I've got a situation where I bought an 8 bedroom house about a decade ago.
I live in part of it, rent out 3 rooms to international students, also rent out basement suite. So I get pretty decent income from the rents, thinking I could work my handyman/renovation business part time.
House has gone up about 800k since I bought it, maybe a taller building will be built here in future, in which case '3 bells' and hit jackpot.
I'm 57 now and thinking the less work I can do from now on the more time I'll have to do the good things in life. If I can afford it of course.
I still enjoy getting my tools out, BUT... I really don't like working to the point where I ache like I've been playing rugby for a week, or snoozing as I'm tired out. And I especially don't want to deal with customer drama that come up from time to time. Drama I find harder to deal with than the hands on work.
Today I was looking at my numbers again and thinking about what I'd do to take things part time.
1. I have a leased sprinter van, 5 year lease is up in November this year, I can buy it out for 18k, it's in great condition still. The van is great to work out of. Lease has been quite expensive and only really makes sense if working full time. Nice thing about a newish van is that it looks good, starts every time, pleasure to work out of, engine in good condition so fuel use is optimal.
2. insurance on van has to be full insurance, covers collision etc... this too is quite expensive.
3. I'm in Canada, so I carry WCB insurance (workers compensation) with optional coverage for myself. I also have a 2 million dollar liability policy, that I've never made a claim on in the 15 years I've had it.
4. I've been a member of the BBB here for about 12 years, it's been good for marketing purposes, probably won't renew this year.
My thing is this;
I have my house sorted, the rent support a lot. After I collect the rents, I need about 2400 a month to support my life as it is now.... AND THAT INCLUDES $1250 A MONTH I NEED TO RUN MY BUSINESS....
So I'm thinking s*** half of what I need is just to run the business.
Like if I didn't have the business expenses of 1. van 2.insurances 3.diesel etc... I'd only need $1150 a month and I could in theory pretty much stop working.
Now I don't necessarily want to stop working completely.... but! I would certainly embrace working a lot less and do some other things in life.
The only thing is, what do you 'Stop'??? Do you stop your insurance? Take the van back and then what?
How to take things part time?
For example, let's say you took your hours down to say a ridiculous 5 hours a week. And billed your customer $60 an hour = 300/1200 a month.
It would make no sense to lease a vehicle, have insurances etc.. and overhead of say $1250 a month.
So I wonder what would be the best way to do it?
I have a workshop at home and thought about making some stuff in there and sell online?? I wouldn't have to sell a ton to make enough, and that way no need for insurances, fancy van etc...
I know a couple of guys who paint interiors and they don't even have a vehicle. Different business model etc??
I live in part of it, rent out 3 rooms to international students, also rent out basement suite. So I get pretty decent income from the rents, thinking I could work my handyman/renovation business part time.
House has gone up about 800k since I bought it, maybe a taller building will be built here in future, in which case '3 bells' and hit jackpot.
I'm 57 now and thinking the less work I can do from now on the more time I'll have to do the good things in life. If I can afford it of course.
I still enjoy getting my tools out, BUT... I really don't like working to the point where I ache like I've been playing rugby for a week, or snoozing as I'm tired out. And I especially don't want to deal with customer drama that come up from time to time. Drama I find harder to deal with than the hands on work.
Today I was looking at my numbers again and thinking about what I'd do to take things part time.
1. I have a leased sprinter van, 5 year lease is up in November this year, I can buy it out for 18k, it's in great condition still. The van is great to work out of. Lease has been quite expensive and only really makes sense if working full time. Nice thing about a newish van is that it looks good, starts every time, pleasure to work out of, engine in good condition so fuel use is optimal.
2. insurance on van has to be full insurance, covers collision etc... this too is quite expensive.
3. I'm in Canada, so I carry WCB insurance (workers compensation) with optional coverage for myself. I also have a 2 million dollar liability policy, that I've never made a claim on in the 15 years I've had it.
4. I've been a member of the BBB here for about 12 years, it's been good for marketing purposes, probably won't renew this year.
My thing is this;
I have my house sorted, the rent support a lot. After I collect the rents, I need about 2400 a month to support my life as it is now.... AND THAT INCLUDES $1250 A MONTH I NEED TO RUN MY BUSINESS....
So I'm thinking s*** half of what I need is just to run the business.
Like if I didn't have the business expenses of 1. van 2.insurances 3.diesel etc... I'd only need $1150 a month and I could in theory pretty much stop working.
Now I don't necessarily want to stop working completely.... but! I would certainly embrace working a lot less and do some other things in life.
The only thing is, what do you 'Stop'??? Do you stop your insurance? Take the van back and then what?
How to take things part time?
For example, let's say you took your hours down to say a ridiculous 5 hours a week. And billed your customer $60 an hour = 300/1200 a month.
It would make no sense to lease a vehicle, have insurances etc.. and overhead of say $1250 a month.
So I wonder what would be the best way to do it?
I have a workshop at home and thought about making some stuff in there and sell online?? I wouldn't have to sell a ton to make enough, and that way no need for insurances, fancy van etc...
I know a couple of guys who paint interiors and they don't even have a vehicle. Different business model etc??