Oh the difference 15 months can make!

[edcb]

I started my journey about 15 months ago.  I had never had a cc in my life...but had fairly poor credit because of past medical debt that had largely fallen off.  Without any good history, however, I really didn't have much to work with.  Just to show what a difference 15 months can make....

$4,800 - Cap1 Journey (sock drawered now and over a year old)

$1,800 - Cap1 Quicksilver (a year old this month)

$5,500 - Chase Freedom (a year old in May and went from $2,500 to $3,500 and just now to $5,500)

$8,000 - Chase CSP (new in Jan)

$300 - Target (just for the 5% off new in Jan)

$3,000 - Lowe's ( new in Jan gotta have it - 5% off! goes with....)

The mortgage! Closed on my 1925 heart house in December that also came with a detached duplex.  My total mortgage (with escrow in a fairly high tax/insurance area) when both are rented is $341/month.  I live in the house and rent the duplex.  My previous rental was HALF this size, not nearly as nice, and not mine - at $900/month.  (Oh, what can your credit do for you?!)

This level of financial independence actually allowed me to stop working full time while I finish my clinicals....vs. the 16/17/18 hour days I've been pulling.  How fantastic is THAT?!  By the time I finish in May and go back to work full time I will likely be in the position to start looking at another investment opportunity.  Not totally sure where my scores are at since I've been hitting them hard with the mortgage and post mortgage pulls and new credit...but it doesn't really matter because I'm in full garden mode now.  At one point post mortgage they were in the upper 600's....but because my purchase was a mess on the sellers end and took about 4 months I had 3 triple pulls that hurt me significantly on the short.  I PIF every month and they pay ME to use my credit cards.  Ha!  Last year I cashed out over $500 in cash back rewards.

Stay the course, my friends!!!

[gdale6]

Grats on your home and progress on your credit

[lg8302ch]

wow...what an amazing story ! Thanks for sharing and congrats on your home. I like the idea of renting out and lowering own mortgage payments

[Anonymous]

This is an incredibly heartening story. Congratulations! Fifteen months of repair isn't that long, relative to the incredible benefits you can reap. (As you have shown.)

[Anonymous]

This is so amazing, congratulations!

[edcb]

I knew I wanted a house for my daughter and I.....and I knew I wanted one with a second, free standing structure as a rental.  This posed some challenges in my search, however!  I was picky because I wanted separate structures so it didn't feel like an apartment....I was flexible in the neighborhoods but wanted a nicer neighborhood.

I found with increased taxes and insurance having one rental was only minimally beneficial.  The duplex reaps maximum benefit because it is twice the income without more insurance or tax costs.  Those are few and far between so I had to be prepared, act fast, and....bear through a short sale.

I'm realistic enough to know that I'm only 31 and if I have another child in the future this house just won't be large enough - but with the improvements I've already made I will make a killing renting it out and use that money to pay my NEXT mortgage.  (It will increase my insurance and tax costs when no longer a homestead, but ....stilll a good profit margin.)

It isn't for everyone....but the added income is fantastic and someday when I want to retire and the house(s) are paid off and paying ME....I'll be even happier.

[StartingOver10]

^^^Congratulations!  You really thought through this and came up with a wonderful plan for both you and your daughter. What a great foundation you have now for future wealth

[Anonymous]

That is impressive...keep up the good work.