Home > 6 homes transition update (not good), and other misc updates

6 homes transition update (not good), and other misc updates

July 1st, 2014 at 03:31 pm

Hi all,

Too many updates!

$65/hr job proposed start date is 7/21.. will give notice once I have the contract.. today?? but no 401k for a year!! will have to save in taxable accounts

Got a call for a $65 contract to perm job in NAPERVILLE.. put in for it.

Also I have an interview for $60 work at home job..


Loan submittal sent today.. hoping for good news by Thursday (prayers).6.25%.. 2 points.. need to exit this loan asap.


6 homes transition..rocky .. I am pulling out $10k from the emergency fund today for roofs etc.. s8 lady has not moved yet.. but still getting rent but upsetting.. have a call into s8 and property manager is going over there today to see what is up.. house next door did NOT pay second half of last months rent 565 missing and concerned for this month.. property manager is going over there today.. when it rains it pours. putting in new sump pumps in both homes and a french drain.. $$$$$$$...I have never seen so much rain in a year!! but all fixes from now on are long term..and done well. just lots of MONEY and rental uncertainty which I do not like... just feels very up in the air right now and a rough transition. upsetting. news hopefully today on rents and status. Property manager is meeting w ALL tenants in this next week or two.. walk thru homes. form a list of things needed.. money out the door but it will be good to get these back in order and running smoothly..

PRAYERS for money and some resolution (good resolution on the above)

8 Responses to “6 homes transition update (not good), and other misc updates”

  1. SecretarySaving Says:

    I don't know why you continue to put up with being a landlord. It is more of a pain than a blessing. Dealing with Section 8 and the tenants and refinancing and upkeep. Why not sale instead of keep feeding it? You can't afford it. It's too much debt. If you sold the 6 homes and the 2 3-units then you could put a dent in your mortgage.

  2. Another Reader Says:

    Rachael is following a time-tested path to wealth. She is using leverage to buy income-producing assets that her tenants will pay off. Real estate is tax advantaged, and any appreciation in the properties accrues to her, not the lender. Once these properties are paid off, she will be financially much better off, and hopefully in a position to retire early.

    If she sold these properties today, she might realize a small gain, but she would be taxed on the gain and on recaptured depreciation. Whatever she netted would certainly not clear the mortgage on her own house.

    In her field, not many people work to the standard retirement age. IT is a young person's field. Rachael will likely be able to retire by 50 with a nice, tax advantaged income at the rate she is going. While she continues to work, she will pile up investments in her tax deferred retirement accounts. She's also investing non-retirement money that will give her an even bigger cushion.

    In my opinion, Rachael is doing an excellent job in the face of what for most people be overwhelming problems. To have come this far so quickly after filing bankruptcy is a testament to the effectiveness of her approach as well as to her tenacity. I might have done things differently, but it's hard to argue with success.

  3. Rachael777 Says:

    All thanks for the feedback. especially Another Reader for the much needed support. it is a hard road sometimes mostly because everything is all at once and ACCELERATED and and I am still settling things from the past.... 'Secretary Savings''.. the 6 homes and 2- 3units are big part of my retirement plan and I think a good one. With losing everything at 40 I do not have time to just 'save and invest for retirement'. If i want $3500 a month retirement I need to save up $1.2 million (25x proposed yearly income). That is just not happening.. With the homes.. by April 2018 I will have $3200/3500 a MONTH NET cash flow and with the 3 units (approx 1 year later).. approximately $2300 MORE. I am also killing myself basically saving (paying my savings accounts first), cutting costs and just whatever insane stuff I can think of WHILE trying to relax and have a life. I am target now to have $300k in 4 years, $6k cash flow but not my house paid off.. Anyway..good news today.. renter was contacted (property manager was out of town for a week) and she is paying but may want to move out in a month (Dad had a stroke, has to go to UIC med center).. property manager see her Friday for final update...So may have to turn that over too. will give me an opportunity to fix up anything and get more rent... but costs involved. Homes were in 'average' shape when I got them but some large things were deferred and w the old property manager bandaids fixes were done vvs real fixes. These larger things were relatively known though and I have money set aside (thank the LORD!!) but I do not like spending the money but what is more stressful than that is turning these over (transitioning renters). that is why I want this s8 lady to just LEAVE already so I can figure costs and raise rent by $2-300.. So. no (overall )regrets w 'the plan'.. just a scary lonely road sometimes. I suspect I will get more support after I cross the 'halfway there' mark. I do believe in it. thanks for the comments. I have $970 in extra built into my monthly budget for the homes and w the new PM hopefully that will go towards long term fixes, improvements vs bandaids,. I am REALLY hoping she can turn these over quickly once folks move out... the other guy (though bad in a lot of ways) was very aggressive w renting things out.. I NEED that ( and the refinance on my house. haha ) Smile

  4. SecretarySaving Says:

    Another Reader - The time tested path to wealth is NOT debt. Debt is what gets you into Bankruptcy! I am very aware of real estate and I am also aware of the debt to income ratio and risk.

    We as tax payers pay for Section 8.

    I wouldn't limit someone's career it is what they make of it. A lot of people have to stay up to date in their field and can work as long as they choose to.

    You would be able to save more if you got rid of the properties, downsized to one car, paid off your mortgage and invested. That's when additional real estate would be more of a blessing. Best of luck to you!

  5. Rachael777 Says:

    I hear you SS.. if I sold the homes and the 3 units I could save more. but my goal is to be financially independent not just to save more.. I can not save my way to financial independence in the time frame I have. With the homes I can have a $3500 monthly income in less than 4 years and over $5500 a month in 5 years..with a few hundredn thousand in the bank. The monthly income will allow me to ramp up my savings even more after that.. Decisions and choices. I chose to go down the heavily leveraged realestate path.. scary.. risky.. and I hope it works but whether it works or not it WILL be a rough ride (and you will hear about all ups and downs on this forum) as I am tied to the timeframe and early payoff. thanks for the luck.

  6. Another Reader Says:

    Leverage (debt) is a tool. When used wisely, it is very useful, as it can get you where you want to go faster. Using debt when managed knowledgeably is not very risky. Individuals use debt, businesses use debt, and only a very small percentage go bankrupt.

    Who pays for Section 8 is irrelevant. Accepting or not accepting Section 8 is a business decision. It exists, and if you own properties in that segment of the market, it's something to consider.

    As Rachael says, she cannot save her way to financial independence. Investing will allow her to reach financial independence, and if she manages the properties wisely, she will be able to retire before she ages out of her industry.

  7. SecretarySaving Says:

    Another Reader - Debt is a tool when used wisely. We are talking about someone who just got out of bankruptcy and has already racked up a butt load of debt. Actually - a very large percentage of people who use debt go bankrupt. Those that don't or have very limited debt are more financially stable.

    The Section 8 topic is relevant. Because me as a taxpayer I'd rather NOT be paying for it. So if Rachel can't pay her mortgage and has to get tenants that can't pay for a house or apt on their own and have to get assistance from taxpayers to do so then they shouldn't have it!

    Rachel is more than capable of saving her way to independence and it would be a lot faster if she cut out all the money sucking debt that its going towards.

  8. Rachael777 Says:

    SS.. thanks for the feedback but I think we disagree on some points. I agree to disagree. I did want to mention that I did file for BK and have no regrets, shame, embarrassment for that and do not feel negatively about it. I chose to file BK (I did not have too) and I think it was the best decision I could have made at the time as was letting the homes go and be foreclosed on. It would havve been nice to have different circumstances but I had the ones I was given and did the best I could with them. Keeping the homes and not filing for BK, I would have been worse off than I am now. I have learned and am now on my path upwards again. I realize this is a public forum and the fact that I post about (the bad and the good but especially the bad) my unconventional journey may add fuel to some peoples fire but in the end if I am successful that is what matters. I hope I am.

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