Max Q is a state in the aerospace industry where a rocket reaches its maximum dynamic pressure. It puts the rocket at the very edge of its design capacity. In some respects, May felt that way. There was (and still is) a lot going on. There is never a dull moment! With that in mind, how did we do?
As always, you can check the latest and greatest info on the Track Our Progress page.
First, the numbers:
Net Worth:
- End of May Balance: $588,084 up $15,274 (2.67%)
- Year to Date (YTD): Up $22,542
- Since January 2018 (this is when I started tracking our net worth): Up $283,084
Portfolio:
- End of May Balance: $426,088 Up 26,573 (6.65%)
- YTD: Up $10,850 (4.12%)
- Since January 2018: Up $186,088
It is astonishing to me that our net worth has recovered to the point we are actually up on the year. Granted, that “gain” is still less than our contributions to date. It will be fascinating to watch how the rest of the year unfolds. My pessimistic inner voice looks at the unemployment rate, civil unrest, and ongoing pandemic, and sees more storms on the horizon to come… not sunshine and rainbows like the market seems to suggest.
Monthly Contributions: $4,939
We skipped our May Roth contribution again while we pour money into our old house to get it on the market.
May Highlights
Flipping the Rental
I have been very quiet on the blog front recently and actually went radio silent for all of May. This is due to spending almost every free hour working at our old house-turned rental property as we attempt to get it sold soon. If you are trying to find me, either try that house or Home Depot.
To-date, we’ve done the following:
- replaced floors and baseboards in the kitchen and family room
- removed knotted pine from a bedroom and replaced it with new drywall
- replaced & expanded the kitchen cabinets
- replaced all the interior doors with 6-panel doors*
- repaired two kicked-in door jams
- had the entire interior of the house painted
- replaced light fixtures
- re-keyed locks and replaced all handsets
- replaced a broken toilet
- cleaned and painted all vents
- trimmed trees
- and lots and lots and lots of general cleaning and scrubbing
*Note – Friends don’t let friends replace slab doors. Go pre-hung… all day, everyday.
I put our progress at roughly 75%. So there is more to come… Overall, I expect the “flip” will cost around $15,000 and will be spread over 3 months.
Furloughville
Mrs. HoF was furloughed for a week in May. She has another “week off” upcoming next week and likely 2 more weeks coming up in the 3rd quarter sometime. While the furloughs suck, we feel fortunate her employer has been able to avoid layoffs. Her furloughs combined with the rental “flip” expenses are making the monthly cash flow a bit exciting.
Thank goodness for that emergency fund!
Coming Up in June
Selling a House in “UNCERTAIN TIMES”
We have the countertops coming in about a week along with new appliances. A tile backsplash needs to go in, and we need to do some landscaping, numerous other finishing touches and a last DEEP clean. If our renovation schedule holds up, we will have the house on the market in the third week of June.
While we have some control over the time to get the house to the market, the second half of the equation (acutally selling the house) is anyone’s guess. It looks like it will be a total crapshoot on what to expect in terms of interest and offers. The house is in the Ferguson-Florissant school district. Yes, “that” Ferguson. And things are on edge there (as well as all-over the St. Louis area) again.
We previously tried to sell the house in 2015, shortly after the Michael Brown protests… The moral of this story is that probabilities are probabilities for a reason. Just because a 100-year flood should have a return period of 100-years doesn’t mean they can’t happen in consecutive years.
I mean, if someone actually calculated the odds of buying a house right before the Great Financial Collapse (May 2008) and then trying to sell it during two periods of nearby civil unrest… and during a global pandemic, the result would be so infinitesimal that you would laugh at it. It’s so silly, I am not even mad…
Take away 2 – “We don’t do real estate good”
Take away 3 – I really have no business gambling.
The crazy part is, the housing market actually looks like it is still pretty good (from a seller’s standpoint) in this specific area. There is not much inventory on the market and recent sales support a decent listing price. I feel like I am looking at the disconnect between the economy and the stock market again here. But this time I am choosing to take a more positive outlook…
What do we do with these kids?
The third leg of the trifecta of pressure is caring for our kids during the COVID pandemic and trying to flip the rental house. Our daughters are on summer break now. Ordinarily, that means they are in summer camp or daycare.
Not this year.
My wife and I have gone back and forth numerous times on whether we should send the kids back or not. While the summer program for our oldest officially opened back up, we are not comfortable sending her yet. The list of restrictions put on the kids was very long and “the curve” has recently bent upwards again with more new COVID cases cropping up. Likely, due to relaxed restrictions. Ultimately, the risk to family and friends is just too unknown and that is not something we are OK with.
Credit goes to my wife, who has been absolutely hustling to find activities to keep the girls occupied and active. Strategic acquisitions this summer so far include a bounce house and a blow up swimming pool (these things are like unicorns around here).
Thanks for reading and stay safe out there!
