Good morning, All!Our last update on December 31st can be referenced here:http://boards.fool.com/ticohombre-im-back-30459526.aspxThings are going well. Spring is in the air and the longer days are a very welcome change. They just make you feel more energetic and want to get more done.Our accelerated rental mortgage payoff plan is moving along nicely.Our rental properties mortgages last totalled: $196,920The December balance: $178,479Our April (early) balance: $159,311------------------------------------Total paid off in 4 months:$ 19,168We are still adding $3,400 per month to in order to snowball the payoff starting with the lowest mortgage balance and working toward the highest. That will more quickly free up monies to increase the size of the snowball. We are still looking toward a complete payoff of the last three rental properties by July, 2016. That means we'll have paid off 3 mortgaged totaling $177,650 in 42 months (3 1/2 years).Current mortgage balances:House #1: $32,497House #2: $56,838House #3: $69,976Savings:Rental Properties eFund: $ 1,835.50Personal eFund: $ 0 -------Cash & Investments: $ 1,835.50I am blogging about the experience here: http://payoffmyrentals.blogspot.com/We have, as always, things coming up that can potentially throw a wrench in the works, but we're trying to anticipate and plan accordingly. The trip to Mexico in January was fantastic. We're now planning an Alaskan trip this Summer. DW's health continues to improve after her thyroid cancer and rotator cuff surgeries.Otherwise, we are focused and determined. Enjoy your spring and let me offer you a gift that I am simply passing along. Very thought-provoking!http://www.youtube.com/watch_popup?v=gXDMoiEkyuQ&vq=medi...Good day to all!
Savings:Rental Properties eFund: $ 1,835.50Personal eFund: $ 0Good job on your mortgage pay-down, but e-funds seem awfully small. If you actually had emergencies (uncovered health issue like hearing aids or home health aides, major insurance deductible, new roof/HVAC system, house painting, last-minute flight to see a dying relative...) you might need to charge up a credit card or two to pay for it.
Hi, altroemeriaAgreed. I know those figures taken out of context look frightening, and it's a lot lower than I like to see it. I do desire to bring it up. However, you need to understand that I have about $4,000 p/month in free cash flow between my personal and rental accounts (and that's after setting aside maintenance/vacancy/min mortgage payment). So in the case of an emergency, I would not apply the $3,400.00 (or whatever portion of it) toward the accelerated payoff and dip into the rental cash if necessary. That's the basic reason I'm not too afraid to keep the balance on the low side while accelerating the payoff. Thanks for the observation and giving me a chance to clarify.TicoHombre
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