Thursday, June 14, 2007

Neighbor’s Condo on the Market…

While completing a total random search, I found out that I have a neighbor who is moving and their condo is on the market. It is a 3 bedroom, 2 bath condo just like mine. The asking price is $165k. I currently value my condo on my balance sheet at $160k. I cannot wait to see how the sale pans out.

Monday, June 11, 2007

Student Loan Repayment Plan…

LawsFinance asked me a great question on what my plan is to repay my student loans. The current balance is $202,933 which is astronomical but not fatal.

Below is a schedule for my student loans including current interest rates, balances and terms.

The IDEAL order of payoff will be as follows:

  1. Perkins Loan ($3k and easiest to pay off)

  2. Private Loans

  3. Grad Plus Loan

  4. Federal Unconsolidated Loans

  5. Federal Consolidated Loans

Current Repayment Schedule:

  1. Federal Subsidized/Unsubsidized – 1/2008

  2. Private Loans – 4/2008

  3. Federal Consolidated & Grad Plus – 6/2008

My Plan:

  1. Save $20k over the next 6 months.

  2. Forbear Federal Subsidized/Unsubsidized for 6-12 months.

  3. Forbear Private Loans for 6-12 months.

  4. Payoff $3k Perkins Loan with bonus.

  5. Payoff first $4.9k Private loan with a combination of tax return proceeds and cash flow.

  6. Begin repayment on Federal Consolidated & Grad Plus – 6/2008. Total estimated monthly payment will be $525.

  7. Continue paying off my HELOC/CC which is at $17k and 3.99% fixed for the life of the loan.

  8. Land a law position paying a minimum of $90k.

Wednesday, June 06, 2007

May 2007 Financial Update…

Now that I am officially a graduate, I received the proceeds from by Bar Loan during May. This is the last student loan I will ever have to take out. Thank goodness. Right now, the funds are sitting in my WaMu savings account and will remain there as Emergency Funds.

I did some accounting changes to help sink my personal spreadsheets with Quicken. I get paid once a month at the very end of the month so the below balances include my April and May paychecks and 401k contributions. Going forward, everything will balance and reconcile better.

My student loans are still in deferment until next year so accruing interest will hurt for the next few months. For the remainder of the year, I will be trying to get a handle on my post-law school expenses, find another job, and improve my net worth as much as possible.

Going forward, June should see some slight improvement with the payoff my credit card in full and my last tuition reimbursement check. Then, everything will go back to a normal person with a crap load of debt.


*** Had to edit chart due to a mistake.

Monday, June 04, 2007

I am crazy…3-Flat Apartment Building…

I want to buy this three flat apartment building that is right down the street in a neighboring town. It’s a well-maintained building and boasts 2-three bedroom units and 1-two bedroom unit. There is no garage but there are 6 parking spaces in the back. Tenants pay their own heat and electricity. The building is in an excellent, excellent neighborhood with award winning schools so I don’t think it would be hard to rent out.

The price for the building is steep at $425,000. There was a similar building that sold in my neighborhood a few months back for $360,000 but it only had 6 bedrooms as opposed to this building having 8 bedrooms.

I could live in one unit and rent out the other two but that would mean giving up my condo which I love. I have enough equity in my place and savings to pay the down payment on the building but it’s a huge gamble that can either pay off well or sink me.

My current salary is $55k but with annual bonuses, I bring in just over $60k. I just graduated from law school a few weeks ago and I am preparing to take the bar exam. I anticipate that my income will increase substantially once I pass the bar and get a law position.

What to do, what to do? This is type of building is exactly what I have been looking for and what I have always wanted. I think over the long haul, it could be an excellent investment.