I wanted to openly share a problem I am having and have yet to really fully over come it although I have been able to address and tackle some of the pitfalls I am encountering.
I am renovating a downstairs space to create an apartment.
I will need anywhere between 8-11k to complete. depending on how much work i do myself and what level of appliances and cabinetry I choose.
So far after one year I have only done the electrical. demo. sheetrock and plumbing
the plumbing was pretty extensive as an ejector pump had to be installed and the pipe routed over 16 feet across the attic space above the ceiling.
a washer dryer connection was made and plumbing for refrigerator sink and bathroom were all completed.
I am still so far away doors, both exterior and intererior. flooring. cabinets. appliances. paint. bathroom remodeling.
currently I do not have a lot of cash flow because I purchased a Bmw.
and the note is eating into my operation budget.
I should have waited (that is the deferred Gratification piece)
also the occasional hiccup has caused grief like
a tree that had grown around my outside water meter.
and had to be removed
only to have a hot water heater fail the next month.
followed by property taxes
so it has been five months since I have done anything in the apartment.
I can probably manage to put 1000 per month consistently toward this project.
It will take sacrifice and not too much personal pleasure indulgences.
This would have been the first month I was going to start the doors
but I started teaching bass guitar so bought a bass then another then another in a five day period. (its a musician thing you wouldnt understand)
When I create a budget or a plan Usually
I am confident I can do it
until I see a new keyboard or Bass guitar I NEED lol
or a trip my girlfriend is begging me to accompany
So how do you guys
manage to do the saving thing and the self sacrifice
which will ultimately lead to greater rewards down the line.
Sometimes I think that committing less resources may be more realistic
so if i bring in 2,400 in rents instead of
saying i will put 1,500 to the apartment
I should commit 1,000 so at least something is done each month
and if one month I want to do more I can.
this is where my mind is right now
I am confident that if I had waited on the bmw until after the apartment was completed I would not be in this situation
Read some Dave Ramsey and Robert Kiyosaki books and decide what you REALLY want- toys and trips or an income stream?
thanks I will
Sounds like you were prioritizing some things over doing the rehab, which is in the past now. It might be hard some days, but you have to move forward and develop a plan for finishing the rehab.
Most importantly you need to hold yourself accountable to that plan. Do not take offense, but from the info you provided it sounds like you get off track pretty easily and the only way I know to combat that is holding yourself accountable which can be challenging.
no offense taken
I appreciate your input
how do you hold yourself accountable?
I mean i am accountable in the sense that if I dont get it done its my fault
and if i dont get it done i dont make money.
other than that acknowledgement what is there?
One statement by a great financial genius rings in my ear:
"You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know".
If you have not done so yet, read "rich dad poor dad" by Robert Kiyosaki.
There is a powerful statement on p. 58 "Rule one. You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. It is Rule No. 1. It is the only rule. "
Sorry for double post: It appeared that my 1st post wasn't appearing on the thread, so I re-wrote it...
this is true.
When it comes to music gear
although not exactly an asset
I am a professional musician and I earn about 1/3 of my income from my music.
as a multi instrumentalist.
it can get a little pricey.
nothing wrong with that.
you have to look as this:
musician $$ is money for now.
RE is money for later, but it could allow you to not depend on the musician $$, but do it when and where you like it.
Hi when you can "delay" gratification, you will reap the benefits.
I posted an article on "Treating a Real Estate Business Like a Small Pizzeria" and I'd love some feedback. Let me know what you think.
I am back on track.
I have returned all but two of the Bass guitars
And am actively working on the Rehab.
I guess I got off track for a moment.
i am thankful for you folks who
It is refreshing to get some feedback from people who are doing the same things.
I really appreciate the encouragement.
Sell the BMW.
Buy a cheap car you can pay for in cash, no matter what it looks like.
Temporarily cut back on all non-essential expenses. Essential means things like rent/mortgage, food, ... and not much else.
No vacations for the immediate future. Not even if they are already planned.
Redirect all the money into the rehab.
Complete the rehab. If you don't have the requisite time and/or knowledge to do certain tasks, hire a professional. The money you saved above should help you afford this.
Rent the apartment and collect money.
At this point, you can start spending money as you had been before. Or, you can keep saving money and make plans to buy other income-producing properties. It's your decision.
NO EXCUSES. There are only choices we make, or choices we don't decide to make. There are no excuses. There are only reason why we don't achieve our goals. There are no excuses.
Identify the reason for failure. Correct it. Succeed. That's it.
i forgot, contact @Nathan Brooks, he is also a RE+Musician+church so he may give you insights more closer to your line of thinking.
Oh and about the BMW, you need a wagon... and stickshift (if you ever find this very rare combo). (seriously, you need a useful vehicle)
Thanks @ randy E
I may not be able to take back the bmw just yet
but I am all on board with your other suggestions.
Thanks @ Dumitru ANton
I will contact the gentleman you mentioned
LOL @ behind on the Lazy Landlord Series
About the BIMMER yeah it was a bit of a bummer buying the BIMMER
I think that I leapt at that purchase a little soon,
I am very quickly realizing the need for at least a small pickup truck.
But what I have managed was renting the home depot truck and that seems to work out
I paid 40 dollars when i Had to replace a hot water heater.
I love wagons. I think they are really great utility vehicles without having the truck gas prices.
besides nothing tricks out like a wagon
throw some rims and some tint (there I go again)
since I o
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