Hi, everyone! I realized today that I haven’t updated you on the investment property we bought in July since…well, since we bought it, actually.🤦🏼♀️ You guys haven’t missed too much as far as that goes, but we’ll get into that (plus pictures) later!
And I’ve done a pretty bad job the last few months – okay fine, basically this entire year – of keeping you in the loop about our savings, so I want to talk about that first. (And if you’re not following me on Instagram, please do so. I post almost every day there and announce every single contribution we make to savings, so if you want more updates, that’s where to find them!)
You may recall that on September 1 of last year, we started a new goal of saving enough cash to cover all costs associated with the purchase, renovations and emergency fund of our very first investment property. We chose $100,000 as our amount to aim for simply because we knew that it would more than cover all of these costs, and we set a timeline of two years. We decided to live on $2400 per month while saving the rest of our income for this purpose. We made that purchase in July and have continued to save away!
Here’s how we’ve done so far:
|Month||Amount Earned||Amount Saved||Net Savings Rate|
Not bad, right? We’ve brought home $96,291.75 since September, 1, 2018, and after keeping an average of $986.24 per week over the last 61 weeks, we have saved a total of $60,160.83 of that amount toward this goal. We’ve obviously spent a huge chunk of this along the way when purchasing the property, giving the initial payment to our contractor, buying flooring, etc., so we currently have $21,021.56 in our savings account for real estate investing purposes. We plan to keep saving at this current rate until we get a tenant settled in, and at that point we’ll adjust our sails and see what we need/want to do next!
At that point, we’ll probably have enough saved to buy another property (kidding, but not really). Our contractor started several weeks after we had anticipated due to our his previous project running late, and due to some personal things that have come up for him recently, the renovations are nowhere near as far along as we hoped they’d be at this point. But hey, slow progress is progress, right? For details about the house and a reminder of the major projects to be done, as well several original photos, check out this post where I announced our purchase.
I go back and forth between feeling impatient and being okay with the amount of time that it’s taking. The interest we earn each month from our Ally savings account covers our monthly insurance payment, and the property taxes come out to about $50 per month, so we’re not losing a ton of money while it’s sitting empty. We’re saving almost $4,300 per month on average in the meantime, and our net worth continues to grow. I’m reminding myself that it’s our first one and to be patient, but I’m just ready to move on to the next step, I guess.
Below are our highly requested Before and Afters, or in this case, Before and Still Befores. The pictures on the left were taken August 3, 2019, and the pictures on the right were taken October 24, 2019.
Back of House
Alright, that’s it for now! There’s been a little more progress made since these latest photos were taken, so I’ll give you guys another update some time next month, I promise!
I’d love to hear how your current project or goal is going. Are things going as you had originally planned or are you getting a lesson in patience? Let me know in the comments!