Fall has arrived. The heat is gone, the leaves are changing, and college football is actually here. September brought a whirlwind of activity and there seems to be no letup anytime soon. Did our rental home sale finally go through? Read on to find out.
Anyways, you can check the latest and greatest info on the Track Our Progress page.
First, the numbers:
Net Worth:
- End of September Balance: $677,078 down $9,027 (-1.32%)
- Year to Date (YTD): Up $111,536 (up 19.7%)
- Since January 2018 (this is when I started tracking our net worth): Up $372,078
Portfolio:
- End of September Balance: $491,223 down $11,766 (-2.34%)
- YTD: Up $75,985 (up 18.3%)
- Since January 2018: Up $251,223
This is the first step back in our net worth since April. The recovery from the end of March lows was one heck of a steep incline, but things have been bumpier than a dirt road the last month or so.
Monthly Contributions: $4,441
Contributions were low again in September while we cover the mortgage and utilities on our old house we are selling.
September Highlights
Rental Ridiculousness
In August we had one potential contract fall through in negotiation and then, heartbreakingly, lost another contract a week before close. We were fortunate to get the property back under contract contract quickly and all the inspections and negotiations went about as smooth as can be.
Until closing.
The night before we were going to close, our agent called and said the final loan paperwork hadn’t come through from the seller yet. The closing would be pushed back a few hours. Disappointing? Sure, but it wasn’t the end of the world.
The next day we were actually driving to the title company to close when our agent called and told us to turn around and head home. We would need to extend the contract a few more days.
Now, we were getting frustrated.
Friday comes and we are getting ready to get in the car again to go close, when our agent calls and says that the buyer’s lender will not close the loan and that she no longer qualifies. We would need to relist the house that evening and start over. Again.
I mean… I don’t know what to say.
The thought of resetting the clock on selling the rental at least a month and a half was depressing beyond words. A first world problem to be sure… and survivable… but a real kick to the junk.
I mean, the buyer was already getting packages shipped to our old house. I can’t imagine what they were going through. Did they already move out of their house?
So we set about canceling weekend plans to go and straighten the house back up, and make sure the yard was up to snuff.
Then a couple hours later our agent called and said the lender was working things out with the buyer and they were confident they could get the deal done… but would need a week to do so. Hopeful, yet skeptical, we agreed.
The following week was agonizingly slow. Minutes seemed like hours. Every ring of the phone or text notification was a near cardiac arrest.
Then the next Friday came and we closed without further incident.
What. A. Relief. Now we can move on.
The house actually closed in October, so the net worth adjustments don’t show up here yet. They will in next month’s update.
Coming Up in October
Getting Savings on Track 3.0
I typed this each of the last two months and it still applies. But it’s real this time!!
We took a portion of the house proceeds and maxed out our Roth accounts. Additional money will be set aside to cover our expected tax liability from the capital gains from the sale. For just about all the remaining funds… well, they are getting stashed into our taxable brokerage account.
I think we will break the funds up into chunks and invest them over a few weeks. I am aware that research suggests that a lump sum has higher odds of a better future return. But this is 2020, in the middle of a pandemic, and right before a presidential election. Shit’s weird right now. I don’t normally like trying to time the market, but I think we can bleed the funds in between now and the election and there may be a couple good buying opportunities between now and then.
Getting Decked Out
Long time readers (if there are any) might remember we strongly considered hiring a contractor to pour a concrete patio last fall. Ultimately, the timing/expense didn’t feel right so we passed. Good thing we did. We ended up needing that money and more to renovate the old rental house.
But now that that house is gone we took another look at the financials and we discovered that a paver patio would be much more cost efficient… and look better overall. Plus, I am a sucker for DIY projects.
With a couple extra coins in our pocket from the home sale… and the tax return that FINALLY came, we pulled the trigger on ordering materials. This project starts right now.
I realize this project seems anti-Financial Independence (FI), but I don’t view it that way. In fact, I see it as perfectly in-line with the ideals of FI, which is to focus your resources and energy on the things that have value to you. Sitting outside and enjoying a cup of coffee or adult beverage is one of my favorite things to do (Yes, I know I am a boring individual) and our kids are at the point where they like having bonfires. These activities are also basically free and socially distant. Plus, the patio will add something to the home’s resell value down the road. Since we will DIY-it, we will almost certainly recoup the money. So with shovel in hand, off I go to work.
Thanks for reading and stay safe out there!
