Three years renting, yearly update

[Anonymous]

In your calcs, you can factor out payments, because I didn’t have any as the house was paid for in cash.

Then you have to factor in a conservative 3.5% interest from a CD of 2.0M dollars over that term. That happens to be about $5800 a month in interest, or $208,000 over three years.

I would also say that it’s always going to be difficult coming out ahead when you own the house outright versus renting. Or if you pay for the house in cash versus the cost in renting.

[donaldduckmoore]

Stockstrader, curious how you calculate the monthly loss from your stories.

First investor: you mentioned he/she lost 6000 a month after receiving your monthly rent meaning that they have to pay $7500 a month for mortgage and HOA and insurance and property tax. That seems a lot for a condo of $405k.
Analysis:
Mortgage: assuming he did $405000 loan at 5% rate: $2174 a month
HOA: $300/month (assumed)
Insurance: none because there is a master coverage for condo.
Property tax: assuming 1.2% per annum, $405 per month
Your rent: ($1500)
To add up: $2174+$300+0+$405-$1500=$1379
where comes the $6000 loss per month?

Second landlord: even worse, he/she lost 12000 a month after receiving your monthly rent meaning that they have to pay $14600 a month for mortgage and HOA? and insurance and property tax. Isn’t that a little too much for a house of $850k?
I am not sure if there is any HOA and the property tax rate in Silicon Valley but I am very interested on how you came up with their loss number? Thank you.

[donaldduckmoore]

Stockstrader, curious how you calculate the monthly loss from your stories.

First investor: you mentioned he/she lost 6000 a month after receiving your monthly rent meaning that they have to pay $7500 a month for mortgage and HOA and insurance and property tax. That seems a lot for a condo of $405k.
Analysis:
Mortgage: assuming he did $405000 loan at 5% rate: $2174 a month
HOA: $300/month (assumed)
Insurance: none because there is a master coverage for condo.
Property tax: assuming 1.2% per annum, $405 per month
Your rent: ($1500)
To add up: $2174+$300+0+$405-$1500=$1379
where comes the $6000 loss per month?

Second landlord: even worse, he/she lost 12000 a month after receiving your monthly rent meaning that they have to pay $14600 a month for mortgage and HOA? and insurance and property tax. Isn’t that a little too much for a house of $850k?
I am not sure if there is any HOA and the property tax rate in Silicon Valley but I am very interested on how you came up with their loss number? Thank you.

[donaldduckmoore]

Stockstrader, curious how you calculate the monthly loss from your stories.

First investor: you mentioned he/she lost 6000 a month after receiving your monthly rent meaning that they have to pay $7500 a month for mortgage and HOA and insurance and property tax. That seems a lot for a condo of $405k.
Analysis:
Mortgage: assuming he did $405000 loan at 5% rate: $2174 a month
HOA: $300/month (assumed)
Insurance: none because there is a master coverage for condo.
Property tax: assuming 1.2% per annum, $405 per month
Your rent: ($1500)
To add up: $2174+$300+0+$405-$1500=$1379
where comes the $6000 loss per month?

Second landlord: even worse, he/she lost 12000 a month after receiving your monthly rent meaning that they have to pay $14600 a month for mortgage and HOA? and insurance and property tax. Isn’t that a little too much for a house of $850k?
I am not sure if there is any HOA and the property tax rate in Silicon Valley but I am very interested on how you came up with their loss number? Thank you.

[donaldduckmoore]

Stockstrader, curious how you calculate the monthly loss from your stories.

First investor: you mentioned he/she lost 6000 a month after receiving your monthly rent meaning that they have to pay $7500 a month for mortgage and HOA and insurance and property tax. That seems a lot for a condo of $405k.
Analysis:
Mortgage: assuming he did $405000 loan at 5% rate: $2174 a month
HOA: $300/month (assumed)
Insurance: none because there is a master coverage for condo.
Property tax: assuming 1.2% per annum, $405 per month
Your rent: ($1500)
To add up: $2174+$300+0+$405-$1500=$1379
where comes the $6000 loss per month?

Second landlord: even worse, he/she lost 12000 a month after receiving your monthly rent meaning that they have to pay $14600 a month for mortgage and HOA? and insurance and property tax. Isn’t that a little too much for a house of $850k?
I am not sure if there is any HOA and the property tax rate in Silicon Valley but I am very interested on how you came up with their loss number? Thank you.

[donaldduckmoore]

Stockstrader, curious how you calculate the monthly loss from your stories.

First investor: you mentioned he/she lost 6000 a month after receiving your monthly rent meaning that they have to pay $7500 a month for mortgage and HOA and insurance and property tax. That seems a lot for a condo of $405k.
Analysis:
Mortgage: assuming he did $405000 loan at 5% rate: $2174 a month
HOA: $300/month (assumed)
Insurance: none because there is a master coverage for condo.
Property tax: assuming 1.2% per annum, $405 per month
Your rent: ($1500)
To add up: $2174+$300+0+$405-$1500=$1379
where comes the $6000 loss per month?

Second landlord: even worse, he/she lost 12000 a month after receiving your monthly rent meaning that they have to pay $14600 a month for mortgage and HOA? and insurance and property tax. Isn’t that a little too much for a house of $850k?
I am not sure if there is any HOA and the property tax rate in Silicon Valley but I am very interested on how you came up with their loss number? Thank you.

[poorsaver]

LaJollaRenter, I am renting a pretty nice house right now. 3800 sq. ft. custom on a half acre for $2850. It’s about half the size of the home I sold, but it works just fine for me now. Perhaps you don’t have the renter’s blues like I do, meaning that detached feeling you get when you don’t own. I have delayed many purchases of furniture, outdoor bbq, etc. because I simply don’t want to have to move it again. I’m tired of living streamlined, which is what you do when you rent, because you know you’re going to mobile again, soon. I didn’t even put up all the nice fine art that I have because I’m afraid of damaging the walls and nice woodwork in this house. And home theatre system? Forget it. Can you imagine the look on the landlord’s face with multiple holes and cables in the walls? It’s just a very unsettled existence. Again, I hope this area declines in value soon, as I would like to own another home here to live out the rest of my days.

[poorsaver]

LaJollaRenter, I am renting a pretty nice house right now. 3800 sq. ft. custom on a half acre for $2850. It’s about half the size of the home I sold, but it works just fine for me now. Perhaps you don’t have the renter’s blues like I do, meaning that detached feeling you get when you don’t own. I have delayed many purchases of furniture, outdoor bbq, etc. because I simply don’t want to have to move it again. I’m tired of living streamlined, which is what you do when you rent, because you know you’re going to mobile again, soon. I didn’t even put up all the nice fine art that I have because I’m afraid of damaging the walls and nice woodwork in this house. And home theatre system? Forget it. Can you imagine the look on the landlord’s face with multiple holes and cables in the walls? It’s just a very unsettled existence. Again, I hope this area declines in value soon, as I would like to own another home here to live out the rest of my days.

[poorsaver]

LaJollaRenter, I am renting a pretty nice house right now. 3800 sq. ft. custom on a half acre for $2850. It’s about half the size of the home I sold, but it works just fine for me now. Perhaps you don’t have the renter’s blues like I do, meaning that detached feeling you get when you don’t own. I have delayed many purchases of furniture, outdoor bbq, etc. because I simply don’t want to have to move it again. I’m tired of living streamlined, which is what you do when you rent, because you know you’re going to mobile again, soon. I didn’t even put up all the nice fine art that I have because I’m afraid of damaging the walls and nice woodwork in this house. And home theatre system? Forget it. Can you imagine the look on the landlord’s face with multiple holes and cables in the walls? It’s just a very unsettled existence. Again, I hope this area declines in value soon, as I would like to own another home here to live out the rest of my days.

[poorsaver]

LaJollaRenter, I am renting a pretty nice house right now. 3800 sq. ft. custom on a half acre for $2850. It’s about half the size of the home I sold, but it works just fine for me now. Perhaps you don’t have the renter’s blues like I do, meaning that detached feeling you get when you don’t own. I have delayed many purchases of furniture, outdoor bbq, etc. because I simply don’t want to have to move it again. I’m tired of living streamlined, which is what you do when you rent, because you know you’re going to mobile again, soon. I didn’t even put up all the nice fine art that I have because I’m afraid of damaging the walls and nice woodwork in this house. And home theatre system? Forget it. Can you imagine the look on the landlord’s face with multiple holes and cables in the walls? It’s just a very unsettled existence. Again, I hope this area declines in value soon, as I would like to own another home here to live out the rest of my days.

[poorsaver]

LaJollaRenter, I am renting a pretty nice house right now. 3800 sq. ft. custom on a half acre for $2850. It’s about half the size of the home I sold, but it works just fine for me now. Perhaps you don’t have the renter’s blues like I do, meaning that detached feeling you get when you don’t own. I have delayed many purchases of furniture, outdoor bbq, etc. because I simply don’t want to have to move it again. I’m tired of living streamlined, which is what you do when you rent, because you know you’re going to mobile again, soon. I didn’t even put up all the nice fine art that I have because I’m afraid of damaging the walls and nice woodwork in this house. And home theatre system? Forget it. Can you imagine the look on the landlord’s face with multiple holes and cables in the walls? It’s just a very unsettled existence. Again, I hope this area declines in value soon, as I would like to own another home here to live out the rest of my days.

[svelte]

poorsaver used to call himself cashman and his story checks out:

http://piggington.com/ny_times_a_word_of_advice_during_a_housing_slump_rent

He’s telling the truth.

Cashman/poorsaver, the post I included above states you parked the $2M in the bank drawing 5% interest…that means you’ve been earning $100K per year, more than offsetting the $100K total for 3 years you’ve flushed by renting.

It’s still eating you up that you didn’t sell at the peak for your area, but no one can see the future.

Don’t worry, be happy…time is on your side. Losing $33K each year by renting while you are gaining $100K each year by parking your equity, you’ll gain back that “equity” you feel you lost by selling too soon before too long.

You did the right thing. No single man needs a 7,000 sf house anyway.

[svelte]

poorsaver used to call himself cashman and his story checks out:

http://piggington.com/ny_times_a_word_of_advice_during_a_housing_slump_rent

He’s telling the truth.

Cashman/poorsaver, the post I included above states you parked the $2M in the bank drawing 5% interest…that means you’ve been earning $100K per year, more than offsetting the $100K total for 3 years you’ve flushed by renting.

It’s still eating you up that you didn’t sell at the peak for your area, but no one can see the future.

Don’t worry, be happy…time is on your side. Losing $33K each year by renting while you are gaining $100K each year by parking your equity, you’ll gain back that “equity” you feel you lost by selling too soon before too long.

You did the right thing. No single man needs a 7,000 sf house anyway.

[svelte]

poorsaver used to call himself cashman and his story checks out:

http://piggington.com/ny_times_a_word_of_advice_during_a_housing_slump_rent

He’s telling the truth.

Cashman/poorsaver, the post I included above states you parked the $2M in the bank drawing 5% interest…that means you’ve been earning $100K per year, more than offsetting the $100K total for 3 years you’ve flushed by renting.

It’s still eating you up that you didn’t sell at the peak for your area, but no one can see the future.

Don’t worry, be happy…time is on your side. Losing $33K each year by renting while you are gaining $100K each year by parking your equity, you’ll gain back that “equity” you feel you lost by selling too soon before too long.

You did the right thing. No single man needs a 7,000 sf house anyway.

[svelte]

poorsaver used to call himself cashman and his story checks out:

http://piggington.com/ny_times_a_word_of_advice_during_a_housing_slump_rent

He’s telling the truth.

Cashman/poorsaver, the post I included above states you parked the $2M in the bank drawing 5% interest…that means you’ve been earning $100K per year, more than offsetting the $100K total for 3 years you’ve flushed by renting.

It’s still eating you up that you didn’t sell at the peak for your area, but no one can see the future.

Don’t worry, be happy…time is on your side. Losing $33K each year by renting while you are gaining $100K each year by parking your equity, you’ll gain back that “equity” you feel you lost by selling too soon before too long.

You did the right thing. No single man needs a 7,000 sf house anyway.

[Author]

Posts