Tough call in Murrieta

[bluefins]

I appreciate and enjoy the knowledgeable posters here at Piggington. I have lurked here for many months and can assure you that you provide a great service for many that never reply.

We (wife and 4 kids) have been renting for the last 5 to 6 years with the exception of one small stint in Harveston. We were one of the first ten home buyers for a neighborhood known as Lake Front Cottages. We sold that home in June 2006. The cottages wee origionaly sold at a lottery. On the day of the lottery we were given about 60 sec to make a decision about which house to purchase. In the heat of the moment, I put my desire to make a few bucks over the needs of my family and have since paid a price. We moved out of our too small home after about 9 months and have been bounced around from rental to rental since then.

About 2 1/2 years ago in a moment of weakness, we placed a deposit on a beautiful home in an upscale neighborhood of Murrieta. We went so far as to pick options for the place. We selected features that were important such as lighting and sound, combination of tile and wood flooring, speakers etc. The homes were built by Pulte and already had many nice features like extra wide base boards, double ovens etc.

We changed our mind and didnt go through with the purchase of this home (thankfully). I sensed that things were changing with the market and this home was now priced at about 650k. I believe the base price was about 590k, so we had selected a good number of improvements.

The people that finally purchased the home put another 40 k in stuff for a final sales price of 690K.

I was driving through the neighborhood and thought I caught a glimpse of this same house being vacant. I drove passed a couple times to make sure and then parked the car. I found an open door walked in and to my surprise were all the options that we had picked and then some. Even the dark wide plank wood flooring in the living and dining room. It looks amazing next to the fireplace in the living room. There’s also a fireplace in the master.

I know properties pretty well. I would rate this as one of the top ten tract homes in Murrieta. Its on a 1/3 acre and has an unobstructed view of the Santa Rosa Plateau. Its next to a creek bed. Its walking distance to the middle and High school. ( 4 kids)

Our offer was accepted at 450k and I’m freaking out. The problem is that were renting the exact same floor plan in the next set of house with the exact same creek bed view etc. for $2100. Our current lease is up and I’ve already contacted the land lord about his intentions for next year. I had already agreed to a $100 increase at the start of the 2nd year, and he is going to accept a month to month if we stay. The other nice thing is that he is a well capitalized investor so I think our bouncing around days are over regardless.

In order to avoid PMI it will nearly drain our saving and our new payment would be about 3k PITI. We have worked so hard to be nearly debt free and have gotten to a point where we have over 7k of after expense money. Not including food, gas clothes etc which we try to limit to about 3 k. The other 4 k goes for investments.

My goal was until last week was to eventually pay cash for a couple rental properties in places like Indiana that would cash flow $600-$700 each per month and really try to build our monthly income.

What do you guys think?

[mydogsarelazy]

Hi Bluefins,

I live in Murrieta in a home purchased in 2003. We have a very small mortgage and will be riding the bubble and burst cycle all the way through.

So, here is the test: do you want to live in the house for ten years? Is it truly the right house for your family?

If you say “yes” to both of those, then I say OK, go through with it.

Keep in mind, NOBODY knows what is next in the real estate market.

JS

[mydogsarelazy]

Hi Bluefins,

I live in Murrieta in a home purchased in 2003. We have a very small mortgage and will be riding the bubble and burst cycle all the way through.

So, here is the test: do you want to live in the house for ten years? Is it truly the right house for your family?

If you say “yes” to both of those, then I say OK, go through with it.

Keep in mind, NOBODY knows what is next in the real estate market.

JS

[mydogsarelazy]

Hi Bluefins,

I live in Murrieta in a home purchased in 2003. We have a very small mortgage and will be riding the bubble and burst cycle all the way through.

So, here is the test: do you want to live in the house for ten years? Is it truly the right house for your family?

If you say “yes” to both of those, then I say OK, go through with it.

Keep in mind, NOBODY knows what is next in the real estate market.

JS

[mydogsarelazy]

Hi Bluefins,

I live in Murrieta in a home purchased in 2003. We have a very small mortgage and will be riding the bubble and burst cycle all the way through.

So, here is the test: do you want to live in the house for ten years? Is it truly the right house for your family?

If you say “yes” to both of those, then I say OK, go through with it.

Keep in mind, NOBODY knows what is next in the real estate market.

JS

[mydogsarelazy]

Hi Bluefins,

I live in Murrieta in a home purchased in 2003. We have a very small mortgage and will be riding the bubble and burst cycle all the way through.

So, here is the test: do you want to live in the house for ten years? Is it truly the right house for your family?

If you say “yes” to both of those, then I say OK, go through with it.

Keep in mind, NOBODY knows what is next in the real estate market.

JS

[Coronita]

I'd add to consider your households income stability as well. Are you folks working in a profession that isn't remotely connected to RE ? You don't want to be caught with your pants down, even though you can afford the payments now.

 

Just for fun, would you consider backing out and re-offering at $400k. I wonder want would happen. 

[Coronita]

I'd add to consider your households income stability as well. Are you folks working in a profession that isn't remotely connected to RE ? You don't want to be caught with your pants down, even though you can afford the payments now.

 

Just for fun, would you consider backing out and re-offering at $400k. I wonder want would happen. 

[Coronita]

I'd add to consider your households income stability as well. Are you folks working in a profession that isn't remotely connected to RE ? You don't want to be caught with your pants down, even though you can afford the payments now.

 

Just for fun, would you consider backing out and re-offering at $400k. I wonder want would happen. 

[Coronita]

I'd add to consider your households income stability as well. Are you folks working in a profession that isn't remotely connected to RE ? You don't want to be caught with your pants down, even though you can afford the payments now.

 

Just for fun, would you consider backing out and re-offering at $400k. I wonder want would happen. 

[Coronita]

I'd add to consider your households income stability as well. Are you folks working in a profession that isn't remotely connected to RE ? You don't want to be caught with your pants down, even though you can afford the payments now.

 

Just for fun, would you consider backing out and re-offering at $400k. I wonder want would happen. 

[j]

If the $3000 is the total looks like it is about the same to buy as rent after taxes. But with 10,000 foreclosures a month in the Inland Empire prices will go down.

Make sure you are getting a good loan. Do not trust the broker; take your loan papers to your CPA. Look at all the fools that did not; it is worth a $100.

Plus, you will be stuck; it takes 6 to 18 months to sell.

[HLS]

Blue,
I’m in the mortgage biz in Murrieta and can give you the truth about your financing possibilities.
Anybody can say that, I’ll prove it to you.

You didn’t say exactly how much you have to put down.
Did you ask for any seller contribution to your closing costs ?

If it’s your dream home, it is already a whole lot less than you would have paid several years ago.
It is probably going to drop in value more, but monthly rents may not drop. It’s still going to cost you to live somehwere every month.

If you are willing to look at a non-recourse purchase loan for what it is, then you will just be renting from the lender for awhile, with a slight possibility of appreciation, maybe, someday.

Without knowing what you qualify for, it’s impossible to quote a rate or payment.

With 10% down, If you are looking at a fully amortized payment, fixed for 30 years, with MI, at the PAR rate, your net housing expense (PITI) per month will be over $3000 per month EVEN IF your situation/credit score/income is perfect.

With 20% down, a $360K loan at par TODAY would have payments of $2154 PI. + TI

No matter what you decide to do in CA, buying rental property for CASH is not a wise thing to do.

There are other creative ways to look at your situation.

J, Your comments are simply foolish.
I’ve had the same accountant who I respect and have used for over 25 years, and he doesn’t understand the first thing about originating a loan, nor does he want to review loan docs. That’s not his concern.
AND
A home can be sold on the first day listed if it is priced right.

J, Your generalizations are ridiculous.

[hipmatt]

450k seems a bit high. I see McMansions all day long in Murrieat for 350k…

I was also wondering what you are putting down, and your professions as well if you don’t mind sharing?

People can say this and that about predicting where home prices are going and when they are bottoming, and some of it is true.
But if you take a look at the UBER inventory levels of the IE, the fact that many in this are had RE related jobs and are now hurting, high gas prices affecting the few who do make big $$(commuting to SD/LA, etc, and that credit markets are tight and most likely will be for a while. Things don’t look too rosy for the IE at all. I will boldly go on record (as unpopular as it has become here at piggington)to say that prices there are going much lower.

You can keep renting and buy some local muni bonds that pay a tax free over 5%.

Good luck with your decision.

[Anonymous]

Consider:
1) If you can continue to rent a similar house for $1,000/month less – well, there’s your answer.
2) Is your emotional attachment to this house (having previously selected it, put in the options etc.) playing a role in this decision?
3) Do you have a desire to ‘recover from past bad decisions’ that is driving this decision to buy?
4) Look to the current market weakness, not the price spread between what the home used to sell for and what it now sells for as your guide. EG: Just because it is now 200k less does not mean it is a good deal.
5) Do you have a false sense of ‘this was meant to be’ going on here? Coincidence of the same house you almost bought being up for sale again etc.

Just some thoughts, and emotional issues not normally discussed…

[RatherOpinionated]

Juice, those are great! I comment you on bringing up some really valid questions on the emotional side of the decision.

Good job!

Now, what is the poster to do if his answers to numbers 2, 3, and 5 are YES. Should that prevent him from buying?
[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[RatherOpinionated]

Juice, those are great! I comment you on bringing up some really valid questions on the emotional side of the decision.

Good job!

Now, what is the poster to do if his answers to numbers 2, 3, and 5 are YES. Should that prevent him from buying?
[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[RatherOpinionated]

Juice, those are great! I comment you on bringing up some really valid questions on the emotional side of the decision.

Good job!

Now, what is the poster to do if his answers to numbers 2, 3, and 5 are YES. Should that prevent him from buying?
[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[RatherOpinionated]

Juice, those are great! I comment you on bringing up some really valid questions on the emotional side of the decision.

Good job!

Now, what is the poster to do if his answers to numbers 2, 3, and 5 are YES. Should that prevent him from buying?
[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[RatherOpinionated]

Juice, those are great! I comment you on bringing up some really valid questions on the emotional side of the decision.

Good job!

Now, what is the poster to do if his answers to numbers 2, 3, and 5 are YES. Should that prevent him from buying?
[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[Anonymous]

Consider:
1) If you can continue to rent a similar house for $1,000/month less – well, there’s your answer.
2) Is your emotional attachment to this house (having previously selected it, put in the options etc.) playing a role in this decision?
3) Do you have a desire to ‘recover from past bad decisions’ that is driving this decision to buy?
4) Look to the current market weakness, not the price spread between what the home used to sell for and what it now sells for as your guide. EG: Just because it is now 200k less does not mean it is a good deal.
5) Do you have a false sense of ‘this was meant to be’ going on here? Coincidence of the same house you almost bought being up for sale again etc.

Just some thoughts, and emotional issues not normally discussed…

[Anonymous]

Consider:
1) If you can continue to rent a similar house for $1,000/month less – well, there’s your answer.
2) Is your emotional attachment to this house (having previously selected it, put in the options etc.) playing a role in this decision?
3) Do you have a desire to ‘recover from past bad decisions’ that is driving this decision to buy?
4) Look to the current market weakness, not the price spread between what the home used to sell for and what it now sells for as your guide. EG: Just because it is now 200k less does not mean it is a good deal.
5) Do you have a false sense of ‘this was meant to be’ going on here? Coincidence of the same house you almost bought being up for sale again etc.

Just some thoughts, and emotional issues not normally discussed…

[Anonymous]

Consider:
1) If you can continue to rent a similar house for $1,000/month less – well, there’s your answer.
2) Is your emotional attachment to this house (having previously selected it, put in the options etc.) playing a role in this decision?
3) Do you have a desire to ‘recover from past bad decisions’ that is driving this decision to buy?
4) Look to the current market weakness, not the price spread between what the home used to sell for and what it now sells for as your guide. EG: Just because it is now 200k less does not mean it is a good deal.
5) Do you have a false sense of ‘this was meant to be’ going on here? Coincidence of the same house you almost bought being up for sale again etc.

Just some thoughts, and emotional issues not normally discussed…

[Anonymous]

Consider:
1) If you can continue to rent a similar house for $1,000/month less – well, there’s your answer.
2) Is your emotional attachment to this house (having previously selected it, put in the options etc.) playing a role in this decision?
3) Do you have a desire to ‘recover from past bad decisions’ that is driving this decision to buy?
4) Look to the current market weakness, not the price spread between what the home used to sell for and what it now sells for as your guide. EG: Just because it is now 200k less does not mean it is a good deal.
5) Do you have a false sense of ‘this was meant to be’ going on here? Coincidence of the same house you almost bought being up for sale again etc.

Just some thoughts, and emotional issues not normally discussed…

[hipmatt]

450k seems a bit high. I see McMansions all day long in Murrieat for 350k…

I was also wondering what you are putting down, and your professions as well if you don’t mind sharing?

People can say this and that about predicting where home prices are going and when they are bottoming, and some of it is true.
But if you take a look at the UBER inventory levels of the IE, the fact that many in this are had RE related jobs and are now hurting, high gas prices affecting the few who do make big $$(commuting to SD/LA, etc, and that credit markets are tight and most likely will be for a while. Things don’t look too rosy for the IE at all. I will boldly go on record (as unpopular as it has become here at piggington)to say that prices there are going much lower.

You can keep renting and buy some local muni bonds that pay a tax free over 5%.

Good luck with your decision.

[hipmatt]

450k seems a bit high. I see McMansions all day long in Murrieat for 350k…

I was also wondering what you are putting down, and your professions as well if you don’t mind sharing?

People can say this and that about predicting where home prices are going and when they are bottoming, and some of it is true.
But if you take a look at the UBER inventory levels of the IE, the fact that many in this are had RE related jobs and are now hurting, high gas prices affecting the few who do make big $$(commuting to SD/LA, etc, and that credit markets are tight and most likely will be for a while. Things don’t look too rosy for the IE at all. I will boldly go on record (as unpopular as it has become here at piggington)to say that prices there are going much lower.

You can keep renting and buy some local muni bonds that pay a tax free over 5%.

Good luck with your decision.

[hipmatt]

450k seems a bit high. I see McMansions all day long in Murrieat for 350k…

I was also wondering what you are putting down, and your professions as well if you don’t mind sharing?

People can say this and that about predicting where home prices are going and when they are bottoming, and some of it is true.
But if you take a look at the UBER inventory levels of the IE, the fact that many in this are had RE related jobs and are now hurting, high gas prices affecting the few who do make big $$(commuting to SD/LA, etc, and that credit markets are tight and most likely will be for a while. Things don’t look too rosy for the IE at all. I will boldly go on record (as unpopular as it has become here at piggington)to say that prices there are going much lower.

You can keep renting and buy some local muni bonds that pay a tax free over 5%.

Good luck with your decision.

[hipmatt]

450k seems a bit high. I see McMansions all day long in Murrieat for 350k…

I was also wondering what you are putting down, and your professions as well if you don’t mind sharing?

People can say this and that about predicting where home prices are going and when they are bottoming, and some of it is true.
But if you take a look at the UBER inventory levels of the IE, the fact that many in this are had RE related jobs and are now hurting, high gas prices affecting the few who do make big $$(commuting to SD/LA, etc, and that credit markets are tight and most likely will be for a while. Things don’t look too rosy for the IE at all. I will boldly go on record (as unpopular as it has become here at piggington)to say that prices there are going much lower.

You can keep renting and buy some local muni bonds that pay a tax free over 5%.

Good luck with your decision.

[HLS]

Blue,
I’m in the mortgage biz in Murrieta and can give you the truth about your financing possibilities.
Anybody can say that, I’ll prove it to you.

You didn’t say exactly how much you have to put down.
Did you ask for any seller contribution to your closing costs ?

If it’s your dream home, it is already a whole lot less than you would have paid several years ago.
It is probably going to drop in value more, but monthly rents may not drop. It’s still going to cost you to live somehwere every month.

If you are willing to look at a non-recourse purchase loan for what it is, then you will just be renting from the lender for awhile, with a slight possibility of appreciation, maybe, someday.

Without knowing what you qualify for, it’s impossible to quote a rate or payment.

With 10% down, If you are looking at a fully amortized payment, fixed for 30 years, with MI, at the PAR rate, your net housing expense (PITI) per month will be over $3000 per month EVEN IF your situation/credit score/income is perfect.

With 20% down, a $360K loan at par TODAY would have payments of $2154 PI. + TI

No matter what you decide to do in CA, buying rental property for CASH is not a wise thing to do.

There are other creative ways to look at your situation.

J, Your comments are simply foolish.
I’ve had the same accountant who I respect and have used for over 25 years, and he doesn’t understand the first thing about originating a loan, nor does he want to review loan docs. That’s not his concern.
AND
A home can be sold on the first day listed if it is priced right.

J, Your generalizations are ridiculous.

[HLS]

Blue,
I’m in the mortgage biz in Murrieta and can give you the truth about your financing possibilities.
Anybody can say that, I’ll prove it to you.

You didn’t say exactly how much you have to put down.
Did you ask for any seller contribution to your closing costs ?

If it’s your dream home, it is already a whole lot less than you would have paid several years ago.
It is probably going to drop in value more, but monthly rents may not drop. It’s still going to cost you to live somehwere every month.

If you are willing to look at a non-recourse purchase loan for what it is, then you will just be renting from the lender for awhile, with a slight possibility of appreciation, maybe, someday.

Without knowing what you qualify for, it’s impossible to quote a rate or payment.

With 10% down, If you are looking at a fully amortized payment, fixed for 30 years, with MI, at the PAR rate, your net housing expense (PITI) per month will be over $3000 per month EVEN IF your situation/credit score/income is perfect.

With 20% down, a $360K loan at par TODAY would have payments of $2154 PI. + TI

No matter what you decide to do in CA, buying rental property for CASH is not a wise thing to do.

There are other creative ways to look at your situation.

J, Your comments are simply foolish.
I’ve had the same accountant who I respect and have used for over 25 years, and he doesn’t understand the first thing about originating a loan, nor does he want to review loan docs. That’s not his concern.
AND
A home can be sold on the first day listed if it is priced right.

J, Your generalizations are ridiculous.

[HLS]

Blue,
I’m in the mortgage biz in Murrieta and can give you the truth about your financing possibilities.
Anybody can say that, I’ll prove it to you.

You didn’t say exactly how much you have to put down.
Did you ask for any seller contribution to your closing costs ?

If it’s your dream home, it is already a whole lot less than you would have paid several years ago.
It is probably going to drop in value more, but monthly rents may not drop. It’s still going to cost you to live somehwere every month.

If you are willing to look at a non-recourse purchase loan for what it is, then you will just be renting from the lender for awhile, with a slight possibility of appreciation, maybe, someday.

Without knowing what you qualify for, it’s impossible to quote a rate or payment.

With 10% down, If you are looking at a fully amortized payment, fixed for 30 years, with MI, at the PAR rate, your net housing expense (PITI) per month will be over $3000 per month EVEN IF your situation/credit score/income is perfect.

With 20% down, a $360K loan at par TODAY would have payments of $2154 PI. + TI

No matter what you decide to do in CA, buying rental property for CASH is not a wise thing to do.

There are other creative ways to look at your situation.

J, Your comments are simply foolish.
I’ve had the same accountant who I respect and have used for over 25 years, and he doesn’t understand the first thing about originating a loan, nor does he want to review loan docs. That’s not his concern.
AND
A home can be sold on the first day listed if it is priced right.

J, Your generalizations are ridiculous.

[HLS]

Blue,
I’m in the mortgage biz in Murrieta and can give you the truth about your financing possibilities.
Anybody can say that, I’ll prove it to you.

You didn’t say exactly how much you have to put down.
Did you ask for any seller contribution to your closing costs ?

If it’s your dream home, it is already a whole lot less than you would have paid several years ago.
It is probably going to drop in value more, but monthly rents may not drop. It’s still going to cost you to live somehwere every month.

If you are willing to look at a non-recourse purchase loan for what it is, then you will just be renting from the lender for awhile, with a slight possibility of appreciation, maybe, someday.

Without knowing what you qualify for, it’s impossible to quote a rate or payment.

With 10% down, If you are looking at a fully amortized payment, fixed for 30 years, with MI, at the PAR rate, your net housing expense (PITI) per month will be over $3000 per month EVEN IF your situation/credit score/income is perfect.

With 20% down, a $360K loan at par TODAY would have payments of $2154 PI. + TI

No matter what you decide to do in CA, buying rental property for CASH is not a wise thing to do.

There are other creative ways to look at your situation.

J, Your comments are simply foolish.
I’ve had the same accountant who I respect and have used for over 25 years, and he doesn’t understand the first thing about originating a loan, nor does he want to review loan docs. That’s not his concern.
AND
A home can be sold on the first day listed if it is priced right.

J, Your generalizations are ridiculous.

[j]

If the $3000 is the total looks like it is about the same to buy as rent after taxes. But with 10,000 foreclosures a month in the Inland Empire prices will go down.

Make sure you are getting a good loan. Do not trust the broker; take your loan papers to your CPA. Look at all the fools that did not; it is worth a $100.

Plus, you will be stuck; it takes 6 to 18 months to sell.

[j]

If the $3000 is the total looks like it is about the same to buy as rent after taxes. But with 10,000 foreclosures a month in the Inland Empire prices will go down.

Make sure you are getting a good loan. Do not trust the broker; take your loan papers to your CPA. Look at all the fools that did not; it is worth a $100.

Plus, you will be stuck; it takes 6 to 18 months to sell.

[j]

If the $3000 is the total looks like it is about the same to buy as rent after taxes. But with 10,000 foreclosures a month in the Inland Empire prices will go down.

Make sure you are getting a good loan. Do not trust the broker; take your loan papers to your CPA. Look at all the fools that did not; it is worth a $100.

Plus, you will be stuck; it takes 6 to 18 months to sell.

[j]

If the $3000 is the total looks like it is about the same to buy as rent after taxes. But with 10,000 foreclosures a month in the Inland Empire prices will go down.

Make sure you are getting a good loan. Do not trust the broker; take your loan papers to your CPA. Look at all the fools that did not; it is worth a $100.

Plus, you will be stuck; it takes 6 to 18 months to sell.

[SD Realtor]

Bluefins my read would be as follows… To me the nice thing about the outlying areas such as Temecula and Murrieta is that they have been leading the curve downward. While many people who are looking for more premium areas like CV, 4S, LCV etc, and frustrated by lack of movement or slower movements, this is not the case for the area you are looking in.

It could is arguable that areas that have depreciated substantially will hit a support level sooner because eventually the properties will pencil out to investors. Please do not confuse my statement with saying Murrieta is going to stop depreciating. The truth is that I have no clue if it will or will not. I would SPECULATE that it will continue to move down HOWEVER I THINK it could bottom out sooner then say more premium areas of San Diego. Thus, while I believe a bottom is achieved sometime on 2010 or 2011 for some parts of town, you may find significant risk reduction in Murrieta by waiting another year or 18 months as opposed to say 3 years.

Now, will the drop in price mitigate the rise in interest rates? Hard to say. I think it will because rising interest rates will push pricing lower.

Probably not to helpful but hopefully you get something out of it. You did not mention any intangibles about the home such as how long it was on the market, recent comps in the neighborhood, etc…

My personal read is that if you pull out and chill for another year you will get a better deal then todays deal.

SD Realtor

[bluefins]

Thank you Piggington’s. You guys are awesome!

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you’re only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I’m not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

[Coronita]

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you're only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I'm not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

 

When do your kids go to college, and have you saved up for that? 

[bluefins]

My oldest is a junior in H.S. I also have a sophomore, a 6th grader and a 4th grader. I have not saved for their college. I was actually thinking I would by them each a house someplace like Indiana. When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans. Their education would be funded in their name and if they dont graduate, they would be responsible for it.

Worst case scenario would be JC or at the very least supplement their college experience with classes from city etc.

I’m sure these scenarios are full of holes, but when both parents are educators all options have to be on the table.

[bluefins]

My oldest is a junior in H.S. I also have a sophomore, a 6th grader and a 4th grader. I have not saved for their college. I was actually thinking I would by them each a house someplace like Indiana. When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans. Their education would be funded in their name and if they dont graduate, they would be responsible for it.

Worst case scenario would be JC or at the very least supplement their college experience with classes from city etc.

I’m sure these scenarios are full of holes, but when both parents are educators all options have to be on the table.

[bluefins]

My oldest is a junior in H.S. I also have a sophomore, a 6th grader and a 4th grader. I have not saved for their college. I was actually thinking I would by them each a house someplace like Indiana. When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans. Their education would be funded in their name and if they dont graduate, they would be responsible for it.

Worst case scenario would be JC or at the very least supplement their college experience with classes from city etc.

I’m sure these scenarios are full of holes, but when both parents are educators all options have to be on the table.

[bluefins]

My oldest is a junior in H.S. I also have a sophomore, a 6th grader and a 4th grader. I have not saved for their college. I was actually thinking I would by them each a house someplace like Indiana. When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans. Their education would be funded in their name and if they dont graduate, they would be responsible for it.

Worst case scenario would be JC or at the very least supplement their college experience with classes from city etc.

I’m sure these scenarios are full of holes, but when both parents are educators all options have to be on the table.

[bluefins]

My oldest is a junior in H.S. I also have a sophomore, a 6th grader and a 4th grader. I have not saved for their college. I was actually thinking I would by them each a house someplace like Indiana. When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans. Their education would be funded in their name and if they dont graduate, they would be responsible for it.

Worst case scenario would be JC or at the very least supplement their college experience with classes from city etc.

I’m sure these scenarios are full of holes, but when both parents are educators all options have to be on the table.

[Coronita]

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you're only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I'm not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

 

When do your kids go to college, and have you saved up for that? 

[Coronita]

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you're only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I'm not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

 

When do your kids go to college, and have you saved up for that? 

[Coronita]

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you're only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I'm not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

 

When do your kids go to college, and have you saved up for that? 

[Coronita]

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you're only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I'm not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

 

When do your kids go to college, and have you saved up for that? 

[HLS]

Blue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.

I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.

Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?

Although your idea is good, I think that the premise of your plan is flawed.

If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.

[surveyor]

indiana out-of-state investing

According to my information and research, Indiana real estate (and the whole area around it) appreciation tends to lag inflation and as such underperforms as an appreciating asset. However, the area does cash flow well.

In terms of the stock market, Indiana real estate performs like a bond fund. Slow, and sometimes lags inflation.

HLS does have a point. In terms of real estate, why plop down your entire money lump into one property, when you can diversify and put it over several properties? It also makes sense from a tax standpoint because you can probably decrease your taxes more with several properties (using depreciation) than one.

All I can say is to do the hard math and see which performs better.

[RatherOpinionated]

“When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans.”

So this means you would encumber them with properties and turn them into landlords half way across the country. What if they want to focus on their careers after spending all that time studying and now playing landlord to a home in Indiana. What if there is a vacancy, who pays the mortgage? If it goes negative will they go further into debt?

If I were a fresh graduate I don’t think I’d want to deal with a property barely spinning off any cash flow half way across the country. I’d rather focus on work and pay off my own loans.

Heck, if I were them I would just SELL it since you gave them the deed, and use the proceeds to pay off the loans faster.

Buy the home in Murrieta, and start focusing on saving for college and retirement. Or tell your kids now they are on their own for college and get them to start saving!

[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[RatherOpinionated]

“When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans.”

So this means you would encumber them with properties and turn them into landlords half way across the country. What if they want to focus on their careers after spending all that time studying and now playing landlord to a home in Indiana. What if there is a vacancy, who pays the mortgage? If it goes negative will they go further into debt?

If I were a fresh graduate I don’t think I’d want to deal with a property barely spinning off any cash flow half way across the country. I’d rather focus on work and pay off my own loans.

Heck, if I were them I would just SELL it since you gave them the deed, and use the proceeds to pay off the loans faster.

Buy the home in Murrieta, and start focusing on saving for college and retirement. Or tell your kids now they are on their own for college and get them to start saving!

[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[RatherOpinionated]

“When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans.”

So this means you would encumber them with properties and turn them into landlords half way across the country. What if they want to focus on their careers after spending all that time studying and now playing landlord to a home in Indiana. What if there is a vacancy, who pays the mortgage? If it goes negative will they go further into debt?

If I were a fresh graduate I don’t think I’d want to deal with a property barely spinning off any cash flow half way across the country. I’d rather focus on work and pay off my own loans.

Heck, if I were them I would just SELL it since you gave them the deed, and use the proceeds to pay off the loans faster.

Buy the home in Murrieta, and start focusing on saving for college and retirement. Or tell your kids now they are on their own for college and get them to start saving!

[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[RatherOpinionated]

“When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans.”

So this means you would encumber them with properties and turn them into landlords half way across the country. What if they want to focus on their careers after spending all that time studying and now playing landlord to a home in Indiana. What if there is a vacancy, who pays the mortgage? If it goes negative will they go further into debt?

If I were a fresh graduate I don’t think I’d want to deal with a property barely spinning off any cash flow half way across the country. I’d rather focus on work and pay off my own loans.

Heck, if I were them I would just SELL it since you gave them the deed, and use the proceeds to pay off the loans faster.

Buy the home in Murrieta, and start focusing on saving for college and retirement. Or tell your kids now they are on their own for college and get them to start saving!

[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[RatherOpinionated]

“When each of them graduate I would turn over the deed to the property and they could use the income to pay off their student loans.”

So this means you would encumber them with properties and turn them into landlords half way across the country. What if they want to focus on their careers after spending all that time studying and now playing landlord to a home in Indiana. What if there is a vacancy, who pays the mortgage? If it goes negative will they go further into debt?

If I were a fresh graduate I don’t think I’d want to deal with a property barely spinning off any cash flow half way across the country. I’d rather focus on work and pay off my own loans.

Heck, if I were them I would just SELL it since you gave them the deed, and use the proceeds to pay off the loans faster.

Buy the home in Murrieta, and start focusing on saving for college and retirement. Or tell your kids now they are on their own for college and get them to start saving!

[img_assist|nid=5758|title=|desc=|link=node|align=left|width=419|height=500]

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[surveyor]

indiana out-of-state investing

According to my information and research, Indiana real estate (and the whole area around it) appreciation tends to lag inflation and as such underperforms as an appreciating asset. However, the area does cash flow well.

In terms of the stock market, Indiana real estate performs like a bond fund. Slow, and sometimes lags inflation.

HLS does have a point. In terms of real estate, why plop down your entire money lump into one property, when you can diversify and put it over several properties? It also makes sense from a tax standpoint because you can probably decrease your taxes more with several properties (using depreciation) than one.

All I can say is to do the hard math and see which performs better.

[surveyor]

indiana out-of-state investing

According to my information and research, Indiana real estate (and the whole area around it) appreciation tends to lag inflation and as such underperforms as an appreciating asset. However, the area does cash flow well.

In terms of the stock market, Indiana real estate performs like a bond fund. Slow, and sometimes lags inflation.

HLS does have a point. In terms of real estate, why plop down your entire money lump into one property, when you can diversify and put it over several properties? It also makes sense from a tax standpoint because you can probably decrease your taxes more with several properties (using depreciation) than one.

All I can say is to do the hard math and see which performs better.

[surveyor]

indiana out-of-state investing

According to my information and research, Indiana real estate (and the whole area around it) appreciation tends to lag inflation and as such underperforms as an appreciating asset. However, the area does cash flow well.

In terms of the stock market, Indiana real estate performs like a bond fund. Slow, and sometimes lags inflation.

HLS does have a point. In terms of real estate, why plop down your entire money lump into one property, when you can diversify and put it over several properties? It also makes sense from a tax standpoint because you can probably decrease your taxes more with several properties (using depreciation) than one.

All I can say is to do the hard math and see which performs better.

[surveyor]

indiana out-of-state investing

According to my information and research, Indiana real estate (and the whole area around it) appreciation tends to lag inflation and as such underperforms as an appreciating asset. However, the area does cash flow well.

In terms of the stock market, Indiana real estate performs like a bond fund. Slow, and sometimes lags inflation.

HLS does have a point. In terms of real estate, why plop down your entire money lump into one property, when you can diversify and put it over several properties? It also makes sense from a tax standpoint because you can probably decrease your taxes more with several properties (using depreciation) than one.

All I can say is to do the hard math and see which performs better.

[HLS]

Blue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.

I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.

Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?

Although your idea is good, I think that the premise of your plan is flawed.

If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.

[HLS]

Blue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.

I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.

Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?

Although your idea is good, I think that the premise of your plan is flawed.

If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.

[HLS]

Blue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.

I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.

Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?

Although your idea is good, I think that the premise of your plan is flawed.

If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.

[HLS]

Blue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.

I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.

Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?

Although your idea is good, I think that the premise of your plan is flawed.

If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.

[bluefins]

Thank you Piggington’s. You guys are awesome!

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you’re only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I’m not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

[bluefins]

Thank you Piggington’s. You guys are awesome!

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you’re only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I’m not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

[bluefins]

Thank you Piggington’s. You guys are awesome!

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you’re only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I’m not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

[bluefins]

Thank you Piggington’s. You guys are awesome!

Someone ask about income and jobs. My wife and I both teach. Combined income of 170K. We have each taught for about 10 years and feel relatively secure. Although the 14 billion dollar deficit sounds frightening. And then as teachers like to say you’re only as good as your last set of test scores! lol

Im not surprised by the comment about investing out of state. I am origionally from Indiana and was back there recently for a funeral. In the the sleepy little farm town there are houses that cost about 60 k that rent from $600- $700 per month. This amount compared to what I get from my 60 k in the bank sounds pretty good. I know there are always those that say why buy one when you can buy ten. But I’m not looking for anything other than a check in the mail each month.

In a perfect world we would buy and pay for one of these a year and continually add to our income. The dilemma for me is that by taking the plunge with the house here, that this plan is not likely. I have made the statement lately to my kids that it is no fun being a grownup and having to make this kind of decision. It seems so obvious until you throw in the desires of a few others. lol

[SD Realtor]

Bluefins my read would be as follows… To me the nice thing about the outlying areas such as Temecula and Murrieta is that they have been leading the curve downward. While many people who are looking for more premium areas like CV, 4S, LCV etc, and frustrated by lack of movement or slower movements, this is not the case for the area you are looking in.

It could is arguable that areas that have depreciated substantially will hit a support level sooner because eventually the properties will pencil out to investors. Please do not confuse my statement with saying Murrieta is going to stop depreciating. The truth is that I have no clue if it will or will not. I would SPECULATE that it will continue to move down HOWEVER I THINK it could bottom out sooner then say more premium areas of San Diego. Thus, while I believe a bottom is achieved sometime on 2010 or 2011 for some parts of town, you may find significant risk reduction in Murrieta by waiting another year or 18 months as opposed to say 3 years.

Now, will the drop in price mitigate the rise in interest rates? Hard to say. I think it will because rising interest rates will push pricing lower.

Probably not to helpful but hopefully you get something out of it. You did not mention any intangibles about the home such as how long it was on the market, recent comps in the neighborhood, etc…

My personal read is that if you pull out and chill for another year you will get a better deal then todays deal.

SD Realtor

[SD Realtor]

Bluefins my read would be as follows… To me the nice thing about the outlying areas such as Temecula and Murrieta is that they have been leading the curve downward. While many people who are looking for more premium areas like CV, 4S, LCV etc, and frustrated by lack of movement or slower movements, this is not the case for the area you are looking in.

It could is arguable that areas that have depreciated substantially will hit a support level sooner because eventually the properties will pencil out to investors. Please do not confuse my statement with saying Murrieta is going to stop depreciating. The truth is that I have no clue if it will or will not. I would SPECULATE that it will continue to move down HOWEVER I THINK it could bottom out sooner then say more premium areas of San Diego. Thus, while I believe a bottom is achieved sometime on 2010 or 2011 for some parts of town, you may find significant risk reduction in Murrieta by waiting another year or 18 months as opposed to say 3 years.

Now, will the drop in price mitigate the rise in interest rates? Hard to say. I think it will because rising interest rates will push pricing lower.

Probably not to helpful but hopefully you get something out of it. You did not mention any intangibles about the home such as how long it was on the market, recent comps in the neighborhood, etc…

My personal read is that if you pull out and chill for another year you will get a better deal then todays deal.

SD Realtor

[SD Realtor]

Bluefins my read would be as follows… To me the nice thing about the outlying areas such as Temecula and Murrieta is that they have been leading the curve downward. While many people who are looking for more premium areas like CV, 4S, LCV etc, and frustrated by lack of movement or slower movements, this is not the case for the area you are looking in.

It could is arguable that areas that have depreciated substantially will hit a support level sooner because eventually the properties will pencil out to investors. Please do not confuse my statement with saying Murrieta is going to stop depreciating. The truth is that I have no clue if it will or will not. I would SPECULATE that it will continue to move down HOWEVER I THINK it could bottom out sooner then say more premium areas of San Diego. Thus, while I believe a bottom is achieved sometime on 2010 or 2011 for some parts of town, you may find significant risk reduction in Murrieta by waiting another year or 18 months as opposed to say 3 years.

Now, will the drop in price mitigate the rise in interest rates? Hard to say. I think it will because rising interest rates will push pricing lower.

Probably not to helpful but hopefully you get something out of it. You did not mention any intangibles about the home such as how long it was on the market, recent comps in the neighborhood, etc…

My personal read is that if you pull out and chill for another year you will get a better deal then todays deal.

SD Realtor

[SD Realtor]

Bluefins my read would be as follows… To me the nice thing about the outlying areas such as Temecula and Murrieta is that they have been leading the curve downward. While many people who are looking for more premium areas like CV, 4S, LCV etc, and frustrated by lack of movement or slower movements, this is not the case for the area you are looking in.

It could is arguable that areas that have depreciated substantially will hit a support level sooner because eventually the properties will pencil out to investors. Please do not confuse my statement with saying Murrieta is going to stop depreciating. The truth is that I have no clue if it will or will not. I would SPECULATE that it will continue to move down HOWEVER I THINK it could bottom out sooner then say more premium areas of San Diego. Thus, while I believe a bottom is achieved sometime on 2010 or 2011 for some parts of town, you may find significant risk reduction in Murrieta by waiting another year or 18 months as opposed to say 3 years.

Now, will the drop in price mitigate the rise in interest rates? Hard to say. I think it will because rising interest rates will push pricing lower.

Probably not to helpful but hopefully you get something out of it. You did not mention any intangibles about the home such as how long it was on the market, recent comps in the neighborhood, etc…

My personal read is that if you pull out and chill for another year you will get a better deal then todays deal.

SD Realtor

[pizzaman]

Hey Bluefins looks like we are neighbors. From your property description its apparent that you are referring to Bremerton. Currently I am renting in the project. If you have been following he recent sales you have probably noticed that the REO prices have been coming down in chunks. If the street I live on is any indication this project still has some rough times ahead. I know of at least 3 homes on my street that are likely headed to foreclosure.
Having said that 450k on the creek is pretty attractive (today).
Would I be right to guess the house is on Whitaker? That would be my preferred side of the project away from the noise and traffic from he schools.
Make sure that you are comfortable with the property tax and HOA fees, there pretty high even for Murrieta.

[bluefins]

pizza,

Its the third house from the end! The taxes are the reason we bailed the first time. At 650 k the taxes would have been 14.4k. The origional owner would have paid over 15k. Based on the current numbers would be 9k which is still horrific. Another thing is that Im tired of writing those 20 k checks to the IRS.

[bluefins]

pizza,

Its the third house from the end! The taxes are the reason we bailed the first time. At 650 k the taxes would have been 14.4k. The origional owner would have paid over 15k. Based on the current numbers would be 9k which is still horrific. Another thing is that Im tired of writing those 20 k checks to the IRS.

[bluefins]

pizza,

Its the third house from the end! The taxes are the reason we bailed the first time. At 650 k the taxes would have been 14.4k. The origional owner would have paid over 15k. Based on the current numbers would be 9k which is still horrific. Another thing is that Im tired of writing those 20 k checks to the IRS.

[bluefins]

pizza,

Its the third house from the end! The taxes are the reason we bailed the first time. At 650 k the taxes would have been 14.4k. The origional owner would have paid over 15k. Based on the current numbers would be 9k which is still horrific. Another thing is that Im tired of writing those 20 k checks to the IRS.

[bluefins]

pizza,

Its the third house from the end! The taxes are the reason we bailed the first time. At 650 k the taxes would have been 14.4k. The origional owner would have paid over 15k. Based on the current numbers would be 9k which is still horrific. Another thing is that Im tired of writing those 20 k checks to the IRS.

[pizzaman]

Hey Bluefins looks like we are neighbors. From your property description its apparent that you are referring to Bremerton. Currently I am renting in the project. If you have been following he recent sales you have probably noticed that the REO prices have been coming down in chunks. If the street I live on is any indication this project still has some rough times ahead. I know of at least 3 homes on my street that are likely headed to foreclosure.
Having said that 450k on the creek is pretty attractive (today).
Would I be right to guess the house is on Whitaker? That would be my preferred side of the project away from the noise and traffic from he schools.
Make sure that you are comfortable with the property tax and HOA fees, there pretty high even for Murrieta.

[pizzaman]

Hey Bluefins looks like we are neighbors. From your property description its apparent that you are referring to Bremerton. Currently I am renting in the project. If you have been following he recent sales you have probably noticed that the REO prices have been coming down in chunks. If the street I live on is any indication this project still has some rough times ahead. I know of at least 3 homes on my street that are likely headed to foreclosure.
Having said that 450k on the creek is pretty attractive (today).
Would I be right to guess the house is on Whitaker? That would be my preferred side of the project away from the noise and traffic from he schools.
Make sure that you are comfortable with the property tax and HOA fees, there pretty high even for Murrieta.

[pizzaman]

Hey Bluefins looks like we are neighbors. From your property description its apparent that you are referring to Bremerton. Currently I am renting in the project. If you have been following he recent sales you have probably noticed that the REO prices have been coming down in chunks. If the street I live on is any indication this project still has some rough times ahead. I know of at least 3 homes on my street that are likely headed to foreclosure.
Having said that 450k on the creek is pretty attractive (today).
Would I be right to guess the house is on Whitaker? That would be my preferred side of the project away from the noise and traffic from he schools.
Make sure that you are comfortable with the property tax and HOA fees, there pretty high even for Murrieta.

[pizzaman]

Hey Bluefins looks like we are neighbors. From your property description its apparent that you are referring to Bremerton. Currently I am renting in the project. If you have been following he recent sales you have probably noticed that the REO prices have been coming down in chunks. If the street I live on is any indication this project still has some rough times ahead. I know of at least 3 homes on my street that are likely headed to foreclosure.
Having said that 450k on the creek is pretty attractive (today).
Would I be right to guess the house is on Whitaker? That would be my preferred side of the project away from the noise and traffic from he schools.
Make sure that you are comfortable with the property tax and HOA fees, there pretty high even for Murrieta.

[pizzaman]

Bluefins
I’m sure you are aware of this but that house on Whitaker doesn’t really have 1/3 acre that is usable. A good portion of the lot is on the creek side of the back yard fence. Still its one of the premium lots in the development. If lot size is important you might consider this one. http://www.redfin.com/stingray/do/printable-listing?listing-id=1233233
Although the house is less sq footage the lot is all usable and it has access to the park next door. You probably remember that it was one of the models. Currently its a short sale but I’m sure the bank will have it back soon enough.

HLS
Can you leave some contact info I may be in the market for a mortgage soon.

[pizzaman]

Bluefins
I’m sure you are aware of this but that house on Whitaker doesn’t really have 1/3 acre that is usable. A good portion of the lot is on the creek side of the back yard fence. Still its one of the premium lots in the development. If lot size is important you might consider this one. http://www.redfin.com/stingray/do/printable-listing?listing-id=1233233
Although the house is less sq footage the lot is all usable and it has access to the park next door. You probably remember that it was one of the models. Currently its a short sale but I’m sure the bank will have it back soon enough.

HLS
Can you leave some contact info I may be in the market for a mortgage soon.

[pizzaman]

Bluefins
I’m sure you are aware of this but that house on Whitaker doesn’t really have 1/3 acre that is usable. A good portion of the lot is on the creek side of the back yard fence. Still its one of the premium lots in the development. If lot size is important you might consider this one. http://www.redfin.com/stingray/do/printable-listing?listing-id=1233233
Although the house is less sq footage the lot is all usable and it has access to the park next door. You probably remember that it was one of the models. Currently its a short sale but I’m sure the bank will have it back soon enough.

HLS
Can you leave some contact info I may be in the market for a mortgage soon.

[pizzaman]

Bluefins
I’m sure you are aware of this but that house on Whitaker doesn’t really have 1/3 acre that is usable. A good portion of the lot is on the creek side of the back yard fence. Still its one of the premium lots in the development. If lot size is important you might consider this one. http://www.redfin.com/stingray/do/printable-listing?listing-id=1233233
Although the house is less sq footage the lot is all usable and it has access to the park next door. You probably remember that it was one of the models. Currently its a short sale but I’m sure the bank will have it back soon enough.

HLS
Can you leave some contact info I may be in the market for a mortgage soon.

[pizzaman]

Bluefins
I’m sure you are aware of this but that house on Whitaker doesn’t really have 1/3 acre that is usable. A good portion of the lot is on the creek side of the back yard fence. Still its one of the premium lots in the development. If lot size is important you might consider this one. http://www.redfin.com/stingray/do/printable-listing?listing-id=1233233
Although the house is less sq footage the lot is all usable and it has access to the park next door. You probably remember that it was one of the models. Currently its a short sale but I’m sure the bank will have it back soon enough.

HLS
Can you leave some contact info I may be in the market for a mortgage soon.

[pizzaman]

HLS
Check your email

[HLS]

PIZ,,
Info sent. Thanks.

[bluefins]

I wanted to let the board know the decision we made. This was concerning the house that we had picked options for 2 1/2 years ago. The house is in forclosure and we had an offer accepted at 450K. I described it as a beautiful home on a 1/3 acre with unobstructed views of the Santa Rosa Plateau. The home sold for 690k 2 years ago.

The two issues that we struggled with were the property taxes 9 k. This is down from 14.4 which is the origional reason we backed out of the deal 2 1/2 years go. The other issue was the cost involved to obtain a reasonable payment without PMI. We would have needed to put down about 100 k. The reality is that I’m not ready to cash in other investments and put everything into the real estate basket.

The most important reason for not going through with the purchase occurred after talking our landlord. We ( wife and 4 kids) have been bounced around 2 out of the past two years. I knew our lease was expiring in Feb. and needless to say I get a little anxious around this time. The reason I even considered a purchase at this time was because I didnt think the family could sustain another forced move into a rental.

After talking to the landlord he agreed to allowing us to stay on a month to month basis. We had prenegotiated a $100 increase at the beginning of the second year.I explained at some point we would be purchasing and would not accept a longer term lease. Because one of the previous homes we lived in was forclosed on the financial stability of the owner is important. I’m confident that our owner is a well capitalized owner and there is a very small chance of forclosure. He explained that some other tenants of his have lived in one of his properties for 10 years.

With all this in mind we decided to stay put and not to pursue the purchase at this time. However, if the price drops another 50 k it would be hard to resist. Thank you all for your input!

[paramount]

170k for (2) teachers – no wonder this state is going broke.

SD Realtor: I don’t think 4S is any more “premium” than Temecula in general, it’s just closer to job centers. But that alone does not make it more premium – even the weather is not that much different.

[paramount]

170k for (2) teachers – no wonder this state is going broke.

SD Realtor: I don’t think 4S is any more “premium” than Temecula in general, it’s just closer to job centers. But that alone does not make it more premium – even the weather is not that much different.

[paramount]

170k for (2) teachers – no wonder this state is going broke.

SD Realtor: I don’t think 4S is any more “premium” than Temecula in general, it’s just closer to job centers. But that alone does not make it more premium – even the weather is not that much different.

[paramount]

170k for (2) teachers – no wonder this state is going broke.

SD Realtor: I don’t think 4S is any more “premium” than Temecula in general, it’s just closer to job centers. But that alone does not make it more premium – even the weather is not that much different.

[paramount]

170k for (2) teachers – no wonder this state is going broke.

SD Realtor: I don’t think 4S is any more “premium” than Temecula in general, it’s just closer to job centers. But that alone does not make it more premium – even the weather is not that much different.

[bluefins]

I wanted to let the board know the decision we made. This was concerning the house that we had picked options for 2 1/2 years ago. The house is in forclosure and we had an offer accepted at 450K. I described it as a beautiful home on a 1/3 acre with unobstructed views of the Santa Rosa Plateau. The home sold for 690k 2 years ago.

The two issues that we struggled with were the property taxes 9 k. This is down from 14.4 which is the origional reason we backed out of the deal 2 1/2 years go. The other issue was the cost involved to obtain a reasonable payment without PMI. We would have needed to put down about 100 k. The reality is that I’m not ready to cash in other investments and put everything into the real estate basket.

The most important reason for not going through with the purchase occurred after talking our landlord. We ( wife and 4 kids) have been bounced around 2 out of the past two years. I knew our lease was expiring in Feb. and needless to say I get a little anxious around this time. The reason I even considered a purchase at this time was because I didnt think the family could sustain another forced move into a rental.

After talking to the landlord he agreed to allowing us to stay on a month to month basis. We had prenegotiated a $100 increase at the beginning of the second year.I explained at some point we would be purchasing and would not accept a longer term lease. Because one of the previous homes we lived in was forclosed on the financial stability of the owner is important. I’m confident that our owner is a well capitalized owner and there is a very small chance of forclosure. He explained that some other tenants of his have lived in one of his properties for 10 years.

With all this in mind we decided to stay put and not to pursue the purchase at this time. However, if the price drops another 50 k it would be hard to resist. Thank you all for your input!

[bluefins]

I wanted to let the board know the decision we made. This was concerning the house that we had picked options for 2 1/2 years ago. The house is in forclosure and we had an offer accepted at 450K. I described it as a beautiful home on a 1/3 acre with unobstructed views of the Santa Rosa Plateau. The home sold for 690k 2 years ago.

The two issues that we struggled with were the property taxes 9 k. This is down from 14.4 which is the origional reason we backed out of the deal 2 1/2 years go. The other issue was the cost involved to obtain a reasonable payment without PMI. We would have needed to put down about 100 k. The reality is that I’m not ready to cash in other investments and put everything into the real estate basket.

The most important reason for not going through with the purchase occurred after talking our landlord. We ( wife and 4 kids) have been bounced around 2 out of the past two years. I knew our lease was expiring in Feb. and needless to say I get a little anxious around this time. The reason I even considered a purchase at this time was because I didnt think the family could sustain another forced move into a rental.

After talking to the landlord he agreed to allowing us to stay on a month to month basis. We had prenegotiated a $100 increase at the beginning of the second year.I explained at some point we would be purchasing and would not accept a longer term lease. Because one of the previous homes we lived in was forclosed on the financial stability of the owner is important. I’m confident that our owner is a well capitalized owner and there is a very small chance of forclosure. He explained that some other tenants of his have lived in one of his properties for 10 years.

With all this in mind we decided to stay put and not to pursue the purchase at this time. However, if the price drops another 50 k it would be hard to resist. Thank you all for your input!

[bluefins]

I wanted to let the board know the decision we made. This was concerning the house that we had picked options for 2 1/2 years ago. The house is in forclosure and we had an offer accepted at 450K. I described it as a beautiful home on a 1/3 acre with unobstructed views of the Santa Rosa Plateau. The home sold for 690k 2 years ago.

The two issues that we struggled with were the property taxes 9 k. This is down from 14.4 which is the origional reason we backed out of the deal 2 1/2 years go. The other issue was the cost involved to obtain a reasonable payment without PMI. We would have needed to put down about 100 k. The reality is that I’m not ready to cash in other investments and put everything into the real estate basket.

The most important reason for not going through with the purchase occurred after talking our landlord. We ( wife and 4 kids) have been bounced around 2 out of the past two years. I knew our lease was expiring in Feb. and needless to say I get a little anxious around this time. The reason I even considered a purchase at this time was because I didnt think the family could sustain another forced move into a rental.

After talking to the landlord he agreed to allowing us to stay on a month to month basis. We had prenegotiated a $100 increase at the beginning of the second year.I explained at some point we would be purchasing and would not accept a longer term lease. Because one of the previous homes we lived in was forclosed on the financial stability of the owner is important. I’m confident that our owner is a well capitalized owner and there is a very small chance of forclosure. He explained that some other tenants of his have lived in one of his properties for 10 years.

With all this in mind we decided to stay put and not to pursue the purchase at this time. However, if the price drops another 50 k it would be hard to resist. Thank you all for your input!

[bluefins]

I wanted to let the board know the decision we made. This was concerning the house that we had picked options for 2 1/2 years ago. The house is in forclosure and we had an offer accepted at 450K. I described it as a beautiful home on a 1/3 acre with unobstructed views of the Santa Rosa Plateau. The home sold for 690k 2 years ago.

The two issues that we struggled with were the property taxes 9 k. This is down from 14.4 which is the origional reason we backed out of the deal 2 1/2 years go. The other issue was the cost involved to obtain a reasonable payment without PMI. We would have needed to put down about 100 k. The reality is that I’m not ready to cash in other investments and put everything into the real estate basket.

The most important reason for not going through with the purchase occurred after talking our landlord. We ( wife and 4 kids) have been bounced around 2 out of the past two years. I knew our lease was expiring in Feb. and needless to say I get a little anxious around this time. The reason I even considered a purchase at this time was because I didnt think the family could sustain another forced move into a rental.

After talking to the landlord he agreed to allowing us to stay on a month to month basis. We had prenegotiated a $100 increase at the beginning of the second year.I explained at some point we would be purchasing and would not accept a longer term lease. Because one of the previous homes we lived in was forclosed on the financial stability of the owner is important. I’m confident that our owner is a well capitalized owner and there is a very small chance of forclosure. He explained that some other tenants of his have lived in one of his properties for 10 years.

With all this in mind we decided to stay put and not to pursue the purchase at this time. However, if the price drops another 50 k it would be hard to resist. Thank you all for your input!

[HLS]

PIZ,,
Info sent. Thanks.

[HLS]

PIZ,,
Info sent. Thanks.

[HLS]

PIZ,,
Info sent. Thanks.

[HLS]

PIZ,,
Info sent. Thanks.

[pizzaman]

HLS
Check your email

[pizzaman]

HLS
Check your email

[pizzaman]

HLS
Check your email

[pizzaman]

HLS
Check your email

[pizzaman]

I thought you may have decided to pass when I saw the house was back on the MLS. It will be interesting to follow the fate of the house, it really is a premium location and would have had multiple offers during the boom. If it sits it will be a true indication of how bad things really have become. I have seen several houses in the last couple of weeks that I thought would go but they are still sitting.

[bluefins]

Hey Pizzaman,

Its weird knowing that someone in my neighborhood is familiar with several details about our affairs. Please use the information responsibly ! lol.

Honestly, it might serve as a reminder to other piggs about publishing information they would rather have private. It’s probably safe to say that piggs reaches further than any of us know for sure.

Merry Christmas Pizzaman to you and yours and lets hope for wisdom in the new year.

[bluefins]

Hey Pizzaman,

Its weird knowing that someone in my neighborhood is familiar with several details about our affairs. Please use the information responsibly ! lol.

Honestly, it might serve as a reminder to other piggs about publishing information they would rather have private. It’s probably safe to say that piggs reaches further than any of us know for sure.

Merry Christmas Pizzaman to you and yours and lets hope for wisdom in the new year.

[bluefins]

Hey Pizzaman,

Its weird knowing that someone in my neighborhood is familiar with several details about our affairs. Please use the information responsibly ! lol.

Honestly, it might serve as a reminder to other piggs about publishing information they would rather have private. It’s probably safe to say that piggs reaches further than any of us know for sure.

Merry Christmas Pizzaman to you and yours and lets hope for wisdom in the new year.

[bluefins]

Hey Pizzaman,

Its weird knowing that someone in my neighborhood is familiar with several details about our affairs. Please use the information responsibly ! lol.

Honestly, it might serve as a reminder to other piggs about publishing information they would rather have private. It’s probably safe to say that piggs reaches further than any of us know for sure.

Merry Christmas Pizzaman to you and yours and lets hope for wisdom in the new year.

[bluefins]

Hey Pizzaman,

Its weird knowing that someone in my neighborhood is familiar with several details about our affairs. Please use the information responsibly ! lol.

Honestly, it might serve as a reminder to other piggs about publishing information they would rather have private. It’s probably safe to say that piggs reaches further than any of us know for sure.

Merry Christmas Pizzaman to you and yours and lets hope for wisdom in the new year.

[pizzaman]

I thought you may have decided to pass when I saw the house was back on the MLS. It will be interesting to follow the fate of the house, it really is a premium location and would have had multiple offers during the boom. If it sits it will be a true indication of how bad things really have become. I have seen several houses in the last couple of weeks that I thought would go but they are still sitting.

[pizzaman]

I thought you may have decided to pass when I saw the house was back on the MLS. It will be interesting to follow the fate of the house, it really is a premium location and would have had multiple offers during the boom. If it sits it will be a true indication of how bad things really have become. I have seen several houses in the last couple of weeks that I thought would go but they are still sitting.

[pizzaman]

I thought you may have decided to pass when I saw the house was back on the MLS. It will be interesting to follow the fate of the house, it really is a premium location and would have had multiple offers during the boom. If it sits it will be a true indication of how bad things really have become. I have seen several houses in the last couple of weeks that I thought would go but they are still sitting.

[pizzaman]

I thought you may have decided to pass when I saw the house was back on the MLS. It will be interesting to follow the fate of the house, it really is a premium location and would have had multiple offers during the boom. If it sits it will be a true indication of how bad things really have become. I have seen several houses in the last couple of weeks that I thought would go but they are still sitting.

[Author]

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