All Forum Posts by: Account Closed

I agree also. I've learned that it's easier to get into debt than it is to get out of debt.

If I get out of debt and then discover I should get into debt, I have an easier problem to solve than if I get into debt and then discover I should get out of debt.

I agree. When I become financially independent, I could afford to do whatever I wanted with my time. I decided to take up a "profitable hobby" where I got paid for having fun. That hobby had a strong resemblance to what I was doing to earn a living before I became financially independent. The difference was that before FI, I didn't have a choice; after FI, my participation was strictly voluntary.

For every dollar of living expenses (which includes any taxes owed), I need two dollars of passive income to have a just-in-case margin of safety.

This passive income should be from multiple asset-class sources (interest, dividends, rents, profits, appreciation, whatever) so that if one source goes by the wayside, the remaining sources will still be able to support me. This income overall must increase faster than inflation over the long run.

I also need at least two years of living expenses in cash savings to act as a just-in-case reserve buffer.

I qualified for my current apartment with neither an income (I had just retired) nor a previous landlord for a reference (I had just sold my house of many years in another state).

The apartment manager used my most recent savings account statement to establish financial responsibility. Their requirement was at least a $10,000 balance (which is about a years worth of rent).

My documents (drivers license, bank statement) showed my out-of-state former address on them.  Technically, I was a homeless person at that point because I lacked a permanent address.

The apartment manager also performed credit and criminal background checks and now requires renters insurance with at least $100,000 of liability coverage.

Having tenants try to work things out among themselves is a good first step, but sometimes more is necessary when a tenant is irresponsible.

I was advised once to talk to a noisy neighbor before elevating the issue. My neighbor eventually informed me that since he wasn't trying to upset me, it wasn't his problem when I got upset over his noise (which often occurred late at night).

Because the owner was a large corporation and wanted everything thoroughly documented, I then had the challenge of getting independent third-party verification.

It took me awhile to get my ducks in a row and although the apartment manager tried working with my neighbor (through verbal and written warnings), he continued to insist that his noise wasn't his problem. He eventually moved out, which let me cancel my fallback plan of moving out myself if the issue didn't get resolved in a timely manner.

Someone who works at Alpha Flow (real estate crowdfunding site) recommended BiggerPockets.

New ownership provides the opportunity to make changes that might encourage the stable longer-term tenant.

The apartment building I live in just got sold. The new owner requires all tenants have renter's insurance with at least $100K of liability coverage (the previous owner did not have this requirement).

The rent structure also changed to favor the longer-term tenant. For example, the per-month rent on a 1-year lease is just slightly higher than before, but is much lower than the rent on a month-to-month arrangement.

The month-to-month arrangement is new and automatic if the tenant does nothing when a lease expires. Before, an expiring lease meant the tenant had to vacate if either the tenant or landlord did not renew it.

My landlord constantly reminds tenants that they have the responsibility to clean up after their pets and charges a $25 fee if caught. I'm not sure how many fees have been assessed, but the grounds are fairly clean.

A carpet or other noise-absorbing material might help.

From the perspective of a first-floor tenant, I had a noisy neighbor above me when I first moved in. After he moved out, the landlord installed a carpet (none had existed before) that helped reduce the noise of footsteps and other sounds immensely when the next neighbor moved in.

It's best when stereo speakers are kept off the floor.  Speakers on a bare floor can turn the entire ceiling below into a loud speaker (this also happened to me with my original noisy neighbor).  Even when subsequent neighbors had their speakers on the carpeted floor, the noise coming through the ceiling was much less (and tolerable).

I keep a supply of noise-reduction ear plugs on hand.  These plugs are widely available and marketed as a way to get a good night's sleep.  I've had to use them on a few occasions (I'm a light sleeper).

There are numerous FDIC-insured banks that pay an interest rate of around 1.5% right now (Google "high-yield savings accounts"). These banks have been raising their interest rates recently as the FED raises its short-term interest rate. I also found an NCUA-insured credit union (Alliant) that offers a similar high interest rate on its savings account.

These online accounts are a good place to park cash while waiting for the next investment deal to come along.

For example, a balance of $250K at an interest rate of 1.5% generates $300 a month of interest income, which is not a lot, but it's better than nothing. Also, the money can be withdrawn on demand (the FED limits the number of ACH withdrawals to 6 per month) and a balance up to $250K is guaranteed by the full faith and credit of the government.  You can open accounts at multiple banks if more than $250K is involved.

Based on the Rule of 72, it takes 24 years of 3% inflation to reduce the purchasing power of cash by 50%.