Friday, August 5

My Frugal Miser - July 2022 Expenses

July wasn't such a bad month for spending. The largest expense was for a root canal. I have to finish that treatment and then will have to pay for a crown, but that probably won't happen until September.

I received a refund for the portion of our flight home from the Alaskan cruise that was cancelled. I also received $1,000 for my trip delay claim. To simplify things, I posted these as credits to the "fun" category even though part of the claim covered new clothing.

Fun

We love adventures. Spending on experiences makes us better humans.

Spending was minimal. Our Regal Unlimited passes are now billed monthly.
We are taking a break from alcohol.
I only spent a small amount while visiting my mom in Richmond. We visited the Edgar Allen Poe museum in Richmond and I paid for train tickets into Washington DC where we celebrated July 4th.

July Expenses: $2,228

$251 Auto (service, gas, insurance, AAA, etc.)

$49 Bank Fees (annual fees on credit cards)
$207 Clothing/ Personal Care
($465) Fun (vacations, movies, gambling, alcohol, concert tickets) income this month

$729 Food

$994 Health and Dental

$1,481 Household/Home Repairs

$0 Unreimbursed Job Expense

($1425) Reimbursed Job Expense (income)

$0 Interest Expense

$116 Miscellaneous

$163 Taxes

$127 Utilities

Wednesday, August 3

My Frugal Miser - July 2022 Income

July was an amazing month. I sold the Airbnb early in the month, but managed one last booking. The buyers were anxious to get settled in but were hitting some roadbumps with the closing and asked to book it the last few days.

I worked 3 meetings jobs, completed three Amazon delivery routes, and drove a few hours for Uber.

Rental income was as expected. I received one distribution for Realty Mogul and rent for my three houses. I am selling one of those houses and only received rent for a few days before the tenants vacated. The house went under contract faster than I expected and should close before the end of August.

July Income: $12,153*

$0 Mystery Shopping/ Merchandising
$7,733 Meeting Jobs
$228 Gig Apps (Rideshare, Food Deliveries, etc.)
$328 Amazon Deliveries
$2,938 Rental Income (Rental Expenses: $213)
$911 Airbnb Income (Airbnb Expenses: $578)
$11 Interest Income

$4 Other Sources

*excludes gain from sale of Airbnb

Investment Accounts Change in Value: $27,151

My investments were up, as were all equity markets.

Tuesday, July 26

I Sold My Airbnb. Here's What I Made

Letting go was bittersweet.

I Did It...I am no longer an Airbnb Host.

Earlier this month I closed on the sale of my Airbnb. The decision to sell was tougher than I anticipated, and it's a bittersweet goodbye.

I learned an important investing lesson with this home:

The price paid for an investment is more important than any other factor.

Anatomy of a Home Sale

I purchased the house a couple years after moving to Florida, in 2014. Tampa Bay was at the tail end of recovery from the housing crash of 2008/2009. By 2014, investment groups were buying up houses all over the area and converting them to rental properties. Deals were getting harder and harder to find. I spotted a 2 bedroom, 1 bath home that was in foreclosure and listed at $44,900.

Out with the old...

In with the new.

The house was ugly! But the MLS had a major mistake that probably limited traffic even more: the house wasn't a 2/1, it was a 3/2. Even so, every single room in the house needed a major overhaul. While the bank had replaced the leaking roof, they stripped the walls and ceilings of the ruined drywall, leaving disgusting insulation and exposed beams.

When I was shopping for a house, I was looking for a personal residence, and I enjoy projects. This house was certainly begging for some love. We called this our home for nearly four years, and in that time we put in a new kitchen, two new bathrooms, and made improvements in every room. When we decided to buy a brand new house, I figured I would test Airbnb before renting the house long term. Best. Decision. Ever.

By the Numbers

Cost			Income
$45,025	Purchase, 2014
12945	2018 Spending	6780.68	2018 Income
$62,382.82	2019 Spending	$29,852.76	2019 Income
$20,143.76	2020 Spending	35992	2020 Income
$22,654.84	2021 Spending	40034	2021 Income
$8,370.05	2022 Spending	24998	2022 Income
32874.17	Closing Costs	345,000	Sold, July 2022

$204,396	Total Expenses	482657.44	Total Income

		$278,262	Net Income

		$34,783	Annual Gain
		77.25%	Annual Return

I didn't keep a good record of what I spent working on the home while I was living there. There was a ton of sweat equity as the only parts I hired out were the bathrooms and the kitchen countertop. In summary, I got a place to live for four years, followed by four years of solid Airbnb income. Including the profit from the sale with the Airbnb income, my annual ROI was massive!

What's Next?

For now I've deployed the proceeds into the stock and bond market. The goal is to generate the same amount of income, but all passively. Emboldened by the transaction, I have now listed my most expensive rental property, which is located in a suburb of Birmingham. Eventually my real estate investments will consist only of syndicated deals and REITs.

Tuesday, July 5

My Frugal Miser - June 2022 Expenses

June was another brutal month. But almost half of my spending was to make my Q2 estimated tax payment. Unfortunately July is going to be bad as well: I have to get a root canal and might pay my quarterly taxes early to earn extra credit card rewards.

I paid Q2 2022 estimated taxes: $4276
On the way home from our Alaskan cruise our flight was canceled. I had to change plans and fly directly to a meeting in Chicago. Since I didn't have my work clothes with me, including a suit, I had significant expenses ($1,261) replacing my wardrobe. I have filed a Trip Delay claim since my credit card provides that insurance, so it is possible I will be reimbursed for part of this.
I paid the annual fee on my United Quest credit card and also paid a transaction fee to use a credit card to pay my quarterly taxes.

Fun

We love adventures. Spending on experiences makes us better humans.

I splurged on two excursions during our Alaskan cruise. In Juneau we toured a real gold mine - I love history. In Ketchikan we did our first zipline.
We spent the night on the east coast of Florida after attending a concert with a friend.
I paid for a flight to Richmond to visit my mom.

June Expenses: $9,660

$227 Auto (service, gas, insurance, AAA, etc.)

$330 Bank Fees (annual fees on credit cards)
$1,261 Clothing/ Personal Care
$1,516 Fun (vacations, movies, gambling, alcohol, concert tickets)

$501 Food

$122 Health and Dental

$1,050 Household/Home Repairs