I wanted to give an update on our progress in the downsizing effort we are currently tackling ( see downsizing ). A lot has happened in the last few weeks. I was able to land a new job. It is a big load off of the mind as I am trying to change what I do a bit and it was proving difficult. Most don’t want to talk to you if you tell them you are trying to break into a new field. Your resume says you do X and thats what you should do. I was fortunate enough to get a group that believed I could do the job and made me a nice offer. The job now gives me a lot more security moving forward.
As mentioned previously, we are under agreement with a new tenant for August 1st. The rent we are getting is nothing short of amazing to me. We agreed on $4900/month with NO utilities. Yes, you read that right. Sometimes I feel like I am the poorest person on the planet. How someone can afford to spend that much every month on rent is truly incredible to me. Even if I had the money, I would break out in hives if I had to write that check every month. So now we can add $4900/month in passive income to our income stream plan. A huge help to be sure. This really does take a lot of the pressure off and should allow us to start paying down any debt we have. We don’t have a lot but we do have a HELOC, a mortgage, and a small amount remaining on student loans. All manageable but I am really looking forward to bolstering the emergency fund and start paying down the debt.
My wife is also looking for a new full time job. She hasn’t worked full -time in over 10 years. She is a social worker so making a lot of money is not really in the cards. She is looking at US Government jobs which will give us health care for life, a pension, and would double her modest salary. If she is able to get this job, I would do a happy dance. Add her new job and benefits with my new salary and the new rental amount and things are looking pretty good. Now on to the downsizing….
Here is the list I posted a few weeks ago, some of it has changed a bit. We are going to re-sand and finish the floors on both units. It is a very large amount of work. The first quote I got was for $2700 and that was for only the main floor of the top unit. Not a great price. We called in a second quote and got a much better deal. He will re-sand the main floor of the top unit, do all the stairs up and down in the front (2 stories), the hallway on the third floor, and buff and poly the bottom floor. The price was much better at $2600. He is doing much more area and still came in $100 less than the first guy.
The schedule we have is brutal to get everything done. We get home from our Myrtle trip on the 2nd of July and then we have to paint, strip wallpaper, and clean the 1st floor unit in 3 days. When that is done, the floor guy comes in and does the floors. When dry 3 days later, we move downstairs. Now we are in the middle of the month. We paint a little upstairs, clean, which should take a week. Then call the floor guy again, he comes and does the stairs and the top unit. That should take a week since it is a much bigger space.It is now the end of the month. I also have a few other things I have to do. I need a new washer and dryer for downstairs, I need to build a corral for the tenant in the basement. I need to sell a bunch of stuff that we don’t need anymore. I also need to buy new smaller furniture for downstairs. A lot to do and I am starting a new job on the 5th. If any part goes wrong, we are in jeopardy of not being able to get it done. I am less concerned with my new unit because I can move in and do what I need to while I am living there. Here is the new modified list:
Make the decision to downsize Clean and get the place ready for showing* Note: place has never looked better Hire a realtor to show our place Start showing the place for rent Accept offer and draft lease with any items of concern for either party
- Figure out how we are going to get into half the space .. in progress
- Ikea – get some new smaller furniture that will fit into my daughters room *Note: I will post on this later with pictures. We have some real cool ideas for the kids.
- Come up with a plan for the office space and where two computers are going to live. * not sure what I am going to do here yet. I may have to wait until I get in and see what works.
Decide if we are going to try and take the gigantic entertainment center with us along with speakers etc …* we decided to try and sell this. If we can’t get a buyer, we will use the bottom half of this unit and discard the top. ( this breaks into two pieces and can be used with only the bottom) Clean up the outside yard and patio area cut the grass and re-seed
- organize the garage
- Pack everything upstairs before we go to Myrtle Beach at the end of June
- Clean out the cellar and build a corral for the new tenant. * Lined up someone to do this work for $200 WOOT!
- Paint, strip wallpaper, and clean dowstairs
- Paint and clean upstairs
- Hire electrician to move chandelier from top unit to bottom unit
- Refinish the floors in both units. * under agreement with floor guy
- Sell items on Craigslist * Listed items, no sales yet
- Actually move !!
We have a ton to do and very little time to do it. I am hoping it goes smoothly because we have very little room for error. We may have to change some stuff because there is just no extra time. I can live downstairs as it is even though it is not ideal. My tenant was there for 11 years and I really want to get it to where I want it before I move in but we could live with it if we had to. This is a massive undertaking but one I think is well worth it. The amount of money we can save if everything goes as planned, is not trivial. I could accelerate my early retirement by a year or two if things fall into place. I will be very excited to see the bank account a year from now so that I can asses the impact it has had. Downsizing is not easy but it should pay dividends down the road. I think it will benefit my mental health as well as my bank account. Love to hear your comments.