They accepted my initial offer after I remade it. Their counteroffer was 25k higher, I said no, they took the initial.
I think the sale is a win all around. Sellers up about 500k, sliding right under the capgains exemption for a married couple. I am getting a place that’s about 10% below March 2022 peak price and perhaps 3% below market price, giving me a little safety cushion. I really don’t expect or care if I make money on this one, it is huge so will have high monthly expenses, and I don’t think RSD is especially well positioned for appreciation. (Santee and Mira Mesa are suburban areas that will outperform RSD in my opinion.)
I will probably end up with a 4.375% 7/30 Jumbo ARM.
Looking at my increased costs, my house in OB I believe will rent for about 4400. Net cost of the new place will be about 7000. 2600 a month isn’t peanuts, but if the new place appreciates 1.5% a year, then the appreciation makes this a break even, and anything more than 1.5% is profit.
As for the risk on the ARM, the interest savings will be about 30k before the rate resets. I am ok with the additional risk that in 7 years I will still have the mortgage and it will reset higher. Part of me being OK with this risk is that all my other debt is fixed at lower rates.
