Home > Updates, buying a 2 flat and the 5 year plan.. almost there

Updates, buying a 2 flat and the 5 year plan.. almost there

June 23rd, 2017 at 02:34 pm

Hi all

Some updates

I paid my real estate taxes (first payment) and paid off the 2 flat ($22750). This 2 flat payoff was a $5k discount. To do that I had to cut into my rental emergency fund and that is now down to under $3k. SCARY!

I got renewed at work by the way through 12/29. Good news. It is easier to get renewed at year end or year start so I anticipate being renewed again.

I am working some 78-80 hours a week almost every week due to a rocky implementation. Reminder.. I work for a large financial services company that has 'the banks' as its customer. I help lead the largest account for that company. Crazy hours lately. not the norm.. but these hours will subside but for now are good as I need the money to catch up quickly. I chose to work on contract so I can get paid for every hour of work.

I put an offer in on a 2 flat owned by the head of my property management company. He does not have time to fix it up so is selling to me at discount. However the 2 flat next door just sold for $124k in a few days. He was offering it to me at $65k. Hoping he does not back out. It needs $20k of work .. much of that due to paint, drywall and then all new windows throughout (currently stickered for boarded up windows). I will have news today as to if this deal will go through. Hope it does. Deal is $40k down and seller holds a contract for $25k over 3 years at 5%

Numbers below.

My plan is to get the money from a equity line of credit on a rental property. I have initial approval on this loan but need to submit docs. I will do so thsi weekend. Line is 2.9% for 6 months then 5%.. and starts with only a $50 fee. Crazy good deal!

My 5 year goal ends 6/2018

My plan is to buy this 2 flat (fingers crossed), set a reasonable time frame (4-5 years from now) to get it paid off, keep working this high dollar job through 6/2018. saving as much as I can....My large payments end 3/2018 (3 units payoff). After that pay off happens I will divert funds to investments not house payoff. I also plan to increase the rental fund to $25k by the end of the year.

Any ideas from the group

Have not made a decision on school. but need to make a decision on if I enroll in the Fall or not with in 2 weeks. I will NOT quality for aid.. Moody Bible. Masters in Spiritual Formation and Discipleship. For fun and to get a job in a more helping helping training field in social service or with the church

6 Responses to “Updates, buying a 2 flat and the 5 year plan.. almost there”

  1. LivingAlmostLarge Says:

    Wow, how do you find such great multi-units at such a reasonable price? I mean how does it work in RE to find these sort of deals where a $65k property or even $124k generates $3700/month in rent?

  2. rachael Says:

    I wish I had that deal!! Trying to figure out where you got to $3700/month in rent. My numbers above are showing $960 net rents per month after max expenses. Repairs and maintenance and lawn are estimated high. But still almost 14% cap rate so exciting.. Oh I see you doubled rents. I am anticipating $1850 rents. as total of BOTH units. so approx $950 each..

  3. rachael Says:

    I am just seeing that one of our long termers on this blog is over $900k in savings.. it seemed like just a short while ago she was at $600k +. I only have about $310k. what she said is so true about how large savings amounts can muliply quickly and easily once started. I am hoping to be over $500k savings by the end of next year.. but it may take longer than that.. not sure I can make my goal even this year.. After $500k though, with the income I have from the rentals, that should grow relatively on its own. I will still contribute but wont feel so urgent about it

  4. Bluebird Says:

    Great job Rachael!

  5. rob62521 Says:

    Way to go! Your hours sound killer though.

  6. LivingAlmostLarge Says:

    When was she at $600k+? And how long to $900k? We're up $230k for the year. I am hoping to match that next year or more. Let's see what we can do.

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