It could have been a disaster
As some of you may know we own two homes here in Madison. I know it sounds pretty fancy, but not really. Before I met Terrance I purchased a small, perfect little 709 sq. ft. hours. That’s right, 709 sq. ft. Perfect for me. Fast forward three years, a husband, and a new baby (and ALL the stuff that a little 7 lb bundle of joy needs) we needed to expand.
It was a big decision but we were in a position where we could keep our house, turn it into a rental, and buy a larger home for our family.
Well, I thought, nope too much work let’s sell!
Terrance said, it was a rare opportunity for us to have income property and have a stable future.
I was already worried about the furnace going out in two houses at the same time and we would be responsible for both! And then some other simultaneous disasters happening that we would be financial responsible for again. Which of course would lead up to bankruptcy. So as you can see my worries get dramatic.
Enter Project Money and our Coach. With help we learned how to use the rent to pay mortgage, taxes, and a repair fund. We learned how this would affect our income and taxes, both which hadn’t crossed my mind. I could now be more comfortable with our decision.
Then IT happened! We got a call from our renters…major backup in the kitchen sink! But we had a plan AND a fund set up to handle it! And you know what? It wasn’t that terrible. Sink fixed.
Terrance was right, this wasn’t as scary as I had imagined. Having a plan and working said plan will alleviate some of the worries that come with finances.