Instant loans everyone gets cash no matter what
So all of that extra income that had now between our income and expenses, we just started making big lumps payments on our student loans. The property had actually appreciated quite a bit because like so many housing markets, our housing market is no different. The rental income had gone up because we got a new tenant.
I was still jamming out to podcast every single day. So I was really understanding real estate and finance better. And then what is the sequence of returns risk, so my income or not sequence of returns risk, the law of diminishing returns. My income was going up, but my quality of life was going down.
And I created this business, not as a means of just making money, but I wanted it to make a comfortable living. But really I wanted more time with Ali, especially 2019 was our first year as newlyweds. So I instant loans everyone gets cash no matter what actually made a real abrupt pivot in my business. And again, this is what the confidence of having such a high savings rate because of low cost of living gave me is, my income was going up but really my focus became instead of just trying to amplify my income, how can I make a comparable income by safe loans online working half the time. So, all intentions to continue to pay down that debt, to get another property.
So my income in probably March or April, when everything really shut down, really was cut in half.
But prior to that, January and February, again, all systems go. And by the end of 2021, we will be debt free and two house hacks, have four units and almost financially free. Scott:So what was your cash position heading into this? So we typically hover and then I know this is a little bit skinny, but we stay pretty close to that three months cash reserves. It just been the cooler idea, but now a lot of it is virtual, our savings rate also fell. That instant loans everyone gets cash no matter what felt like a really nice buffer in terms of almost an emergency fund that in and of itself. So instead of having a lot of cash, we were going to shift to probably six to nine months closer to the end of the year. But in the beginning of the year, we had a high savings rate.
And it was actually a really interesting time in our marriage. Honestly you could not have cherry picked a better first house hack.
Again, the couple we bought it from, started house hacking seven or eight years prior to us buying it.
They were a young couple taking the world by storm. They specifically wanted to sell to people who they could relate to. And so there was some cool intervention there when our agent introduced us to them, we were, man, you guys are hosts in seven or eight years. Scott:I bet they would have increased their emergency fund though, if that was the case and the condition of their house warranted that- Mindy:Well, yes they would have, but maybe somebody listening, was, Oh, Josh and Ali only had three months. So, you guys are having a Sit back and reassess period. What you mentioned, fire life to be, what happens next? So Josh is the go, go, go person in our relationship.
And I would describe myself as the Whoa, Whoa, Whoa person. Josh:So at that point too, so I network a ton, right.
And so 2019 also gave me a really, really good chance to start attending Facebook group meetups, real estate meetups, get coffee with other investors and learn a ton. And so I started parlaying a lot more of those skills into 2020. And online cash advances so again, like so many housing markets, our area was crazy competitive.
And he was pretty adamant, Nope, love the property. Well, if anything changes, we live up five houses up the street. And then actually in may of 2020, we were renovating our upstairs unit to have a new tenant move in. And then the investor walked up and admired the work that we were doing. And so I saw him through the window and I was, Oh, shoot, that guy. And then in July of 2020, we went on Facebook and a neighborhood Facebook group. If anybody in the neighborhood might be interested in how much can i finance into a usda loan for repair selling, let us know. And he shot us a message shortly thereafter, his situation had changed and he wanted to talk about selling.
So, and this was our first duplexes off market, but we did have the benefit of a realtor and that realtor was a very good realtor with a heart of an educator. For this particular property, there instant loans everyone gets cash no matter what was a for sale by owner. And so this was a really steep learning curve for us in terms of actually handling the transaction almost entirely. We were figuring out how to negotiate a price and so on and so forth. We felt very easy credit approval confident the property would appraise more for that, but the seller was really adamant. Ali:And we were pleasantly surprised when the appraisal actually came in just a little bit South of 169. Josh:And the condition of this property was a lot different than instant loans everyone gets cash no matter what our first property. So, a lot of things that you have said that I think other people may not be super familiar with. You use an FHA loan, which is a federal program that allows you to put only 3. I do want to point out because this is a point of confusion for some people.
So we apply for loans with bad credit had a lot of capital improvements on this property. We just ripped out the entire kitchen in our unit, we got some new appliances, we did new cabinets.
So we hired a company to do the kitchen, we replaced some of the flooring. And this was a nice surprise, we knew that some of the windows needed to be replaced, but pretty much all of the windows needed to be replaced. Windows are more expensive than we thought they were. So that was a really, really good learning opportunity.
So really we have kind of hit a pause on debt pay down because we had been using our extra money to stabilize this house and get it in a position where it needs to be.
Josh:But I should say though, that in 2021 we have now resumed paying student loans, so yeah. So we were heavily focused on in beginning- Josh:This is our year, no.
This very well could be the year that we become debt-free, which would be really cool. Originally we had shot for like four years to pay off 102,000, this would be like year three. But we now know what happened in like February, March of last year. I think the seasoning period on this is like six or seven months and so depending on where the market is at that instant loans everyone gets cash no matter what point. We may look to refi out of this FHA, put it into a conventional loan product, which then gives us access to another FHA. Scott:Nice, and then I think it will be this boring several year slog to fi after that. So how do you feel about all this now having made this journey and being in your present state?