If you are here for the first time reading this, I have a small investment property. The proceeds from my reselling endeavors are being used to hasten the repayments on this property. Initially this property was interest only with the loan for the fist 2 years which have passed and has now switched over to principal and interest repayments.
The ultimate goal is to pay this off somewhere between 5-10 years realistically.
After this event occurs I will have the rent coming in from this property to offset my mortgage repayment on my house that I live in. This offset should be enough whereby I could transition into reselling as a full time lifestyle gig or wind back normal work to perhaps 2 days a week (enough to cover the mortgage and some) and have reselling provide the expenditure for the household.
It’s been a while since I last wrote a post about the house specifically though. Mainly due to the ongoing issues I was having with a tenant who decided to break lease early and it has been messy. Currently I’m owed almost $1000 from the previous tenant which is frustrating. The matter has been to court and found in my favour so now it’s the difficult matter of retrieving that money. It might go the way of debt collectors, we shall see.
I am happy to report that the the current status is now: 6.35% of the loan paid off.
This figure should be much higher but over the last couple of months I have had to replace a small oven, a washing machine and cop all the fees associated from getting the property relisted.
There are some positive outlines from this though, new appliances will give my depreciation schedule a boost and coupled with my reduced rent this financial year combined with unusual one off type fees I am hoping there might be a sizable tax refund which I might be able to use to speed up this process also.
As you can see below using an extra repayment calculator that by adding an extra $800 per month from reselling I can get the term of this loan down to 8 years and 6 months. This is hugely encouraging as in May the total figure generated from reselling was a touch over $1600 or more than twice this. Granted perhaps this was a spike but I hope not and if I can continue to grow the store this goal should be easily achievable and potentially even towards the 5 year end.