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early_retirement_or_bust 11-06-2015 09:47 AM

Quote:

Originally Posted by retiredinnyc (Post 1653749)
I would sell the rental property too, with 2,000 in emergency fund how do you plan on fixing the boiler/roof/sewer line when they break. When the tenant tells you they saw mice ,the wires in the wall are shorting out, they tripped on the what ever that they will claim was your fault and they won't pay till you remedy the issue. Then they call the local building department to report violations wether real or imagined. They call the I.r.s on you because they think you not reporting the rent. Being a landlord can be a nightmare. As far as not being good making a written budget , you will get better with time. The first few are guesses, after a few months you will be real close


Considering nothing was wrong with the place except carpet and painting, I'm keeping it. Just because I'm starting with $2,000 doesn't mean I am not actively saving way more now. Plus, I paid $7k; the house is projected to be worth $50k+ next year and is already valued at $30k. So I'm going to hold out and if worse comes to worse, then I'll sell as you suggested.


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retiredinnyc 11-06-2015 09:54 AM

I didn't mean to be a downer on you, for that I apologize,. I wS pointing out that things happen , I was pointing out what happens to landlords and it would be prudent to have a larger reserve when buying investment property. I wanted to give you an opposing view, everyone was telling you it was all roses, and I saw a potential downside and if it happened to you I wanted you to be alert the the very real possibility of problems, so that your not blind sided.

early_retirement_or_bust 11-06-2015 10:39 AM

Quote:

Originally Posted by retiredinnyc (Post 1654051)
I didn't mean to be a downer on you, for that I apologize,. I wS pointing out that things happen , I was pointing out what happens to landlords and it would be prudent to have a larger reserve when buying investment property. I wanted to give you an opposing view, everyone was telling you it was all roses, and I saw a potential downside and if it happened to you I wanted you to be alert the the very real possibility of problems, so that your not blind sided.


No I got a bit defensive because of the BM comment--I apologize as well. Truth hurts, I guess lol. I really joined to hear the cold, hard truth, so I need to hear all sides. You are right. I'm probably better off flipping the property for savings sake. That $ is what I need to build my nest egg.


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Walt34 11-06-2015 02:59 PM

Quote:

Originally Posted by Standard Staples (Post 1654008)
Too many people get stuck on the concept of "I have $X, I allocate/spend $X and I'll be okay," which leads to lifestyle creep. As your income goes up, so does your spending.

Another way is to use percentages or fractions of your income as it rises so you can have at least a little lifestyle creep. Ten years from now you're going to want to splurge a little once in a while and that's okay, you have to live a life too.

The important thing is to spend less that your income.

hnzw_rui 11-06-2015 03:27 PM

Quote:

Originally Posted by Walt34 (Post 1654269)
Another way is to use percentages or fractions of your income as it rises so you can have at least a little lifestyle creep. Ten years from now you're going to want to splurge a little once in a while and that's okay, you have to live a life too.

The important thing is to spend less that your income.

+1. Just don't let lifestyle creep up too much.

Alas, I'm guilty of splurging too much and just all around wasteful spending in my late 20s. Regular wages were flat and sometimes even declined but for a couple of years, we got a lot of overtime due to personnel attrition. The overtime wasn't part of my normal budget and I pretty much just spent it all. :nonono:

Thankfully, woke up after a 2-year spending spree. :blush:


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