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About Me:

Monkey Mama

Just a 47-year-old mom of 2 in Northern California. My kids are Monkey Monkey(MM) and Drama Llama (DL). I am married to Monkey Hubby (MH).

We were a one-income family for 13 years. In late 2015 my spouse returned to work (minimum wage/part-time/seasonal). Something recent on his resume just buys us more options for the long run. The main benefit of this job is that he just works while the kids are in school. As always, we are saving 100% of his income.

We saved a lot while we were very young and also moved to a lower cost-of-living area, to make life much simpler. We still live in California though (in one of the most expensive regions of the U.S.). *Simple* and *inexpensive* is relative.

Likewise, we have never had debt aside from our mortgage.** My blog is a testament to how much simpler life is without debt; how we have that much more money to both save and enjoy!

**Caveat: I have no problem whatsoever with credit cards paid off monthly, or low-risk credit arbitrage (for example, 0%-interest debt while earning 5% on FDIC-insured cash). These are the kinds of debt we have had. Just not interested in high-interest debt, using debt to buy beyond means, and not interested in the hassle that comes with loans and payments. With age and means, the latter (hassle) is our biggest debt avoidance motivation.

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2024 Goals

[ ]Small monthly Charitable Contribution
...($156 @ 6/30/24)
...Trying to be more mindful about how the little amounts add up and are helpful.
...This is not an all inclusive list of charitable giving but it is a new habit I want to add in addition to other donations of time, goods and money

[ ]Pay cash for college
...This is so much a given, to me. But I realize not everyone can read my mind, and so will memorialize in my goal list.
...#1 We don't do Debt
...#2 The student loan system is a scammy and corrupt mess.
...Seriously, wouldn't touch these student loan servicers with a ten foot pole.
MM YEAR 1 ✔
MM YEAR 2 ✔
MM YEAR 3 ✔
MM YEAR 4
MM YEAR 5

DL YEAR 1 ✔
DL YEAR 2
DL YEAR 3

[ ]$10,000 to savings
...($7,121 @ 8/31/24)
...$1,000/month, plus interest
...Topping off with snowballs

[ ]$7,500 to investments
...($3,691 @ 8/31/24)
...~~$350~~ $400/month, plus snowflakes
(Snowflakes: credit card rewards and dividends)
...Topping off with snowballs
...Note: Bumped up to $400 9/1, re: reduced food expenses

[ ]$2,025 to mortgage
...($0 @ 8/31/24)
...Topping off with snowballs and/or excess cash
...Keeps us on track with $10K principal paydown per year

[/]9% of household income to work retirement plans
...(9% @ 8/31/24)
...This is the minimum for the match; I'd otherwise rather fund IRAs.
...Note: Total retirement savings rate is 20% (with IRAs)

Goal savings rate = 25% of gross salary, plus funding IRAs from other sources.

[ ]$14,000 to IRAs 2024 (MAX)
...($0 @ 8/31/24)
...Will fund with MH's income
...Will not fund until the year is over. This is for tax and planning reasons. I won't know what mix of Traditional/ROTH IRA we literally can contribute until we do our 2024 taxes. In addition to that, can make a more informed decision based on our financial and tax situation for the entire year.

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**Long-Term Goals**

[X]$500,000 in retirement accounts by age 45.

Current big picture goal:

[ ]$1 Mil in retirement accounts by age 52.

Stretch Goal: Achieve by age 50

Have decided to pretty much stay the course. Keep saving 20%+ to retirement. This means taking 401K match & maxing out IRAs.

NOTE: WE HAVE NEVER CONTRIBUTED LESS THAN 10% TO RETIREMENT. NO EXCEPTIONS.

If we can't achieve at least 10%, then something else has to give. I share because it's infinitely easier to save for retirement if you start early. Let the investments do the hard work for you.

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Debt: $85,000 mortgage
{Home Purchase Price $290,000}

Ongoing goal is to *never borrow money again.*

Took on a $230k mortgage in 2001 and have not added to that.

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Net Worth: Increase net worth by $600,000 in the next 10 years. This is my "financial independence" goal.

2017: +$ 70,000 (partial year)
2018: +$ 51,000
2019: +$105,000
2020: +$104,000
2021: +$215,000
2022: <$ 65,000>
2023: +$ 90,000
TOTAL: +$570,000

This is in line with prior goal, saving 100% of our expenses every year.

{Our expenses are far more consistent than our income. Also, helps to prevent "living up to income."}

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My Pages

Flippers Gone Crazy!

January 21st, 2012 at 02:14 am

WOW!

The flippers are back with a vengeance.

Um, remember the house 2 doors down that sold for $250k and let me squeak by with a $250k appraisal?

I just saw it listed for sale. For $315k.

Seriously???

I've been proven wrong before. These people do find idiots to buy at hugely inflated prices. I just don't think the banks are going for it these days. So, will see. (Even if they find someone dumb enough, where would they get the appraisal for that high??)

I am looking up that last flip we just had behind us to refresh my memory. Paid $182k (much smaller house) and sold in a few days for $218k. The interesting thing about that one is they put in the listing that it was a flip. I commented on here that I have no idea why one would advertise that, but it seemed to work. It sold lightning fast. Guess that is preferable from buying from a bank. OF course, buyers probably don't know the house was in perfect condition before the flip. Maybe they assume a lot of work was done to it.

Sounds like a sweet profit? IT was much better than I expected them to get, but you figure with all the costs and everything that it seemed like a lot of hassle to probably make very little in the end. That said, these are homes that really shouldn't need ANY work. The one that is two doors down in GORGEOUS (marble throughout) but I don't think they just put that in. I am sure it was probably pretty move-in ready already. I admit I am guessing - but people went crazy with the upgrades here the past decade. & it's not like I have seen any construction crews over there - it just sold a couple of weeks ago (to the flipper).

Er, I saw a bigger home like ours on sale for $224k that was sitting for a couple of months. I don't remember which street and can't find it now. Maybe it is in escrow. Another sold for $240k recently. So this is why I think $315k is pushing it. The smaller homes here have been selling $210k-$220k pretty consistently in the last couple of months - lots of sales. Price difference is generally $20k-$50k for more square footage. These days, anyway. The spread was $200k+ at the peak!! (Land is expensive here, so split levels are a really good value - usually bigger yards since the home footprint is smaller and more square footage too, of course).

Um, a house sold for $305k, BUT it had almost TWICE the land. I think this flipper is REALLY pushing it! But, will see...

So yeah - this is the new normal. Bank forecloses, flipper buys, flipper sells. This is the second home in our immediate vicinity. The flippers are back! I think flipper #1 got a very good deal on his investment. I am not so sure on flipper #2. Maybe it is the same person. The listing looks totally different - so I don't think it is the same one. Unless they got advice to leave out the flipper part on the listing. Wink

ETA: This could be a good thing because seems banks are unloading homes faster to investors, through auction. The home behind us was vacant for a time, but the one that just listed was listed as sold before the owner even moved out. Wonder if eviction is part of the buyer's responsibility, these days? Not the banks? Either that, or public record date was wrong. But, hey, no house sitting empty for months. That's an improvement.

Posted in Just Thinking | 3 Comments »

3 Responses to “Flippers Gone Crazy!”

snafu Says:
January 21st, 2012 at 06:02 am 1327125745
1327125745

Buyers all ove the world have seen TV news showing how far home prices have fallen in parts of USA. Often a group of relatives, colleagues or businessmen will pool their funds to buy for cash [asking isn't necessarily sell price]. They generally have someone lined up to live-in until market conditions set up for the flip.

In some cities, the Columbian cartel has bought $500,000. houses and set up a grow operation! If they can afford to buy and operate submarines to sell their narcotics, buying houses is paltry. I hope their neighbors are tracking their own electric bills because the drug lords need large amounts of unidentified electric power.
MonkeyMama Says:
January 21st, 2012 at 02:14 pm 1327155253
1327155253

Yes, foreign buyers with cash are the primary buyers around here. If not for that, home prices would really be in the toilet. They probably should be. Sacramento has always kind of been this way. IT's a town full of renters. I don't think it will necessarily be that way for the long run. With home prices more reasonable, more will be buying once they wait the token 7 years from foreclosure (or whatever is recommended). Many people are moving here from more expensive areas so can easily buy homes (don't tend to rent). So I don't see a great long-term rental market here. Likewise, just because home prices fell 50% from the peak doesn't mean home prices aren't sky high. & you could have bought a house here for significantly less as recently as 1999. There is just absolutely nothing "rock bottom" about prices here unless you conveniently forget every year before 2002. (All of which were years you could buy homes for MUCH less).

But, maybe when all the foreclosed flood the market it will drive up prices, too. It's interesting dynamics. & if the investors can't find tenants, maybe they will be selling. So, maybe it all evens out in the end. I am just surprised home prices could be supported this high for so long with all the foreclosure activity - it's A LOT here.
MonkeyMama Says:
January 21st, 2012 at 02:28 pm 1327156082
1327156082

P.S. So thank you foreign investors who buy blindly because they heard that "home prices fell 50% and are rock bottom." For reference, when we bought in 2002, most our relatives locally thought we were insane and WAY overbought. Same prices as today. This is why I just roll my eyes when everyone tells me how "rock bottom" these prices are. I am frustrated by such short sighted perspective.

Bay Area prices are worse than the *insane expensive* we left. Just *more insane expensive.* But to some that is *rock bottom.* ???

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Monkey Mama*s Monkey Money Blog

Over Prepare, Then Go With The Flow

Flippers Gone Crazy!

3 Responses to “Flippers Gone Crazy!”

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