We have new tenants in Rental # 3 and they prefer to pay their rent in cash.
The upside of cash is that it is cash. I know there is not going to be a bouncing check issue and when I deposit the cash it is instantly credited.
As an aside, have you seen the new $100 bill? It has a 3-d security ribbon and a liberty bell hiding in the ink well. There is also more color on the front and back. I had several new $100 bills, which were new to me, a couple of the 1996 $100 bills and one 1990 $100 bill. After I got over my amazement at the new $100 bill, the old school 1990 $100 bill really looked fake to me.
The downside of cash is that I have to go to the bank to deposit since, sadly, there is no remote way to deposit cash. The other downside of cash is that it is hard to keep track of. With checks, I have an image of the check for my records. So, we have come up with a system. First, we give the tenants a receipt so they have a record and we have a record in the receipt book. Then when I deposit the cash, I am keeping an ATM receipt and putting that in my records in place of the check image.
Showing posts with label Rental # 3. Show all posts
Showing posts with label Rental # 3. Show all posts
Tuesday, January 7, 2014
Friday, September 27, 2013
2013 Savings Goals - October Update
(1) Max out 401k(s) - $24,981 (71%) (goal is $35,000)
(2) Max out IRA(s) - $10,631 (97%) (goal is $11,000)
(3) Add to e/r fund - $7,600 (76%) (goal is $10,000)
(4) Pay down mortgage - $3,320 (66%) (goal is $5,000)
(5) Trading account fund - $50 (1%) (goal is $5,000)
(6) House projects - $1,900 (63%) (goal is $3,000)
Total: $48,482 (70%)
Posting a few days early as I was working on our personal finances this morning. We are still about $3200 behind on where we should be. We also have some unexpected upcoming expenses for Rental #3 (more about that later).
While I feel like we are working hard to catch up, doubling up on our mortgage prepayments, throwing money at the 2013 IRA fund, we are still $3200 behind as were were last month.
We also have to work on our taxes this weekend (Ugh!, my least favorite thing to do) as we have our appointment next week with the CPA and the deadline to file, with our extension is October 15, 2013.
Have a great weekend everyone!!
(2) Max out IRA(s) - $10,631 (97%) (goal is $11,000)
(3) Add to e/r fund - $7,600 (76%) (goal is $10,000)
(4) Pay down mortgage - $3,320 (66%) (goal is $5,000)
(5) Trading account fund - $50 (1%) (goal is $5,000)
(6) House projects - $1,900 (63%) (goal is $3,000)
Total: $48,482 (70%)
Posting a few days early as I was working on our personal finances this morning. We are still about $3200 behind on where we should be. We also have some unexpected upcoming expenses for Rental #3 (more about that later).
While I feel like we are working hard to catch up, doubling up on our mortgage prepayments, throwing money at the 2013 IRA fund, we are still $3200 behind as were were last month.
We also have to work on our taxes this weekend (Ugh!, my least favorite thing to do) as we have our appointment next week with the CPA and the deadline to file, with our extension is October 15, 2013.
Have a great weekend everyone!!
Thursday, August 15, 2013
Refinance of Rental # 3
Gosh, I am so glad we got refinanced our primary home last year (into a 15 year loan at 2.75% rate) before Mr. Sam was laid off from his job. Since we knew that the lay off was likely coming that was one of the reasons we pushed to get that REFI done, obviously better to have two stable salaries to show the bank.
Yesterday, I turned my attention to Rental #3 which is the only property/loan that we have not refinanced. And I did so because the mortgage company keeps sending my notices that this property qualifies for the HARP program or some other program and that they can do a cheap and quick REFI for us. While we need to refinance this property since this is our only non-conventional loan, its on an ARM that resets on an annual basis, it really has not made sense to do so because (1) the current rate is 3.125% and (2) I really don't think it qualifies for a REFI.
I had a lovely chat, seriously, with a mortgage broker at my current loan servicing company. She indicated that in fact the property is eligible regardless of the fact that it is not a primary dwelling. It is eligible because its backed by Fannie Mae, it originated prior to 6/1/09, no late payments in the last year (no late payments ever) and we haven't used the HARP program before on this loan.
But, the rates she could offer me for an investment property were in the 5% range. And, further we would likely be forced to refinance into another 30 year term, even though we would prefer a 15 year term, because under the HARP program the REFI cannot increase the mortgage payment by more than 20%. It makes no sense to me to impose a 20% limit on an investment property when we have several good years of rental income well above that level.
As for the LTV ratio they keep citing in the advertisements, she indicated that is simply based on the original loan amount and the amount we currently owe. She further agreed that the LTV ration quoted in the documents likely has nothing to do with appraisal value (I seriously doubt this home would appraise for what we currently owe). But, even if we are underwater we can still REFI.
Right now it really doesn't make sense to refinance this property, but I'm going to start watching rates again. I'd like to lock in a rate under 5% with a decent term before the ARM adjusts above that level.
Yesterday, I turned my attention to Rental #3 which is the only property/loan that we have not refinanced. And I did so because the mortgage company keeps sending my notices that this property qualifies for the HARP program or some other program and that they can do a cheap and quick REFI for us. While we need to refinance this property since this is our only non-conventional loan, its on an ARM that resets on an annual basis, it really has not made sense to do so because (1) the current rate is 3.125% and (2) I really don't think it qualifies for a REFI.
I had a lovely chat, seriously, with a mortgage broker at my current loan servicing company. She indicated that in fact the property is eligible regardless of the fact that it is not a primary dwelling. It is eligible because its backed by Fannie Mae, it originated prior to 6/1/09, no late payments in the last year (no late payments ever) and we haven't used the HARP program before on this loan.
But, the rates she could offer me for an investment property were in the 5% range. And, further we would likely be forced to refinance into another 30 year term, even though we would prefer a 15 year term, because under the HARP program the REFI cannot increase the mortgage payment by more than 20%. It makes no sense to me to impose a 20% limit on an investment property when we have several good years of rental income well above that level.
As for the LTV ratio they keep citing in the advertisements, she indicated that is simply based on the original loan amount and the amount we currently owe. She further agreed that the LTV ration quoted in the documents likely has nothing to do with appraisal value (I seriously doubt this home would appraise for what we currently owe). But, even if we are underwater we can still REFI.
Right now it really doesn't make sense to refinance this property, but I'm going to start watching rates again. I'd like to lock in a rate under 5% with a decent term before the ARM adjusts above that level.
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