Saturday, February 20, 2016

Phase 2 Getting Started

Make A List, Check It Twice
I have mentioned a few times that I am looking to sell my current little farm.
My next home, or investment, will either be another farm (farm #2) or a smaller home in a small town.

For most of you I may sound like a broken record, I have mentioned it enough!
However, this post in a lot of ways is for me.  Sometimes it's easier for me to put it in writing, making it an easy access for me to refer to.  See if I'm still on track.

And on the other hand, sometimes so much goes through my head that things make sense when I right it down.  Or doesn't make sense.
So bear with me as I talk to myself.  lol

 Essentially this is a flip home.  Buy it, renovate it, decorate and style it, sell it.
And then move onto farm #3, or "phase 3".
Not sure how many phases it will take to get me to where I want to be, but at this point I am assuming there will be one or two more phases before I reach said goal.

 I have broken down this goal of mine into different phases.
My first phase was buy a home in the country.  Check...did that.
 See if this was something I even wanted. Whether I liked it or not. And move forward from there.
For the lowdown on how I financially achieved this phase, read about it here.
Won't lie, it was a slow and at times a painful journey, but I got here nevertheless.

I can happily report I love it.
Next I look at living the same lifestyle but in a more affordable way.
Have the financial freedom to pursuit the things in life I want.  And enjoy my quiet country living.

The second phase is sell the current farm I have and move on to either an investment property with no mortgage, or purchase another farm with a small mortgage.
The investment property would likely be a house in a small town, the second farm will most likely be a fixer upper.
Purchase it, fix it up, style it and sell at a profit.
To have a look at my decorating drawing board for this farm #2, read it here.

Then for the third phase I hope that I can either achieve my mortgage free farm and reach my goal.
Or do a similar repeat of phase two until I do.
There might even be a phase four.  But that is too far ahead for me to even thing about now.

To some of you, this might seem too stark or too calculated a goal.
But for me, I am having the time of my life!
It is surprising me how much I actually love every minute of it.  Keeps my mind working.
I am enjoying a country living.  The animals.  The space.
Makes me feel good that I am achieving something that I am passionate about.

So let's get started.

Investment Property vs. Farm #2
Fix it, flip it.

Again, this property or phase 2 will serve only as a flip home.
I will purchase it, renovate it, style it, sell it. 
My goal is to get this completed within 1 year, and then move on to phase #3.
I currently have a country home, and would like to stay country.
I seriously considered a nice new pretty home in the suburbs but just couldn't do it.
My days of living within arms length of my neighbour I think are over.
I like my space.
However, when I sell my current little farm,  I will look at two property scenarios for myself.

Farm #2
  Buy another farm.  One of the biggest changes would be a cheaper mortgage, cut it in half of what I currently pay.
A slow process to where I eventually want to be, but progress nevertheless.
I fully expect the house to be different from what I currently have.  Most likely a fixer upper.

 In my new farm, here are some of the features I am considering, or on my bucket list.
Again, keeping in mind all the while that this farm #2 will serve only as a flip home.
So let's look at goals for farm #2....
Mortgage:  As much as I loved the idea of living mortgage free, and that is still a goal for down the road, I would settle for a cheaper mortgage.  As I mentioned above, try to cut the mortgage in half.
Location:  The new farm ideally would be on a quiet gravel road.
I like the community I currently reside, so will look close to home.
House and Outbuildings:  Outbuildings, lots of outbuildings if possible.
The house to have good bones.  I am not afraid of renos.
And it would be nice to have no creepy basement.  Yes you can giggle at that, but to me it's a plus plus.
Sometimes in older farmhouses you can get downright scary basements.
Livestock:  Also looking for space to have a few horses and chickens, but not to large a property.  A good 2 acres works for me.
Sometimes I think about sheep, but know zero about raising sheep.  Wouldn't that be cool though. :)

Investment Property
The second scenario, buy a small house either in the suburbs or small town, but be mortgage free.
Again, this property or phase 2 will serve only as a flip home.
I will purchase it, renovate it, style it, sell it. 
My goal is to get this completed within 1 year, and then move on to phase #3.
Angel Mortgage
Another scenario I have considered with this investment, is to provide an angel mortgage to the buyer.
Sell the house and provide the purchaser a mortgage.
The purchaser would have to follow certain guidelines.
An example is that they are unable to get a mortgage from a loaning institution.
Be on a government assisted program.  I would get my monthly mortgage directly from the government as oppose to the actually mortgagee.
It's a pay it forward type of thing.  It's a long and complex explanation, but for all intent and purposes it is a pay it forward, or angel mortgage.

If I could I would like to consider doing both...have a mortgaged small farm and an investment property.
But not sure if I have enough mula for both.
 If the above angel mortgage happens, then I will explain in a separate blog does get a little complex.

There you have it.  Clear as mud right!
Let's see how this plan progresses.  Maybe making changes along the way....more than likely.
Stay tune as I start doing home and farm tours.  Always enjoy having you along!

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1 comment:

  1. I so admire your outlook - I fear I would be extremely overwhelmed as I am not good at dealing with uncertainty. I am so looking forward to reading about the home and farm tours - such fun! Wishing you much luck and joy on this exciting journey, and thank you for letting us follow along.