Tempted to sell out of landlording in San Marcos

[no_such_reality]

[quote=flu]The only thing though is college expense. Hopefully, our budgets for that is sufficient. Part of that will come out of a well funded 529 account that clobbered most of my other account’s performance, a custodial account that’s been religiously gifted to annually, and if necessary selling of a rental property if necessarily at that point. I figure that should take the little kiddie through med-school (if that’s going to happen) heh heh.

Of course, we can always try to get into a UC school, pay in-state tuition, and piss off people that think paying in state tuition costs CA taxpayers a lot because of the reduced tuition, especially if the student is chinese,lol.[/quote]

This is were Cali shines, the UC system is outrageously inexpensive. Seriously, $15K for UCLA or Berkeley , or UCI, or Merced, or any other versus $50K for Georgetown, Dartmouth, Cornell, Brown, Carnegie Mellon, just list any top ranking.

The Cal State system runs half the UC system.

The rest of the expense, is what it costs to live in Cali and frankly, it’s cheaper living as a college kid here than living as a young adult working.

IMO, a kid going to UCI is going to fork out close to $32K to live on campus and get an education. That same kid if he was working in Orange County is going to have to probably shell out $32K to live and work here.

[joec]

That maybe true if you are comparing pure numbers, but as reported here by some of the folks and also in the news/media, a lot of the private schools know they are expensive and offer grants/aid (free money) to make the cost comparable.

I forget who, but someone here said they are at an ivy for not much more or even less than a UC school.

Also, for those on the lower income, if Stanford or Harvard is calling, you get to go for free.

With the benefits of private, you don’t have to worry as much (I don’t think) of getting classes (always full and offered once a year at UC engr classes) so if anything, I’m hoping my kids go to a top private school instead of UC (as a UC grad myself)…

[ldub818]

[quote=HLS]Refinancing a primary is less expensive than a rental.
Either way you end up with the same amount of debt.
It’s the cheapest mortgage money you can get.

Historically, a very small % of people with moderate net worth++ end up in trouble/foreclosure.

Seek a tax professional for tax aspects.
Many people forget about the standard deduction when figuring Itemizing Deductions… The larger your household, the less sense it makes to itemize.

Being a landlord isn’t for everyone, but if you believe that property values will increase, I would think that owning 2 properties with some debt is better than owning one free and clear.

Having hundreds of thousands of dollars (or millions) of equity but not being able to enjoy your life is pointless to me.
Your heirs will appreciate it !

It’s a different perspective than some who want to pay everything off and have no debt later in life..
I’ve known people who died young with lots of equity and others whose health declined that their golden years weren’t so golden,,, But they had no debt, little cash and lots of equity.[/quote]

Really interesting thoughts, guys! I’m going to play with the numbers and see if I can’t make a significant improvement in cash flow moving around the equity.

I absolutely know it’s great to be us, the rise in equity prices made me think we might get to retirement earlier and also stirred the memory of the 2007 housing bubble and not wanting to lose a chance to take some gains off the table.

[The-Shoveler]

A housing downturn anywhere near as severe as 2007-10 is extremely unlikely in the next few years.

It would take and extreme economic downturn and be really really bad for just about everyone (just looking at the demographics just as the biggest bulge in population is about 25 years old and likely looking for their first home).

anyway IMO

[FlyerInHi]

I think you a right shoveler because we don’t have a national bubble, just coastal areas of exuberance.

We could have a world wide slowdown as warned at the G7. Or a huge crisis in China. Another Tiannamen square and regime change? Brexit? A Trump presidency and trade wars?

The late 2000s saw a boom in mobile tech and that helped a lot. I wonder what’s next.

Plus houses are more expensive so it’s harder for young people to save the down payments.

[Author]

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