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Dad's estate and 2 flat update

March 31st, 2018 at 05:58 pm

Hi all

Looks like I will get approx $80-$83k from Dad's estate. Funds should disburse in these next 2 weeks. All will go into Vanguard


2 flat is renting and we are getting applications.. QUICK!

If I sell the 2 flat I will pull out approx $73k
If I do not sell I have to pay off approx $23k in'fix up debt' and then the rest of the mortgage ($17k) and will still own a property that I have sortof 'bad feelings' about

I will decide the plan once it is fully rented.

Nice to have options

Selling it puts me at approx $500k investments..

I am thinking of working w a life coach. feeling a little lost and directionless lately

I will pay off the 3 units next week.. we are settling up water bills which we need to do to get the tax stamps. Some tenants are late w their water bill. We are giving htem until Monday and then I will pay them and seek reimbursement.

I did not do my monthly tax escrow for real estate taxes until this month so with owing approx $33k in expected taxes across all properties (including the 2 flat which I may sell) I need to significantly up my escrow to make the June 1 first payment date and 2nd payment date of September.I have $4572 saved now.

My plan is to put an additional $4k in escrow this week and then $7k once I get the rents for April and then probably do that again next month.. and then reduce it to something like $4500 a month for future months.

I will have true numbers for cash flow after September (right now I have to subtract all these costs that would not normally happen)..I will track cash flowfor 6 months to get accurate numbers and continue to work this high dollar job and sock away whatever I can in that time period.

Happy Easter everyone!

Rachael

updates on school, refinance, 2 flat and me

November 7th, 2017 at 12:22 am

Hi all

few updates

Just finished the 3rd week of school for these courses.Intro to Theological Research and Hermeneutics. VERY challenging.. lots of writing, lots of research, lots of citations. I signed up for my 2nd 8 week series next year..I am taking Old Testament and Spiritual Formation..

So far all costs are on loans.. 6% rate..

2 flt passed framing, passed insulation inspection. target for cabinets end of next week. We will rent for at least a few months then see if I want to sell.I do not have final costs yet as we are still doing work but estimating ending up at 45000 (crazy!). Target to complete end of next week after cabinets. I want it done and am so tired of working in it. we had to rebuild the stairs too.

No news on the refinance. hoping for news soon but in the meantime really cranking on the mortgage. only owe $283k and paying off over $1500 a month towards principle.

Rentals continue to fine tune and crank out an incredible amount of cash and are getting better controlled. last month I pulled over $8000 out of them (all went towards the 2 flat) and backfilling that rental emergency fund. I will have completely rebuilt the rental emergency fund by the end of this month then every extra amount goes towards paying off these crazy 2 flat costs.. So glad I got the home equity loan (2.9% for 6 months)

I am still planning to pay off as much of hte 2 flat as I can by June 2018 and am on track to do that

Work has increased again. I can likely average at least 45 a week .. likely more like 50 hours a week. that brings me an extra 2k a month and next year will allow me to contribute to the 401k easier.

Payoff of the 3 units (payment over $5k a month) still on target for end of March but then I immediately divert that to the 2 flat payoff and fix up costs.

Been thinking more flexible. so either work this high dollar high stress job until end of 2018 or convert to some other "funner' job after.. Many people have 'retired' or became financially free and then returned to work in a NEW capacity. I do not want to sit at home. I am young and am good health. I jsut want to be free of this crazy job (and the 2 flat. haha) and have more free time and do what I want to do. I have deferred that for almost 5 years.

Health insurance will go up approx $50 for WORSE coverage.. $6500 deductible.. 50% copay. what is the point of having insurance??

I am going to make it a priority to get all my doctors appointments in the next few weeks as I already paid the deductible for this year.

Taxes done. only getting about $7400. way below my hopes.. my accountant says I am trouble for next year. We will work on tax strategies next week..I do not have the expenses anymore to offset all the rental income

Still have not found a long term relationship..

Rachael



2 Flat finances

October 5th, 2017 at 02:45 pm

All

I paid $65,000 for the 2 flat
$25,000 from seller financing, 5%, amort/24 months
$40,000 I borrowed from myself from another account

In addition I am estimating incurring approx $40k for fix up.

$40,000 fix up
$4,500 already paid off
$5,500 incurred and not paid on a 0% credit card
$10,000incurred and not paid on a 2.9% equity line
$20,000 NOT incurred yet but estimated to be needed (will go on line of credit)

***

My plan to pay off involves the following chart and assumptions.

1. defer my $3500+ rental real estate tax escrow until January so I can use that 'escrow money' towards debt. Restart the escrow in Jan at a higher amount
2. assuming $2k/month from rental
3. assuming $1600/month savings from me
4. I get paid $300 a month from my brother
5. $8k tax refund estimate from accountant
6. birthday/christmas money
7. the 3 units pay themselves off March 2018, use that $5k mortgage money towards debt

***

if I can make this payoff I will have paid off all fix up costs and will only owe $30k total on the 2 flat by June 2018

Assumptions ARE aggressive and assume no further big snafus. They do assume 40 hours per week. I have been pulling regularly $2k from the rentals after costs.

See chart
Please note: chart has me bringing rental real estate fund back up to $18k by year end too




Investing question and 2 flat and other updates

October 4th, 2017 at 08:00 pm

All,

Quick question.

I put my money with an advisor at a 1% rate . This was done last year but 'everyone' knows you can often do better than an advisor when you invest yourself in a few mutual funds. I generally use Vanguard. What mix do you guys suggest for mutual funds. I know there was a recommended 3 mutual fund mix by Bogle a while ago. What have you guys heard? thinking of closing w the advisor and sticking w a 3 fund mix and just thinking long term and leaving it. Also easier to send money in etc to invest more.

I got assigned at work so expect my hours to pick up as of next week. I am still working on the 2 flat .. inspections etc.. so will have to manage that but will be good to make more money

Speaking of inspections I had the final inspector out for his first inspection. I have had plumbing, electric and now building. Building guy was the final and his list was very short 3 easy items.

Still have not found an electrical contractor. 2 guys faded away. one guy hoping for a quote today. will make some more calls.

IF all goes well. electric will finish mid/late next week and then 'all the rest' can start.

Goal is to have it ready to rent by 10/27 or end of month.

Not a great time to rent but it is what it is .

I have considerd selling this but will see how fix up goes. may be 'all fixed up' so why sell? On the other hand I am putting extreme pressure on myself to essentially pay off all 'fix up costs' and the mortgage down to $30k by June 2018 which is essentially $70k at this point. If I sell. even if I only make $20k from my total cost assuming a April/May sale and renting it in the meantime I will have already paid off quite a bit so the sale will give me cash in hand that I can invest.

Current payoff 'plan' has me only owing approx $40k by May which would mean with a NET payoff of let's say $120k I have $80k to stick in investments.

We shall see.

School starts 10/17, I am trying to get syllabuses ahead so I can start early

Courses
Hermaneutics
Intro to Theological research
Old testament

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

Filled the house and more updates

June 10th, 2016 at 02:59 pm

hi there

I filled that house w the Section 8 lady.. she moves in today. other homes are stable. I still have not filled that apartment.., we are on the 3rd app though. First two did not screen well. Hoping for good news today. We are still showing and getting lots of action

40 days of vacancy from that house (over half of that spent fixing up the house though)
10 days of vacancy on this apartment so far

I saw someone else tracking DAYS of vacancy per units so I wil do that myself. good way to track and you can only improve what you track.

Last year under the other property manager it seems like I had months of vacancy (well I did at least on that one house) . I will look back through leases etc to figure out last years days of vacancy..

I still owe $5k back to my emergency fund so hoping to get htat paid off in these next 2 months.. and then I need to build that I think to $25k so I feel more secure having money flow in and out of it.. This time i had to use almost all of it to pay for some items but did not feel comfortable doing so so put in cash of my own

I can do that while I work and makes so much. in the future I do not want to do that

My goal is to save $4500 this month and put that into investments and then starting August to save $6k plus into investments each month

My net worth now is $991k ($9k down from 1MM) but most of that is real estate. I want more investment and cash net worth

Goal this year was $310k total investment/cash net worth (not including rental emergency and other funds). I am at $239k so an incredible $70k to go into essentially 6 months.. a stretch goal..
Rachael

Rental updates, job update and life

May 27th, 2016 at 06:33 pm

Hi all

We have someone who looks good for that vacant house. Section 8 inspection Tuesday. This was the house that was REMOVED from Section 8 due to a bad history from the owner. I got Section 8 reinstated on another house w this issue.. hoping to get the same here.. No rent increase.. in fact $20 less but filled same month, we can ask for a rent increase in a year and generally s8 are much longer term tenants. vacancy is REALLY expensive so trying to avoid that at all costs.. turn over is really expensive too . .I just spent almost $2k getting this house fixed up. do not want it turning over in a year.

Person for 3 unit fell through and chose a place nearer to her work. We are still showing it and still aiming to fill for the first. Fingers crossed

My boss says she IS going to renew me . My contract is up July 7. Not sure for 6 months or longer. I asked for a year and talked to her boss who says he has budget.. and in fact I am already in this budget through year end and he will be put me in for next year. project I am on is likely to extent into mid next year

After July I will have maxed the 401k.. so my paycheck will go way up. What ever that 'difference' is will go directly into savings/investments

HIGH repair month last month and missing 1 month rent.. but still getting NETS of almost $6000. I had almost $3000 of repair maintenance costs last month.. upsetting but not avoidable.. house fix up..fence.. water heater.. sewer rodding.. were among some of the larger items.

I am considering ending a relationship and just sortof moving on. always upsetting/scary/stressful to end a relationship but does not appear to be 'long term' and sortof feeling I am wasting my time and feeling 'stalled'.. just a lot of stuff..

About it for now. despite some bumps here and there still thrilled with new management company and my plan.

For the end of this year I will still save as much as I can.. invest.. develop systems/ processes for the rentals and continue to work on creative ideas to get this house (where I live) paid down significantly..

what a feeling it will be next year this time when I will be essentially 1 year from having all properties paid in full and likely receiving over $8000 cash flow.

Apartment in 3 units rented

May 12th, 2016 at 09:00 pm

Good news..

Apartment in 3 units was rented for June 1. Got a $50 increase. So should be no lag time or just a few days lag time between move out and move in. This is the second time they rented the a unit before the unit vacated

All work done at the house that we are renting (well steam cleaning happening today and final work so will be done by end of day) I feel concerned I went with too dark a color. I will look at it all cleaned up Saturday and with lightbulbs. Showings start tomorrow. Fingers crossed.

Tenant in 2 flat. We will sign to a new lease.. 9 months. no rent increase (manager feels she can not afford it).. all rent due by the 15th if paid late gets a $75 late fee.

Rachael