Author Topic: New MMM here  (Read 1859 times)

storx

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New MMM here
« on: October 18, 2014, 11:07:34 PM »
Hello All,

I joined this site after viewing it a few times over the years to see the results on the Peer 2 Peer result page, but i decided it was time to see if i can start fine tuning the money making ideas i have already going for myself.

Firstly, I am currently a student 8 months from graduating as an RN Nurse, so life has been hectic and my money making has taken a back burner, but i am getting closer to the end and i want to start getting my ducks in a row to making better returns on my money....

Recently medically retired from the military after nearly 11 years of Honorable Service and over those years i acquired two houses,
1) North Carolina 4 Bed, 1 Bath with a loan of $52,031.62 @ 6.5% interest with monthly mortgage of $559
2) Colorado 2 Bed, 2 Bath with a loan of $40,459.48 @ 6% interest with monthly mortgage of $203 and HOA of $195

My current payments are $625 setup on House 1 and $280+$195 on House 2 for a combined expense of $1100

I currently rent out both houses while i stay in Florida and my rent is $650 on House 1 and $850 on House 2 for a combined income of $1500
Part of my retirement i received a large settlement of $58,000 for my years of service and decided to put most of it into P2P lending since i have been toying with Lending Club since 2009 and i have never lost a single dime over the years compared to the amount earned, so i figured why not.. so i currently have $43,628.20 in my lending club account and about $40,000 in savings while earning an income of around $1600 while attending school full time.

Lendingclub has been averaging about 12% over the past 18 months for me, so for this year i am pushing to make $5,200ish by the end of the year

So my income and expenses fall as such...
+$1,600.00 VA Income
+$1,500.00 Rental Income
-$1,100.00 Mortgages
-$350.00 Current Rent
-$50.00 Phone
-$65.00 Internet
-$61.00 Car Insurance
-$100.00 Car Fuel
-$200.00 Food
------------------------
Leaving me about $1,200 in my pocket each month in PROFIT currently + $5,200/yr in profits from LendingClub technically...

So my question is can anyone give me some new tips and tricks to maybe adjust my current money income streams to return more money on investment and my other question is, should i pay one of my houses off NOW? or should i toss most of the $40,000 into Lendingclub and ride the interest train?? I tried to get refinancing on both properties back with rates were like 2ish% but i couldnt find a bank that would touch loans so low.. so i have been kinda stuck with the higher rates..



Malaysia41

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Re: New MMM here
« Reply #1 on: October 19, 2014, 01:14:06 AM »
You list mortgage payments but no insurance or property taxes.  What are those?

6.5% is a high interest rate. I personally would be tempted to pay one of the mortgages off.  But, if the houses are cash flowing you could put that money elsewhere. 

I am a big fan of Lending Club, but it is risky to put all of your $ in there.

It sounds as though you want extra income, but I recommend building your stash.  Consider Vanguard index funds in a Roth IRA.  I'm assuming you are in the 0% or 10% tax bracket so now is the time to set this up. 

clevelandc

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Re: New MMM here
« Reply #2 on: October 19, 2014, 06:34:21 AM »
6.5% on a mortgage is insane right now. There should be a way to refi. If not I'd sell house #1 since you only make $25/month on it.