So…it’s true…this debt-freedom advocate JUST went back into debt…to the tune of $139,000…
A while back, I wrote an article on how we came into not one, but two homes completely debt-free.
If you’ve ever read our story, then you’d know that a relative of ours inherited a home in a blighted (i.e. ghetto) neighborhood that they didn’t want to live in.
This house had no mortgage and was completely paid for. It was offered to us.
We just had to clean it out and fix it up.
At first, we took a hard pass. These suburbanites (us) were not cut out for city living.
But the more we thought about it, the more we realized that it was exactly what we needed- a break from housing expenses to help pay off debt.
Well, we said yes and just a few years later, paid off every last penny of that $120,000 worth of debt!
Fast forward to 2017 and we acquired a second home in the same community with cash.
Turns out we picked a great community that is turning around for the better!
In terms of the new house…
It was a GREAT deal… Less than $15,000 from an auction and within walking distance to Whole Foods, Starbucks and Chipotle. Plus, there’s a brand new community college with an Olympic swimming pool just a stone’s throw away.
Our new block boasts a tight-knit community of neighbors, a flower-farm with cutting-edge irrigation technology and a 3D printing lab a few doors down.
The only issue?
It requires a full-gut rehab to be move-in ready.
We didn’t have the $140K needed to complete the rehab, so we opted for a construction loan.
The good news:
- We only had to put $52 down since we purchased the building with cash.
- The rehab will add $15k-$20k in equity based on the appraisal but likely grow much more in value in the very near-term.
- There’s no PMI (private mortgage insurance.)
- It’s only a 20-year loan term.
- We received $10,000 in grants which just about covered all the closing costs.
- We have another property to rent out to cover the mortgage payments.
- This purchase should eventually increase our net worth.
The bad news:
- I HATE being in debt!
- I have NO DESIRE WHATSOEVER to manage or be involved with this project. Hopefully, my husband will take the reigns, as I have my own business plus my kid’s entertainment careers that I manage.
- There’s so much that could to go wrong in a large rehab — I’d be lying if I didn’t say this is VERY SCARY to me.
- The mortgage is still due whether the project is done or not — even if we don’t have renters yet! (<——VERY VERY VERY SCARY!!!! HALP!!!!!)
To be honest, I’m still trying to process it all.
I thought I would be happy when we finally closed (took 5 months to get everything in order.)
But, I’m totally freaking out right now!
However, the idea occurred to me that although something is scary, I don’t have to be afraid. And if I am afraid, I can still do it anyway.
Do it scared or scurrrrrred (for you southerners out there…)
So, here’s my plan…I need YOU to keep me accountable with this goal.
My goal is to PAY OFF THIS LOAN IN 12 MONTHS!
Yes, that means, I’ll need to find $12,000 every month to pay on the mortgage while caring for my other bills, too.
It’s insane, I know.
But honestly, I’m kind of glad that I get to be in a position where I can relate to my audience again.
How many times have you started following someone on social media who accomplished a big goal and thought…”Geez, they did that, but I couldn’t.”
Well, here I am…right back in the thick of things with you!
I will admit that I’m up to the challenge.
After all, when my husband purchased (and financed) a car last year without my involvement, we paid it off in about 45 days.
We recently rehabbed our bathroom and kitchen and our $5,000, 0% financing is already paid off.
I have a knack and a passion for getting out of debt ASAP (though my preference is not to even get into debt in the first place.)
Here’s my plan:
- MAKE MORE MONEY
- RECEIVE THE FAVOR OF GOD FOR SUPERNATURAL INCREASE (this is for you church-folk!)
If I happened to meet a rich millionaire who wants to help, I’ll take that too.
While I’ll be mindful of our spending in the process, it won’t be the primary means to meet this goal.
Going forward, it’s going to have to be ratcheted up by a factor of 100x!
How will I do this?
That’s the million dollar question 🙂
But here’s how I’m starting — with clear-cut goals and visual reminders of what I’m working on….
Now….I’m back on this debt-freedom journey with you. I will be giving you regular updates on how it’s going.
We can do this together 🙂
I will need your encouragement as much as you’ll need mine.
Are you ready to up your income, too?
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