Barlotti in Boston II

Where are you and where are you going?
jacob
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Re: Barlotti in Boston II

Post by jacob » Sat Apr 02, 2016 12:44 pm

The answer is only residential real estate sometimes. Don't get too excited ... we've been on a bull run for a good 5+ years now.

My neighbour is a good example of when the leverage and bad timing doesn't work. Bought at the peak, didn't live within their means, paid nothing down (I'm guessing interest only mortgage and those aren't interest only forever), and now 8+ years later, the house was just sold in a short sale. Now that the market has almost recovered, and they have to move out, he is looking to buy a rental for more down payment than he can afford.

I also heard some crazy stories from my RE agent back when we were buying. One family had spent 20 years flipping fixer-uppers in the tax-efficient way. They'd buy them, fix them, live in them for two years, and then buy something bigger. In 2007 they were up to $2M in networth with a leveraged luxury home. *Boom*... lost it all.

Barlotti
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Re: Barlotti in Boston II

Post by Barlotti » Mon Apr 04, 2016 3:28 pm

I agree with your note of caution.
It wouldn't do to end up over-leveraged and upside down on mortgages. But I think the odds of that are low for me in the real estate market that I'm in.

Barlotti
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Flexibility

Post by Barlotti » Wed Apr 13, 2016 11:36 am

The kitchen remodel is coming along, and I think it might wrap up in a week or two. After that I'll refresh the bathroom. I believe I can wrap up condo improvements by mid-May, which begs the question, what next?

Well! Having an updated condo creates options. In particular, I can rent it out, and given its proximity to the red line, I can ask $1600 a month or more.

I love my little condo on the red line, and I'd like to keep it. One way to assure this is to pay down the mortgage before I take on another mortgage. I can pay the mortgage down by $10K by August, but more would be nice.

Here's what I'm taking away from all this. Flexibility is a beautiful thing. Both the kitchen remodel and paying down debt give me flexibility. I can rent my little condo on the red line, I can sell my little condo on the red line, I can keep my little condo on the red line, I can buy another little condo or house.

By the time it's all said and done, I will have spent over $25K on remodeling and refreshing, and it's well worth it. The kitchen is working up to be sweet and midcentury mod, and once I've added my designing flair, I have options.

I'll keep on truckin' and see what happens. I have been known to change my mind.

Barlotti
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Re: Barlotti in Boston II

Post by Barlotti » Sat Apr 23, 2016 2:48 pm

Thanks, Scriptbunny! I got an IKEA kitchen which basically obligated Scituate Caseworks to work with me. They're good.

It's difficult to find contractors, especially as a condo owner, and especially after the hard winter a couple years back. You might have better luck with a handy man. Or get a referral through a friend or acquaintance.

I'm very familiar with Koreana, having lived in Inman Square for several years. Funny how I forgot they have bbq. I'm more fond of Hometown Restaurant in Union Square. It's the place filled with Korean people. However, they don't have bbq.

*************************

The remodel drags on. It's going to take 3 weeks to get a laminate countertop and backsplash.

Once again, I've been thinking about how nice it would be to pay down my mortgage significantly. Oh to own one property outright. I could pay off my current mortgage in about three years if I set my mind to it. Here's what's pressing me to buy now: Rising interest rates and rising home prices.

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Re: Barlotti in Boston II

Post by Augustus » Sat Apr 23, 2016 10:53 pm

Barlotti wrote:Thanks, Scriptbunny! I got an IKEA kitchen which basically obligated Scituate Caseworks to work with me. They're good.

It's difficult to find contractors, especially as a condo owner, and especially after the hard winter a couple years back. You might have better luck with a handy man. Or get a referral through a friend or acquaintance.

I'm very familiar with Koreana, having lived in Inman Square for several years. Funny how I forgot they have bbq. I'm more fond of Hometown Restaurant in Union Square. It's the place filled with Korean people. However, they don't have bbq.

*************************

The remodel drags on. It's going to take 3 weeks to get a laminate countertop and backsplash.

Once again, I've been thinking about how nice it would be to pay down my mortgage significantly. Oh to own one property outright. I could pay off my current mortgage in about three years if I set my mind to it. Here's what's pressing me to buy now: Rising interest rates and rising home prices.
I would be very careful buying now, I personally think real estate in general is overvalued. I can't comment on Boston, but as far as the south west goes everything I've seen is overvalued.

Rising home prices should leave you less inclined to buy, not more so, getting sucked in to the hysteria can be devastating. It's a common refrain, if you don't buy now you'll never be able to. It's not rooted in reality, if the average income isn't rising as fast as housing prices, eventually there will be a crash as it's simply not sustainable.

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Re: Barlotti in Boston II

Post by jacob » Sun Apr 24, 2016 7:25 am

Barlotti wrote:Here's what's pressing me to buy now: Rising interest rates and rising home prices.
Those two "should" move in opposite directions and the fact that both are going in the same direction indicates that something screwy is going on.

If both are going up, you have a situation where sudden demand overwhelms supply and you can't explain it by lots of immigration into the area (which would be indicated by rents going up as well), you have a bubble. If both are going down w/o people emigrating (rents are going down), you have a bust.

All this is indicated by the NAV equation.

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Re: Barlotti in Boston II

Post by Barlotti » Sun Apr 24, 2016 8:24 am

I don't know WHAT's going on with the Boston real estate market.

Clearly, there are some investors from China. I also think there's an influx of people. GE is placing its headquarters here. Microsoft and Google have expanded their presence. Pharmaceutical companies have expanded their presence. I think a lot of this has to do with MIT, not Harvard. Harvard is culturally more... ... ... ... ... conservative. Not good for the innovation economy.

On a completely different note. Marcia Clark, the prosecutor in the O.J. Simpson criminal trial, is an inspiration. My jaw drops at how people STILL grill her about her work on that case (they are questioning her competence) and also how people STILL grill her about her romantic life. Interestingly, back in the 90s, Oprah Winfrey interviewed Marcia Clark and I thought it was an interview that Oprah can be proud of now. Of course, Oprah still grilled Marcia more than felt "right". I imagine Chris Darden didn't get that treatment. To what degree Oprah was addressing the curiosity of the public, it's hard to say.

It's a beautiful day, and the National Park across the street is SO cute. Lots of visitors arriving on the trolley and milling about. I love my little condo.

4:29 pm on April 24
I'm picking up around my one bedroom, 675 square foot apartment, and I feel suffocated. Like I own too much. I don't own that much, but what I own is bugging me again. In particular, all those nails I pulled out of my circa 1950 kitchen cabinets. And the drawer and cabinet pulls, and some of my mirrors. There are the kitchen cabinet doors that I don't want to get rid of, because they're kinda cute, and I feel like I could turn them into shelves, or a plant stand. Tree paintings. A few years ago, I decided to collect trees painted by friends. I didn't reckon that I wouldn't like one of my friends' tree paintings. But now that she went to the trouble of painting it, I have to hold onto it forever. Scheisse.

My toaster oven and all the unnecessary parts (a rotisserie attachment) is driving me nuts. My hot plate is driving me nuts. The bottle of Sriracha is driving me nuts.

I suppose I'm lucky. Getting rid of stuff makes me feel better.

Here's what I'll do. I'll get rid of the two mirrors I like least. I'll reorganize my toolbox. I'll try and get rid of the pot of dirt. I'll clean my hotplate. Maybe I'll feel better afterwards.

Barlotti
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May net worth

Post by Barlotti » Fri Apr 29, 2016 7:35 pm

Yes, I think it's Buk Kyung. I think the receipt says "Hometown".

Here are the numbers for May

Condo 200000
Checking 16111
403b 85990
Roth 20016
Brokerage 0
Pension 8998
ASSETS 331,115

Mortgage 122079
Heloan 11536
Credit card debt 2996
LIABILITIES 136,611

NET WORTH 194,504

My net worth has gone up by $13,602. Most of the gain is due to the increase in my little condo's value. Little condo, you're priceless to me!

I'm going to Weymouth to look at townhouses tomorrow. And a friend asked me to look at Cambridge co-housing with her.

If you will notice, my primary mortgage, a 5/1 ARM is 122,079. My Heloan is 11,536. Together, they total 133,615. My little condo's expenses are 1,400 a month, including insurance, $16.8K annually.

If I buy a $250K property (4% fixed rate, 30 yr), the mortgage, taxes, PMI, condo fee might be about $2,000 monthly, $24K annually.

The interest for both properties at the beginning would add up to about $12K. I would save about $3K in tax yearly.
The yearly depreciation on my little condo would be about $7.2K. I would save about $1.8K in tax yearly.
I could deduct condo fees, which would be about $4K a year. I would save about $1K in tax yearly.
I could depreciate my new appliances over five years. I could deduct about $400 a year. I would save about $104 in tax yearly.
I could deduct property taxes of about $2.4K a year. I would save about $600 in tax yearly.

If I rented my little condo, I'd make about $18K a year gross.

If you add it all up, my net spending on both condos would be about $16.3K annually, or $1,358 monthly. That's about what I'm paying now for housing.

Barlotti
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Dispensing with debt

Post by Barlotti » Mon May 09, 2016 7:22 pm

Well folks, since we last spoke, I made an offer on a sunny top floor condo with a view of trees, and then withdrew the offer based on the results of inspection. The condo looked dry and mold-free initially, but then the inspector found evidence of mold growing within the walls. I HATE MOISTURE!

Since then, I looked at another condo in a dry building in North Weymouth, but my realtor advised me against buying in the neighborhood after he had a look around. So the game plan now is, I'll wait awhile and then spring for a condo in the $325K+ range in East Boston, which is up and coming.

I don't feel comfortable carrying a $325K+ mortgage on top of my current mortgage, and since I want to hang onto my little condo (my realtor also thinks I should), I'm going to pay down my current mortgage.

I'm "into" gamefying personal finance. I like linking good behavior to something that's rewarding. For example, when I was paying down undergraduate student and auto loans (before I started Barlotti in Boston II), I made myself a chain of construction paper links and hung it on my living room wall. Each $1000 of debt I paid off, I could cut off a link. I wanted to be rid of the chain, so I paid down the debt quickly.

I have this postcard of a painting of a medieval Palio di Siena, your run-of-the-mill breakneck horserace held in the Piazza del Campo in the middle of town. It's a nice memento of a trip to Italy. As I was shuffling through my minimalized desk looking for materials to gamefy mortgage pay down, I asked myself, "why not make this nice postcard a memento of owning dear little condo free and clear?" So I dated the postcard May 9, 2016, and drew 130 little squares, each square representing $1K. As I pay down the mortgage, I'll fill in the squares. And when they're all filled in, maybe I'll do something "wild" like visit Siena. There's this little meat and cheese shop near the Piazza del Campo from which I made myself a nice little lunch, al fresco, 10 years ago. I'd like to visit it again.

Um, how do you post images here? I just snapped a shot of the postcard and would like to post it.

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Re: Dispensing with debt

Post by FBeyer » Tue May 10, 2016 2:00 am

Barlotti wrote:...Um, how do you post images here? I just snapped a shot of the postcard and would like to post it.
1) Take picture.
2) Upload picture somewhere on the net. Facebook, photobucket, imgur. Anywhere.
3) Navigate to page where you can see the image and right click on the image. From the drop-down select: Copy Image Location.
4) if you paste, you'll get a link that looks like: https://portfoliocharts.files.wordpress ... .jpg?w=840
5) In a forum post click the img box. The one between * and URL. The editor will auto-write two commands in brackets. paste the link you copied above, between the brackets.
6) Click the preview button and see that the post now displays the image instead of the two brackets and the link.


Try quoting this post. Study the structure of the IMG tags to see what it should look like.
I've pasted the asset allocation of the Golden Butterfly portfolio from portfoliocharts.
Image

Barlotti
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Re: Barlotti in Boston II

Post by Barlotti » Sat May 14, 2016 7:14 am

Well, I tried posting photos from facebook and google photos, and I can't figure it out. A message saying that I should check for valid URL keeps popping up.

You know how I wrote about making a little postcard with 130 boxes drawn on the back? Each box represents $1000 of my remaining mortgage and as I pay down my mortgage, I can fill in the boxes. I also made a paper chain with 130 links, each link represents $1000 of my remaining mortgage and as I pay down the mortgage, I can cut off a link. This is what I do when I'm bored...

I paid off $9000 of my mortgage a few days ago, so I tore off 9 links in the chain and filled in 9 boxes on the postcard. If I could figure out how post pics here, I would show you pictures!

Anyhew, people (for example, financial advisor) keep telling me to refinance my mortgage and save the money for other purposes (for example, buying another house in Boston metro). I have a 5/1 ARM with a fixed rate of 2.49% until August of 2017. After that, the interest rate can go up by 2% each year until it hits 7.5%. The balance on that mortgage is $112,600.

Here are some of the unknowns:
My ability to pay two mortgages in the future (even if rented, I suppose tenants might stop paying, and it's difficult to evict tenants here),
The interest rates in the future (I suppose interest rates could go as high as double digits and that they could also return to 3.5%),
Properties values (they tend to trend upwards in Boston regardless of what the national economy is doing).

Does anyone out there have advice?
Last edited by Barlotti on Sat May 14, 2016 8:03 am, edited 3 times in total.

IlliniDave
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Re: Barlotti in Boston II

Post by IlliniDave » Sat May 14, 2016 7:27 am

One thing to consider is that if mortgage interest rates do shoot back up to 10% (I believe that is unlikely in the short/medium term) it will tend to mean property values go down in compensation (property sales usually hinge on how much mortgage the buyer can afford). That could put you in a bind if you needed/wanted to sell suddenly as it could leave you underwater.

I'm not a real estate investor, but my instincts tell me patience is a key facet of RE investing, especially when the portfolio is leveraged.

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Re: Barlotti in Boston II

Post by Barlotti » Sat May 14, 2016 8:40 am

@Dave, your words are reassuring.
It's funny the things I forget. Like the plans I made three years ago. I just did some calculations, and I really don't need to refinance my primary mortgage or make extra payments. I've paid off enough of the principal that even in the worst case scenario of the interest rate topping out at 7.5%, I'll still have a positive cash flow rental property. My primary mortgage won't ever be higher than $760 a month so long as I pay about that amount for the rest of the mortgage's life. Right now, my primary mortgage is $640 a month. I also have a heloan that's costing me about $150 a month. It's all good.

Update Sunday, May 15, 6 pm.
Apparently, this is the weekend of hmm'ing and hawing about refinancing my condo. I was trolling Redfin for Boston properties, and my oh my, they are so expensive. I'm tired of looking at cheaply-built, fully-depreciated properties with moisture and mold problems. I want something shiny, and in a cool neighborhood. Something that will hold it's value through recession and gain value in good times. Something I can rent out easily, and is in a good commuting location. I would need to spend somewhere between $400K and $600K to get an acceptable 2 bedroom condo in East Boston, Roslindale, West Roxbury. So I started thinking about how long it would take to save up $80K to $120K, and I started feeling down-and-out. It will be four to five years at least, and even after I've saved up the money, who knows how long it will be before the market conditions allow me to buy the kind of property I want.

So now I'm back to thinking about doing a cash-out refinance. Cause my little condo is probably worth about $220K, and I could cash out about $70K and decrease my monthly expenses a little and STILL have a cash flow positive rental property. I know that interest rates are still pretty low. Who knows what they'll look like in the future, but if they go up, it will be nice to have cash on hand. I'll have a mortgage of $170K, but I think it's unlikely I'll end up under water. It's not easy to find a condo like this within a half mile of the red line, which has stops in the Boston financial district, Beacon Hill, MIT, Harvard, and Tufts. They call it the "brain train" and I think all the brains in need of affordable housing will want to rent or buy my little condo.

Here's what I figure, I can cash out $70K and put most of it into a CD. I'll continue to save about $25K per year over the next several years, and I'll keep my eye on the real estate market. In five years, I'll have about $200K. Maybe then, I can buy something a little nicer without making myself house poor. OR, maybe I'll decide to pay off my little condo so I own it free and clear. It's hard to say, but it's better to have options than not.

Barlotti
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Re: Barlotti in Boston II

Post by Barlotti » Tue May 17, 2016 8:41 pm

@Scriptbunny, You're exactly the real estate enthusiast I want to listen to!!! I didn't even consider the possibility that I might be able to afford Somerville. And Waltham never crossed my mind! Also, I had no idea that property taxes where you live are so low! Where do you live?!? (I just assumed you live in Cambridge.)

Unlike you Scriptbunny, I'm no spring chicken, and also, I don't make piles of money like you do. I am 15 years older than you, and I feel like extra cash now will really pay dividends (ha ha). If I invest the $70,000 now, I may be $700,000 richer 30 years from now. If I buy another property now, a renter will build equity for me, plus I'll get great tax breaks. But I will get pre-approved.

Barlotti
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June net worth

Post by Barlotti » Sat May 28, 2016 11:22 am

I love the ritual of updating my ERE journal. It's a beautiful sunny and warm day in Boston, and I write this while looking at the pretty scene outside my windows. TREES! GRASS!

Here are the numbers for June!

Condo 200000
Checking 11329
403b 86439
Roth 11353
Brokerage 0
Pension 8998
ASSETS 318119

Mortgage 112693
Heloan 8578
Credit card debt 310
LIABILITIES 121578

NET WORTH 196541

My net worth has gone up by $2037. Most of the gain is due to contributions to my 403b. Unlike last month, the net worth gain is not due to any increase in the value of my little condo. But it remains true, little condo, you're priceless to me!

I am happy and contented. I'll keep bopping along remodeling my little condo, and paying down my mortgage, and once the remodel is done, I'll think about refinancing.

There's a pot of peppermint in the window, and next to it, my dehaired cat. I think he's forgiven me for the bad haircut I gave him.

UPDATE June 3
I finally listened to "The Life-Changing Magic of Tidying Up" audiobook. Charming. It's philosophical. Our surroundings do effect our moods and our thinking. Much of what she wrote resonated with me, someone who's downsized considerably over the past few years. Something tells me Marie Kondo's methods would have yielded the same "A Ha" moments that I obtained by taking inventory, but with much less work.

In the past three years, I've gotten rid of a lot of "stuff" and my relationship to my belongings has changed. I no longer value objects I once valued. I want to get rid of more, and so I've spent a few hours this evening puttering around, cleaning, and identifying objects that I'm ready to throw away. I've also been noticing objects I want to replace. Almost all my kitchen equipment was handed down from my mother or from former roommates. Some of it is old and gross, and could be replaced with something that "sparks joy" pretty easily and at low cost. I'll start working on that.

UPDATE June 4
I am sitting here listening to Chopin nocturnes. I just had leftover lentil soup that I whipped up yesterday in less than 15 minutes for a friend's visit. There are birds chirping outside. The sky is a cool blue and the trees are brilliantly green. Life is SO good.

I firmly believe that some, perhaps all, of this delicious contentment is due to minimalism. There's a reason why the religious, mystics, and ascetics reject the material.

Proud to say that I improvised the lentil soup. I diced an onion and a sweet potato, and sautéed the onion until it was slightly caramelized and then added the sweet potato to brown. Threw in a cup, maybe cup and a half, of green lentils, and then added water, a veg buillion cube, some salt and thyme. Let it simmer for 30 to 45 minutes and voila! Lunch! My friend and I ate the soup with whole wheat ciabatta, good cheddar cheese, and a quick salad of romaine and tomato. I bought the ciabatta 50% off, but certainly didn't say so to my friend, who may have cringed at the idea of discounted bread. It sure beat paying $4.00 for bread that woulda tasted the same to me regardless of price!

So in spite of my cheapskate ways, I don't mind spending money on SOME things, for example, good make-up. (Dude, that stuff is going on my face!) I haven't worn make-up since the Mohave desert shoe and make-up bandit incident, but yesterday, I had some time between a haircut (my first in a year and a half) and the Boston Pops performance of "Indiana Jones and the Raiders of the Lost Ark", so I popped into Macy's, got made up, and dropped $325! on Shisedo make-up and skin care. I still need to buy foundation and Guerlain powdered kohl, which will cost me another $100. Well, maybe I'll return some of the products I bought yesterday. I'm fairly certain that I won't use some of the skin care products because I can't manage more than a 5 minute routine. Simplify, simplify! One thing I have to say for myself, I look damn good in make-up. I was turning heads!

UPDATE June 4, later the same day
I made a yummy meal, and I must report. Caramelized onions, can of diced tomatoes, pepper flakes, green lentils, some water. Boil 30 to 45 minutes until lentils cooked, but with a little texture. Spoon over rice and add a dollop of greek yogurt.

I started weight watchers last week, because I'm overweight. I must admit, I want to keep eating. I'm full, and I feel nourished, but my appetite. My appetite. I guess this is how I gained 25 pounds since I quit smoking about a year ago. Food is so marvelous! I just want to eat and eat!

I think dieting is like frugality. Hard at first, and then it becomes second nature.

UPDATE June 5
It's a humid and cool day in Boston, and I'm glad for the plants. I fell asleep yesterday at 6 pm, and woke at 2 am. Cleaned for a few hours and left the house at 5:20 am for a long walk along salt marsh and Quincy harbor. Got home at 7:10 am and took a three hour nap, after which, I watched a Netflix documentary, "Foodies: The Culinary Jet Set".

Again, I am enjoying the beauty of... beauty! Whatever form it takes, beautiful food, beautiful music, beautiful surroundings. You know Maslow's hierarchy of needs? You need to have your basic needs satisfied before being able to attend to non-necessary pursuits. I feel like I've climbed a rung on Maslow's ladder. Now that kitchen remodel is almost complete (some cabinet doors will be replaced and the range needs to be bolted to the wall) and now that I've streamlined life activities, like housecleaning, I feel like I have free time. Or perhaps it's the beauty of the Boston summer that's creating this wonderment and contentment. All I need do is get enough sleep, get enough exercise, and cook nourishing food at home. The money is on autopilot -- almost. I am fully funding my 403b, and once I'm done with the bathroom remodel, I will fully fund my Roth and pay down my mortgage whole hog.

Just so you know, I do feel cranky now and then. Yesterday, after running errands, I just wanted to nap. I think some of the wonderment and contentment comes from hanging out in my little condo. It's cool and clean and green. I LOVE it.

UPDATE June 6
I realize I write a lot about my condo. I can't deny, I LOVE my condo, but I'm not being unreasonable. The plumber likes my condo, "this kitchen is beautiful, and you're next to Adams National Park and within five minutes of the T". The inspector likes my condo, "this building is really classy. Look at all the lobby space! Look at the decorative arches! Look at the molding! Have you thought of painting your living room a cool blue? I think it would go well with the greenery outside. Your cat will like it. Let me email you the color I have in mind." My realtor likes my condo, "you're within 5 minutes of the T! Don't sell it!"

I WON'T!

Yesterday evening, in a whirl of Marie Kondo-ization, I decided to get rid of more stuff. I put all my clothes on my bed, and I held them one by one to determine what items spark joy and what items do not. Interestingly, I did have visceral reactions to some articles of clothing. Some clothes made me feel good, and others repulsed me. I then, prematurely, moved onto mementos. I have dozens and dozens of crocheted roses from an afghan my mom made for me when I was 12 years old. I rescued the afghan from the donation box several years ago. My mom wanted to be rid of the afghan since it weighed a hundred pounds. I objected vociferously and stormed off with the afghan only to discover that it weighed a hundred pounds. To make it more manageable, I unraveled the afghan, carefully spooling most of the yarn and collecting the intact flowers. Subsequently, my mom produced yet another afghan from the saved yarn (the rest was freecycled), and for years, I've been hauling the new afghan and the flowers around. These flowers are inconvenient for a budding minimalist. I've often thought to myself, "keep a few of the flowers and get rid of the rest!" But yesterday, I opened the box in which the flowers are kept, determined to be rid of some of the flowers, and a wave of deep abiding affection for my mother washed over me. I knew immediately that I could not bear to part with a single flower because each and every flower sparks joy in me. So be it.

I got a quote for my bathroom remodel today. $16K! I don't have that kind of cash on hand. I could liquidate my Roth, but I don't want to. Instead, I think I'll do a cash out refinance to fund my bathroom remodel. I think it will be well worth it to have a bathroom that sparks joy. I can refinance to a 5/1 ARM with a 2.65% fixed interest rate for five years. I can cash out $30K and lower my monthly payment by a couple hundred dollars.

Home should be a refuge. A peaceful oasis. A sanctuary. Mine is becoming more and more of one. Even my cat is happier. I really do believe the air is better since I Kondo-ized (ie became a minimalist).

UPDATE June 8
I listened to another Marie Kondo audiobook, "Spark Joy", in which she goes into detail about her methods. I enjoyed it, just like I enjoyed "...Life-Changing Magic...". I've been binge listening to Marie Kondo -- while cleaning house, falling asleep, and commuting. It sounds odd, but I find her books very relaxing.

The weight watchers diet seems to be working. For the first time in a long time, I'm experiencing hunger. I guess I need to eat more brocolli.

Barlotti
Posts: 156
Joined: Sat Dec 10, 2011 7:58 am

July net worth

Post by Barlotti » Wed Jun 29, 2016 5:17 pm

Give me an E!
Give me an R!
Give me an E!

It's journal time!

Condo 200000
Checking 9782
403b 87622
Roth 11165
Brokerage 0
Pension 9288
ASSETS 317857

Mortgage 112288
Heloan 5918
Credit card debt 2540
LIABILITIES 120746

NET WORTH 197111

My net worth has gone up by $570.

Not a great month, but a perfectly fine month. I will pay my credit card debt off in full. Between a planned trip to Seattle and a planned trip to Martha's Vineyard, it is what it is. Writing these numbers down reminds me that when push comes to shove, I would rather have paid off $1100 more in debt than travel to Seattle or Martha's Vineyard. It's a little sad that I feel that way, because both trips will give me quality time with family and friends. I can cut back elsewhere.

I should keep Elizabeth Warren's and Amelia Tyagi's balanced money formula in mind. I'm doing OK. It's OK to spend 30% of my money on wants. I'm certain I save more than 20%, and spend less than 50% on needs. I'm doing OK.

The lady doth protest too much.

The interest rate on the 30 year fixed mortgage has come down to 3.25% from 3.6%. Who woulda thunk that Brexit would actually happen?

Barlotti
Posts: 156
Joined: Sat Dec 10, 2011 7:58 am

Re: Barlotti in Boston II

Post by Barlotti » Thu Jun 30, 2016 6:39 pm

Hi Scriptbunny,
Members Mortgage, which underwrites mortgages for credit unions. My credit union offers some very competitive mortgage rates.

George the original one
Posts: 4328
Joined: Wed Jul 28, 2010 3:28 am
Location: Wettest corner of Orygun

Re: Barlotti in Boston II

Post by George the original one » Thu Jun 30, 2016 7:33 pm

You can find that rate with no points at aimloan.com if you have 740+ credit.

Barlotti
Posts: 156
Joined: Sat Dec 10, 2011 7:58 am

Re: Barlotti in Boston II

Post by Barlotti » Thu Jun 30, 2016 9:22 pm

Interest rates on a 30 year fixed mortgage are pretty low!

Hi Scriptbunny,
I have no immediate plans to refinance. Some of the urgency to refinance has left my bones. Right now, I'm really in love with my little condo, and my neighborhood. There's a new garden that I'm helping to take care of, and it's meeting my need for green. All's I want to do is compost, water, weed, and prune. I'm looking forward, this weekend, to finding some worms and setting up my wormbox so I can fertilize the garden. The air in Quincy is so wonderful. It feels like the ocean, and to me my condo feels like a beachside cottage.

Plus, the National Park across the street is staging an opera this weekend. Wha the wha?!?

On the mortgage paydown front, I just paid down my Heloan by $3,000. The Heloan balance is down to $2,920. Yay!

UPDATE on July 1
Jesus, Mary, and Joseph, I love the feeling of dispatching debt. I put another $1,300 toward the Heloan, which means my balance is now $1,600. I will pay off the Heloan next month, and shebam! another loan closed. A few months ago, I made a paper link chain, and each $1,000 of mortgage principal reduced, I tear off a link. As I pay off my mortgage, I will become free of the chains of debt!

UPDATE on July 2
Ha! I thought about the Heloan this morning, and decided to pay it off. My Heloan is closed. Maybe it would have been good exercise in patience to pay it off next month, but it was very emotionally satisfying to pay it off now. Yes, I get my kicks by paying off debt. I'm rolling my eyes at myself. Well, it is what it is. It's not like I'm addicted to drugs...

What this means is that when I get my next paycheck at the end of this month, I can use the "extra" to start contributing to my Roth IRA and to start paying down my primary mortgage. I'll be on target to pay down my mortgage to somewhere between $95 and $99K by August 2017. That's when my 2.49% interest rate will reset to 4.5% maximum.

I'm going to re-post my net worth calculations for me future self,
Condo 200000
Checking 424
403b 88333
Roth 11332
Brokerage 0
Pension 9288
ASSETS 309377

Mortgage 111882
Heloan 0!
Credit card debt 200
LIABILITIES 112082

NET WORTH 197295

God, I just LOVE how the ratio of liabilities to assets keeps going down!!!

Barlotti
Posts: 156
Joined: Sat Dec 10, 2011 7:58 am

August net worth

Post by Barlotti » Fri Aug 05, 2016 12:28 am

Condo 200000
Checking -151
403b 93812
Roth 12512
Brokerage 0
Pension 9433
ASSETS 315606

Mortgage 111474
Credit card debt 622
LIABILITIES 112096

NET WORTH 203510

Net worth has increased by $6,215! Nice.

I'm doing well. Visited my parents, and felt "at peace" with them for the first time since SOME (not all) of the parental drama went public when I was 15. Forgive. Forget. Love. My new motto.

Barlotti
Posts: 156
Joined: Sat Dec 10, 2011 7:58 am

September net worth

Post by Barlotti » Tue Aug 30, 2016 8:25 pm

Condo 200000
Checking -3582
403b 95168
Roth 12134
Brokerage 0
Pension 9578
ASSETS 320,462

Mortgage 111474
Credit card debt 1336
LIABILITIES 112810

NET WORTH 207652

Net worth has increased by $4,142! Nice.

I'm paying off my credit card balance this month. The transaction hasn't cleared yet. I forgot that it's the three year anniversary of Barlotti in Boston II. I'll summarize my progress over three years shortly. Need to collect the figures first.

Barlotti
Posts: 156
Joined: Sat Dec 10, 2011 7:58 am

Three year anniversary of Barlotti in Boston II

Post by Barlotti » Tue Aug 30, 2016 8:58 pm

In my accountin', I'll use figures from last month (August) since that was the actual three year anniversary.

August 2013:
ASSETS
Condo $180,000
Roth balance $9,638
403b balance $20,092
Nonretirement investment $6,420
Pension NOT VESTED

LIABILITIES
Mortgage $157,978
Credit card debt $750

Net worth $62,423

August 2014:
ASSETS
Condo $188,000
Roth balance $18,685 (+$9,002)
403b balance $53,061 (+$32, 969)
Non-retirement investment $9,685 (+$3,265)
Pension $3,292

LIABILITIES
Mortgage $141,822 (-$16,156)
Heloan $14,415 (+$14,415)
credit card debt $3553 (+$2803)

Net worth $114,147 (+$51,724)

August 2015:
ASSETS
Condo $188,000
Roth balance $25,980 (+$7,295)
403b balance $77,450 (+$24,389)
Nonretirement investment and emergency fund $12,522 (+$2,837)
Pension $7,000

LIABILITIES
Mortgage $133,028 (-$8,794)
Heloan $13,025 (-$1,390)
credit card debt $5,314 (+$1,761)

Net worth was $160,704 (+$46,557)

August 2016:
ASSETS
Condo $200,000 (+$12,000)
Roth balance $12,512 (-$13,468)
403b balance $93,812 (+$16,362)
Nonretirement investment and emergency fund $0 (-$12,522)
Pension $9,433 (+$2,433)

LIABILITIES
Mortgage $111,474 (-$21,554)
Heloan $0 (-$13,025)
credit card debt $622 (-$4,692)

Net worth $203,510 (+$42,806)

Here are my reflections on the past year.

The kitchen remodel
THANK GOD IT'S DONE. I LOVE MY KITCHEN.

Downsizing
I'M HOOKED.

The kitchen remodel was real bad for my health, which I'm now trying to improve. I stopped smoking last summer, and although I've had a smoking jag recently, I'll come back around to NOT smoking. I'm much better at managing work stress, and I'm less obsessed with my finances. I attribute it to the progress I've made these last three years. I think I'm better at handling romantic relationships, and feel much less conflicted about my family.

To summarize: I'm loving life.

IlliniDave
Posts: 1726
Joined: Wed Apr 02, 2014 7:46 pm

Re: Three year anniversary of Barlotti in Boston II

Post by IlliniDave » Wed Aug 31, 2016 3:50 am

Barlotti wrote: To summarize: I'm loving life.
An important point that's often overlooked. Maybe less so by ERE-ers. It's cool you've got several years worth of data. Helps to be able to see the longer arc. I get caught up looking month-to-month sometimes and it can make things feel stagnant. I had my big ER epiphany between 12/2011 and 3/2012, and only started keeping high quality data since 4/2012. Compared to a 29.5 year "working life" that's only the last couple of eye blinks.

Congrats on your progress.

Barlotti
Posts: 156
Joined: Sat Dec 10, 2011 7:58 am

October Summary

Post by Barlotti » Fri Sep 30, 2016 9:11 pm

@IlliniDave, thanks. ERE journaling has become an enjoyable monthly ritual for me.

Condo 200000
Checking 2028
403b 97274
Roth 12181
Brokerage 0
Pension 9723
ASSETS 321206

Mortgage 111066
Credit card debt 507
LIABILITIES 111573

NET WORTH 209633

Net worth has increased by $1981!
Last edited by Barlotti on Mon Jul 10, 2017 12:30 am, edited 1 time in total.

flip711
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Contact:

Re: Barlotti in Boston II

Post by flip711 » Mon Oct 03, 2016 7:08 pm

What a fun and enjoyable journal to read! It's been incredible reading over your financial prowess over the past few years, and is really a testament to managing a well-thought out date log. I'm looking forward to following your monthly increase of assets, net worth, and personal understanding, coupled with the decrease of your mortgage, debts, and things that don't bring you joy!

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