Archive for the 'Owning a Home' Category

Rental Property Update

My rental property is STILL vacant because my handy man is STILL working. Although I gave him a deadline of August 1st, he said he discovered way more crap after he began the repairs, cleaning, and painting. Ugh!

At the rate things are going, this is going to cost them their entire security deposit and a scathing rental reference from me. As I enter a second month of vacancy, this means I have to pay another mortgage with no rental income. Ugh x 2!

On my way home on Friday, I was thinking about how much I should pull out of my emergency fund for additional carrying costs. As of today, I estimate needing about $1.6k to cover immediate expenses (assuming we don’t go into another full month vacancy). Also, as of today, the e-fund sits at $20.9k. However, all excess over $20k was supposed to go towards the $3k I need to open my Vanguard account. Ugh x 3!

Oh, well. Gotta do what I gotta do. Vanguard will be on hold until I get this property rented.

[image credit]

Rental Property Move Out Inspection

I just completed my first year of being a landlord, so the move out inspection was very shocking to me. Probably more so than it would have been to a seasoned RE investor. When I pulled up to what used to be my “home,” this is what I saw:

FRONT YARD

The front yard was a mess, but I have little expectations when it comes to a renter doing yard work. I’m going to make sure it is a requirement in my next lease - especially for the front yard. There are weeds growing around the flower beds, overgrown bushes near the front door, and spider webs everywhere. The landscaping on the right side was COMPLETELY washed out. My maintenance guy said it was probably due to the heavy rains. The rain gutters (??) on that side were missing, so that makes sense. But where did they go? I have no earthly idea.

BACK YARD

The backyard was not terrible, but it wasn’t as I left it either. I can tell they never watered the grass. There are dry, dead patches all over the yard. The grass was cut, but I can also tell they never took the time to trim against the house or around the fence. It’s about 3 inches high. Ugh!

GARAGE

They left all kinds of crap in the garage. The garage door does not lock. They did not leave the two automatic garage door openers or the two garage door keys. So I need to order new openers and keys and have the lock on the door fixed.

ENTRY/FOYER

When I entered the place, I saw a huge dark stain of something splattered on the floor in the foyer. WTF!! I have no idea what it is, but there are tiny stains of the same color throughout the first floor hallway. And they had the nerve to leave a broom and mop near the front door. Geez, thanks assholes!

BASEMENT

Other than the carpet and walls, this area wasn’t too bad. The electricity was disconnected so we couldn’t check the condition of the washer & dryer. The entire room was really dirty though. Even the ceiling! WTF???

CARPET ON FLOORS 1 & 2

The carpet on the first floor (basement), staircase, and second floor (living room) is sooo dirty, it may need to be replaced. I mean, big huge DARK stains. My maintenance guy is going to spray the deep soiled areas with an industrial cleaner to see if they lift.

BATHROOMS 1 & 2

The first floor (basement) and second floor (living room) bathrooms appeared as if they were rarely used, but they were not left in the condition they should have been.

KITCHEN

The kitchen was NASTY. The counter tops weren’t even wiped down. They left mix match dishes, silverware, and a frying pan on the counter. They left crap in the cabinets and drawers. They left a laundry basket and other crap in the corner. The mini blinds on the kitchen door is broken. The light and cover under the range is broken. It’s barely hanging on a limb. The garbage disposal doesn’t work (no electricity, but noted this during a quarterly inspection). And worst of all, they left food in the fridge/freezer, which spoiled. Now there is a horrible smell in the kitchen and tiny bugs are flying everywhere. *sigh*

CARPET ON FLOORS 2 & 3

The carpet on the second floor staircase and third floor (bedrooms) was not that bad. A few stains here and there, but they can be cleaned.

BEDROOM 3

The third (smallest) bedroom was not bad. It just needs to be cleaned and painted.

BEDROOM 2

The second (BabyGirl’s) bedroom was not bad either. Her walls were previously painted with a glossier paint and it held up very well. They hung a shelf on the wall and a hook (?) in the center of the ceiling, both left behind. Otherwise, the holes would have shown white drywall against purple paint. The shelf is cute, so I’ll leave it up. I may get my maintenance guy to remove the hook and install a cute ceiling fan (all the bedrooms were pre-wired). Like the 3rd bedroom, this one just needs a really good cleaning.

BATHROOM 3

The hall bathroom between the two bedrooms was NASTY. And they had the nerve to leave cleaning supplies under the cabinet. Ugh! The toilet seat is barely hanging on, so I may need to replace it, if it can’t be tightened. The shower rod was missing and the tub was gross.

BEDROOM 1 (MASTER)

The master bedroom was interesting. There were a BUNCH of holes all over the wall. What in the hell were they hanging in the bedroom, of all places? I can see where they tried to fill the holes, but they did a terrible job. They also put up a ceiling fan, which I approved in advance and told them they couldn’t remove once installed. It’s so ugly and filthy, I may take that shyt down anyway.

BATHROOM 4 (MASTER)

The master bath was also NASTY. More shyt left under the cabinets. They also installed a shelf behind the toilet, which is kinda cute, but they did a terrible job installing it. It’s wobbly and it blocks the toilet bowl cover. If my maintenance guy can’t fix it, it’s coming out.

WALLS

The walls need to be painted throughout, which was expected and no big deal. I’m going to upgrade from the cheap builder’s paint and use a paint that can be wiped down when dirty. I’m also going to use a glossier paint in the bathrooms and kitchen.

KEYS

Even though I gave them two house keys and two mailbox keys, they only left one of each. So I have to change the lock cylinders on the front door and back doors, and I need to call the post office about the mail box keys.

FINAL DAMAGE

During our walk through, my maintenance guy created a list that turned out to be four pages long. His previous career was as a maintenance supervisor for a large apartment complex, so he said the list wasn’t a big deal.  He said “after a good cleaning and some new paint, it’ll be all new again.”  Hmph!  I guess his experienced opinion should make me feel better, but it doesn’t.  I think I’m still attached because this was MY first house…and I built it from scratch. :-(

As my RE investor friend told me, I need to disconnect emotionally because this property is now a real estate investment.  I also need to lower my expectations because no one is going to take care of it like I would.  Once I’m able to let go, the move out inspections will be less painful.  At any rate, my maintenance guy is going to review the list this weekend and give me an itemized estimate on Monday morning. After his work is done (yard, inside repairs, and painting), he’s also going to coordinate and supervise the cleaning.

Before I left him, I bought two 5 gallon containers of paint, two bags of gravel, several bags of mulch, and other miscellaneous items. Some things will have to be ordered.  I also wrote him a check for $100 for other things that may come up and told him to save ALL receipts.

CLEAN UP AND REPAIR PLANS

He’s working on the front and back yards this weekend. On Monday, I need to have the electricity reconnected (hopefully there isn’t a balance) so he can get started on the inside. Because he has a full time job, he’s going to work on my house in the evening and weekends, but I gave him a deadline of July 27th.

Next week, I’m going to renew all of my rental ads with a goal of having the property rented by August 1st. Each day it is vacant is more money out of my pocket.

Financial Updates at Single Ma’s Queendom

Lots of random thoughts, so I’ll do a random update post:

Unexpected Money

When I filed my taxes this year, I had to claim the relocation benefits I received from my last employer as income, but I couldn’t write off the relocation expenses as deductions. Weird, I know, employer requirement, hard to explain. Anyhoo, because of this, I had to file a separate form with my employer and they have a process to evaluate what my tax liability would have been without the extra income. Any excess between what I paid and what I should have paid is sent to me via a refund from the employer, not Uncle Sam. Long story, short. I received the unexpected refund this week. Over $1,200.

Emergency Fund

As of today, I made the final transfer to meet my $20k e-fund goal! Because of the unexpected refund above, the balance now sits at $20.7k. I also set up a $100 bi-weekly payroll allotment for the e-fund. All extra above $20k will be earmarked for “non-retirement investing.” When it reaches $3k, I will open that long awaited Vanguard account, then redirect all extra money to to the new account.

Payday

My payroll problems were finally corrected. Benefits, tax exemptions, allotments, 401k match, retro payments/refunds, etc. - everything is kosher now. Thank da lawd! July has 3 pay periods and I plan to spend the extra cash on my rental property.

Medical Expenses

As of yesterday, the braces are completely off. BabyGirl was given two sets of retainers plus a night guard. I also made the final $250 payment, a total of ~$4,000 for 2 years of orthodontia care. Her teeth are beautiful, but with all the back and forth visits, I’m glad it’s over!

Precious’ vet bill this year was $248.69, which is $65+ more than previous years ($185 in 2007 and $177 in 2006). I’ve never had an annual vet bill more than $200, so I asked for a line by line itemized report of this year and last year. Although the secretary tried to explain the difference, I had to see for myself. About 10% was due to regular inflation that occurs every year, but one procedure was an additional $40 by itself. WTF! The reason? They send the culture to an outside lab for testing/examination and they have to pay extra for shipping/transportation expenses. In other words = FUEL!! I tell ya, this fuel crisis is hurting everything!

Car Insurance

Due to pure laziness, I didn’t research for better rates. My new 6 month (Jul-Dec) premium is $409.10 and it’s due next week. I thought this was a savings from the $468 that I used to pay, but I forgot it was reduced to $406.30 last December when I increased my deductible from $500 to $1,000. So in essence, this 6 month premium increased by $2.80. Not a lot of money, but it definitely shouldn’t be going in the wrong direction. That’s what I get for being lazy. I’m going to pay the premium in full this time, instead of the monthly payment plan. Other than saving the $1 processing fee, I just want one less bill to worry about every month.

Rental Property

My tenants are moving out this month and I’m meeting two potential tenants tomorrow morning for a scheduled tour. One is coming at 10 and the other at 11. It’s a 2 hour drive and I’m not looking forward to it. After the last tour, I’m meeting a girlfriend for lunch. She’s offered to show the property for me in the future, so I won’t have to drive down there again. But if the property isn’t rented by the end of this month, I’m turning it over to a property management company.

Edit to Add: Thank you all for bringing the blog problem to my attention. I appreciate all of the emails. I don’t know what happened to the rest of the post or why it was cut off HOURS after I published. In the original post, I provided a few updates about my summer vacation plans and my feelings about BabyGirl’s summer away, but it’s gone now and I don’t know how to fix it.

While I’m on the subject, I haven’t been blogging regularly because I’ve had quite a few computer issues lately. I don’t know if I have a computer virus or if my blog has been hacked - maybe both. So much for the Norton All-in-One Computer Protection, huh? My spreadsheets are damaged, which means all of my expense tracking and net worth details for the entire year are GONE. I’ve tried to do a system restore and file recovery, to no avail. I also keep getting “404 errors” when I publish or update posts on my blog. And some evenings, I can’t get online at all or the “high speed” connection is extremely slow. The latter may be attributed to the terrible weather we’ve had in the past few days, but trying to get online or attempting to write a blog post is challenging.

It’ll take weeks to get my spreadsheets back in order and I’ll need help with the blog issue, but everything will be fixed - eventually. If it aint one thing, it’s another. But eh, so is life. *shrug*

Blog wit’cha soon.

Hidden Costs of Owning a Home

Single Guy Money wrote an excellent article, titled “The Real Cost of Homeownership.” Anyone who’s on the market for a new home, please read his article. Go ahead, read it, I’ll wait…

*twiddling my thumbs*

Did you read it? Ok, good.

I’ve had a similar post in draft for weeks, but too lazy to finish. Now I can delete it. I’m done.

Just kidding. LOL

Since his article assumes a very responsible borrower (20% down, 30 yr fixed), I’d like to add just a few more things to his list. As evident by the current housing market, when one doesn’t put 20% down or lock in a 30 year fixed rate, it presents even more risks that should be considered. In addition to the mortgage payment (and expenses already outlined by SGM), other potential costs to expect are: Read more »

The Mortgage Mess and a Program to Help Avoid Foreclosure


I don’t even know what to say about the current mortgage industry. I don’t want to pass judgment on the borrowers and I don’t want to place all the blame on the lenders. But there’s one thing I do know for sure - it is affecting the entire US economy. Ruthless scammers are trying to take advantage of the uninformed, savvy investors will profit from their misfortune, the government is making futile attempts to help, tax dollars will be wasted, home values are rapidly declining, and responsible borrowers are pissed…and rightfully so.

In my opinion, it’s just a hot butterball mess!

If you are one of the thousands of Americans who may lose their home due to an ARM rate adjustment, I highly encourage you to do YOUR OWN research, educate yourself, and explore your options BEFORE that time comes. For those who live in the DMV, you’ve probably heard of the NACA program - Neighborhood Assistance Corporation of America. From their website:

NACA is a national non-profit community advocacy and homeownership organization providing the best homeownership program in America.

It’s a national organization with various locations throughout the country, but if you haven’t heard of it, here are a few quick links to help you:

  • Their refinance eligibility criteria.
  • Their refinance questionnaire to initiate the evaluation process.
  • Then you have to register and attend one of their 4hr workshops. Upcoming local workshops:In DC –

    MLK Library
    Date: 12/29/2007
    Time: 10:00 AM - 2:00 PM
    901 G Street NW
    Washington, DC 20001

    Plymouth Church
    Date: 01/05/2008
    Time: 10:00 AM - 2:00 PM
    5301 North Capitol Street
    Washington, DC 20011

    The Arc Theater
    Date: 01/19/2008
    Time: 10:00 AM - 2:00 PM
    1901 Mississippi Avenue SE
    Washington, DC 20020

    Phone: (202) 328-6333
    Fax: (202) 328-6388
    Office Director: Keith Johnson

    In Bmore –

    Enoch Pratt Library Northwood Branch
    Date: 01/12/2008
    Time: 10:30 AM - 2:30 PM
    4420 Loch Raven Blvd
    Baltimore, MD 21218

    Enoch Pratt Free Library (Central Branch)
    Date: 01/19/2008
    Time: 10:30 AM - 2:30 PM
    400 Cathedral Street
    Baltimore, MD 21201

    Enoch Pratt Library Northwood Branch
    Date: 01/26/2008
    Time: 10:30 AM - 2:30 PM
    4420 Loch Raven Blvd
    Baltimore, MD 21218

    Phone: (410) 783-0465
    Fax: (410) 783-1525
    Office Director: Ashidda Khalil

  • A summary of the entire 10 step refinance process that could potentially help you save your home.

If you are found eligible, their ‘current’ rate is 5.25% for a 30 year FIXED mortgage. This is NOT another lending scam that offers creative re-financing to lower your payments or cash out equity. Unless you are savvy with your finances or an expert real estate investor, ‘creative’ anything is the last thing you need right now. NACA is a legitimate program that helps homeowners who are struggling to pay their mortgage as a result of poor lending/buying decisions.

I wish I knew about NACA two years ago when I was buying. I’m not eligible now because I own investment property, but a close friend is using the program to buy her first home. She’s going to settlement on the 28th and I’m so happy for her! She locked in a 30 year fixed rate (less than 5%) AND she doesn’t have to pay any closing costs. From what I understand, it’s a lengthy process, the requirements are VERY strict, and the program requires personal accountability and volunteer effort. All good things if you ask me.

For someone who may be losing their home - primary residence - comfort zone - safe haven - pot to piss in and window to throw it out of - you’ve got nothing to offer but time and effort. And from my friend’s account, it’s definitely worth every minute. But don’t take my word for it. Check it out for yourself.

NACA: Neighborhood Assistance Corporation of America

[This is NOT a sponsored post, just a hat tip for a reputable organization that I support.]

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