that and in general not very nice. He also has the house he has had vacant for 3 months. He says 'no one is going to rent is faster'. The seller (65+ year old owner rented it before on his own). We are hitting the slow renter season and I do not want that particular hosue waiting 60 days to turn over when I know this other guy can rent it faster.. and/or to a better client

The current PM says he has 5 showings set this week. betweeen Thursday and Saturday. I told him we will talk later in the week so I could figure something out and get ideas from folks. I feel like changing the locks or doing something 'forcible' but then he has all the other homes.

Any suggestions?

he makes nothing on the house right now and is likely just being an *****.I can not afford to have bad property management causing me months of rent. but can not afford to have him mess up the rest of the homes too.

HI all

Diarying. been feeling a little 'unfocused lately'.

In a relationship and wondering if we are compatible or going anywhere.He does not express himself as wel as I would like w words.

ANYWAY..

1. 6 homes bought! took more money than I had thought and had to rehab that one house. already paid back my emergency fund.. got to put $3500 back in the personal emergency fund
2. now that I OWN these I feel a little more serious and long term. Anyway. I gave notice to my old property manager .. he still has that 1 house sitting and 1 house I had to manage the rehab (which was not so bad as i learned and got it done how I wanted and for 2k less )but he did not assist with meeting people, reviewing the work etc. . Anyway I gave him 30 days notice. He says the contract calls for 60 days. I called him this morning and his VM was full (not an unusual occurrence).I am going to ask he release the homes in 30 days and that 1 vacant home immediately. I will update.
3. Put my first $1750 into the 3 units payoff fund. Looking to pay those off 6/2018 and need $69k

Basically switching property managers as the one I have (though better than the one I switched from who ran the 3 units)
1. he is overwhelmed and is a 1 man show, he has 2-3 times voiced concerns he may 'quit this' if things do not improve. VM Full often and several times got complaints from tenants he did not call them back. Not organized. reports late or not submitted at all. Still waiting for July, August reports and laundry $ from 2 months ago. Does not renew leases on time.. Having to remind him of things all the time
2. Does not have a good relationship w section 8
3. Slow to rent . Slow to rehab. It should be noted this was NOT how it was when I started w this guy. Maybe he is more overwhelmed??
4. I do not trust his repair people and he will specifically not let me speak w them.

In contrast the new guy has an online software system that allows me access to see rents as they come in, run reports, has leases etfc uploaded and has all communications w tenants noted, has an office with staff and have 9-10 people on staff. They personally take emergency calls 24-7. All calls are logged. I met the repair people and I am free to talk to themm on repairs if I want AND they talk to me upfront about all repairs with a PRICE for my approval. Plus I can use my own contractors which they will manage. Monies go out automaticaly on certain dates, late notices go out on certain dates, they have a very good relationship w section 8,. they enforce the leases and have a guarantee . if they have to evict they will refund my 'placement fee' and they are 2% less per month..

Also with the current property manager, repairs costs were high and it appeared he was 'fixiing something' every month. I recall it being 'curious' that when I did hte switch the last time the need for repairs stopped and how mmuch can need fixing in a house. these are small 1000 square feet homes? It made me feel repairs were 'made up' and added to the bill .

Again this was not how it started w that guy.

So concerns w the first guy were
1. ability to rent
2. communication
3. repairs
4. reports

It appears I wil have improvement in all of those. I need these homes STABLE.

Started an eating and working out plan . want to lose 20# in these next 8-10 weeks. gained weight getting my primary residence back from the bank and then again recently.

and looking to find ways to be more relaxed, less stressed and have more thing I enjoy

Really if I can hang on this job (or a similar job) an get these properties under control I just need to follow my monthly goals and I will reach my June 2018 main goals.

Primary home refinance still in progress. LOTS more docs this year.

And got reassigned at work to the largest account they have.. with a project that will go past 1/16/16 so feeling like if I lead this project is pretty much guarantees my renewal for another year or at least 6 months. I will ask for that in November

Hi all

Contemplating HOW I am going to reach those goals on the left by 6/18

Tentative thoughts
1. Payoff 3 units 6-2018. requires $69k. I plan to save $1750 a month in a separate account starting next month
2. Retirement investments.. requires $200k more in 33 months. That is $6060 savings a month. I will set as my goal starting next month (to average that). this wil include credit for 401k contributions
3. owe under $100k on house--no ideas yet
4. income of $8000 NET a month. will need to raise rents/cut costs and possible get another house in thre or income stream or something

I will start posting these goals so I can work towards them

Seem pretty impossible now but impossible does happen

Goal 6/2018, $100k left on house, $8k net monthly income (passive) and $400k investments (goal WAS $300 k. raised it to $400k today)

HI all

Worked 141 hours these past 2 weeks. Crazy.. good money but not what I want long term. I may get a Nordic Track ifit treadmill w some of the money. that or they have one of those training bikes w ifit with incline and decline.. both are approx $1500

I feel I am getting out of shape!

Anyway.. CLOSED on 6 homes. had to borrow from my emergency fund approx $2000.. will pay that off next month

I TOTALLY own these 6 homes now. no mortgage

IF homes run well I should be able to pull $3500 from the homes and will not have put in $1000 a month anymore towards covering the monhtly payment. so total NET increase to me per month $4500 ($1000 saving and $3500 new income).. basically ALL will be saved and invested to reach my 6/2018 goal

2 homes vacant. One we have an excellent long term tenant for and are fixing up. this is the home the 15 year tenant moved out of.

One has been vacant for almost 3 months.. 4 weeks I got rent for.. and the rest is a total loss.

Met with other property manager.. looks real good.. will post for input here and have asked some other folks

Thinking of for sure switching over the vacant house to him immediately w the rest to follow..

Made a mistake switching last time so want to be real sure but how can I lose? this guy is letting this house sit and has not sense of urgency.. other stuff too. will update later.

Current property manager does not appear to have time to show the house timely, and marketing is not getting what we need. I asked several folks what they thought of the vacant house. and they looked at it and were surprised our starting rent was so low and that it had not rented... even providing comps they owned near by with renters.

I contracted w a real estate attorney to appeal the real estate tax assessments across all my homes (my personal one too) .. cost 33% contingency of the 1 year reduction amount.

I currently pay $20k across 6 homes and 3 units and $10k for my own home. I am hoping for a $3k or more decrease. Never did this so do not know. What I think is good is that we just recorded SUPER low sales prices across the 6 homes w the title transfer..

Anyway. IF 3 units were also paid off I would make $6200 NET a month (this includes escrows for tax, maintenance, vacancy etc) . so I am $1800 off my goal of $8000 NET by 6/2018. Will continue to work on that.

I am CHANGING my June 2018 goal from 'having my own home and having it paid off' to 'having my own home and only owing $100k on it'. I do not feel I want to use my money to payoff the home totally right now.. $100k or less owed is fine..

Still waiting to hear on primary home refinance.

Onward. and looking forward to when hours lower (45-50 is fine but 70+) is 'soul sapping' so I can concentrate on Me, health , happiness and MORe to life than finance and work!

Also saw Dad yesterday. though he is happier at Silverado and cared for better. he is weaker and really not sure how much time we have. I am spending as much time as I can w him. This weekend I showed him the yard and he could not make it around the house (walking) on his own.

HI all

6 homes closing update

set for Saturday at 10am

Payoff so far is $1000 less than expected. so will use that to build back the emergency fund (took some money out to close)

Meeting with other potential property manager tomorrow and will post info to get thoughts from the group

REALLY frustrated with the slow renting of this one house, slow on repairs and all that basically boils down to security of rent and smoothness of house management. Trust!

Anyway. more news soon

I decided that I am ok to to have the mortgage be below $100k and I do not need it fully paid off to 'retire' or be financially independent and feel I do not have to work so hard. My house is $520 k or more. really why do I want this house anyway. I may want to move and I am ok w that. I do not ahve to stay here forever. . house is nice and has a nice SUPER mega yard which I like but really do I need that when I get older??

Dad is 76 and I am still traumatized seeing him decline so fast.. average stay at Silverado is 2 years (I got told that this week.. big shocker) which means on the average people pass away in that time period. Dad is 76 and she said that was 'young' and young people w alzheimers decline faster.. GULP!

So considering a super short timespan. where do I invest Dad's money. bonds, just get a 1.25% saving account.. stocks? I can not afford to lose alot of it. any 'safe' 5% investments out there.

Waiting for refinance news.. locked at 3.25.

Our big go live is this week but we had to cut it down so much we are now doing phase 1 and 2 so still expecting to work over 40 hours a week after thsi but just not 68-70 hrs until phase 2. I get overtime at the straight rate for hours over 40 and trying to bank as much as I can

Onward!

Hi all

Gift came through

I am paying off the 6 homes this week. Already sent the $120k check in and will 'close' Saturday so I get deeds etc. I have to come up with approx $10k and am doing that by cutting into the personal emergency fund a bit (I will owe that fund $2k) next month and using some of this crazy money I am making lately.

Very thankful and excited and also feeling even more like I have to get these 6 homes under control. This is a big part of my future

Got references from new property manager and need to call them

We are right before 'Go Live' at work and yesterday I worked (non stop) from 7am to 11:30pm. did not leave the house. VERY long hours and hard to do much of anything else. all of htat is crazy tense fighting issues and trying to 'save the go live' or long executive decision calls

Anyway.. happy grateful. WOW.. sortof shocked.

Now got to continue savings (all I can) investing well and paying off other debt. If I can get up $68k I can pay off the 3 units of JUne 2018. My plan is to do so.

My refinance on the house is progressing. appraisal Wed and mortgage guy is trying to close this month. That wil not cut my payment too much but will cut the term. This will be my last refinance (thank the Lord!)

I am hoping to get a few thousand back on the 'loan swap'. The reason is my prior loan required 6 months escrow. this one requires only 2-3. all of that will go towards principle.

Onward. got to start working.. crazy.

Hi all

I believe this is coming through.

An aunt is liquidating some accounts and giving each of the 3 kids in my family (Ma is her twin). $200k. My brother is on hard times and this may have spurred the gift..

Anyway (if this comes through fully) we each got $80k so far... already put $80k into investments..I will put the rest, $120k, to payoff the 6 homes

To pay off the 6 homes I actually need approximately $130k, if paid off this month, so trying to figure that out and need to contact the seller and figure this out< he was escrowing tax so I may get some of that back.. figure payoff date etc.. trying to do this this month (before this dream come true disappears but waiting for final confirmation before getting TOO excited or making any contacts) . They are doing accountant/attorney talks right now.

So sharing tentatively right now.

Also have news on the property manager I met with and on the homes getting rented. will share later. Back to work. I worked 120 hours these past 2 weeks! good money but exhausting.. need a break.

Where I work though just bought another company and is on a hiring freeze through year end (also their fiscal year). My contract is up 1/6/16 so got to clarify my contract come October to try to get it renewed .. or go full time after year end

Hi all

Still pending confirmation of that gift so not feeling excited yet.

On that home in flux. Section 8 lady moves out in full tomorrow. She did give us payment for the month so I should have full rent for this month and the property manager is going over there Tuesday to see what we need to do. I am going to source my own rehab folks this time as possible options as he took too long last time and his guys are resource constrained. I want to be more in control and in the know. these homes are my retirement!

and I meet w the other property manager tomorrow to investigate options. I am bringing my CPA. I trust his business instincts and advice

I need to get these 6 homes smoothed out!!

Despite last weeks rant. I feel we have come a long way but not quite there yet

of the folks I have talked too (other landlords too) the consensus is it makes sense to get out of Section 8.

still working 68-70 hours a week and banking as much as I can.

Fence gets completed today,

HI all

6 homes updates.. feeling stressed and trying to just get through it all.. Whatever God gives you to lift he gives you the grace to carry'

I STILL Do not feel I have the 6 homes under control

1. 1 house has been vacant for 8 weeks (but only missing rent for 4 weeks of that so far). Took 3-4 weeks to fix it up (too long. will remedy that next time), then spent 2 weeks at too high of rent and now 2 weeks at the realistic rent. .getting showings and good feedback but not rented yet. Upsetting and stressful. had long talk w property manager on it today
2. the section 8 house, forgetting if I mentioned it we were thinking we wwere going to pull it out of section 8 and then instead did all sorts of roof, water drainage work on it and left it in section 8 because the lady has lived there for so long and wanted to stay... well she UP AND LEFT. I found out from Section 8? not her. not the manager! He is going over there tonight to look at it but with her being in there for 13 years likely needs a full paint job and updating. ARGGH!! Manager says he talked to section 8 Tuesday to get it reinspected and no one said she moved out and she did not either. He talked to her Monday. Crazy

I have been having MORE AND MORE insane crazy totally unprofessional costly things happening w the section 8 folks .. Property manager says folks are getting out of section 8 and did not think it was bad to lose this house out of section 8 as rent was low (13 years in there) and the annual inspections and nonsense like this. craziness

Bottom line though is I am going into the month with TWO VACANCIES (1) already at 8 weeks and (1) likely to go at least 4 weeks as we have to do a rehab on it..

I am not prepared to spend more $ to rehab another home and am going to need to beat some bushes to find the money. or something. I am feeling severely money crunched. SEVERELY. with the landscaping (paid for) and the fence (money sitting waiting for completion)..I have been scratching around for money and cutting all costs already. hard to find or cut momre.

I speak with another local Property Manager Tuesday
and will speak to a local investor this weekend to for ideas to rent these faster... cut costs..

Positive things

1. all the rest of the rent is in
2. the house that we did rehab looks good and rehab is paid for in full
3. I am working 65+ hours a week at work so getting extra money
4. still hoping to hear positive news on the gift to partially payoff the 6 homes
5. this too shall pass (hopefully onto better tiimes!)
6. fixing up this house will mark the 4th house rehabbed.. only 2 more to go after this and one of those looks pretty good
7. even though it is hard to fund these rehabs., if done right these are long term investments into the homes.

Onward.

HI all,

This is one of those 'how much questions'

I still have a possibility of paying off the 6 homes early and it is based on a gift which is not confirmed yet so feeling (what is the word) tense but hopeful and not wwanting to get excited before it is a sure thing. . so no word on it yet.

Anyways I am feeling like my goal is 'save as much as I can' but when I think about it I do not know what my ultimate goal is. like when will I feel safe to leave this high paying job to move to a lower paying job and then to not working

Right now I am just working as much as I can which not really sure I can (with the temporary nature of my contracts) or want to (stress, health, no life) want to keep up forever


So thinking maybe like this

1. Phase 1-be content with a FULL TIME job (not contract)making around $100k but still in IT project management but having vacation etc. This would be a $40k+ drop from what I am at.I can transition to thsi where I am now provided one is available when my contract is up.
2. Phase 2- leave IT and work in a more fulfilling field (unclear what and I want to start thinking on this so I have a GOAL and vision),, make $50-60K full time..
3. Phase 3- stop working full time and just do contracts from time to time or take a social services type of job (love social services) or start new lower paying career likely in some helping field,

So these are my thoughts but they are vague and unclear and I want to put more detail around them so I have something to look forward to and a goal

Current thoughts
1. To enter phase 1--6 homes paid off, rental and personal emergency fund intact, 20K additional cash not invested, $175k left on the house, $400k savings and still pulling income from not for profit I run

2. to enter phase 2--6 homes AND 3 units paid off, similar emergency funds, 100k left on house and $550k savings

3. to enter phase 3--all above and house paid off and $750k saved

These are rough swag ideas but have to start somewhre. what am I missing? insurance needs? health factors? relationship factors? more emergency funds, self insure some things, some factors that my key things are in good shape (ie large house items or car have certain amount of life left in them), no pending large issues with rentals? no other debt?, firm social network? long term care insurance, certain health tests, maybe keeping my PMP (project manager certificate) in tact?

I am thinking also on phase 2 and 3 I shouldl have prepared for those phases by thikning through what I want to do and start preparing for the transition in the prior phase

HI all

Sortof some random thoughts here
1. landscaping is DONE.. looks BEAUTIFUL.. love it well worth it. yard is more simplified much easier to maintain. no groundcover.. wonderful
2. fence. worked it out w the neighbor. I will put the 6 foot fence in FRONT of their chain link fence in all sections except one (where I own the fence). Fence guy is great says he can get with in 2 inches. FENCE is already funded (not reflected in #s to the left) and shoudl be installed Friday or Monday (takes 2 days though)
3. Toured 3 of my homes with the property manager today. starting to feel my homes are well taken care of.. still have deferred maintenance items that were not done but feeling GOOD and CALM.. like things are smoothing out. The house we rehabbed looks wonderful and we have someone who 'lookds good with good credit' very intersted and if they work out we will take it OUT of section 8 .. which long term may be good. Section 8 requires these yearly inspections which have been somewhat of a nightmare and even w the homes in better shape just the idea of having some inspector come through each year is not a good feeling. . We are checking income and other stuff on this lady today but FINGER CROSSED> I have one more home I want to take out of section 8 but the lady there has lived there for 13 years so we are just waiting her out.. no rush.
4. This year has been the hardest in terms of turn overs but good to be on the other side of that and good to feel I am on the downslope slide of major fix up work across all. Feeling I can just budget much of the rest like no urgent big money things pending and homes are looking good with is nice. For this year we have 2 more 3 unit renewals (at the big jump up rate) and then 1 more section 8 renewal outside of that.. no more big rent changes planned or in the works.. My goal righ tnow is to KEEP tenants and minimize expenses

Been researching other property managers and ways to minimize costs, how to track things, learning from others, went to the landlord meeting etc. . Mine manager charges 7%. This other guy (also in town) says he will charge me 5% ($2000 difference per year or more) and my initial indepth research says he may be able to do the same as my current guy and MORE and produce documentation which my guy is weak at..just investigating right now and checking references


I am also still doing the work to refinance the main home and reduce the rate/and maybe term.

Feeling BETTER. calmer. less panicky

Dad is doing MUCH better at Silverado.. shocking.. like it appears his mental status has IMPROVED (vs just not getting worse). He is mmore 'there' than he was. asking intelligent questions, participating..I am still merging accounts and getting access to all . some are in a trust which is requiring more documentation. Dad's house did sell

HI all

just diarying but comments are welcome.

I live in a ranch on an acre lot here in town.. house is very nice.. open ranch. brick... awesome yard. problem has been a NEW NEIGHBOR moved in last year. .. they recently got 2 dogs and fenced their yard... one dog is a Jack Russell terrier mix and can be yappy at times. First week was REAL Bad. I called animal control (I run the largest cat rescue in town so I know them). they came out, talked to owners etc.. noise improved and is still improving but the neighbors are not friendly etc etc.. (they were not told I called) but I basically do not like them and i doubt they like me.. I remember meeting them for the first time last year and being all welcomey and them just sortof cold (esp husband) I think that is how they are. Anyway, I also have a blind cat that I like to let out in the yard sometimes (he can not leap the fence) but the instant this dog sees him he starts barking (so he has not been out since their fence went up. they used to walk the dogs and the barking was never an issue then) and the dogs are left outside a lot.. mostly quiet but no way I can let the cat out and have the dog charge the fence when he sees it.. wife does not work. crazy.. these guys have a very expensive house but sortof run it like hicks.

Anyway for weeks i have been upset. trying to figure out what to do. I was even thinking of selling the house I was so unhappy.

I am going to put a new 6 foot wood fence on the side by this neighbor. $5k. but should be a BIG relief and make me happy so I can feel private again (current fence is chain link on that side). this wood fence will match the other fence on the other side. To put this fence up I am going to take down the existing chain link fence and ask them if I can take down part of what they just put up (at my cost) so the fences do not need to run next to each other which does not make sense and if we do that they will have plants growing up between the fence that THEY will see. I plan to talk to them tomorrow and am sortof nervous.. hopefully it goes well. if so I will have the fence an under 2 weeks. Prayers please.

how am I paying for this? I know. Upsetting. I am $2k under budget for the rental large repairs that I escrowed for (NOT shown on the left) so pulling that and will have to do some magic to get the rest. Unclear right now but I am going to go insane if I do not get this fence up and starting living in my house again.

I also had a yard service clean out the beds etc..am adding trees, redoing the front etc..

I am going to look into refinancing the house to a 15 year mortgage. That was my plan from last year. I am on an almost a 6% mortgage rate now due to some of the crazy house stuff I had to do last year. If I can refinance to 3.5 I will pay approx the same amount and be on a 15 year term.. so likely doing that.

If I keep this house through retirement. who knows but it is a nice solid house for right now, all fixed up and has some custom things in it that were just for me so makes sense to stay right now. besides I did not really pay 'full price' for it when I bought it back from the bank so not sure I would save alot by moving anywhere nearby as prices are pretty high out here.

Feeling better w this fence decision made and will feel BETTER once that fence is up and landscaping is complete.

Dad's closing is today!! and I have a half day off work. YAY!!!

Hi all

feeling good this am. I finally hit my first $100k. this includes the $15k rental emergency fund. My goal this year (revised last month) was to have $110k investments WITHOUT the $15k rental fund by the year end. $24k to go towards that goal and trying. I am still shooting for $300k by 6/2018 WITHOUT the rental fund

I MAY have a plan to pay off the 6 homes in the January of next year. 5 months. I am still investigating so no word yet but wouldn't that be wonderful.

Still VERY busy w Dad . his house closes this Friday and I have spent days getting the forms signed, notarized,, guaranteed etc for me to sign for him. Dad has his house and the majority of his asssets in a trust. I am the 3rd trustee down so we had to get a note from a Dr that Dad was incompetent, then get my brother (a long haul truck driver to sign and notarize a paper then get a signature guarantee) and then I had to meet my brother to get that original to meet our timelines and then send that to the attorney and the title company and we just got approval yesterday so I will sign for Dad at close.

I AM POA for finance but that does not cover trusts.

Moving forward with getting Dad's stuff under control (still need to consolidate accounts and not on all of his accounts yet.. some are in the trust and require the above which we just finished) ..work is ok just swamped and have not had a lot of personal time and need to make some more but am getting smoe fun and relaxation in

Lots more news. will share on the next post.

Hi all

New investment goal this year and really pondering what I need to do to feel comfortable leaving this high paying high stress job and feeling able to choose a funner job (even if i went full time somewhere it would be great. full time would be like $100k). Right now I feel I need (or want) to earn as much as I can so really am doing $57 times 50 hours a week EVERY week which is approximately 140k a year. it is the most I have ever made but I am feelimgm stressed.. down and like I have no life and am tired .. and my speech is having a hard time keeping up.

Anyway I am pocketing as much money as I can each paycheck and investing. My goal was to have a $35k increase in investments this year. I have exceeded that already w investments going up and mostly deposits. New goal is to have $110k investments NOT INCLUDING my $15k rental emergency fund.. so to do that I have $27290 left to go for the year. I probably have almost $10k left to go w maxing out the 401k so I have that.. so that leaves $17k.... that will just have to be saving.. selling stuff. whatver

Also now that Dad's situation has calmed down. he is doing FANTASTIC at Silverado. love it there for him and me. I am thinking of how to pay off the 6 homes early next year. I will owe $119k after my December payment and $103k after the April 2016 payment. WHere do I get an extra $100k?

I am also considering the house. I have a house worth $510k w almost $170k equity. Do i really want this house long term? I do not know. It has an insanely large yard.. brick ranch though which is nice and the neighbors who moved in last year I do not like. not doing anything drastic but wondering if I moved to downtown Naperville (I live outside of downtown now) and got one of those mid sized homes w FRONT PORCH/hard wood which I love. I wonder if that will be less.. so if I could find one for $400k . I could put my equity in it $170k and only owe $230

Not doing anything big right now just thinking that realistically for me to feel at ease and have a smaller monthly nugget I need to reduce or eliminate the house payment OR cover it with pretty guaranteed income.

Hi all

the Dad update. Folks reading my blog know things have gone very bad for Dad, anyway. we just moved Dad to Memory care here in town. the assisted living place was requiring a 'sitter/home health care worker' with him 24 hours a day (over $600 a day) or he would have to move up to THEIR memory care which is a small section of the 3rd floor and like a locked ward. I moved him to Silverado. expert in memory care and ALL they deal with . They have young/old, all types.. and NO locked ward!!! he can go in and out (gated community) they have live music, activities (FUN ones) offsite,just great.. in TWO DAYS Dad is more alert, engaged, happier!!, eating more. just great. WOW

Hope it continues

Costs.. he has approx $900k (once we get the money for the house, closing mid next month).. Costs approx $7k a month and then probably $400/monthly for misc (medicare supplement whatever else). SS check is only $1450 so loss of $6000 a month

I am still consolidating accounts but was going to keep $100k out and invest the rest .. will be seeking help as to what to invest in but my plan is to put it all in Vanguard (as main investment place) and US Bank for main checking.

LOTS of responsibility being a POA...anyway hoping to offset some of that loss.

Sold his car. He does not know

I have been LOSING hours at work with all this time spent but hoping we made the right choice and move and I can get my time and life back and so does HE!

No time to update on the rest right now(got to get those work hours in!)



I am still trying to retire early and got to get my ducks in a row and back on track here.

vacant house being fixed up will be done tomorrow and property manager is already showing it. We want another long term S8 tenant.. Other one has not rented yet!! hoping for good news this week on both.

Hi all

(always have to have a rental update!) All rents are in but have 2 properties vacant and trying to rent or engaged in fix up.

Dad update. We are in week FIVE. Feels like it has been several years. Week 5 of his move in to assisted living near my house.

Week one, fell, hurt his shoulder
Week 2, got lost for 5 hours, took away the car. Car is sitting in my driveway
Week 3, calling 911 every day reporting me for theft
Week 4, shoved a nurse and was admitted per procedure to the ER and then to the psych hospital near by

Week 5. as the POA specifically prohibits me from signing him in to a mental health facility, I was not able to sign him in. Dad refused to do so. Dad stayed there 10 days so far and is scheduled to be released back today. However assisted living says that as he was never voluntarily admitted they can not take mental health care place's word that he is not a danger to himself or anyone else and are requiring me to get a 'sitter' to be with him 24 hours a day for 5 days up to 14 days while they evaluate. This is paid for out of pocket. $600 a day. If he is felt to be not a danger to himself or others. he will be allowed to stay. otherwise he will be 'immediately discharged'. I explained I have no where for him to go and they did not appear to care and said I should work on a backup plan. Anyway. health care worker set up... $23 hour and they will re-eval Tuesday.

Cost is crazy and whole situation is crazy.

Since Dad moved down here I hsve been getting calls on or for Dad every day through the day and it is very hard to concentrate and get things done. I have had to leave work several times, take off work..Just crazy. Exhausting and unclear. I HOPE he can stay at this place and makes me angry they would discharge him. they are supposed to have an Alzheimer floor and they said they did but there was no room on it. I am feeling overwhelmed, angry and stressed.

Dad's house should close soon. I will go up to the closing myself and sign for him., Not bringing Dad.

I will sell his car this week (list it and then if not sold, sell to Carmax) and trying to get a handle on his finances

Dad is not the Dad I knew even 4 weeks ago.. he is progressing VERY fast downhill

Sad, upsetting stressful

Have a senior law attorney friend. called him and he helped me through all the above but he says it sounds like Dad has frontal lobe alzheimers .. the aggressive kind?

HI all

6 homes update.. 2 years 9 months to go until paid off in full.

Having inspections of homes done thsi week to uncover any major repairs needed so I can take care of those all this year and be done with it or at least save for them.

short term insurance lady moved out. House looks immaculate. No work needed. Already showing it and getting positive reviews. Trying to rent for $1200 ($235 less than her rent but she had a short term lease)

Section 8 (long term lady) moved out Friday. Section 8 paid rent already for the month. Unless they ask for it back which they normally do not, I can keep it. this house needs a rehab (tenant lived there for 8 years or more). So anticipating, paint, flooring, will udpate light fixtures, faucets as needed etc. Few thousand. Property manager looking at it today. Extra rent will help float me for the few weeks it will take to rehab

Another section 8 lady (lived there 20 years) may move out.. fingers crossed she does not but may because house is getting too big for her. If she does we can anticipate the same as above.. fully rehab/update.

I am complete trimming ALL trees among all the homes and 3 units. Trying to do long term maintenance type things and keep these in good shape.

Just diarying

Hi all

Networth and mid year check

Met these goals
1. fund ROTH
2. save/investment increase at least $35k (still saving!)
3. 1 roof for 6 homes

also SOLD Tahoe and paid off Genesis

Still trying for these goals
1. make all 6 homes/3 units payment, keep rental emergency fund at $15k, raise rents by $400/month and stay within maintenance/vacancy budget

Picture is net worth.

I feel better and better w this 6 homes inspection. It will allow me to accurately forecast any other major repairs needed.

News on that when I get it set up.

HI all

I never had the 6 homes I have properly inspected before purchase and long timers on my blog know that that was a mistake. I do not like the uncertainty and not being in the know so I am going to get them inspected now. I got a few referrals so calling and getting someone good to walk through then inside and out and point out any major issues. Not sure of cost yet but I feel it will be worth it.

These are long term cash flow properties so need them SOLID.

Property manager and I are thinking of pulling another home out of section 8.

I may be coming into a $10k bonus so if so will devote that into making these homes 'solid'... some may be fine already.

Still saving as much as I can and having less stress w the homes but having an inspector guy to review the homes will be helpful

also attend the landlord meetings next week

Hi all

Dad reported me to 911 for theft today. I took his car this week on the Dr and facilities recommendation. Reason for the recommendation is his confusion, weakness, inability to do 2 things at one time (look at street signs and drive) , confessed almost rear ending several people the last time he was out, likely potential for him getting lost and the last time he as out (right before the car was removed) he got lost for 4 hours and had to rely on a good Samaritan to drive him and the car back and they had to stop at a few different assisted living places until they found the right one.

What if he had hit someone? What if the good samaritan was not so good?

Anyway I talked to the police who were fine w it but they recommended I re-explain it to Dad tomorrow night which I will do,

Meanwhile Dad's girlfriend (in Wisconsin) sent me the the following email:

Your Dad just called to tell me you stole his car. He said he noticed it was missing about 0900 this morning and reported it to the front desk who said 'your daughter has it'. He did say the police were there and you would be coming by tomorrow around 4. He plans to steal his car back from you and take the keys 'violently'. Take (boyfriend) with you. He said he just doesn't understand why his car should be taken away just because he got lost. I said Sunrise and Dr. XXXX recommended you not drive for the time being. He said I should be 'on his side' and he needs to drive to work. He said he was packed up and ready to drive home. Finally he became exasperated with me and told me he was going to hang up.

So very difficult .. one day at a time.

Dad is being further evaluated this week. And I plan to continue to hang on to his car.

HI all

Just musing here.

Dad has made me realize or struck home that life is REALLY short. Seeing him confused is VERY SCARY and makes me want to make the best use of my time and to watch my health what I eat, drink etc.

I do not want to waste time with things I do not want anymore or 'settle'. So re thinking some things in my life.

Anyway

rental updates.

The drama w the homes and 3 units is leaving me which is nice. No dramatic updates. Moved in those 2 folks. Got 4 renewals on the 3 units.. 2 more for the Fall at the much higher rent and we are not concerned. NO MAJOR work needed immediately. I could re-side the place but no need too. I just did a major tree trimming.

City inspection is quoted and funded.

Laundry money is UP

6 homes
1. short term lady moving out next Thursday. We start showing Monday and have 6 possibles lined up to see it. Hoping it rents soon.
2. Property manager is now a preferred vendor with that local insurance company with people in need of short term housing due to fires etc. He just filled one of his other homes at a $500 premium. Mine was not available yet but bodes well for the future that we may be able to do that again
3. other long term lady SHOULD be moving out end of this month. hopefully she is but my guess is maybe not. that house needs the rehab (not quoted)
4. everyone else is fine. I have section 8 inspections on the 4 homes every year and they are not fun. Inspectors appear to want to find something every time. I may look to remove other homes from the program. Others are doing so and Section 8 housing is hard to find. I am tracking how much they cost each year
5. repairs in general are down across the homes .. like break/fix repairs which means the proactive approach has worked
6. got to do some landscape work on 1 home but really feeling fairly in control

I am now forecasting that even with all the repairs I will end the year with $15k in that account and am holding onto $8k to fund forecasted repairs outside of the $15k

Job is fine..working 50-55 hours. LOTS of money but tiring

I need and now have a goal to find HOBBIES, interests, friends outside of real estate and my not for profit

I am in general unsatisfied w my life and want to be happy. No reason to wait to do that until the homes are paid off. I am seeing someone and am in general not satisfied w that too or just stressed or both. I will make some decisions on that in the next few months.

I am trying to get my arms around Dad's finances. He has much more than I had thought and all (ALL) of it is in cash accounts. I want to speak to someone to hep me consolidate and put that into safe interest bearing accounts.He will have about $1MM total cash after the house. any thoughts for advisers or what to do w the money? Plan was to keep a year worth of costs out of the market and invest the rest??

Also house should sell and close in these next 3-4 weeks..

he is not doing super awesome. VERY confused. Very bad. Last week he got into his car and got lost for 4 hours and was found by a good samaritan and driven back. We took away the car and he has an eval next week to see what stage of dementia/alzhemiers he is in. He is NOt happy at the assisted living place and I am not sure how to act. Is he not happy because he thinks he is on an airforce base being forced to re-enlist or am I holding him against his will in a place he does not want to be at? Do I act for his safety or his happiness and he is so confused not sure what to do

He says 'he hates himself, hates his life, wonders if I hate him and he wants to kill himself'

very bad.

Hi all

Still putting a good amount of money in savings..$20k so far for the year not including the 401k

Expecting $14000 of fix up costs this year on the homes/3 units. Got $8000 towards that with only $6k left to find/earn/make up. This math will keep me at $15k emergency fund by end of year which is my goal

I was thinking of taking out the $15k rental fund from my networth calculation. what do you guys think?I really will not use it for anything but real estate . and need it that high for the first few years to fix these up. weather changes..maybe just in general ALWAYS keeping $15k

Two houses move outs at the end of the month. Already showing one... and have fix up work on the other so will have to fix up/rehab first and then show (more downtime)

So far. got 3 units turned over or re-leased at the 3 units (6 total units).. All at $600 ..all look good. I also raised the security to $900. NO current vacancies. Waiting for this one guy to get out or re--sign his lease at $600 for June 1 and then got 2 more who renew in a few months. So after these homes and this guy and this fix up work. things should quiet down.

Overall happy w the rental property manager change but want to fine tune it. These homes are long term. need to hone my process and relationships to lower stress and tighten things up.

Dad gave me his guns. selling for $2000 approx (on consignment) that will go towards the rental fix up.

INVESTMENTS. how do you guys allocate? I have been reading up on this and thinking about doing an investment policy statement with my long term goals and strategy. . currently thinking.

10 % bond
15 % international
75% aggressive stock fund

All at Vanguard.

What are your thoughts. Thanks

Still plan to refinance the house in August to a 15 year loan with closer to a 3% rate. currently at 5.35. This will not change my payment significantly. possibly raise it probably $300 a month.

GOALS w status.

GOALS FOR END OF YEAR 2015
1. $15k rental EF-POSSIBLE but need to rebuild fund by almost $8k by end of year to make this goal
2. $35k increase in savings/investments-DONE and striving higher.
3. 1 Roof for 6 homes-BUDGETED AND ORDERED
4. Decrease negative cash flow on rentals by $400/mth-VERY POSSIBLE but pending, at $380 increase now but taking a $235 decrease on one and further increases pending still on 5 others.
5. Stay within maintenance and vacancy budget for all rentals-VERY possible still
6. Make all 6 homes/3 units payments-VERY LIKELY
7. Fully fund Roth account-DONE

Hi all,

Been laying low. traumatized by this 'Dad situation'.

Dad is in assisted living and not liking it and all sorts of issues. We did get a contract on his house which he signed ..no close date yet.. house is in Wisconsin..but he is very confused and upset. I have a POA for finance but no access to his account. Girlfriend is leaving and sortof dumping everything on me. I am struggling to catch up and learn everything. Takes LOTS of time.. need to get handle on his accounts, assisted living, bills, house et..

Overwhelming and Dad and I were not close. Weird. not sure how to act or what to do.

Anyway. unfortunately makes me think of how life is so short. VERY SCARY seeing Dad like this. so looking into long term care insurance.

Rough quote $1770 a year with inflation protection for $4500 a month of care.. you pay that amount for life. That was a rough high level quote . may be less or more based on more factors but overall MUCH less than I had thought.

I had one major event. TIA (mini stroke) at 36-37 due to a PFO (opening in your heart that did not close after birth. they check for thsi in kids now but older folks find out when they have a TIA from it or die). anyway. they closed the PFO ... no residual effects, no meds. but that counts against me and if you have 2 you are uninsurable.

I have an indepth interview/webinar to get a clear quote etc then you need to apply and wait 6-8 weeks to be accepted.

What have other people done? They have less benefits than $4500 (w inflation adjustments) for less cost and most likely I will have the rentals.

Does this offset the need to save so much for retirement?

I AM REALLY freaked out and aware of how short life is w seeing Dad.

is dementia at 76 early? or normal?

REALLY feeling the need to retire early and figure things out w this pressure of not having enough time left..and seeing Dad deteriorate at 75

Rachael