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Hi, everyone! It’s been about a month since I updated you all on our savings and property progress, so I figured I’d take a few minutes to share the pictures I took when we stopped by the house this past weekend.
But first, I want to give you guys a quick savings update! 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 net income for this purpose, and we ended up pulling the trigger in July when we bought the small single family house that I lovingly call our LBC (Little Blue Cottage – though I was later told I was colorblind because the house is actually gray).
We are still saving away while we cash-flow the renovations of the property, and we still aim to live on $2,400 per month while saving the rest. We haven’t always stuck to that amount (we are human, after all), but we have consistently saved an average of 62% of our take-home earnings toward real estate investing since the start of this goal.
Here’s how we’ve done each month so far:
|Month||Amount Earned||Amount Saved||Net Savings Rate|
I can’t believe we’ve put 15 full months in the books now! We’ve brought home $105,502.99 since September, 1, 2018, and after keeping an average of $993.74 per week over the last 66 weeks, we have saved $65,586.72 of that amount toward this goal.
And of those savings contributions, $25,652.69 is the amount that is currently sitting in our online savings account that is dedicated to real estate investing. The rest of our savings have been spent along the way on the acquisition costs (inspections/purchase price/closing costs), property taxes, insurance, contractor fees, flooring, lights, etc.
We’re on track to have saved over $52K toward this goal in 2019 alone by the end of the year. Ron and I have decided that we’re happy with saving $50K per year for real estate investing, and thanks to a few raises we’ve received this year, we’ve been able to put direct deposits in place from both of our incomes to ensure we reach this goal without ever having to think about it. As always, 100% of my take-home pay (currently $942.49 per week) is direct deposited to savings, and $40 from each of Ron’s biweekly paychecks is now direct deposited to this same account, which puts us at $50,039.08 per year.
Because of this new automation, we plan to take our foot off the REI gas just a little and increase our traditional pretax retirement contributions. We recently raised my husband’s contributions from 5% to 7% and are in the process of getting them raised to 11%. My contributions remain steady at 4%, which is enough to get my employer’s match, and we will start raising them once my net income allows us to save $50K per year from it alone. It’s at $48,999.08 now, so we don’t have too long to go!
Alright, enough of that – let’s move on to the pictures! I’m glad to say that things are moving a little faster now than when I gave you guys an update last month. Not as fast as we would like, but we’re now seeing changes every week that we visit, and that’s enough to keep me from feeling discouraged. I’ve accepted that it’s just going to take longer than I originally thought, and that’s okay!
Below are our “Befores” and most up-to-date “Still Befores.” The pictures on the left were taken August 3, 2019, and the pictures on the right were taken December 7, 2019. To see the pictures I posted last month, tap or click here.
That’s it for now! To see all of the original pictures of the property, as well as all the numbers, check out this detailed post that I wrote in August to announce our purchase.
Check back soon for more updates!