the rent on my place WAS 1400. the owner mispriced it in the first place. i had been looking at rentals for a good month before i found this place…it was under market price by a good 200-300/month. it should have been 1700-1800.
before my lease on this house was about to expire – and before i bought – i looked for another rental. the closest price i could find for anything REMOTELY as nice as my house was about $2100. very few one stories… most were in areas we did not like.
buying is going to run me roughly $3000/month. total nut.
renting would cost me about $1800-2000. yeah i can find 1600 rentals..but they are stipped down yucky houses..and after living in homes that have been nicely upgraded, in nice areas, I candidly don’t want to live in a dumpy 1600 rental. neither did i want a two story..so my options were lmited.
i calculated that i would be saving about $700-800/month off my taxes by buying.
so my 2000 rental is really 2800/month when you take out the tax whack.
my loans include principle reduction which I don’t calculate when doing rent vs buy. i compared the total costs to rent which is the rent. vs the interest payments, taxes, hoas, maintenance. this house will run me about $3000/month. about 400/month is principle reduction..give or take…so i’m paying 2600/month to carry the house.
to rent would actually cost more… at the worst i’m breaking even.
