Tell me what to do

[paramount]

I am in a similiar situation: I bought my current home 6 years ago for 270k. I put about 25k down, have a 5% fixed 30 year loan, my PITI is just over 1500.

Now the problem: I estimate the value of my house at about 170k, not including selling costs. The neighborhood in those 6 years has become about 50% rentals and in general decline IMO.

Like TG, I made mistakes in the past with Real Estate (selling properties that I should have held) – now I don’t have a pot to piss in or a window to throw it out of.

I am not a Happy Camper at all.

[sc_alum]

Perspective is appreciated in spades!

When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.

I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…

TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?

Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…

[sc_alum]

Perspective is appreciated in spades!

When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.

I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…

TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?

Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…

[sc_alum]

Perspective is appreciated in spades!

When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.

I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…

TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?

Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…

[sc_alum]

Perspective is appreciated in spades!

When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.

I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…

TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?

Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…

[sc_alum]

Perspective is appreciated in spades!

When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.

I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…

TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?

Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…

[sc_alum]

For anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:

“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.

The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”

[sc_alum]

For anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:

“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.

The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”

[sc_alum]

For anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:

“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.

The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”

[sc_alum]

For anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:

“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.

The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”

[sc_alum]

For anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:

“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.

The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”

[moneymaker]

Not sure why I’m posting. This is what I would do. Keep your current house as a rental, I assume you have made friends in the neighborhood,have them keep an eye on it. I would rent in the new area until you have learned the neighborhhods. If the new job doesn’t work out you can always move back to beautiful southern california, just that thought alone should balance out the discomfort of having strangers in your home. But above all “just let go” and do want you want to. How’s that for confusing advice.

[moneymaker]

Not sure why I’m posting. This is what I would do. Keep your current house as a rental, I assume you have made friends in the neighborhood,have them keep an eye on it. I would rent in the new area until you have learned the neighborhhods. If the new job doesn’t work out you can always move back to beautiful southern california, just that thought alone should balance out the discomfort of having strangers in your home. But above all “just let go” and do want you want to. How’s that for confusing advice.

[moneymaker]

Not sure why I’m posting. This is what I would do. Keep your current house as a rental, I assume you have made friends in the neighborhood,have them keep an eye on it. I would rent in the new area until you have learned the neighborhhods. If the new job doesn’t work out you can always move back to beautiful southern california, just that thought alone should balance out the discomfort of having strangers in your home. But above all “just let go” and do want you want to. How’s that for confusing advice.

[moneymaker]

Not sure why I’m posting. This is what I would do. Keep your current house as a rental, I assume you have made friends in the neighborhood,have them keep an eye on it. I would rent in the new area until you have learned the neighborhhods. If the new job doesn’t work out you can always move back to beautiful southern california, just that thought alone should balance out the discomfort of having strangers in your home. But above all “just let go” and do want you want to. How’s that for confusing advice.

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