Author: Doctor in Denim

2019 Spending Recap for Our Family of 4

2019 Spending Recap for Our Family of 4

After tracking our spending down the penny in 2018, I gave myself a break so we could focus on paying off my student debts, getting our business debt well under control, and finishing our first investment build.

(We still rely on the magic of the the non-budget when it comes to managing our spending.)

However, it’s still very important to me that we’re honest with ourselves about where our money’s going.

With December widely regarded as the most expensive month on the calendar, tracking our spending in detail this month seemed like a good call. With these numbers, we can do some quick comparisons to 2018 to get an idea what we spent in all of 2019 as well as solidify our financial goals for 2020.

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Final Numbers for Our Sedona Building Experiment

Final Numbers for Our Sedona Building Experiment

Our building experiment in Sedona, Arizona has finally resulted in a livable house, and it has a scheduled closing date where it will change over from being under a construction loan to being under a regular mortgage.

Whooohoooo!

In case we have not already bored you to tears with details on this: the build is a 3-bed, 2-bath main house with a separate “mother in law quarters” that is 2-bed, 1 bath. Both units have a kitchen and washer/dryer.

The Construction Loan

You can read about the early numbers (lot cost, down payment on the build, etc) in this post from December of last year.

We ended up borrowing $456k for the build itself, which was about what we planned on. The biggest surprise was that despite this being one of the last vacant lots in the middle of uptown Sedona, there was no gas line to the property. Getting one there cost $13k.

That $456k did include the excavation costs, which can be one of the higher-ticket items when building in the very rocky, cliff-covered landscape of Sedona.

Out of Pocket Expenses

We paid cash (via credit card) for our cabinets and and appliances, totaling around $20k.

Entryway and kitchen of the main house.

These purchases resulted in thousands upon thousands of American Air miles, British Air miles, and the BA Travel Together Ticket. We have already gained back about $11k from said miles, and there are over 190k miles (and the Travel Together Ticket) left to use. So we’re feeling good about that particular building/travel hack.

But back to the subject at hand…

Landscaping Costs

The internet tells me the rule of thumb on landscaping is to spend about 10% of the value of your home on landscaping.

The last time this project was appraised, the value was $706k. So $70k on landscaping would be acceptable, I suppose?

We are not spending anywhere near that that much on landscaping, although we are paying good money to have a well-reputed landscaper handle it for us. We’ll get you our final numbers (and pictures) as soon as it’s done.

The landscaping plan currently includes retaining walls all around the property (very necessary in our minds), six new trees (required by the City of Sedona despite the fact that this was a dirt lot full of weeds), gravel and flagstone work, two paver patios (in addition to the covered patio that is part of the house), and fancy sitting boulders, a built-in waterfall, and a built-in gas fire pit. There will be plenty of smaller foliage as well. All the plants will be native so no irrigation system will be needed.

We’re going to leave landscaping costs out of the grand total for now, not because we want to mislead anyone but because landscaping preferences are very individual and costs are so wildly variable depending on what you need and want done on your property.

Grand Totals

Some quick math with the above numbers tells you we have spent around $476k on this thing after the lot cost ($89k) and the down payment ($60k).

It’s probably most useful to say it this way: we’ve put in ~$170k of our own money into this (not including landscaping) and taken on a ~$460k loan (rounded up to account to for closing costs when it morphs into a regular mortgage and whatever else we may have missed).

Cost per Square Foot

Cost to build was $185/sq foot if you include the garage and covered patio (which has lighting, a ceiling fan, etc). It was $255/sq ft if you include only interior space.

I just read an article about building in Sedona that said to expect $300 – $350 per square foot on your new build. Some new homes are currently going up in the $800 – $1200 per square foot range.

It’s very possible that we’re building a peasant house in the middle of a town zoned exclusively for castles.

The reason Sedona is pricey.

Regardless, the median list price of new-ish homes in our area is well over what we spent. This is what we were aiming for in order to play it safe should we need or want to sell quickly.

The Mortgage

We’ll have $460k in debt on this thing as of January 2020; monthly payment with taxes and insurance will be $2.6k.

Our interest rate is 4.1%, because it’s a “second home” and our third mortgage (we have a rental in another state as well as our primary home).

We’ll let you know how it appraises in a couple weeks.

Happy New Year, everyone! See you in 2020!

Backpacking With Teens and Tweens

Backpacking With Teens and Tweens

We’ve been backpacking with our now-teenager since he was 9 years old. And I’m talking about real wilderness backpacking in rugged terrain and extreme temperatures where you carry everything you need to survive, not “I did some walking in Europe with a backpack on” backpacking.

I put in 6 years of backpacking as a teenager myself back in the day, followed by an additional 13 years of backpacking as an adult (pre-munchkins). So hopefully that establishes me as reasonably qualified to dispense advice in this area.

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The Spooky Truth About “Emergency Funds”

The Spooky Truth About “Emergency Funds”

Happy Halloween, everyone! Okay, I admit it: I published this today mostly so I could use “spooky” in the title.

If you’re just here to find out what we keep in cash in our emergency fund: it’s $22,635.00. You may now go back to eating all the good candy out of the stash your kids brought home. But if you’re interested in more information on this topic, read on.

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Home Rehab in Progress (Before & After Pics)

Home Rehab in Progress (Before & After Pics)

As I mentioned in a recent post, we’ve been doing a lot of work on our current home, with the intention of selling it before our oldest goes to high school.

Things still on the to-do list include new exterior doors and replacement of two light fixtures in the living room (all scheduled for this month). Guest bathroom updates and new flooring are on the “maybe” list. A new heather and AC unit are being installed as I write this.

Several of you asked for more info and better pictures of what we’ve done so far, so here we go (enjoy!):

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All You Need is… Dreams?

All You Need is… Dreams?

The ever-popular topic of “How much does travel cost?” is back!

An acquaintance of mine was just asked about how she and her husband paid for their family’s 5-star, multi-month, international vacation. Fair question, I think, since they’ve been pretty public about how long and fancy the trip was. Her response was: “It’s not about money! It’s about our dreams! It’s about having faith!”

*Insert sound of me choking on coffee.*

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Building, Remodeling, and Getting a Real Estate License

Building, Remodeling, and Getting a Real Estate License

Wow time is flying! I really had every intention when I started this blog of posting once a week. HAHAHAHAHAAAAA! *wipes tears from eyes*

I guess once a month is going to have to suffice for now. As if two jobs and two kids and the usual summer travel and training for another endurance race aren’t enough, we’ve added the funtivities mentioned in the title to our list.

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