[quote=davelj]…I assumed a $375K price and a 5% mortgage, financing the entire balance (to avoid having to think about the opportunity cost of the down payment). I get an interest component of the mortgage payment at $1563 (tax effected at 20% down to $1250), property taxes of $313 (tax effected at 20% down to $250), and a $375 HOA. So, that gets us to $1900 after tax. …
Anyhow… just a few numbers to toss around, although I’m sure you’ve already done this analysis.
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You’re just missing that piddly little $450/month Principal payment. And the PMI on the loan, which will be another $200 a month.
So after tax, out of pocket for housing, not including repairs, etc, runs about $2500.
Eventually you’ll get the principal back, maybe. But you’ll need to make payments for about four years before the principal payments cover the future commission…