Author Topic: 49 Y Female - Housing Decision Needed  (Read 1032 times)

frugalone

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49 Y Female - Housing Decision Needed
« on: September 14, 2018, 07:23:53 AM »
I am a soon to be 50 year old divorced female with two grown children.  I live alone in a condo that I rent for $1370 a month in a safe community.  My question is that I have 14 single family homes that I rent out in a lesser safe community that I lived in for 35 years before moving to where I am now- it is located 45 minutes from here.

 I have no mortgages on any of the property and my gross income is $86,000.00 US.   After business and personal expenses (rent ect) I have $5000 per month left over to start saving.
I should add that after the divorce I had to spend almost all money left over to update and renovation the homes my ex decided to let go into disrepair.   Three years later I am seeing the light at the end.  I will be 50 in November and want to get serious about saving for retirement.   

I have been considering moving into one of my rentals that generates $550 per month in rent.  That would save me $820 in $ per month.  Also I wouldn't have the costs of tenants moving or repair costs to get it ready to rent.  The house is equivalent  in size and is in a decent neighborhood. There are no costs to it other than the taxes of $500 per year and $350 insurance.

I have no savings - all I have are my investment properties that are valued at  $475,000K.   They are B class properties- nothing special. My 2015 Subaru Legacy was paid for in cash.

Pluses I can see in moving:   All my properties are within 3 miles of the rental. I manage all aspects of properties. Would make life easier to manage them and keep eyes on.

Savings of $9840 just in rent saved.  Not to mention the mileage of the round trips (90 miles) to pick up rent and deal with tenant issues.

I will live in my own property and can upgrade as I see fit. No HOA to deal with like where I live now.

Downside: My oldest son who is a Law Enforcement Officer in another state feels it is a bad town and feels safer with me living where I live now.  He said there a lots of druggies etc...  Keep in mind his grandma lives in the same neighborhood.  Also his uncles, aunts ect who are very hard working people.


Thanks for reading and please ask any questions and I will try to answer them as well as I can.
« Last Edit: September 14, 2018, 07:30:00 AM by frugalone »

Cranky

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Re: 49 Y Female - Housing Decision Needed
« Reply #1 on: September 14, 2018, 07:39:19 AM »
Honestly, it depends on where these safe/unsafe communities are, because, as I'm sure you know, there are also what I'd call "micro-neighborhoods". Some neighborhoods are very safe, and some less so.

Also, there's no real reason to think that the "safer" communities are, on a personal level, all that much safer. Lots and lots of stuff never gets reported.

I'd say that there may be other options - you could find a less expensive place to rent in a nice neighborhood closer to your properties, for instance.

frugalone

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Re: 49 Y Female - Housing Decision Needed
« Reply #2 on: September 14, 2018, 07:52:24 AM »
Thanks for asking Cranky.   It's a middle class neighborhood in the middle of town.  Given the chance I would say 85% of the people where I am considering moving to would want to live where I live now if they could afford it.  However, I will say I am very frugal and being single I am getting very nervous knowing I don't have a retirement fund.  I moved here because honestly it was away from my ex and his drama.  The family I have there are my EX's and my youngest son who is an adult.  Now 3 years after the fact - things have quieted down.

Yes, I am FI but darn I feel like I am missing out on a very easy way to save money.

spartana

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Re: 49 Y Female - Housing Decision Needed
« Reply #3 on: September 14, 2018, 08:03:16 AM »
I would choose to live in one of the rental properties if its in an area you are comfortable in and you can save a fair amount on housing expenses. However, if it were me and I had a income earning job outside my rental investments, I would sell all the investment properties but the one you live in and use that money to get a big start on my retirement savings. 14 properties to maintain yourself, pay for upkeep and taxes, and keep rented, not to mention dealing with tenents, seems like not only a full time job its self for a single person but a huge headache too.

frugalone

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Re: 49 Y Female - Housing Decision Needed
« Reply #4 on: September 14, 2018, 12:46:34 PM »
Thanks spartana for the different viewpoint. 

I have owned and managed real estate for over 26 years - it's what I do.
I don't take things personally with the tenants and live in a very landlord friendly city when it comes to evictions. It takes a lot to upset me and I am very direct and clear with my expectations so there isn't too much stress.

For me the houses are a great way to be nearly retired but have a great income.  I was in IT at the same time as I was handling the RE and still design websites for extra cash.   

Kathryn K.

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Re: 49 Y Female - Housing Decision Needed
« Reply #5 on: September 14, 2018, 05:21:11 PM »
Frugalalone - First, way to go on rocking the real estate investing/landlording!

Regarding moving, would YOU feel safe and comfortable in your rental you're considering moving into? When you say "safe" vs. "less safe" what exactly are the specific differences between the two areas? Is there a lot more violent crime in the one, or is just a lower socioeconomic area and rougher?

What about the other community amenities or activities that you regularly use/do - library, parks, grocery stores, social groups, etc - how do those compare in the current vs. prospective location? It sounds like more of your social network is in your current location? Besides just costs (although those are definitely important), how do you see the rest of your life changing (besides it being more convenient to manage your rentals) if you move?

Retire-Canada

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Re: 49 Y Female - Housing Decision Needed
« Reply #6 on: September 15, 2018, 12:35:26 PM »
I would move into a property you own if you feel comfortable/safe. Nobody, but you can make that determination since it's largely an emotional evaluation not a factual one.

Dave1442397

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Re: 49 Y Female - Housing Decision Needed
« Reply #7 on: September 15, 2018, 07:07:16 PM »
You can always move on a trial basis. After all, you own the property you're moving to, so the worst case scenario is that you're not happy with it and go back to where you are now.


spartana

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Re: 49 Y Female - Housing Decision Needed
« Reply #8 on: September 16, 2018, 08:58:13 AM »
Thanks spartana for the different viewpoint. 

I have owned and managed real estate for over 26 years - it's what I do.
I don't take things personally with the tenants and live in a very landlord friendly city when it comes to evictions. It takes a lot to upset me and I am very direct and clear with my expectations so there isn't too much stress.

For me the houses are a great way to be nearly retired but have a great income.  I was in IT at the same time as I was handling the RE and still design websites for extra cash.
If you enjoy managing and maintaining your investment properties and it doesn't feel like a huge job for you then it probably doesn't matter where you live. You can choose to stay in your current rental and will have lots of left over income. Or you can move to the house, save a little bit more each month and see how it goes. You can always move out if you don't like it.

Either way you can stash the extra $5k/month you have left over after your current business and personal expenses. That will give you a nice emergency fund of $60k in a year and you can tap that for fun stuff too knowing you have enough rental income to more than cover your expenses each month whether you move to the house or continue to rent. So it's really less of a financial choice since you'll save $800/month or so that you don't really need, but more of an emotional choice. Since you're FI already you really only need to decide which place suits your lifestyle better, and which would be more comfortable for you.
« Last Edit: September 16, 2018, 09:02:29 AM by spartana »

beekayworld

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Re: 49 Y Female - Housing Decision Needed
« Reply #9 on: September 16, 2018, 09:24:37 AM »

Not to mention the mileage of the round trips (90 miles) to pick up rent and deal with tenant issues.

The rent part stuck out to me.  Is this one trip per month to collect rent and everyone is home on that day to answer the door, or are they clipping rent checks on their mailbox for you to pick up? 

Why are you driving out there to pick up rent? This is inefficient, even if it's just one trip per month. But if some people aren't home or don't have the rent the day you show up, it means another 90 minute round-trip a few days later when they get it together.

  If they have checking accounts, they can either mail you the check or you can set up Cozy (free to landlords) to debit their checking accounts monthly.

Even if the tenants don't have checking accounts, they can get money orders and mail them to you.

I doubt you're accepting cash, so why go around to 14 houses to collect?







« Last Edit: September 16, 2018, 09:27:38 AM by beekayworld »

GreenEggs

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Re: 49 Y Female - Housing Decision Needed
« Reply #10 on: September 16, 2018, 11:59:32 AM »
What do your relatives (or ex-relatives) think about living there?  Do they feel safe?


Saving is important, but being safe and feeling safe are important too.  You can do things that will make you safer in the home you choose.  Having a good dog, security lights & cameras, brick walls, sturdy doors & locks, etc. can help.








frugalone

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Re: 49 Y Female - Housing Decision Needed
« Reply #11 on: September 17, 2018, 10:35:10 AM »
Lots of good questions!

As for picking up the rent - there are occasions that I do pick up a rent check.  Some of my tenants are older and honestly I really feel laying my eyes on the properties as I drive by saves me lots of drama.  Sometimes grass needs mowed or things need handled the tenants forget to let me know about. But most are directly deposited into a business account.

The property I was considering moving into has a good tenant in it now so I am going to wait until they move out to make my final decision.

Dicey

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Re: 49 Y Female - Housing Decision Needed
« Reply #12 on: September 17, 2018, 10:56:11 AM »
Good decision. We only have a few rentals, but they're all in the same retirement community. Our plan is to move in, do the big rehab slowly, then sell off the completely updated property. Lather, rinse, repeat. One of the reasons we have multiple properties is that we don't ever want to displace a great tenant.

I think you are better off than you realize. The houses are your retirement plan. Other than building up fat reserves for future maintenance costs, I think you're in fine shape. Your retirement is fully funded right now. You don't need to be in the stock market.

As long as your properties are in stable neighborhoods, you should be fine. Otherwise, you might consider exchanging them, little by little, into fewer properties in better areas. One fantasy of mine is to buy a 10-12 unit apartment building and fill it with all my single women friends. I'd make one unit into a gathering space and rent the rest out at moderate rates since the goal is creating a safe community and companionship, not necessarily profit. It's a dream, who knows if it will happen?

frugalone

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Re: 49 Y Female - Housing Decision Needed
« Reply #13 on: September 17, 2018, 06:51:39 PM »
Dicey! That sounds like a really nice plan! :-)   

My rents are in stable neighborhoods.  I get along well with my Ex's family (although he doesn't).  I have several properties next to their rentals (whole family own's lots of properties) so it is nice to have little patches of calm where we keep the trouble makers out so to speak.

Thank you for making me feel better about my retirement situation.  Sometimes I forget as I have been doing this so long.  I am blessed in many ways.  It's more than likely me hitting 50 soon and being single is making me a little touchy.  LOL