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Updates-turning 50

October 10th, 2020 at 12:40 pm

Hi everyone. I am turning 50 on the 15th. big milestone.

I am still working hard paying down my 'house fix up debt'. My goal was to pay it all off by year end. I am likely to have less than $20k left. House is very nice and in a great location. I thought of selling it as it is huge for just me but felt the stress of moving was too much for me (after doing house construction for a year and a half and the chaos and virus right now in the World). I am staying here at least for now. House is unlikely to lose value.

I am still working my project management job. Pretty stressful job as a whole and just this week the bank I am at announced 50% reduction in PM staff due to a re-org. I work on contract and was 'up' 12/6.. They were going to reduce that to 10/30 but since I am leading a high profile project (and hopefully good at what I do) they extended me to 12/31. This is that company where you can leave and come back in 3 months but can only work 23 months at a time. Not sure if that still applies w the re-org or not.. ie if there will be demand in 3 months after I leave. A preliminary look at jobs though it appears I can find something if need be...and most project manager jobs are remote now so easier

Thing is I really want to get out of working the 9-5 thing or maybe just switch from this field or get a job where I am more active.. less stress... more activity

Rentals are key here. I am in the process of switching property managers. The old one was going more into condo associations and my properties were being neglected in a huge way. late sending of rents to me, late filling properties, maintenance not kept up etc. The new guy so far is FANTASTIC.. head and shoulders above the old guy. I am really enthused. I got rents from October 2 days ago from the new guy. The old guy is still figuring rents from September.

The new guy gives me LOTS of confidence and excitement that I can regularly count on the rents for income. I am currently forecasting an average of $7000 NET rents a month and this is with a real estate tax escrow. Some months I may get more.. as my budget includes high vacancy and maintenance figures which month to month are less so far then expected. I did not escrow taxes last year as I was paying for the house fix up so ended up having to take 4 solid months of rental income and put it 100% towards taxes. I can not do that if I plan to live off the rents as primary income. My monthly personal living budget is $4600. Most of that is the house.. $2352 and health insurance $514. I am currently auto saving $500 a month, doing 3% 401k (they limit me) and using 100% of the rest to pay down the house fix up debt. All rental income now goes to the house fix up debt as well.

in either case.. lots more to share.. I will share more in upcoming days. I think I am planning to find another contract in January just to pay off the rest of the house fix up.. and use these next 2 months of this contract to explore other fields, income producing activities. The thought of wholesaling real estate and/or a blog appeals to me

We shall see

Refinancing the house from 5% to 2.75 this week. big change!

Glad to see a lot of the long timers still here. I am wishing everyone well. It seems so long since I started this blog and reading back over it is fun and reminds me of how crazy it was at first. Do any long timers remember when I bought the first 6 homes and did that short refinance on the house?! I am not sure I could stomach that stress now. I think though when you have nothing to start with you have nothing to lose so risks get easier. Time does go by!

Have a good day all. Smile

6 Responses to “Updates-turning 50”

  1. Wink Says:

    Happy upcoming birthday! I'll be turning the big 60 at the end of the month. Something about a birthday where your age ends in zero! I do remember back when you were posting about the first 6 homes, and while I don't remember all the details I do remember the stress you were under. Sounds like things are going much smoother now!

  2. Petunia 100 Says:

    Hi Rachel! Yes, I remember when you first started your blog. You achieved your goals! That's wonderful. Smile
    I hope that you have a very happy birthday.

  3. CB in the City Says:

    I, too, remember when you started your blog and laid out your plan. I was amazed, but I always thought you could do it. Your energy leaps off the page!

  4. Laura S. Says:

    Happy Birthday!

  5. rob62521 Says:

    Happy birthday!

    I chuckled over your comment about starting out and taking risks...I think as we learn more, we realize how big some risks can be and if we want to struggle that hard.

    Hope you can find a job you like far better.

  6. late.start Says:

    Happy birthday in advance. You are an inspiration. I hope I can follow your example and eventually get to a place where I can also live off rent and can retire. Congratulations on it all!!

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