First Major Setback

In August of 2010, 3 months after we bought our first property, the air conditioning went out.  On top of that it was out for almost a month.  MS = 100 degree weather with an average of 90+% humidity.  No air conditioner = an oven.  We worked quickly but there were some parts that needed to be ordered and they took over 2 weeks to come in.  Long story short, it was about 3.5 weeks in total from the day it went out until the day it came back on.  We also credited rent back for the days our tenant was misplaced.  All things considered it costs us about $3,800.  Cash flowing $100/month at the time, this was devastating to cash flow.  At the time, that costs us almost 6 months of contributions and earnings.  I'm sure some people would have put it up for sale, cashed out, and said "oh well, I tried, time to move on" and given up.  Not us!

So this setback occurred toward the end of 2010, wiped out almost all cash and it took us until 2012 before we were able to save up enough to purchase our second house.  Our 2011 strategy wasn't anything more than float and build back up cash reserves.  Out of the 3 of us, I make the most money in my day job so I increased my monthly contribution enough to make the total contribution influx to be $1,000/month.