Friday, February 5, 2010

The House Plan

The House

We are ever closer to closing on this foreclosed house. Yesterday I put a big fat check in the bank(courtesy of my dwindling retirement fund). The realtor called and said everything is progressing smoothly and the bank, who lost the last deal on this house 'cause of their foot dragging, wants to know if we can close ...early. Yea, we can do that.

The Plan

We intend to first do a general clean up and haul off at the new house, then comes an HVAC system. The next item will be rebuilding the master bath and remodeling the master bedroom(adding a huge walk in closet for Cherry Pie) and rehabbing the kitchen. I want to start moving in at this point as every thing else is sanding and painting type stuff. I found a handy little cove in the basement that I can easily turn into a gun vault by adding one CMU wall and a concrete ceiling. The rest of the basement will receive warehouse type racking to store all our other "stuff". Food, supplies, first aid, type stuff. There is a lot of other work we plan for this place but it will come down the pike a little.
For the current home, we are torn between doing a little fix up and selling cheap and doing a lot of fix up and changing and renting this one out. With a moderate amount of work I can make this place two rentals. Figure 500 a floor and that will more than cover the mortgage and put a little padding in for any renter related repairs. Or, we can do some work all over the house and rent it out as one unit for 800-1000 dollars a month which will still leave a nice cushion. We'll see.
We had planned on using any tax return we get to pay off Cherry's Caddy. Then this house thing came up and she wanted to use the tax return on the house. I told her we could pay off the Caddy then use the monthly car payment on the house. This would leave us with nothing but a mortgage payment on this home and if we can rent it or sell it, that will be covered.
If the mortgage is covered by rentals or payed off and the car is payed off we can bank all of our earnings. ALL of it. That's a serious amount of ching. We do plan on putting a lot of it in our own safe and converting a lot to real money. The rest goes in the credit union account. We are really looking forward to all these changes.

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