07/19/2022
Almost reached all the financial goals I set in 2020 for 2021. Although it is midway through 2022 I still see it as a win. Also since things didn't go in chronological order all the numbers have changed.
I cannot color code my changes every new comment is a *
Goals:
1. Pay off $1,360,000 home in cash by end of 2021.
*Done in April 2022
2. Fund $150,000 to a 529 education plan for Parker.
*Waiting on sale of Plumeria hale. Probably lower to $100,000 529 fund.
3. Get enough points and miles to stay at multiple luxury resorts and fly first class in 2022 (I don’t expect this covid thing to go away in 2021)
*We went to san diego and Disneyland with Erin and Parker. Changed my strategy to mainly get cash and transferable points.
Ex*****on:
1. Pay off $1,360,000 condo in cash by end of 2021. Currently put 20% down payment on The Central 3 bed 3 bath unit due to be finished in Oct 2021. So have to make up $1,088,000. I would receive as a realtor at Century 21 iProperties Hawaii doing my own transaction about $34,000. This takes it down to $1,054,000.
*Pretty much what happened
2. Sell Plumeria Hale 2 bed 1 bath condo once I fix it up. I think I can finish it up by end of the year. I have a HELOC on it at about $215,000 probably once I fix it. I would like to sell it for $380,000. Once I factor in realtor fees and closing fees I figure I would net $365,000. I figure about 25% in taxes with a basis of about $300,000 would cost me about $16,250. After all that I can pay about $133,750 to the condo. This takes me down to $920,250.
*I was unable to sell the unit and will Relist in Aug 2022 for $399,000. Another lesser unit sold for $400,000 recently.
3. Sell Pearl One 1 bed condo. Currently valued at roughly $275,000. It is in pretty poor condition. I figure I can put about $20-25k in and sell it at about $340-$350k. Basis is roughly $200,000. Realtor fees and closing costs going set me back to be about a $325k once all that is figured in. Tax on the long term gain is going to be about 20k. So can put about 300k towards the condo. This takes me down to $620,250.
*Sold Pearl one in April 2022 for $405,000 netting $390,000. Which was alot more then what I estimated in 2020.
4. Getting a bridge loan for the $620,250 remainder. Will try to save 120k and get a loan for a 500k heloc on 555 south st worth about 950k.
*I had to get an adjustable-rate mortgage with negative points as a bridge loan. So it wasn't too bad as far as fees.
5. Once I get the unit at “The Central” will list 555 south st for sale. Hopefully get about 950k and with 50k in realtor fees and closing cost. So net 900k. Pay off 500k loan and net 400k. No taxes since lived in the place for 2 years or more.
*Had a loan of $250,000 HELOC when sold in 04/22. Sold for $1,040,000 to a customer, so I didn’t have to pay realtor fees on the other side. Netted $760,000 after paying for Heloc and closing fees.
6. Invest $150,000 from proceeds to 529 education plan for parker.
*Bought a couple rounds of iBonds for the Family. 9.62% for the win! Will still consider 529 when plumeria hale sells.
7. Pay estimated taxes with credit card sign ups and net hundreds of thousands of points. Also buy HD and lowes g/c for supplies to get thousands of dollars of free groceries and other items.
*To pay off estimated taxes and other expenses I opened 5 credit cards for about $6,000 of value.
8. Get heloc on “The Central” $250k to finance future purchases of properties that are flipable or long term investments that I will later refinance. Invest 100k in S&P 500 brokerage. 50k in cash for emergency fund.
*Still waiting on approval. Alot of banks giving $400,000 with no fees so I am going try that.
9. Fully invest in 2021 Roth IRA. Do a possible backdoor IRA if make too much money that year.
*Going to wait on Roth IRA maybe next year.
Let me know if I can help you achieve Financial freedom and if you have any real estate questions. Also I encourage you to make your own 2021 FIRE plan. The difference between people becoming Financially Independent and wandering around forever is you may have goals but you need a plan.
