
I have 4 acres outside of town with an old mobile home used for storage and an RV that I live in.



Then I tried to sell the house with no luck. After my last short term renter left in February, I rented the house for longer periods of time. My current renters would like to stay for many years but I promised the last short term renter that they could come back next February. They pay me $4k for just one month so I'm not willing to tell them no. I'm not sure how that will work out. I would like my renters to leave for a month and then come back. I imagine that is a lot to ask. I might need to find another long term renter.

The mortgage was $100,000 last December. I threw the first $25k at it to kick off my plan. Over the last 8 months I have paid at least $1200 extra a month and added any additional money I could find.
My current plan has the mortgage paid in 2 years from September. Here's what it looks like:
Extra Payments
Sept. $1300
Oct. $1300
Nov. $1300+$500 ebay stuff
Dec. $1300
Jan. $900 (This is when my tenants should move out)
Feb. $3800 (This is from my short term tourist season renters)
Mar. $1300 (I hope to have renters again but there's no guarantee)
Apr. through Jul. 2010 $1300 (If I have continuous renters)
Aug. 2010 $1300+$5000 (From stocks if they ever recover)
Sept. $1300+$7000 (Use $7k emergency fund)
I know using my emergency fund could be a bad idea but if I owe $7k on my mortgage and I have $7k in the bank I won't be able to stand not paying it off.
So that's my plan for paying off the mortgage in 2 years (and a few weeks). A lot could happen though, medical bills, car repair, house repair...not finding new tenants for a few months, that would delay my plan for a few months. That's why I say it's my 2-3 year plan. I like to think of it as a 2 year plan because it's more exciting, it keeps me motivated.
7 comments:
I am glad you took the 401K off the mortgage repayment table.
I have been meaning to ask you if you had read 'Your Money or Your Life" by Joe Dominguez and Vickie Robin, as your goals remind me of that.
Just for clarification - now the income from your home after paying off the mortgage is net of insurance/property taxes, etc, right?
What a great blog!! There was a TV program in the UK called 'pay off your mortgage in 2 years', hosted by the brilliant mentor Rene Carayol. It was great watching, seeing how he coached people in either increase outgoings by using their talents and focusing efforts, or reducing outgoings using strict budgeting and ingenuity.
Living mortgage free is a dream for many people and its inspiratinal to read about you going for it using pure sweat and guts rather than waiting for a lottery win!
Thats excellent Daizy. I think summing up every now and then (and blogging about it)helps to keep motivated. I agree with you, all cash to the mortgage but no messing with the pension investment (I found out what a 401k is!!!)
Good luck!
Lizzie
Yes, anonymous, the $600 from the rent is after ins/taxes. I did read 'Your Money or Your Life' thanks to my big sister when I got my first real job back in 1999. Back then I thought all I needed was $100,000. I'd save $10k a year and only work 10 years. Well, my 10 years are almost up. I do have $100k in property but I can't quit just yet. My goals have expanded a little.
Thanks James! I got tired of waiting for the lottery. Plus who needs that much money anyway?
Thank you Lizzie! My vocabulary is expanding from reading your blog too!
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