[quote=enron_by_the_sea]In 3 years he might have also paid about ~30K of principal assuming ~7% interest rate. (OTOH He might have gone IO route and paid nothing or he might have had a lower interest rate and paid more down towards principal)[/quote]
yup, totally forgot the most important carrying cost. I have to assume 5% interest since his first was full jumbo. Which means $5200/month in principal and interest. That’s roughly $187k.
with the $220k from my prior post, we are looking at $407k loss for the whole affair.
of course, a third of it should be tax deductible. so probably just around $270k in real losses.
