- This topic has 48 replies, 15 voices, and was last updated 17 years, 7 months ago by
waiting hawk.
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May 22, 2007 at 11:15 AM #54330May 22, 2007 at 11:19 AM #54320
NotCranky
ParticipantNoone,
I thought of the 15 year refi- but left it out because he say’s he needs a downpayment in the not so distant future. I recommended he think about getting his future down payment out or lined up now and watching cash flow too, for future loan qualification. 15 year might hurt the cash flow in that scenario? If he has a really great fixed currently he might want to line up a HELOC.
YES there is risk. But with the heloc you don’t have to use it unless at a future date things looks so good for buying that it is a no brainer. Doesn’t involve paying so much in refi-fees and the original poster should have a rate that can’t be beat.
May 22, 2007 at 11:19 AM #54332ParticipantNoone,
I thought of the 15 year refi- but left it out because he say’s he needs a downpayment in the not so distant future. I recommended he think about getting his future down payment out or lined up now and watching cash flow too, for future loan qualification. 15 year might hurt the cash flow in that scenario? If he has a really great fixed currently he might want to line up a HELOC.
YES there is risk. But with the heloc you don’t have to use it unless at a future date things looks so good for buying that it is a no brainer. Doesn’t involve paying so much in refi-fees and the original poster should have a rate that can’t be beat.
May 22, 2007 at 11:24 AM #54334ParticipantDEADZONE,
If he doesn’t plan to live there in the future, then what is the point of hanging onto it?Think about having a rental house free and clear in 15-20 years with market rent to supplement other retirement sources for as long as you live.Better cash flow starts soon too.
I call that the gift that keeps on giving!May 22, 2007 at 11:24 AM #54322ParticipantDEADZONE,
If he doesn’t plan to live there in the future, then what is the point of hanging onto it?Think about having a rental house free and clear in 15-20 years with market rent to supplement other retirement sources for as long as you live.Better cash flow starts soon too.
I call that the gift that keeps on giving!May 22, 2007 at 11:57 AM #54331(former)FormerSanDiegan
ParticipantSell = speculation, Keep=investment
Keeping this property is a long-term investment.
Selling it (and paying 25% in taxes and selling costs) in anticipation of future price drops in excess of 25% is speculation.
May 22, 2007 at 11:57 AM #54343ParticipantSell = speculation, Keep=investment
Keeping this property is a long-term investment.
Selling it (and paying 25% in taxes and selling costs) in anticipation of future price drops in excess of 25% is speculation.
May 22, 2007 at 12:47 PM #54346Anonymous
GuestSell = Money in the pocket. I expect he could buy back a similar property in 3-5 years for half the price.
May 22, 2007 at 12:47 PM #54357GuestSell = Money in the pocket. I expect he could buy back a similar property in 3-5 years for half the price.
May 22, 2007 at 1:42 PM #54366Participant“I expect he could buy back a similar property in 3-5 years for half the price.”
That is the definition of speculation. Selling with the expectation of a future lower price.
Furthermore, the cost to participate in this speculation is approximately 25% or more of the sales price.
May 22, 2007 at 1:42 PM #54377Participant“I expect he could buy back a similar property in 3-5 years for half the price.”
That is the definition of speculation. Selling with the expectation of a future lower price.
Furthermore, the cost to participate in this speculation is approximately 25% or more of the sales price.
May 22, 2007 at 1:59 PM #54371GuestKeeping it is also speculation. You are speculating that it is going to appreciate more in 20 years than other alternative investments. What is the difference?
May 22, 2007 at 1:59 PM #54384GuestKeeping it is also speculation. You are speculating that it is going to appreciate more in 20 years than other alternative investments. What is the difference?
May 22, 2007 at 2:53 PM #54381MH
ParticipantWow… go to work for a bit and got many more responses than I would have expected. Thanks to all; collectively you seem about as split as I am internally.
Surely I’ll leave some out, but here’s more to the story since it seems germane. House is just outside Rancho del Oro; near the park, big lot (by Cal standards at least), Vista schools, no HOA or MR. Pretty well appointed but have not done a major overhaul. We refi’d once several years ago, took out just enough to pay off the original down so we owe just under 200. Have depreciated it as a rental and have not lived in it for 2 of the last 5 so expect to pay capital gains on a bunch of it. All told, my rough guess is that I’d walk with something approaching 200k at closing.
Don’t “need” the money now; we locked into a 3 year lease on a great place in Tampa (talk about a diving RE market!). Thought is to sell now presuming prices are, at best, staying level and invest the proceeds conservatively until we are ready to buy again… presumably that’d be in Cal when we return but I can’t guarantee that will be my next duty station (they call them “orders” vice “invitations” for a reason!).
Have had good luck with renters and don’t think that’d change. On the advice of my prop mgr we’ve kept the rent reasonable so we’ve always had a good crop to pick from when its been empty. But, at some point we’ll need to sell if I want to buy that one last long-term home in SoCal; the one I’d anticipate buying and then “retire” (i.e. get a civilian job) in place.
Okay.. Again, THANKS to all for the considered advice. Sure is a lot to think about!
May 22, 2007 at 2:53 PM #54394ParticipantWow… go to work for a bit and got many more responses than I would have expected. Thanks to all; collectively you seem about as split as I am internally.
Surely I’ll leave some out, but here’s more to the story since it seems germane. House is just outside Rancho del Oro; near the park, big lot (by Cal standards at least), Vista schools, no HOA or MR. Pretty well appointed but have not done a major overhaul. We refi’d once several years ago, took out just enough to pay off the original down so we owe just under 200. Have depreciated it as a rental and have not lived in it for 2 of the last 5 so expect to pay capital gains on a bunch of it. All told, my rough guess is that I’d walk with something approaching 200k at closing.
Don’t “need” the money now; we locked into a 3 year lease on a great place in Tampa (talk about a diving RE market!). Thought is to sell now presuming prices are, at best, staying level and invest the proceeds conservatively until we are ready to buy again… presumably that’d be in Cal when we return but I can’t guarantee that will be my next duty station (they call them “orders” vice “invitations” for a reason!).
Have had good luck with renters and don’t think that’d change. On the advice of my prop mgr we’ve kept the rent reasonable so we’ve always had a good crop to pick from when its been empty. But, at some point we’ll need to sell if I want to buy that one last long-term home in SoCal; the one I’d anticipate buying and then “retire” (i.e. get a civilian job) in place.
Okay.. Again, THANKS to all for the considered advice. Sure is a lot to think about!
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