Home > Archive: March, 2014

Archive for March, 2014

Settling up w the 2 flat renters

March 31st, 2014 at 01:16 pm

It looks like BOTH renters will be cooperative w settling up through end of May now.

Renter 1 (upstairs) moves out today but broke their lease.. they owe me $805 more which is due next week (and some will go towards utilities.. $400-500) but they settled up through end of April .

Renter 2 (downstairs, w egress window issue) is settlng up through END of May tomorrow and will turn the utilities on in their name. Once all monies come in I am essentially done w this place. Sells 4/17.. confirmed 30-45 days after

This means I can ask that guy (lender option #1) if he can refinance me sooner out of this hard money 12% loan for my own house. He said he could after I owned the house for 12 months.. since I owned the house before the refinance for 8 years hopig he can use that timeframe or stretch it.. only caveat is the house is in my LLC name now and was in my and my ex's name.

We shall see. I will contact him end of May/June (after sale confirmed)

I also have court on the egress window. I was ticketted. Court is tomorrow and I was given 30 days to get her out. She is moving upstairs so hoping to just show hte new lease, pictures and move on from that too.

More news tomorrow on ticket and settling up.

Monies from settling up will just go towards savings. I am due $1800 more but $400-$500 goes towards utilities so will get approx $1400 to use and from now on I have to budget WISELY to make this hard money loan w no 2 flat rental money assistancce.

I am on contract at work get NO paid vacation. was thinking I need 2 more small funds (car maintenance/repair, and vacation.. a weeks vacation is a loss of approx $1650 net.. I want to save that so vacation is an easier decision). Where would I keep small funds like that? What do you guys do? I want to keep them separate.

Talked to property manager and ? on Roth/HSA

March 28th, 2014 at 02:36 pm

Hi all,

This is a big month for me. I lose the 2 flat.. and all the rental income that goes along with it. I meet w the tenants today and this weekend to settle up. I am trying to settle up through 5/31.. I have little leverage but things look good.

Without the 2 flat.. my first paycheck does not cover the payments due from the 1st through the 15th so I have to save from the 15th check or in general. Cushion I need is $1200-1500. I will build that now and leave it in my account.

Put $4000 more towards the rental emergency fund. I decided (barring major issues or uncertainty) I will keep the rental emergency fund at $30k (after I pay for 2 roofs) I still need to come up with $37b total but will then leave it at $30k..

Talked to old property manager (it is done!) and will follow up in writing. he is not happpy to lose the account... wanted to know what he did wrong, can improve. I said we can talk next week if you want. He wants (and per contract) gets 60 days so means new one takes over as of June 1.

I do not want to ruin the relationship w him and am checking with new PM if she has a person to refer me too should she no longer be able to property manage for me.

I am looking to turn over one of the homes from Section 8 to non s8 in the meantime for a rental increase of almost $200+ a month. Old PM wil handle that because time is so good to rent to folks.

Maybe not a good time to introduce more uncertaintly but I am doing it. S8 is guaranteed til the lady is out and we gave her til May 1. House should be easy to rent. Only caveat is if she causes problems showing but we will find that out next week and can bring S8 in to intervene if necessary (fingers crossed)

Still need to talk to Ma and aunt for $7k
No new news from guy who owes me $6000 but he is in regular contact so feel once it warms up his motorcyle will sell and I will be ok.

Does it make sense to contribute to the Roth/HSA now or wait til rental emergency fund is built? my guess is wait but wanted thoughts.

Thanks all.


Just had idea. I can offer current tenant $100 incentive as a 'sorry for short notice' and be cooperative w showings. We are basically terminating her lease suddently with 30 days notice.


OUTSTANDING news, "ok news", and feeling stuck!!

March 26th, 2014 at 01:03 pm

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


$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.

Quick question-best HSA account? 401k vs Roth?

March 20th, 2014 at 02:57 pm

Hi all

I have a high deductible insurance plan and got one because I am in fairly good health.

Any suggestions for the best HSA account?.. it seems like all have fees (unless you have a large balance). I would only put in $2000.

HSA Bank is fairly well rated.

I WISh I had more savings and am feeling I am 'still shoring' things up! Which is good but less exciting them saving and investing for growth.

I wrote down the basics of the Roth, 401k, HSA so I am clear on withdrawal rules, limits, tax deductibility.

Trying to learn!

And what are peoples views on the 401k vs Roth?

Do one (which) or both?
Thanks all.

Possible news today!! taxes, 2 flat, aunt, property manager

March 19th, 2014 at 01:31 pm

Hi guys

I get possible news today on TAXES (hoping for a BIG refund, $10k+) and my aunt may give me $7k.. Talked to the guy who owes me $6000.., motorcycle has not sold yet but he is thinking by June. I will put most of this money towards the rental emergency fund (got $26k left to fund) and the other goals on the left.

I have a big go live this weekend (hopefully goes well) will ask for my extension (going for a year) either end of this week (if things look good and boss in a good mood) or next week .

Boss is gone the entire month of April.

It is raining here but a nice spring rain and I can smell the earth and plants.. wonderful!

Also talk to property manager today (possible new one..) to confirm we are all set for the 6 homes. She wanted to review leases etc first and then will talk to the existing PM.. and cancel his agreement

2 flat update.. Guys upstairs are leaving April 1 (they are paying through May 1_) lady downstairs who was stickered may move upstairs. If so this means she is in a legal apartment. Plan is to settle w her through the end of May, have her switch the utilities to her name and 'walk away'. House sells 4/17 and remains in my name for 30-45 days afterward util sale is confirmed. Renters can stay through term of lease or 6 months whichever is less.

Have a great day guys and keep pressing forward.

I feel I am getting things done and smoothing things out so I can move forward.

WOW!! Personal emerg fund complete TOMORROW--any higher rate options?

March 13th, 2014 at 08:58 pm

Hi guys

Added $1287 more to the personal emergency fund.., got approximately $500 left to go to reach $18000 and then that goal is REACHED!! I get paid tomorrow and per my projections will have the cash.. so finishing it up tomorrow.

(jumping up and down)

So.. if I get the ok for the job contract renewal in the next week or so..are there any higher rate options for this for 6 months or a year (will find out term of renewal too). Any ideas.

It is currently at Barclays at .9

I would not have been so motivated (and CONVICTED) without you guys. Thanks!!


just venting-taxes, new property manager (need thoughts)

March 13th, 2014 at 03:29 pm

Hi all,

In serious need of a vent... feeling very stressed

My taxes are still NOT done and I do not know how much I will get back (it will be between 7-14k I believe..) Accountant is still working on it (or not. he is swamped w corporate taxes this week). My accountant is now saying next week. Crazy upsetting. I know he is swamped but I feel jerked around.

Good news.. my 3 unit property manager IS interested in all of the 6 homes. I had a great talk w her Saturday last week. I am nervous about how to talk to the existing property manager or how to engineer the change

Contract w current prop manager is dated 5/1/13 for a termn of 1 year and says I need to give 60 days notice to cancel, basically account for all disbursements, rents etc up to the time he has the properties. so figure I give notice this week?? but what do I say/I do not want issues and what if the 3 unit lady does not work out? I just let him go from the 2 flat but it is being sold 4/17.. and he had no issue. would not have wanted him on that long term either.

Any thoughts guys?

Anyway I am feeling the switch will be great/awesome. I have so much more confidence in her but nervous w so much at stake and things are tighter right now as I build my emergecy fund (and still do not have taxes, money owed to me etc, just took over hard money loan, asking for renewal at work next week)

Jsut feeling stressed (in general) and it is coloring my view of everything and an extra 10-15k in the rental fund would help that.

Anyway. I am so frustrated w the taxes thing and still trying to SMOOOTH out my life by being prepared for emergencies and having a plan..

Question-retiring early

March 12th, 2014 at 07:23 pm

Question guys. and I know there is all sorts of advice on this on the web but that pertains mostly to saving $ for retirement and how much to save. but trying to figure if I have monthly income how much to save and I guess trying to figure out what I want too..

I was at a get together last weekend and 4-5 people were RETIRING at 53 or something. They all worked at a company their whole life and had pensions etc.

I do not have a pension. but I want to retire early..

So.. if I were to retire in 5 years (is that realistic? 7 years??) I figure I need the house paid off, emergency funds built for me and rentals, the rentals paid off and how much in the bank??

Rentals will throw off between $5500-6000/month NET.

Monthly estimated costs (w house paid off). These are estimated high and not my true costs now

$1200 real estate taxes
$450 health insurance
$400 food/household
$400 travel entertainment misc
$350 gas for car
$100 house insurance
$350 utilities
$100 phone
$220 cable/internet
$350 car allowance (to save for car or for repairs)
$300 misc??

$4220 a month.

I do not want to retire and do nothing. more want to feel I do not 'have to work' making a big time income. Always been the thought but seeing these guys retire on pensions made me think about it much stronger.

So how much do you thikn would be a fair savings amount? $500k, $750 (to add to my monthly net income)

thanks for any and all feedback

I know I have low savings right now but I will work on that once I have a #. My original goal was $300k in 5 years I think I want more than that.

General rental and other updates

March 6th, 2014 at 03:36 pm

Hi all,

Quick update and diary keeping so I can read later.

Added another $500 to the personal emergency fund today.. ALMOST THERE.. approx $1800 left to go to finish that

First payment to hard money loan done.. WOW

Taxes not done yet.. still working on raising refund. initial hope was $14000 (WOW..) based on a quick look and loss carry forwards.. however loss carryforwards expire or go away w the home they are for.. a more detailed look Tuesday by the accountant put me at only $7000.. he is seeing if he can revise it.. reason for MEGA decrease was because some of the loss carryforwards were on a house that went away. News soon hopefully

Still need to talk to my aunt who pledged $7000 in the past if the house came through (which it did!!)

and that loan I am owed $6000 (figure that will come in the Spring)

All rents basically in.. no issues.. still need to talk to water company on reimbursement

No new news just waiting.. working on house (fun stuff and tightening up) and hoping for warmer weather

Also trying to 'do well' at work. I am up for renewal in June but will make the request late March

Have not worked or started consulting stuff. been stressed w not for profit that I either need to give away or clarify and get control over (feels out of sorts and running a little off the rails now.. adds stress to me)

Hope everyone is doing well.. lots of good news on the posting.

Can not wait til both emergency funds are built so I can start building again.


My accountant and I talked 2 nights ago and I was all stressed about rebuilding my funds and he said to relax and enjoy the positive and said I am 'almost 80% there to my goals'.. That is true never really thought of that but my big goal was to get $8000 monthly cash flow in 5 years. if I just keep the homes and 3 units I will be at almost $6000.. I am building emergency funds now (will be done this year), the rest I can invest, I have health insurance, own my house now (w a mortgage), so I think I should give myself more credit than I do sometimes. but still keep focused and take some more time to have fun too.

Interesting history and GOOD NEWS rental updates

March 3rd, 2014 at 03:15 pm

HI all,

Guy who was moving out of one of the 6 homes .. moved out! AND we got someone who moved in on the 1st.. at $50 more and we still have that garage to rent. Trying to cut my losses every month. So far in 11 months. I have cut the estimates and averages by about $1680 a year. This will be the year of rent raises (fingers crossed) and renting that garage trying to cut it more... expecting taxes to go up this year too.. so looking at every cost. only costs I have are maintenance/repair, management (can not reduce) and vacancy. Opportunities to get more income include that garage, raising rents and laundry at the 3 units..

Anyway.. found some old notes from 2008. with what I had then.. interesting. I tried to figure out what I would have had now if I had gotten 8% interest for 6 years with no further deposits.. (on the right side). Something to look at. I want to make up what I had and more.

News from ACCOUNTANT TOMORROW..(hoping for big money big money big money) on my tax return.


and the hard money payment has not come out yet.It was due to be withdrawn the 1st.. so should come out today.. I am feeling 'sortof on hold' as I wait for that to come out.

Have a great day all.