Did you hear that? It’s the sound of the “Sale Pending” placard being placed on top of the for sale sign in front of our rental property.
After turning down an offer for $89k last week, and not getting any offers since, we were starting to question ourselves.
That was until today, when we received an offer for $93,000!
Only one problem – The buyer wanted $7,000 in sellers consessions. Ugh.
This brought our “net” even lower than the first offer that we turned down.
We finally sold our rental property
I’ll spare you the annoying back and forth that went on.
Bottom line – We settled on $96,000, with $5k in sellers concessions, for a net of $91,000.
So let’s do the math.
– $5,760 (realtor fees)
– $10,500 (taxes)
– $5,000 (sellers concessions)
– $25,200 (HELOC)
– $4,500 (roof)
– $3,000 (closing)
= $42,040 NET
Being frugal with this money
Assuming everything goes to plan and the inspector gives a good report and the mortgage appraiser gives us a good appraisal, we are going to have over $42,000 in cash.
That’s a lot of money, especially in the hands of people who aren’t great with money.
Mrs. Beatles is already worried.
Shes been muttering phrases like…
“We can’t blow this money”
“This is our last golden egg” (I laugh at this one)
“Every dollar needs to be accounted for!”
She is stressed and the largest portion of her stress revolves around finding a way to blow this money.
Paying off debt with the rental property money
If you take a look at our chart below, you’ll see that we have slowly been paying down on debt.
Our auto loan is down to $1900ish and our credit cards are going down as well.
Right now, we technically have 52k(ish) in debt.
BUT – $10,500 is being removed as part of the sale (the taxes).
AND – $30k is money from parents.
So actual money owed to creditors is about $11k.
That leaves around $30k in cash after paying off creditors.
Paying off all that debt also reduces our total monthly expenses to $3,321.
That is HUGE.
Other priorities with the cash
We have a few other ideas as well.
- Creating a $2,000 emergency fund
- Putting $10,000 into a retirement account
- Putting $1,000 into a college fund for each child
- Paying back the parents some of what we owe them (though we wonder whether they are even going to take it)
For now, we are just happy to have the house sold.
We will worry about the home inspection and appraisal and all that stressful stuff another day.
Thanks MMM forum friends
Just wanted to give a special “Thank You” to our MMM forum friends.
All of you who comment on our posts, and email us, and those who commented on our Case Study.
We really appreciate all the advice and wisdom you have given.
We are no longer allowed to be part of the MMM forum, so please let those who contributed but don’t read this blog, know that we appreciated all their help and wisdom as well.
You changed our lives.