he had 10% down, followed by two loans with Indymac, the first is a $864,000 Jumbo and the second at $108,000 as an equity line of credit.
With the $850k sale price, after commission price would be $799k. So the second completely lost out and the first position lost $65k.
The Chiro lost his $108k down. probably $50k on the landscaping. $50k on property tax over the last 3 years. $5400 on hoa for 3 yrs. $4000 on utility for 3 yrs. $1000 on gardener for 3 yrs. Total of about $220k from this endeavor.
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)
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)
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)
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)
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=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.
[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.
[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.
[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.
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