Home > Back with lots of updates

Back with lots of updates

September 3rd, 2018 at 05:00 pm

Hi all

Some updates over the past few months. overall things are up and down.. still stressful.

1. Work. I am still at that company that wants me to work downtown. Since my last post they have been saying. "we will just work downtown through June", then thru July, then August and now it appears never ending. I am required to be onsite Tues-Wed and stay overnight. I really dislike 'traveling every week, packing up, staying over, working late'. I was only passively looking but I did apply for and interview somewhere else. I did really well but did not get the job. My Israel trip is Sept 28 so will stop really looking until after that. Company hired 12 other full timers since last post and I am the only contractor. I continue to have nothing to do, no official role, and feel my job is not stable and is at risk. The word is that the company is going back to the full timer model (vs contractor). I did switch to W2 so I could maybe find another house
2. I signed a contract on a house.. $433k. My house is expected to sell around $530k and is on the market as of Saturday. Close date Oct 17. I should find out this week if I can hold both homes at the same time (short term). The new house is in downtown Naperville (which I prefer better than my outside of downtown subdivision). It is older and needs some work but is selling at a price point of $182/sq foot. Average is $238/sw foot and based on my estimates and quotes I can raise the value easily to $238 or more like $250k. the improvements I have in mind are likely to bring it to $600k+ based on comps.

I am nervous about this house as I do not have the loan locked down yet (expect approval Tuesday though) and those who have read me a while knwo that my last loan attempt fell through at the last minute. I have until Sept 25 to secure loan approval and expect news Tuesday. If I can not hold both loans for a short while I may be in trouble trying to sell fast enough to do a dual close and may back out of the contract.

Really need prayers.

The reason I signed a contract on a house was because I really do not want to live here anymore, I have nothing in common w anyone, for some reason I live by all sorts of dogs who bark all the time and I want to lower my monthly payment and get unstuck. I have wanted to sell and move for a while.. a LOOONG while but never got the courage up and homes were too expensive. To find a $433k house in the heart of downtown Naperville with almost 2500 sq feet, large kitchen, good floor plan,basement w high ceilings that can be finished, and large rooms is an amazing find. AND the ability to get my money out immediately if need be.

I did not sign up for school as I can not really concentrate on school w the work situation and will be out of town part of the quarter w Israel.

I will likely restart school after the new year.

Rentals. I am thinking of sellign that new 2 flat. I will talk to realtors and my property manager Tuesday. I should net $100k

I pay all taxes today. This is my last big milestone. I have not really pulled much from the rentals as I have been 'catching up' on the tax escrow.

I put down $10k on the new house (from my personal emergency fund). I was able to pay that back in full from the rental proceeds this month which to me is huge.

After I close on this new house, do the 'bulk' of the work I want to do on it I want to re-evaluate jobs and what I want to do. Right now I need to keep this high dollar job for the loan.

I will update on the loan and house situation as it develops

I reached the end of my 5 year plan and need to set NEW goals..and a new plan

3 Responses to “Back with lots of updates”

  1. AnotherReader Says:

    Yes, you do need to draw up a new plan and set some goals. You are floundering now.

    What will you do if you get a solid contract on your current home and then lose this job? You will be stuck with no home. In your shoes, I would sort out the job situation before making a commitment to sell and buy. Accept being dissatisfied with your living situation until things stabilize. Other opportunities will come along.

    How about you start with a summary of where you are now? What are the income and expenses of your current portfolio, allowing for taxes, maintenance, and capital improvements? How much of a net income can you expect from this portfolio? How will that change if you sell the two-flat? How much will your net income improve if you pay off the two-flat? If you did not sell your current house, would the realistic income from the properties support you? If you were able to do this sale and purchase, would they support you then?

    A house deposit is not an emergency. Your emergency fund is for emergencies. Start a separate savings account for major purchases such as houses and cars. Your real estate business is one that requires cash reserves, especially since your employment is unstable.

    Overall, you have done an exceptional job building your portfolio and investing your savings. You are good at planning and at achieving goals. You will benefit by doing some planning now for the next five years.

  2. Rachael777 Says:

    as always good hard hitting advice.let me go through those#s tomorrow and post. thanks.

  3. livingalmostlarge Says:

    Congrats on accomplishing the goals. Can you extend out the close of the new house? Or is there really a problem closing on the loan?

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
Will not be published.

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]