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Saturday Update

July 16th, 2017 at 04:03 am

So...this weeks accomplishments with a final Saturday update:

1. Took $13K from cash reserves and paid off the auto loan. Monthly payment of $250.00 will go toward Primary Residence mortgage (I know I initially earmarked this to the rental mortgage, however, keep reading);

2. Rebalanced $50K for my ex as per the decree. Put it in the American Balanced Fund. Safe, secure and doing pretty well over the past 10 years;

3. Rebalanced $17K to a Target 2040 Retirement Date Fund;

4. Rebalanced Roth IRA to a Target 2040 Retirement Date Fund;

5. Obtained a refinance loan quote. Would add $8K to my $81K balance and take me back to 30 years, however, my interested rate goes from 7.9% to 4.9%. My payment goes from $705.00/mo to $455.00/month.

Once done, I will provide 30 days notice to my tenant. Although I really hate to do it, my plan very simply is to completely update the entire rental with drywall repairs, new hardwood laminate in laundry room, bath room and kitchen, new light fixtures, paint, refinish hardwood floors and new landscaping. Once done (I am going to give my contractor 30 days. He will be paid via cash reserves), I'll have relisted it with a monthly rental increase of $200.00/mo.

With the $250.00 mortgage payment savings and the additional rent of $200.00/mo, I'll take the $450.00 and apply it towards the principal balance each month.

Yes, it's late...how does my thinking regarding the duplex strike you? Thoughts?

4 Responses to “Saturday Update”

  1. AnotherReader Says:
    1500179519

    Are you taking cash out in the refinance? If not, $8,000 in closing costs to get a 4.9 percent interest rate on an $81,000 loan???? Highway robbery!!!!

    Your financial "adviser" sounds like a salesperson in disguise. Do the funds he sells have loads (sales charges)? What are the annual fees on the funds? Does this "adviser" charge you a percentage of your assets to "manage" your portfolio? If so. look into firing this person and managing your investments yourself. Most of your return is being skimmed off in fees and charges.

  2. rob62521 Says:
    1500239467

    Not being a real estate guru, are you positive you can rent this place after the fix ups easily and for the extra amount?

  3. Out of the Dark Says:
    1500244758

    rob62521 - My rent increase will actually bring me closer to the rental "comps" currently in the 20 mile radius of a very large college. I have simply never raised the rent as I have never put anything into the rental unit less minor repairs.

    AnotherReader - Thank you for your comment. First, I am not taking cash out and after reviewing my mortgage options with my banker (5.9%), two mortgage brokers (5.1% and 5%, respectively) and finally the national broker who provided a mortgage TIL breakdown and a 4.9% rate is very competitive for a non-owner occupied refinance. My credit score is 816 as of last week in case you were wondering.

    As for my adviser, I take offense to your label without knowing either he or myself. You might be surprised to learn that he has been a trusted adviser to my family since my father was in college and I was delivering milk and selling worms at 8 years old for 10 cents a dozen (I took the business to great heights when I jacked the price up to 25 cents and got free containers from the local grocery store that some of their fruits and produce were shipped in). He is no more a salesman than I am and as for his compensation, as he is a SVP for Northwestern Mutual and has been for roughly 35 years, I believe his motto of "strength in numbers" from a client base standpoint speaks for itself.

    Finally, although your comment suggests I might be a bit ignorant, foolish or naive, rest assured sir/ma'am, I am not as dumb as you may think. I do, however, thank you for your comment as I really have not investigated his earnings off my investment portfolio in many years. I'll be sure to do that next week when I go for round two in my meeting with him.

  4. run 3 Says:
    1550595633

    The postings on your site are always excellent. Thanks for the great share and keep up this great work!

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