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Home > Feeling like progress is starting to speed up-Exciting

Feeling like progress is starting to speed up-Exciting

June 17th, 2016 at 01:38 pm

HI all

Really amazing.. highest net income month so far!
Filled that one vacant house
The other unit is filled (with guy moving in the 1st). we decided to wait for this guy as he is real good vs filling it sooner with other folks.. it is only 2 more weeks.

My total repairs (per the management company) so far for this year are approximately $5000 across EVERTHING!!

however I paid for $24500 in long term improvements and then that one house turnover. so 'repair, improvement' costs I paid for are approximately $27000

But I definately feel and SEE I got something for my $27k and the homes are improved because of it

In contract (cringing) with the old management company I was charged $27k (for the whole year) but for various misc repairs that never seemed to add up and if I were to look at the homes at the end of last year they did not look like they had that money spent on them at all

Feeling VERY good with this new management company. LOVE the reports.. love how tenants respect them and fall into line. love how things are handled

I am still on track to NET $60k this year even with my $27k improvements..This NET is assuming the homes were paid off with no mortgage... I have 21 months to go .. but tracking now gives me an idea of where I will be. AND that $24k improvement stuff I did this year. I do not have to do that again for a LONG LONG TIME.. if at all really..

Other good news..

I am renewed through year end..

I am also at $998,500 net worth. I will announce when I cross that $1mm mark.. most is still home value but savings/investments up to $247k and climbing.. still trying to hit $310k by year end

I will have completed the 401k contributions after my next two checks. that was taking 25% of my check. After that I will put that money towards savings . investments

Feeling I am starting to turn the corner!

Thanks all for the support and gentle feedback (haha) during the earlier times.

Rachael

Posted in 6 homes-rentals, 3 units-rentals, Musings | 11 Comments »

11 Responses to “Feeling like progress is starting to speed up-Exciting”

  1. CB in the City Says:
    June 17th, 2016 at 01:58 pm 1466171880
    1466171880

    Glad to hear everything is going so well! What a difference a good property manager makes, huh?

  2. Rachael777 Says:
    June 17th, 2016 at 02:03 pm 1466172229
    1466172229

    The difference is so dramatic sometimes (like this month) or when I run these yearly reports I can hardly believe the number!

  3. ceejay74 Says:
    June 17th, 2016 at 05:15 pm 1466183756
    1466183756

    Congratulations--you really worked the plan and believed in it through the stressful times; now it's all paying off. Hope with so much of the stress gone and cashflow improved, you can focus on self-care and finding time/ways to relax and have fun. You deserve it!

  4. snafu Says:
    June 17th, 2016 at 11:10 pm 1466205030
    1466205030

    Terrific news! Getting renewed until year's add removes one more stress point, having reliable rental management removes another and knowing 401 K contribution complete in two pay cycles is 'icing' on the cake. Will you take some vacation time? Spa day or give yourself some type of reward?

  5. AnotherReader Says:
    June 18th, 2016 at 01:36 am 1466213788
    1466213788

    Bulk up those reserves and pay off debt anywhere you can. More cushion in a downturn or job loss. I'm knocking out mortgages as fast as I can. I can get a better return on those than on any low risk paper asset. I transfer them to the HELOC on my house as the balances get small enough. Since the qualifying rules are different for HELOCs, you might look into one as your problems recede in the distance.

    All that "gentle feedback" probably saved you from a mistake or two!

  6. Rachael777 Says:
    June 18th, 2016 at 02:09 pm 1466258984
    1466258984

    Never thought of the HELOC idea for some crazy reason but makes perfect sense. I will look into that in the new few months.. great idea. Thanks. I also in this next year want to bulk up my 'rental real estate reserve fund' to either $20 or $25k. Can I ask how much yours is (Another Reader) Thanks

  7. Frugaltexan75 Says:
    June 18th, 2016 at 08:43 pm 1466282608
    1466282608

    Sounds like things are going well for you!

  8. AnotherReader Says:
    June 19th, 2016 at 02:00 am 1466301651
    1466301651

    I think $5k per house is workable, which is what I like to have. With multi-units, less per unit might be reasonable, because only one roof needs replacing, only one exterior needs painting, and so on. Right now I'm below the $5k figure, because I have done several roofs and a remodel of a property I just sold. I used the sale proceeds to pay off mortgages, so I am now in the process of rebuilding the reserve fund. I have more properties than you do, so in theory I should need less per property, but I'm not comfortable with less than $5k per house.

    I have three more roofs to do in the next two or three years and some other expensive work that must be done, so I am saving additional money for those large known capital expenses. I may need to combine cash flow and reserves to get the list of improvements done.

    Front loading your 401k is important when you are on contract. Just make sure you adjust your withholding once you finish contributing so the correct total taxes are paid over the year. In your shoes, I would bulk up all your savings before I put a lot of money into taxable investments because of the future uncertainty about your employment. A few months of unemployment and increased vacancy should not have you dipping into the real estate reserves to get by.

  9. rob62521 Says:
    June 19th, 2016 at 09:33 pm 1466372002
    1466372002

    Wonderful how things are going for you!

  10. LivingAlmostLarge Says:
    June 21st, 2016 at 04:37 am 1466483876
    1466483876

    Wow things are going crazy. I am so impressed by how smoothly things are going with the plan. What happens if the contract is ever not renewed?

  11. Rachael777 Says:
    June 21st, 2016 at 04:57 pm 1466528266
    1466528266

    regarding 'the contract'. I am ok through end of year so far and I have 4 month emergency fund (which assumes I pull $1000 from the not for profit or homes. I currently pull $1750 from the not for profit). I am well liked and work their 2 largest accounts so I am hoping that if they ever can not renew the contract I can just go on full time. I have been offered full time approx every 6 months on contract renewal. I know it is sortof a game of will the 'full time chair' be open when the music stops but I feel there is a pretty good chance it will and if not I normally take 3 months to find works so I can look for work or wait 3 months for work to open up full time or contract. Good point.

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