Week 34 Update – Bought some land, debt payoff, tiny house still going slow

Paying off debt is fun. It’s hard but it’s actually fun watching those numbers go down. It’s been a couple months since the last update so wanted to give a quick update on thing. I had mentioned a few things such as paying off debt, wanting to get in to real estate and rentals and all that jazz. So I decided to get started right away on a couple of things with the biggest one being debt payoff and this is a small update on those.

The tiny house is still going, my platform is done and I’ve started on the ceiling. I was going to need to some help and still will on a few spots but I’ve been able to knock out some of the insulation and putting up ceiling supports for where I’ll be installing my tin. Still have a ways to go on that but it’s slowly coming along. Once I get everything done that I cant reach, I’ll be starting on the rest of the floors and getting the kitchen laid out. The plan is to do my own storage and cabinets, or at least trying, and I’ll be able to do that before the plumbing goes in and then move stuff where it needs to go once that is done.

I found a company that purchases delinquent land from the state after they’ve been seized for not paying taxes. I was able to get a half acre in Highland, AR about a mile from the school. It’s a wooded lot but utilities are already in the area so will just have to have the service lines ran a few yards. It was only $1200 so I decided to jump on it.I don’t plan on doing anything with it right away and after talking with an attorney, I have a couple options to be sure I own it outright. The company I’m purchasing it from has a limited warranty so technically the last person who owned that the State of Arkansas took it from after non-payment could come back and take it from me.

Given the location, price and the fact it had already went to auction a couple years ago and was only recently transferred from the State of Arkansas to the company I’m purchasing it from, it felt like a risk worth taking. So once the deed is transferred to me, I can try to mail details to the last owner on the land to issue a quit claim deed basically saying they have no interest in this property and waive all rights to it to make it mine. If I don’t get a response then I can wait a year and file an action to quiet title. This will involve getting the lawyer to submit the request and then the court handles it to waive the past owners rights and make it mine. It’s also within a mile of two lakes and no neighbors around so it’s basically country living with city conveniences.

As for the debt, I don’t think I had mentioned how much debt I had accrued because of stupid decisions. I started to focus 100% on my finances to meet my financial and real estate goals so in June update, I was $12,797.00 in just Credit Card debt. Like I said, stupid, stupid, stupid decisions. Since June and as of today – August 26th, I’ve paid this down to $9,754.00. I still have a bit to go and want to have it all gone by March 2018 but may push it back to May 2018  Last year, I had taken advantage of the Workforce Improvement Grant which paid ~$750.00 for each semester. The college informed me that this year that the Department of Education was not funding this so for three classes, I’m paying $1,300 out of pocket. This doesn’t include books but those weren’t too bad since I rented through Chegg.

It’s currently 1am here so going to wrap this up. I’ve been considering making my finances more public, showing what I spend each month on things to make me more transparent with having to keep things updated and trying to decrease spending every month. Right now, every little bit is going towards debt so I stopped my $1000 a month minimum savings and putting that towards it right away. I found some information on credit card churning and I have a couple cards that offer rewards so once I get my debt down to ~$4000 or so, I may look at using those cards to pay my bills every month, rack up rewards, pay the cards off every month and then use the rewards on things like gifts or something, I don’t know. I don’t plan on doing anything until debt is paid down so that’ll be a couple months away.

I’m including a couple links below of a few other blogs I’ve located in the last month or so that have lit the fire under me even more to focus on FI/RE so maybe they’ll help others too. I use EveryDollar to track expenses and then Mint to track net worth and assets.

The Retirement Manifesto – http://www.theretirementmanifesto.com/
Fiery Millennials – http://www.fierymillennials.com/
Root of Good – http://rootofgood.com/

Thanks for following along,
-Seth

 

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