[quote=Ren][quote=bearishgurl]Ren, I forgot to add last night that Paramount only put 10% down so he is most likely paying at least $180 mo. PMI premium in his “PITI.” Not sure if this is also tax deductible also after putting the property into rental service.
It may be a very l-o-o-o-ong time before he is able to get rid of the PMI.[/quote]
If his PMI is included in the $1,600 PITI, then that’s okay in my book (of course not ideal), because someone else is paying for it.
The way I look at it, he either buys at the peak and then walks at the trough, or he buys at the peak and then sells at the next peak (or keeps it indefinitely). The former guarantees a large loss, which has not actually taken place yet, and doesn’t have to. He didn’t buy at the artificially inflated highs of 2004-2006. If that had been the case and he was far in the red, then sure, walking might be a good idea, as those highs will never be seen again. As it is, he’s got a property that will be cash flowing in a couple years and only has 22 to go on the loan. Like I said it’s not ideal, but I wouldn’t mind having it in my portfolio.[/quote]
No PMI. When our house was ‘worth’ 400k I got it reappraised and PMI was dropped. But PMI was also the same reason I was unable to do any type of loan mod according to Wells Fargo.
The only reason my payment is ~$1600 is because my house was reappraised by Riverside County and my taxes dropped significantly.
