mortgages

October Financial Update

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Our net worth took a hit this month, over $96k less than last month. I updated the value of each house we own. I don’t do this regularly anymore because it doesn’t change significantly month-to-month and it’s very time consuming. The market is cooling from the multiple-bid market we were in over the last few years, so home values are starting to come down ever so slightly. They’re still much higher than what they were 3 years ago (and I have tax assessments to prove the pain of that), but it does affect our net worth this month since it’s lower than it had been.

Also affecting our net worth is the market itself. It’s down, which it does around this time every year (confirmed through the history of my financial update posts). Our investment accounts are slightly down, our cash is significantly down because I paid off a large credit card balance and because Mr. ODA has transferred to a Treasury account for some of it, and our investment property values are down.

We opened a new credit card this month because we have purchased new carpet for our house (our entire second floor except 2 bathrooms, the stairs, and the living room all add up very quickly). As I’ve shared numerous times, when we’re about to have a large purchase, we look to open a new credit card that we can use as a loan. Sure, we have the cash available to pay this immediately, but wouldn’t it be nice to earn interest on your cash balance for 12-15 months and get some sort of sign-on bonus from the company?

I paid off our last 0% interest credit card at the end of September. But our credit card balance is still slightly higher than I’d expect because I haven’t paid last month’s statement on one, which is almost $3,000. I used to try to pay off all balances before doing a net worth update so that it was the most accurate, but now that we’re keeping Mr. ODA’s paycheck separate and trying to capitalize on interest to earn, credit cards aren’t paid until the last minute. We’re also still carrying about $30k worth of insurance money that we can’t seem to spend because State Farm is doing their hardest to drag their feet and restart our claims process each week.

I have a house that hasn’t paid a penny towards rent this month. She did let us know that it’ll be paid in October some time (no date or expectation given to me is infuriating). If she doesn’t pay something tomorrow (assuming we’re two Fridays into the month for pay checks), I’ll give a warning about the notice of default being given.

September Financial Update

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RENTAL FINANCES

It’s the calm before the storm with rental payments. We’ll owe multiple jurisdictions’ tax payments over the next month. We only have 5 houses with an escrow account, so I’m responsible for insurance and tax payments on my own. I don’t mind it because that means I don’t have to keep money tied up in an escrow account balance, but it does mean that there are large outlays multiple times a year that need to be properly accounted for.

I recently made a post about late rent payments this month. The one who I continue to charge late fees didn’t even pay on the day they said they would. I despise having to hunt tenants down for payment. She emailed me that “September 5th payment” would be late (ugh … it’s due on the 1st, maybe plan for that day instead), she said it would be paid on the 8th. I had to ask on the morning of the 9th where the payment was. I was giving her a few hours to respond and planned to send a notice of default. Lucky for them, I got distracted and busy, and I didn’t get around to it. They finally responded Saturday night that they had lost power and were distracted, but they sent payment then.

I paid out the invoice from our handyman that I had been waiting on, which was $810. I had mentioned that I’m waiting for an invoice from our HVAC guy, but I think he’s not charging me for the service since he had to go back after installing a new condenser. I’m STILL waiting on the roofer to complete the job on one rental. I signed the proposal on July 5th. He finally started the job at the end of August, but decided to change my scope of work without approval. That delayed the project another week. Then I have no idea what has happened over the past week and a half, but supposedly it’s finally done.

A plumber came out for a hot water heater issue at one of the properties. The tankless water heater wasn’t powered on. I don’t even know how that happens, but it seems like something that may become a bigger issue. The company even said they don’t service or work on electric tankless water heaters, so I don’t even know where we would go from here.

PERSONAL FINANCES

In my last financial update, I mentioned that our insurance adjuster had finally came out, three weeks after the tree falling on our deck. He took a week to get us the estimate. We then responded the next day with all the errors and omissions in the estimate. It then took 3 weeks for our email to be acknowledged (even with multiple phone calls). We finally escalated this two weeks ago (State Farm doesn’t make it easy to escalate beyond your desk adjuster answer the phone), had an estimate redone by our adjuster (supposedly) about 12 days ago, who then told us the supervisor approval process would be 3-4 days. Giving the holiday of Labor Day and benefit of doubt, we didn’t push it until Monday, hoping they’d do the right thing and get us information. Mr. ODA saw that we had been reassigned a field adjuster on their portal. So guess what? For an event that occurred over 10 weeks ago, we’re starting over! Lovely.

I paid the kids’ tuition for preschool late. Luckily there’s no late fee charged. The school “opens” links each month. I tried to pay it around the 20th of August for September because I knew the last two weeks were going to be crazy with visitors. When I couldn’t pay it that day, I completely forgot about it. I was part of the “hey, you didn’t pay” email from the director – so embarrassing. Our oldest is going 5 days a week, so now his tuition is $350 per month; our second’s tuition is $175 per month.

Our 0% introductory interest rate on our credit card we opened 15 months ago expires at the end of this month, so that’s over $5k that needs to be paid. Then our credit card statement balance owed on our regular card is about $4,800 because of large rental property expenses. I haven’t paid it yet because I need to transfer money from savings, so I’m waiting until the last minute to do that so we can earn interest on that amount.

NET WORTH

Nothing too exciting to note here. Credit cards are still high, but that will be significantly different next month with our 0% interest card being paid off.

I asked Mr. ODA for his 401k updated amount yesterday, and he made a comment that I should wait to update until today because the market went up yesterday. I had already done the majority of the work, but an ailment and children meant I didn’t get to posting yesterday. So this morning, I updated just our investment account totals to see the difference. The chart above is yesterday’s numbers. Today’s 401k, IRA, and taxable investment account totals are $10,000 higher today than yesterday. That means that if I had updated the numbers today instead of yesterday, we’d be showing an increase in net worth from last month’s update by about $6,000. Instead, I’m showing a slightly lower net worth by about $4,000. It just goes to show how much the market can affect the numbers on any given day, and my net worth in trending generally upwards, but it may not seem that way because of one day’s market closure.

Late Rent

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Rent is due on the 1st of every month. There’s a grace period until the 5th. (Aside: I find it frustrating when someone says to me “rent is due on the 5th”) At 12:00 am on the 6th, rent is considered late. At that point in time, there’s a late fee applied to the amount owed. Typically, the late fee is 10% of the monthly rent. If your rent is $1000, then your late fee is $100. Legally, with no rent paid by the end of the day on the 5th, I can send a “notice of default” letter. This letter states that you have a certain amount of days (varies by state and/or local law) to pay rent, or I’ll file for eviction. Rarely, do I get to this point.

LATE FEES

There are two schools of thought (well, maybe more, but these are the main two I’ve dealt with). First, a late fee is free money. We had a handyman who was showing us a portfolio of houses say, “go ahead and let them be late; that just means more money for you.” Second, I wasn’t planning any of my finances on collecting late fees, so why collect them? This is the one I follow most of the time.

Sometimes, I feel that a late fee is a lesson. I typically follow through on charging a late fee if I had to “hunt” someone down to pay their rent or if they’re perpetually late and ignore that a late fee is owed when late.

RENT INCOME MANAGEMENT

I have 13 rental properties to manage. Each month, I record all the rent I collected with the date it was collected. I then do a simple “SUMIF” function in Excel to add up all the rent collected and attributed to each month, which I then compare to the total amount of rent I expected to collect for the month. This is how I manage who has paid and who hasn’t, and whether anyone is owed a letter of default (a letter stating rent is late, and if it’s not paid in X amount of days, I’ll file for eviction). I’ve had two tenants who were regularly late with zero communication, so I automatically sent the letter first thing on the 6th. More often, I have tenants who tell me that they’ve had some struggle, and they
1) Request a delay in rent payment;
2) Share their plan to get caught up (e.g., I’ll be able to pay $600 today, and then I’ll pay the remainder on Friday); and
3) Offer an apology.

If you communicate with me before the 6th, there is a 0% chance that I’ll be sending a “notice of default” or filing for eviction. Now, if you say you’ll pay by the 10th, and then you don’t pay and there’s no communication, then there would be a letter at that point.

If you communicate with me before the 6th, you’re not typically late with rent, and you have a plan to get caught up, I won’t charge the late fee. I have a chance to make someone’s day. In their head, I’ve “saved” them money at that point. Nearly all of my tenants are living paycheck to paycheck. If they’re late, that means they’re already worried and juggling bills. I don’t want to saddle them with another $100+ worth of a bill.

With that said, there are times that I stick to the late fee. I have a tenant who didn’t communicate up front, and then still had to be asked when we should expect payment. I held tight to a late fee on that one. I want it to be known that there are consequences. I can ease up on any future need for a late fee, but I’m setting a precedent there. If you don’t communicate nor pay rent, there’s a hefty consequence. In this case, it was $160.

THIS MONTH’S LATE PAYMENTS

Note that the 1st fell on a Friday. In these cases, I expect to see rent paid very timely. When the 5th falls on a Friday, then I expect to get the majority of my rent on the 5th. If the 6th is the 1st Friday, then I expect to receive a higher-than-average amount of late payments, and don’t charge late fees.

As I mentioned, I have 13 rental properties.
– I had 5 houses pay all or partial rent before the 1st of September (this is very unusual).
– I had 2 houses pay full rent on the 1st, and 2 of those who had prepaid rent paid the rest owed.
– I had 1 house pay full rent on the 3rd.
– I had 2 houses pay full rent on the 5th.
– I had 1 house pay partial on the 5th, with the intent to pay the rest on the 9th.

That leaves 2 houses that haven’t paid anything.

Here are texts or emails I’ve received.

  1. Good morning! We had a change in pay dates which of course affects everything. Can I pay $750 today and the remaining $1000 on Friday? What will the late fee be?
  2. I hope you’re doing well. I was wondering would it be okay if I paid rent on the 8th? …doc appointments have been a little more pricey than anticipated.
  3. Good evening, Sept 5th rent will be a few days late. We will have it to you on Friday 9/8/23 along with the late fee. Sorry for the inconvenience.

For the first two, I won’t charge a late fee. In #1, I let her know that it wouldn’t be an issue. I appreciated the advanced notice. She’s been late once before over 17 months, so it’s not a common occurrence. In #2, she’s been late once or twice before, but has always communicated well and is taking care of the house. I note though that I don’t expect tenants to share personal, health related information with me, but this is typical conversation with this tenant.

In the 3rd, this tenant will pay the late fee. Notwithstanding the “Sept 5th rent” part ;-), this tenant is routinely late. We’ve made excellent progress in the communication side of things though. Now I get an email that lets me know when rent will be late. Their routine late payments led us to change their lease set up. Their lease was $1450 per month. We offered them the chance to pay twice per month, $750 each. This would allow them to pay more related to their paychecks. Yet 5 of this year’s 17 payments owed are still late. They don’t take care of the property, and they don’t communicate well. We attempted to remove them from the house by drastically increasing their rent, but they accepted the increase. Since the change to rent being owed twice a month, their late fee is only $75 per late payment, instead of the $145 it could have been if they couldn’t pay every month in full.

SUMMARY

The original point of this post was to share that having multiple properties provides a luxury to allow for late rent payments without the collection of late fees. Outside of any abnormal maintenance charges, I owe 5 mortgages each month, totaling over $4,600, and property management fees worth over $700. I need 5 of 13 houses to pay their rent for me to cover those expenses. Note that this doesn’t mean the remaining 8 houses are all income for me; I still have other expenses in property management each month.

If you have to pay rent late, your landlord will appreciate anything you can put towards rent at that point in time. I shared with a tenant once that if they could pay something, that’s better than nothing because I still have a mortgage to pay, even when they don’t pay rent.

Understand that there are due dates and consequences for missing due dates all over life. If you don’t pay your mortgage by the due date, there’s a fee. There may even be larger consequences like losing a promotional rate. Similar with a credit card. There is interest accrued on credit card balances, late fees for lack of timely minimum payment, and the possibility of losing any promotional opportunities given.

Charging a late fee is completely within my legal ability, but I also understand that issues come up and that my tenants are humans. I’m not here to take advantage of them, so if I can “throw a bone,” I like to be that bright light in their day, especially when they were probably so timid about even sending the notice that they’d have to be late.

August Financial Update

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It’s getting to be that time of year when large payments need to be made. I’m projecting out our account to cover several tax payments in October and December. I’m also paying insurance amounts, such as $1500 for two houses that’s currently on the credit card. We also have about $5,000 sitting on that 0% interest credit card that will need to be paid off by October 1st (when the 0% incentive expires).

Our credit card balances are higher than average because of rental payments. In addition to the insurance payments, we had an invoice come in that I knew was going to be high. We paid for the water line from the street to the house on a rental to be replaced, which was $3,080.

June and July were rough sick months on us, so now I’m paying those medical bills almost daily it seems. We reached our deductible early this year, so these are just the coinsurance amounts; those $5-20 payments add up though.

Our insurance adjuster finally came out, three weeks after the incident. He literally said “I’m not a contractor, and I’m not from here so I don’t know the codes,” and then proceeded to do the estimate wrong. He was missing items, called things the wrong thing (like a Trex water proofing system that costs $1500 just for materials, he called it a “vapor barrier” and put $190). Now we’re waiting on a second adjuster to come out and meet the deck contractor to go through what actually needs to be done. All the while, our 3 year old keeps sadly saying “I don’t like our broken deck.”

I had to call a medical provider and get some money back. I told them I didn’t want to pay in advance because then I have to call them to get my money back. They said “we’re good about sending it back” and said “it’s simple, it’s just 5% of the total cost.” I said “the total cost isn’t what the insurance allowance is, so whatever I pay you will end up being less.” So now I had to take time out of my day, after giving them a month to do it on their own, to call with 3 kids in the background making noise, and get my $5 back. But then there was a surprise where another urgent care that we saw almost a year ago sent me back the $20 I paid them. That one had slipped through the cracks on me. I had noted that I overpaid them, but then I had a baby!

We had two rentals not be able to pay rent on time this month. One was able to pay on the 12th, which they did. Another paid what they could, and I’m still waiting on the rest. I actually told them to catch up as they could because I didn’t want them to not be able to get their 3 kids ready for school. I’m waiting on an invoice from our handyman for work he’s done on multiple houses, an invoice from an HVAC guy who did work weeks ago, and a roofer to start his job that’s been two months in the making.

Our overall net worth went down slightly from last month because of market fluctuation. Our cash increased by over $30k, but that’s because we received a check from our insurance company to replace our deck after a tree fell on it last month. Some of that is going towards replacing furniture that has been bought already (so it’s on a credit card), and some of it is a reimbursement for the outlay I already made to remove the trees that fell on the deck and fence, but some of it is still to be paid out when the deck is replaced. In the meantime, we’re earning interest in our savings account on it at least.

July Financial Update

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I looked back to last year’s July to see what was going on.

We had just bought our new house, demoed the master bathroom, and started painting a bunch of the new house. We were transporting two toddlers back and forth for all the work to be done. I was also talking about a vacant house and being rid of a non-rent-payer. The tenant that moved in then caused tens of thousands of damage with a burst pipe, and now we have a new renter in there.

And now…

We had a big wind storm come through on the 2nd. It knocked down several trees, including one on our deck. We’ve had 4 companies come out for quotes for replacement, and we’re waiting on the adjuster this week.

I have a whole separate post regarding all that’s going on with the rentals, so I’ll leave that for a separate post.

Most interesting to me is that in the last year, without any major moves (like purchasing a new rental house or paying off a mortgage), we’ve increased our net worth by over $300k. Looking back at July 2021, we’re almost $900k higher than then.

Since last month, we paid out a $22k bill that was owed from January for cleaning up the house that got flooded (there were several delays in insurance agreeing to the company’s invoice), but the market increases have netted us a gain of $16k still.

June Financial Update

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Gosh, where did I leave off?

Our savings account is still earning over 4% interest. Therefore, bills are being paid as close to the due date as possible, while we manage to keep the savings account balance higher. Back in December, we had a pipe burst in a rental house. The insurance quickly paid out on the estimated damages, but we didn’t need to pay the repair company in full until last week. Additionally, there was an issue with the invoice from the company that cleaned up the water, and so that was only just set to be paid today.

When we have large purchase(s) looming, we look to open a new credit card with rewards and 0% interest. We opened one last Fall, and I pay $500 towards it each statement cycle. I believe we have until October to pay in full before interest begins accruing. I’ll continue to pay $500 until I need to pay it in full in a few months (or if we need to reduce our debt usage because another house purchase is to be made … not that we have any plans to, but Mr. ODA is always looking).

We have a few projects lingering out there that will cost us a decent amount to accomplish (e.g., water main line repair, tree removal, new roof). We also don’t have any plans to make big financial moves in the near future (e.g., no home purchases, no loan pay offs).

The market has recovered in the past few months, so our net worth has made a jump. It’s the first decent increase in a while. Our cash has decreased, logically, since we were holding cash that was for accounts payable. Our credit card totals have decreased substantially since February as well.

March Financial Update

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I purposely waited to update our net worth for this month. Two months ago, we had incurred a significant amount of expenses on our credit card. We purposely held off on paying that amount until today, which is that statement’s due date. Waiting to pay the card meant that $25k sat in our savings account earning interest during that time, as we “floated” that money. It was extremely stressful for me, so I’m glad those due dates are behind me, and I don’t have to manage that timing and coordination anymore.

Speaking of “floating” money, we also have our 0% interest credit card that we opened last Fall when we were incurring expenses on our new house. That still has a balance over $6k on it, but we just pay $500 towards it each month. We’ll pay it in full when the 0% interest runs out this Fall.

I don’t even know where to begin on what we’ve been managing with rental properties. We’ve learned the world of insurance claims. Prior to this month, we only had one claim because an intoxicated driver (on a Sunday morning) ran off the road, through a fence, and over our HVAC outdoor unit. I’ll have a separate post with the details that we’ve been managing, but here’s a run down.
– I still have a lease that needs to get out for signature, and then information on that house sent to our property manager so she can take it over.
– We had a tree fall on a house here in Lexington. The tree was removed, but getting the adjuster out to see the damage is taking 3 weeks, and we can’t do any repairs until he sees the damage.
– The house that had a burst pipe is nearing completion. Walls and ceilings are back in place, insulation is back in place, and cabinets are installed; they still need to do painting and flooring. We’re going to have our handyman install new counter tops when the insurance contractors are done with their steps, and then we’ll need to get it rerented.
– We had roofing damage on 3 of our houses in Lexington from that same storm that knocked a tree on a house. Mr. ODA fixed one roof himself. Another one is under the purview of a townhome HOA, and hasn’t been fixed. And we’re biding our time on the last one because it’ll end up being a full roof replacement; only a few shingles flew off, but the roof is so old and so steep that it wasn’t an option to repair.
– Frustratingly, I had 2 overdue tax bills. Our jurisdiction’s taxes are due by 12/1 each year. If you pay by 11/1, they give you a 5% discount. I paid the bulk of the bills in October. There was a supplemental bill due to an increase in the Board of Education tax. When I received the supplemental bills “off schedule,” I just filed them. It didn’t occur to me that there was a second tax bill in the year. They sent that one notice. Didn’t send a second to say “you didn’t pay early, but by the way, it’s due now.” So that was due by the end of February. I didn’t pay it and received the “delinquent tax notice” last week. There was a 5% penalty assessed on the balance due. So all-in-all, I cost us an extra $11. Not the end of the world, but kicking myself that I missed it. Also annoying, they sent it to our old address instead of our updated address that’s been in place since November.

We haven’t done any big projects around the house because of newborn life. I just painted the wood parts of our stair railing and treads black. I’ll then paint the spindles white (they’re already white but need touched up and a whole new fresh coat). I already had that paint on hand. We’ve also cleaned up the yard from that big storm earlier this month, along with some odds and ends that needed to be done in the landscaping. We got the first mow in and some new bushes with mulch in the front yard so that it’s looking nice for my family coming into town this weekend.

No net worth calculation update. I’ve done the majority of the account checks, but just haven’t been able to pull together the final bit timely.

February Financial Update

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Well, Mr. ODA didn’t like that I shared I didn’t know where our money was last month. They’re all kinds of Treasury accounts, and I’n just logging the transactions and leaving him to it. 🙂 I don’t have a lot of bandwidth these days, but I’m learning to juggle 3 kids and our finances.

PERSONAL FINANCES

We bought a new van this month. We’ve been wanting a new one for a while now. We bought our 2017 Pacifica in September 2020. It was a great deal, and it was a necessity as we were about to spend 7 weeks “homeless” and AirBnB/couch hoping. The car had some defects. We decided we’d keep an eye out for a newer version. Suddenly, Mr. ODA found a good deal on a 2020 Pacifica that had more options than we were actually looking for. We drove to Ohio about 36 hours later. They made us a good deal for our trade-in, and we went home with a new van! We put some of the purchase on two credit cards and then the balance with a personal check.

We’re currently paying close attention to credit card deadlines and our savings account. Where I used to pay a credit card bill almost after the statement closed so that it wasn’t hanging out there and I wouldn’t accidentally miss a deadline, I’m now leaving money in our savings account as long as possible. Our savings account is now earning 4% on the balance, so we’re seeing a significant amount of interest each month. I’m juggling managing our bills as close to their due date as possible, while also projecting future bills necessary since there’s a limit of 6 transfers out of the savings account per month.

All that was to point out that our credit card balances are high right now because of the van purchase, but the credit card statement hasn’t closed yet. Instead of paying the credit card balances down right now, the money is sitting in savings earning interest for 4-6 weeks between the purchase, to the statement closing, to the statement’s due date. More directly, we put $3,000 on one credit card for the van purchase. That was on 2/7. That statement, once it closes, will not have a due date until 4/20. That means that the money put on the credit card can sit in savings earning interest for about 70 days.

We also had to pay the initial payment for the restoration services on the rental that had a burst pipe. So while the insurance company sent us a check to cover the cost of this work, it’s still $17k sitting on our credit card, not being paid until the last minute. I should also note that our cash balance is inflated by about $50k because it’s the money from the insurance company that we’re waiting to pay the contractor as milestones are completed.

Had I seemed nonchalant about the plan? Because I’m definitely not. 🙂 I need to stay on top of how many transfers happen per month out of the savings account (while Mr. ODA randomly pulls money for investments), and not miss any deadlines and cost us interest charges or late payment marks on our credit. It’s stressful! Since we’re not doing anything that requires our credit to be pulled right now, it’s fine. If we were having our credit checked, having multiple cards nearly maxed out would be a problem. But we know we have the cash available to pay off all the credit cards if we needed to.

RENTAL FINANCES

I finally got through to someone on the issue with the improperly installed water heater. He says he submitted all the paperwork to send us a check for $200 to cover the plumber we paid to fix their issue. I haven’t seen any paperwork, nor have I received the check, but I’ll keep it on my radar and follow up in a couple of weeks.

I made all the decisions on the restoration of our flooded house. We’re expecting to hear a timeline for work to start next week, and then it’ll take about 40 working days to get the work done.

I paid a warranty for termites on another house. We had an infestation when we purchased the house, but we didn’t pay the warranty information. Our tenants found swarmers, and when we called to ask about treatment, they said they’d let us backpay the warranty and invoke that. We have a good relationship with this company and appreciated that offer, so we’re staying on top of the warranty payments now. The payment is $98 per year.

We received a surprise in the mail – the tenant had turned off the electric in the flooded house back on January 12th. The power company is supposed to notify me. I received an email on February 6th notifying me of an action on the account. So this was in my name from 1/12 to 2/1 for me to be billed $255 without my knowledge. Not to mention, there’s a bill hanging out there from 2/2 until the present that I’ll also get billed for. Mr. ODA sent our property management excerpts from the lease indicating that the utilities must be in their name for the entirety of the lease, that they’re responsible for this bill, and that they must get it back in their name immediately. We’ll see how that plays out.

RENTAL WORK

I picked up the keys from our property manager for the 3 houses I took over managing. I also worked on a rental here in town this week, which took about an hour including travel time, and I have another to work on later this week, which will be about 2 hours worth of work.

I sent a prospective tenant the pre-application we have, which he passed, so I sent him the application to submit. If all goes well, we’ll have that house re-rented with no vacancy period.

We have 3 leases that end at the end of April. We put a requirement that tenants give us 60 days notice, or that we give 60 days notice of any changes. That means that these leases need acknowledgement by the end of this month. So I ran the analysis on those 3 houses. We decided to increase the rent on 2 of them by $50 per month, each, and we’ll keep another house the same since it was increased last year. One house actually had an increase last year, but that house is well below market value, so we’re offering them to continue the lease with an increase because if they were to move out, we could get even more from the house based on it’s size and demographics. The 2 houses we’re increasing have a property manager, so she’s responsible for notification and signing an addendum before the end of the month. But once again, I need to manage the property manager and ensure we have action on time.

NET WORTH

January Financial Update

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Life is different these days. Our 3rd child was born on Thanksgiving, and we’ve been finishing up some projects around the house. We’ve had a few things happen with rentals, and, basically, I’m just tapped out to keep up with blogging. Mr. ODA asked me what our net worth is at these days, and so I’m updating our spreadsheet.

“JANUARY”

It’s January, so that means I have to create my two main Excel workbooks for the year: the paycheck to paycheck monitoring of our expected income and expenses, and the management of each rental property. The paycheck to paycheck spreadsheet is where I have a line item for each house’s rental income each month, each house’s mortgage payment (where applicable), and then all our bills owed (credit cards, utilities, investments). I break this down by paycheck because that’s the easiest way for me to make sure I have enough income to offset the bills owed during that two-week period. That worksheet in that workbook feeds my net worth calculations, where I also update loan balances. There is actually several tabs in this workbook, but those are the main two. I finally got that all set up today. I haven’t even started creating the investment property workbook.

January also means I have to go through last year’s investment property workbook to verify all the expenses listed are supported by receipts, that all receipts I have are recorded, and that my income is accurate. Then I read off the data to Mr. ODA, who enters it into an online tax portal to file our taxes. I haven’t started that daunting task either.

RENTALS

We had one of our properties flooded by a burst pipe. That’s a mess and is hardly making progress because the tenant’s renters insurance can’t get the tenant property out of the house. We had an electrical issue with a hot water heater in another property. That got fixed, but now I am in a position where I have to fight Home Depot about their shoddy installation a year ago and have them reimburse the cost of rewiring. I finally moved forward with the judgement against a tenant for destruction of property, and our attorney established that collections account.

Surprisingly, we didn’t have any issues with rent payments in December or January. Usually I hear from one or two houses that they need a couple of weeks to pay all of rent. While not everyone was on time, they communicated well and were only a few days late. One tenant reached out and asked if they could pay rent on the 6th (since that’s Friday, and pay day); I told them not to worry about the late fee and that would be fine. Little gestures like that can make a big difference for your tenant’s life.

I sent a letter to our property manager for the KY houses that we’re releasing them at the end of this month, so that’s a new development that is taking my time as well. You’d think my property management company would have a way to communicate this change with the tenants, but alas, that would be too logical. Wish me luck while I add 3 more houses under my own purview. While we moved to KY two years ago, it was easier to maintain status quo with having a property manager. Unfortunately, it has taken too much of my effort to manage the property manager and to fight for our money.

PERSONAL

We finished our master bathroom in the home we bought over the summer (and the room we gutted immediately… only took 6 months to get us to the finish line… and by finish line, there’s still paint touch ups to be had). We bought all the supplies to gut and renovate the basement bathroom in this house. Mr. ODA built a bench for our kitchen table so that we have more seating easier. We made the plans to get the mudroom bench and shelves in, and hopefully those supplies will be bought this weekend.

Truthfully, while I updated most of my net worth spreadsheet in December, I never posted it because I don’t even know where all our money is. When we sold our personal residence at the beginning of November, we were handed a large check. In the past, that check type mostly went towards a downpayment on a new house, but that wasn’t the case this time. Mr. ODA immediately started investing that money in short term treasury accounts that I can’t even begin to explain. Between that account, another savings type account, and our regular investment account, I can update what I see online, but I don’t know what I may be missing. I’m hoping Mr. ODA will chime in soon to describe the type of investment decisions he’s made.

NET WORTH

Several property value assessments declined over the last couple of months. So while our investments are on the upswing from November’s update, those updates to property values have caused a decrease to our net worth.

November Financial Update

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Phew – 3rd month in a row of only a financial update. My apologies! Again, we’ve been juggling two houses, construction work on the new house, two toddlers, and my being pregnant (and exhausted).

At the beginning of the month, we closed on our old home. It wasn’t an easy process (as usual) with the title company, even down to having the wrong amount on the check at the closing table, but it all worked out. Being free of that burden has been lovely. We immediately cashed the check, but it’ll have to be a separate post for what we did (and are planning to do) with those proceeds.

RENTAL PROPERTIES

We had our court date on November 1st for the tenant that left a house with garbage and damage. She didn’t show (after providing us a fake address), so the judge ruled in our favor for the full judgement. She then has 10 days to appeal. We’re beyond that window, so I now reach out to her to establish a payment plan. If she doesn’t respond, then I file it with our attorney to proceed with garnishment.

We had a few small items to pay for with the rentals, but we have everyone’s rent that was due by now. I typically expect to see more late payments in December and January with the holidays.

NET WORTH

We’re still carrying a high balance on a 0% interest credit card. I did pay off a card that had a payment plan on it (it was free, and why not … except, I was tired of figuring out and managing new purchases versus the payment plan portion, so I just paid it all off once our proceeds came in; it was about $1100).

Our investments recovered in the market from last month, and we significantly increased the balance in our taxable accounts and cash due to investments from the proceeds of our sale.