September 2016 Island Trip Day 3

September 21 – Day 3

Mom, uncharacteristically, didn’t join me in town when I headed to the ferry. As we said good bye, I told her, at the latest, we’d see each other at Thanksgiving, which we’d be celebrating at Daughter #2’s, as our place would be in shambles due to remodeling projects.

Mom: “You can pick me up at the ferry landing?”
Me: Of course, as always!”
Mom: “But I’ll be able to stay at your place, right?”
Me: “No, Mom, you’ll stay at you’re place.”
Mom (with palm to forehead): “Oh, that’s right” then, “I want to sell that house. I don’t like it at all…”
Me: “Mom we talked about leasing it out last night. That the property’s appreciation is making you money hand over fist!”
Mom (certainly not remembering the conversation): “Oh, yeah. What would the rent be?”

I told her, with some light capital investment, the rent would exceed her fixed monthly expenses by 20%. Our rental market is hot right now. Next step is to show her, simply, the financial difference between the way things are now, and having to declare rental income tempered by expenses. She can’t keep all the moving financial parts of this in her head. I can create a graphic or spreadsheet that will help her understand ‘positive cash flow.’

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