1. The difference 30 minutes makes. Leaving the office on time gets me out and away minutes ahead of the big rush of traffic trying to squeeze out a couple of undersized gates and onto the also undersized surrounding highways. It shouldn’t surprise anyone that I’ve put some thought and analysis into minimizing the amount of time I spend fiddling around in traffic. You see, the difference in leaving 30 minutes later in the afternoon translates into getting home a full hour later than I usually would… so it’s not so much an issue of minding staying in harness for an extra 30 minutes, but the fact that that 30 minutes really costs me a full hour. Anything that slices that deeply into my evening is bound to top the list of things that annoy me.
2. When I tried to warn you. If I come to you four or five times over a period of a few weeks trying to give you a heads up that something is coming along that will bite you in the ass if you ignore it, there’s a fair bet that’s exactly what’s going to happen. I’ve been at this a while now. I don’t cry wolf and I don’t ask for top cover very often. When I do, it’s probably something you should have on your radar. Otherwise, 20 hours before the thing happens you’re going to end up getting hit with a fast moving shit sandwich, wonder how the hell it came out of nowhere, and then get all angsty and aggravated that something that could have been easy turned into a smoking hot mess. I know being the guy who says “I told you so,” isn’t the best look, but I did tell you so. Sadly, I have very little control over what anyone chooses to do with that information even when they have been forewarned.
3. Failure to close. I should have been closing the sale of my condo today… but thanks to various banks, lawyers, and the state of Maryland, I’m not doing that. Instead I’m carrying the place into another month – making another mortgage payment, paying the insurance, and paying the utility bills. Plus, after three and a half weeks of planning, I’m just finding out that the damned home owners association that I’ve been paying into for almost 20 years hasn’t spit back the two page form they’re supposed to fill out so now I’m leaving never returned phone messages for them trying to determine what their dysfunction is. Buying a house is the single most stressful thing I’ve ever done… but don’t kid yourself, selling one is almost if not just as much of a pain in the ass.
I’m old enough to remember when documents of any importance came on paper – often in multiple color coded carbon copies. For someone who has converted nearly wholesale to digital record keeping, I have an alarmingly large archive of old paper copies – old bills of sale, mortgage originations, and thousands of other 8×10 inch bits of paper that were required to build a life before everything came to us via electrons.
I recently had to take a deep dive into the furthest recesses of the paper archives – searching for something I know I’d need a copy of when the happy day comes and I go to closing on my southern Maryland condo. Yes, I know, cart before the horse and all, but I like having my ducks well-ordered.
Knowing how much has changed over the last almost twenty years, I assumed I was in for a bit of leg work – and possibly a pleading phone call to the condo association asking for a copy of the neighborhood covenants and restrictions. I mean what are the chances 22 year old Jeff held on to the copy he was given in the early spring of 2001?
Turns out I’m every bit as anal retentive as people think I am. After five moves and two decades, the old 1980’s vintage neon orange binder was tucked in between the original mortgage and the property management agreement, right where I left it back when the millennium was still shiny and new.
I was tempted to see what other oddities lurked in the depths of my filing system, but it wasn’t the moment to find myself sitting ankle deep in twenty year old paperwork. For the time being I’ll just be glad I found what I was looking for on the first attempt… but I think I’m going to add “digitize and shred” the deepest layer of the archive onto my list of things to do.
I just signed the paperwork starting the process of selling the condo I bought in 2001… Back when I was a fresh faced, 23-year old college graduate just a year or so into my first adult job in extreme southern Maryland. Back then St. Mary’s County was just starting to grow up – it’s first great strides towards becoming another bedroom community for the District.
Coming out of a two room granny flat that was about the size of my current laundry room, the condo felt palatial at the time. It was 725 square feet of all mine. The first step along the path of my own version of the American dream. If my time in Frostburg molded me, St. Mary’s, and my little condo was where I was tempered and really learned how to be me outside the orbit of the known and familiar.
With the paperwork signed, I’m about a week and a half from seeing the place back on the market for the first time since I snatched it up. I’m feeling an awfully heavy dose of nostalgia tonight – for nights on Solomons, at the Brass Rail, or the Green Door, for friends made and contact lost over the long intervening years, and more than a little for the 23-year old version of me who was so very determined to bend the world to his will, got kicked around a little by life, and kept on coming.
I’ve had chances to sell the place in the past, but could never quite bring myself to let it go. Now, though, it feels right. My long time property manager is closing up his business and being a long distance landlord has lost a lot of its luster. It’s probably a few years past time, really. The place deserves a shot at an owner who’s going to call it home again. I’d like to see that… but of course if another investor shows up with a big bag of cash, I’m not going to send them away.
As much as I’m feeling and appreciate the moment of nostalgia, it does have it’s limits when it comes to making decisions with the dollars and cents.
Electronic License Plates. My beloved home state of Maryland is launching a program to test “electronic license plates.” I have no earthy idea why bits of stamped tin that have been good enough and dirt cheap to make for more than a century needs to be made electronic – and more expensive, and trackable, and more prone to being damaged and needing replaced. It can’t possibly be as a means to make some state service less expensive or the process to receive it less onerous because God knows that’s not how we do things in here in Maryland.
Sleeping separately. Over the last ten years you can count on maybe all your toes and fingers how many nights I haven’t slept in the midst of dogs – some in the bed, some in crates, some loose on the floor, but always close enough to hear every snore and snort. With Maggie’s second accident in as many nights, though, I banished both dogs to the laundry room and their crates in wee small hours of the morning. They didn’t like it. I didn’t like it. I’m fairly sure the cat was fine with the arrangement, though. At least for the time being, this will have to be the new order of things. The alternative is planning to scrub the bedroom floor every night between 2 and 5 AM, which feels like a complete nonstarter for any number of reasons. Since we don’t have a definitive diagnosis yet there’s no way of telling if this is the short term fix or the long. In either case, it’s annoying and displeases me greatly.
Landlording. I bought a condo back in about 2001, fresh into my first professional job and figuring I’d be there for the long haul. Two years later, I was pulling up stakes for greener pastures and I’ve been renting the place out ever since. I’ve never been at risk of retiring off the rents received – once the property manager and inevitable repairs are paid for, it’s a break even proposition most of the time. I got a call this week that my property manager was winding down his business and I think that means it’s probably time for me to settle up, take back a little bit of equity, and finally let the condo go. There’s no one thing that’s really getting me out of the landlording business, but the steady drumbeat of needing to find new tenants, make repairs, replace appliances, and now the prospect of needing to learn to work with the quirks of a completely different management company are all combining to tell me it’s time to accept that the capital gains tax isn’t going to get any lower and move on.
As I was sitting here on a dark and rainy Friday morning seething quietly after cutting a check for a $1825 special assessment from my condo’s governing HOA, I realized it’s been a few days since I posted anything. What can I say, rage, it seems, beings out my inner soul as a writer – or maybe it’s just the catharsis I need after getting gang banged by a homeowners association board who must have been holding on to a shit ton of proxies when they voted.
I’m always curious about those who see rental income as a surefire pathway to wealth. Maybe it is under certain circumstances – if you’re local and can do many of the repairs yourself, if you paid cash and aren’t using at least a portion of the rent to make the note, or if you aren’t governed by an HOA that’s at least as good at spending other people’s money as the United States Congress. I’ve been renting out this condo since 2003 and I’ll admit that there have been a few good years – those years when nothing breaks and there’s no damage to be repaired. Those years are the rarity. Far more often it’s a break even proposition where you’re lucky to be about $500 into either the black or red by year’s end. Then, of course, there are those years where you end up pouring your own cash into the place hand over fist. No one talks about those years when they tell you what a great idea it is having a rental property.
At least the bastards got the bills out in time to use the whole damned mess as a 2018 deduction instead of having to wait an additional year to recoup a few pennies on the dollar. When your “bright slide” is consoling yourself that you have something to help offset the decreased federal deductibility of state and local taxes, you’ve really got to rethink the whole plan from start to finish.
This dark and rainy Friday is going to largely be about resisting the temptation to drive down there and nail a for sale sign to the door and being done with the whole bleeding mess.
Everyone assumes that when you have rental property you’re making money. That hasn’t exactly been my overall experience, but I accept that it’s the general perception of how things work. Most of the time, the cash flow from the condo in St. Mary’s offsets the giant sucking sound that is the negative cash flow coming out of Memphis. Between the two, I come fairly close to breaking even more months than I don’t. Of course then we have the occasional singularity in which both the condo and the house are sitting vacant at the same time.
That moment you realize it’s about to happen is probably one of the few times in life you’re ever going to seriously consider becoming an arsonist as a valid career option. When you go from happily paying rent and breaking even on everything else to sucking wind on rent plus two mortgages, let’s just say that all the fantastic financial management lessons you’ve learned from Suze Ormond or Dave Ramsey go right the hell out the window. The only thing that matters at that point is how fast you can bring cash in the front door and how fast you can shovel it out the back. It’s not so much a case of planning as it is an exercise in crisis management and triage.
Fortunately, the two leases almost never expire at the same time, but when they do you’d better believe that you’re about to get a serious lesson in why landlording ain’t for wimps.
One of the really problematic bits of no career being able to keep my attention for more than two or three years is the resulting tendency towards collecting former addresses. As part of my collection, two of these addresses are more than just memories since I’m still nominally responsible for their care, maintenance, and upkeep. I wish I could tell you that being a small time land baron is a profitable endeavor, but as anyone who’s ever done it will probably confirm, most years you’re lucky if you break even.
Which is what leads to posts like this one…
You see, I’m currently in the position of having an unoccupied one bedroom, one bath condo available for rent in St. Mary’s County, Maryland. It’s a 800 square foot, ground level walkout unit featuring a wide covered patio area and a walk in closet/pantry for all you extra storage needs. Your $850 monthly rent includes water, sewer, and trash pick up. With an additional deposit, this unit is both cat and dog friendly.
Centrally located in the Wildewood community, this condo offers easy access to the Patuxent River Naval Air Station, Solomons Island, Leonardtown and all the natural beauty of St. Mary’s County. Our Nation’s capital is within reach if you’re a power commuter. You’re within walking distance of groceries and a less than five minute drive from BJs, Target, and other shopping amenities. Better still, you’ll have ready access to the exciting southern Maryland nightlight offered at the Brass Rail, the Green Door, and Solomons’ historic Tiki Bar.
This opportunity won’t last forever, so act now before it passed you by and someone else is living the life you want in the condo you deserve.