frugal rental property picture sold

SOLD! Our rental property is sold

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.

$96,000 SALE

– $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.

ITEMMONTHLY TOTAL INTEREST RATE
GARBAGE36
CABLE/INTERNET114
WATER50
GEICO AUTO135
AUTO LOAN39319766.54%
MORTGAGE1761164,000ish5.125%
FUEL200
GAS/ELECTRIC150
GROCERIES750
EATING OUT100
CAMERAS25
PARENTS030K
CC2134418624.49
CC32546523.24%
CC42540810.23%
CC52065218.49%
CC67561824.15%
CC7 (STORE CARDS)100190125.24%
Furniture Loan276138525%
 Property Tax Payment Plan53510,500 18%
TOTAL$4,904$51,911

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.

They include:

  • 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.

Truly.

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.

 

14 thoughts

  1. So glad to hear your great news!

    Mrs. Beatles is right to say “we can’t blow this money,” and good for you for making a careful plan about what to do with it, and how best to deploy it.

    Remember, too, that the situation you got yourself into was caused by thousands of tiny little daily actions, of the “it’s only $5” and the “I’m too tired to cook tonight, so let’s order pizza” type. Apply that “we can’t blow this money” not only to the rental property sale proceeds, but to all your expenditures, and you’ll be well on your way to financial freedom.

  2. Hi there! I finally wandered over to your blog from the MMM forums. I am pleased to see the progress you are making. Keep up the focus and the progress! Getting that tax bill gone will be a massive improvement. I would love to see you tackle those credit card balances. They aren’t very high and the interest rates are ridiculous, so that would be a lot of bang for your buck. I personally would get rid of the CC debt before funding a college or retirement account.

  3. You weren’t banned from the MMM forums. Your account was downgraded to read-only for 90 days to give you a chance to implement SOMETHING from the 20+ pages churned up. That restriction will probably lift any day now.

    Frankly, I wouldn’t go back unless you’re ready to talk openly and honestly about the other rental, work through your financial enmeshment with both sets of parents, and offer some introspection about how/why you slipped back into destructive spending patterns so quickly.

    1. I’m sorry, but you are wrong. When I try to login, it says: “you are banned from using this forum! Ban now permanent… This ban is not set to expire.”

      1. I wonder if there is a way to appeal that to the moderators at some point? Having some concrete progress like you have been making and as MMM Person points out could be a solid mark in your favor for reenlistment.

        1. I actually did post 1 thread on there recently (made a new username). It was to thank everyone that helped me. You included Ysette!

  4. Sorry about the ban! Great news here though!

    So no more debt beyond the mortgage? Immediately set up an automatic monthly payment for $1600 to your vanguard retirement and college accounts so that you don’t start spending away what used to be your monthly debt payments. You won’t even notice it’s missing.

  5. Congrats Beatles family! Glad you’re on a smart path with this one. Get rid of all that debt once and for all and you guys will be on the road to success!!

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