May was the craziest month we’ve had in quite awhile. We ended up short selling our condo and moving into a rental unit. The rental unit is twice the size of our old place and will save us $1,000/month. Because of this, our net worth dropped $12,703.04 from last month to $33,251.66 (click on spreadsheet below).
Since the short sale is better for us in the long term, but not great in the short term, I’m skipping my standard “what worked” and “what didn’t work” in this net worth post. Here are the details for May, good or bad:
The costs involved with selling our condo and getting a new place totally decimated our savings account. Here’s a quick rundown:
- $5,000 cash to our 2nd mortgage as part of the short sale deal
- $2,050 for rental deposit
- $2,015 prorated rent for new place
- $260 for movers
On top of all of that, we spent:
- $980.46 for new bedroom set
- $204.79 Wife’s medical bill
- $270 for dog’s annual shots & teeth cleaning
With all of the cash outlay, our cash and savings dropped to $4,122.93. We should be able to start building our cash back up with $1,000 we are saving every month renting. We contributed a total of $1,025.19 to our retirement accounts, and saw them increase $2,945.13. Our taxable accounts also increased $198.76.
I’m not sure what to expect for next month yet. We’ll still be dealing with some of the transition costs from owner a condo to renting. God willing, we should be able to start filling our savings account back up.
Woah, yeah that’s def. a lot of craziness going on for sure. Glad you guys have a goal and are working it out though! Do you know how the short sale will effect your credit score as yet?
way to make due with what you could. Blue skies are ahead!
J.Money- We’ve been told it shouldn’t hurt our credit score too much, but that we won’t be able to get another home loan for 3 years. For us, that timeframe works out well because we need time to save up some cash for a down payment.
Punch Debt In The Face- Thanks!
-1MansMoney