ouch $9,800/month negative cash flow

[drunkle]

what would happen if he took his 150 and bought another home. one that is at current, cheaper prices, something like a condo in a heavily depressed area (np, mission valley, murrieta, etc). move into it and let everything else go (cc debt, investment props, etc). keep little to nothing, let it all go to repayment. negotiate a manageable repayment schedule for the rest and work for a living.

[drunkle]

what would happen if he took his 150 and bought another home. one that is at current, cheaper prices, something like a condo in a heavily depressed area (np, mission valley, murrieta, etc). move into it and let everything else go (cc debt, investment props, etc). keep little to nothing, let it all go to repayment. negotiate a manageable repayment schedule for the rest and work for a living.

[drunkle]

what would happen if he took his 150 and bought another home. one that is at current, cheaper prices, something like a condo in a heavily depressed area (np, mission valley, murrieta, etc). move into it and let everything else go (cc debt, investment props, etc). keep little to nothing, let it all go to repayment. negotiate a manageable repayment schedule for the rest and work for a living.

[drunkle]

what would happen if he took his 150 and bought another home. one that is at current, cheaper prices, something like a condo in a heavily depressed area (np, mission valley, murrieta, etc). move into it and let everything else go (cc debt, investment props, etc). keep little to nothing, let it all go to repayment. negotiate a manageable repayment schedule for the rest and work for a living.

[sdrealtor]

sandiego’s statement was “everyone who owns a house in California (me included) is losing more than $1,400 a month ($17,200 a year) on homes that they actually occupy.”

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

[sdrealtor]

sandiego’s statement was “everyone who owns a house in California (me included) is losing more than $1,400 a month ($17,200 a year) on homes that they actually occupy.”

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

[sdrealtor]

sandiego’s statement was “everyone who owns a house in California (me included) is losing more than $1,400 a month ($17,200 a year) on homes that they actually occupy.”

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

[sdrealtor]

sandiego’s statement was “everyone who owns a house in California (me included) is losing more than $1,400 a month ($17,200 a year) on homes that they actually occupy.”

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

[Coronita]

what would happen if he took his 150 and bought another home. one that is at current, cheaper prices, something like a condo in a heavily depressed area (np, mission valley, murrieta, etc). move into it and let everything else go (cc debt, investment props, etc). keep little to nothing, let it all go to repayment. negotiate a manageable repayment schedule for the rest and work for a living.

I don't think he won't be able to qualify for another loan, especially these days. I wonder if the problem is that he can't find renters. If so,  I wonder if it would make sense to try to rent some homes as Section 8 housing. Don't know the exact details, but just brainstorming off the top of my head. 

If he's headed for BK/foreclosure, I'd take the $150k and hide it somewhere with a trusted person, max out all CC's with cash advances and hide that somewhere. 

One thing for sure. If he and his girlfriend are still together after this mess, I have to say that girl is definitely a keeper.

 

[Coronita]

what would happen if he took his 150 and bought another home. one that is at current, cheaper prices, something like a condo in a heavily depressed area (np, mission valley, murrieta, etc). move into it and let everything else go (cc debt, investment props, etc). keep little to nothing, let it all go to repayment. negotiate a manageable repayment schedule for the rest and work for a living.

I don't think he won't be able to qualify for another loan, especially these days. I wonder if the problem is that he can't find renters. If so,  I wonder if it would make sense to try to rent some homes as Section 8 housing. Don't know the exact details, but just brainstorming off the top of my head. 

If he's headed for BK/foreclosure, I'd take the $150k and hide it somewhere with a trusted person, max out all CC's with cash advances and hide that somewhere. 

One thing for sure. If he and his girlfriend are still together after this mess, I have to say that girl is definitely a keeper.

 

[Coronita]

what would happen if he took his 150 and bought another home. one that is at current, cheaper prices, something like a condo in a heavily depressed area (np, mission valley, murrieta, etc). move into it and let everything else go (cc debt, investment props, etc). keep little to nothing, let it all go to repayment. negotiate a manageable repayment schedule for the rest and work for a living.

I don't think he won't be able to qualify for another loan, especially these days. I wonder if the problem is that he can't find renters. If so,  I wonder if it would make sense to try to rent some homes as Section 8 housing. Don't know the exact details, but just brainstorming off the top of my head. 

If he's headed for BK/foreclosure, I'd take the $150k and hide it somewhere with a trusted person, max out all CC's with cash advances and hide that somewhere. 

One thing for sure. If he and his girlfriend are still together after this mess, I have to say that girl is definitely a keeper.

 

[Coronita]

what would happen if he took his 150 and bought another home. one that is at current, cheaper prices, something like a condo in a heavily depressed area (np, mission valley, murrieta, etc). move into it and let everything else go (cc debt, investment props, etc). keep little to nothing, let it all go to repayment. negotiate a manageable repayment schedule for the rest and work for a living.

I don't think he won't be able to qualify for another loan, especially these days. I wonder if the problem is that he can't find renters. If so,  I wonder if it would make sense to try to rent some homes as Section 8 housing. Don't know the exact details, but just brainstorming off the top of my head. 

If he's headed for BK/foreclosure, I'd take the $150k and hide it somewhere with a trusted person, max out all CC's with cash advances and hide that somewhere. 

One thing for sure. If he and his girlfriend are still together after this mess, I have to say that girl is definitely a keeper.

 

[Fearful]

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

You have lost money because you could have sold for more earlier. Your house has dropped in value, and as long as selling it was an option, that drop in value was a real cost to you.

And only considering the payment means you are ignoring the opportunity cost of money. The monthly cost of your house is cash flow out plus the earning you could have gotten from the capital. For example, the payment on my house in San Jose was about $2,500 a month, but that was on about $450K of the $920K total value. When I sold it, I was able to earn interest on an additional $430K.

None of this is to say that you should have sold earlier, or that you are a fool for not doing so, just that depreciating assets do incur a real cost.

The flip side of this is someone’s comment to me, circa 2000, that I was living effectively rent free in San Jose because of the appreciation of my house. True then, opposite true now.

[Fearful]

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

You have lost money because you could have sold for more earlier. Your house has dropped in value, and as long as selling it was an option, that drop in value was a real cost to you.

And only considering the payment means you are ignoring the opportunity cost of money. The monthly cost of your house is cash flow out plus the earning you could have gotten from the capital. For example, the payment on my house in San Jose was about $2,500 a month, but that was on about $450K of the $920K total value. When I sold it, I was able to earn interest on an additional $430K.

None of this is to say that you should have sold earlier, or that you are a fool for not doing so, just that depreciating assets do incur a real cost.

The flip side of this is someone’s comment to me, circa 2000, that I was living effectively rent free in San Jose because of the appreciation of my house. True then, opposite true now.

[Fearful]

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

You have lost money because you could have sold for more earlier. Your house has dropped in value, and as long as selling it was an option, that drop in value was a real cost to you.

And only considering the payment means you are ignoring the opportunity cost of money. The monthly cost of your house is cash flow out plus the earning you could have gotten from the capital. For example, the payment on my house in San Jose was about $2,500 a month, but that was on about $450K of the $920K total value. When I sold it, I was able to earn interest on an additional $430K.

None of this is to say that you should have sold earlier, or that you are a fool for not doing so, just that depreciating assets do incur a real cost.

The flip side of this is someone’s comment to me, circa 2000, that I was living effectively rent free in San Jose because of the appreciation of my house. True then, opposite true now.

[Author]

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