Hi! I am an MMM newbie, but got started last summer, and just recently we made the big jump to sell our home on an OWC contract, which is putting us in the position of having our new property paid for in full within a year and getting all our debt paid off.
I'm trying to go through all the different calculations on here for net worth, savings rate, etc. and I'm very confused as to how to deal with or categorize the income and expenses of the old property. The property is still in our name, and we will continue to pay property taxes until the buyer pays off, in 3 years. We get monthly payments, in cash, and quarterly balloon payments, in cash.
The existing mortgage on that property is a private loan at a high interest rate (property doesn't qualify for conventional lending).
On our personal income and spending, do I include the monthly payments from the buyer, and put the monthly mortgage payment that we pay into our spending, plus a pro-rate for the property taxes, or what? Where do I account for quarterly payments?
And since this was a sale of our primary home, for profit, do I need to be doing anything income. Tax related? We profited well under the irs limit. Also though, since we never had conventional financing, does that property even show up as a residence for purposes of irs stuff?
Thank you! It's been so many years on the debt treadmill, I have a ton of catching up to do in learning how to handle positive cash flow and records, lol.
MouseBandit
