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.
Archive for May, 2015
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
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.
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.
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
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'
We got the 2nd renewal at the 3 units. so so far 4 units turned over to $600 (out of 6).. 2 left to go . There leases are up September and November.. 3 units are STABILIZING.. yay
and got folks waiting to see the house that is vacating by that short term insurance lady. We charged the insurance company $1435 but market is more like $1200 so getting a rent decrease there on a 1 year lease.
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
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
Just diarying the journey today and should do that more often.
1. work still fine, working 50 hours a week, making more than I ever did, raised 401k to 19% from me (and get a 3% match credited at the end of the year)-SPEECH CAME BACK!! yay.
2. doing a roof and turning over a house this month (roof is $3500. house is getting quoted)..
3. 2 tenants moving out end of May... one is long term and house requires updating. one house we should be able to clean and turn over quickly
4. 3 unit "turning over bad tenants/raising rents effort" is progressing but definitely more stressful than I had thought but still on track., We DID go down in rents from our projected $630 across all units to $600 across all units. Still hoping to have the bulk of this smoothed out at the end of May
5. projecting $17,600 worth of long term improvements this year between my house and the homes and 3 units. I will have to take $7600 out of the rental emergency fund to fund that and them replace that by end of year
6. still trying to save every month. $12k saved since the start of the year NOT including 401k
7. $28k increase in investments since start of year (with appreciation and new cash put in).. goal was $35k. Raising goal to $50k for the year
8. Dad is moving in to assisted lviing tomorrow .. 5 minutes from the house. big life change for him and me.. adding stress
9. lost wallet and 6 homes check last week (caused lots of stress.. ) almost had to replace the 6 homes check ($5100)but got it worked out.
10. still planning to refinance the house to a 15 year loan in August. I am currently on a 30 year loan paying almost 5.3.. rate should drop to 3.15 or something
2 years 9 months til 6 homes paid off but hoping for an easier year next year as we raise rents and take care of finalizing the bulk of the long term improvements this year.
Have not had ANY time to work on coming up with an extra $119k to pay off the homes at the end of this year but have 2 friends doing fix and flips. t hey are newbies but are estimating making $40-60k each.. being newbies maybe it will be much less but still interesting
We will see how it goes but I have friends who are NOT newbies, more experts, who do them and DO make that amount. I need access to cash (not my own) and TIME to THINK and RELAX (has been in super short supply lately)