[Bloat]

Likely a greater deduction,

As a homeowner your itemized deductions need to exceed the default standard deduction for a married couple ($10,300) before you see a benefit. You probably had Int/St.Taxes/RE Taxes totaling around $16k? (best guess), so the benefit would be a write off of the difference of $5700 (maybe $120/month savings for you?). Schedule E losses (rental property) reduces your top line income regardless of your deductions.

Many first time home buyers think they will get a big tax benefit, but with low starter interest rates and a low income they may not get any benefit at all.

[Bloat]

Likely a greater deduction,

As a homeowner your itemized deductions need to exceed the default standard deduction for a married couple ($10,300) before you see a benefit. You probably had Int/St.Taxes/RE Taxes totaling around $16k? (best guess), so the benefit would be a write off of the difference of $5700 (maybe $120/month savings for you?). Schedule E losses (rental property) reduces your top line income regardless of your deductions.

Many first time home buyers think they will get a big tax benefit, but with low starter interest rates and a low income they may not get any benefit at all.

[Bloat]

I say take the new job and rent it out. I wouldn’t throw money at it to get out. Invest that money in a mutual fund, then revisit all in 2010. Being a landlord is good experience too (I didn’t say fun) and a one bedroom is easy to handle.

The quick math (monthly approx):
Interest $950
Taxes $225
HOA $150
Ins $ 25
Depn $800
Tax deductable total: $2150 (x 25% = $500 savings)
Prin $350 (not an expense)

Real monthly carrying cost = $850.

Rent (est) = $1000 (incudes 15% vacancy and expense allowance) covers the real cost, plus.

Not a good investment, but what’s done is done. Rents are likely to be stable and good areas like RB will rise over time. Getting a good tenant is key along with low interest rates.

[Bloat]

I say take the new job and rent it out. I wouldn’t throw money at it to get out. Invest that money in a mutual fund, then revisit all in 2010. Being a landlord is good experience too (I didn’t say fun) and a one bedroom is easy to handle.

The quick math (monthly approx):
Interest $950
Taxes $225
HOA $150
Ins $ 25
Depn $800
Tax deductable total: $2150 (x 25% = $500 savings)
Prin $350 (not an expense)

Real monthly carrying cost = $850.

Rent (est) = $1000 (incudes 15% vacancy and expense allowance) covers the real cost, plus.

Not a good investment, but what’s done is done. Rents are likely to be stable and good areas like RB will rise over time. Getting a good tenant is key along with low interest rates.

[Bloat]

I say take the new job and rent it out. I wouldn’t throw money at it to get out. Invest that money in a mutual fund, then revisit all in 2010. Being a landlord is good experience too (I didn’t say fun) and a one bedroom is easy to handle.

The quick math (monthly approx):
Interest $950
Taxes $225
HOA $150
Ins $ 25
Depn $800
Tax deductable total: $2150 (x 25% = $500 savings)
Prin $350 (not an expense)

Real monthly carrying cost = $850.

Rent (est) = $1000 (incudes 15% vacancy and expense allowance) covers the real cost, plus.

Not a good investment, but what’s done is done. Rents are likely to be stable and good areas like RB will rise over time. Getting a good tenant is key along with low interest rates.

[Bloat]

I believe up to a $25k Schedule E loss carries to the 1040 if income is below $100k, and 50% is allowed between $100k and $150k. Wasn’t 2008’s income $90k?

I am a CPA with a couple of long held rentals on my Schedule E with a tiny loss that I don’t get to write off due to income. I’m rusty on the tax stuff, in fact I avoid it, so best to verify with a CPA who knows more than I.

To 2008, I say run a spreadsheet on it, get it confirmed by an accountant. If you use tax software (TurboTax, etc) run some estimates through the schedule E and see how it plays to the bottom line.

[Bloat]

I believe up to a $25k Schedule E loss carries to the 1040 if income is below $100k, and 50% is allowed between $100k and $150k. Wasn’t 2008’s income $90k?

I am a CPA with a couple of long held rentals on my Schedule E with a tiny loss that I don’t get to write off due to income. I’m rusty on the tax stuff, in fact I avoid it, so best to verify with a CPA who knows more than I.

To 2008, I say run a spreadsheet on it, get it confirmed by an accountant. If you use tax software (TurboTax, etc) run some estimates through the schedule E and see how it plays to the bottom line.

[Bloat]

I believe up to a $25k Schedule E loss carries to the 1040 if income is below $100k, and 50% is allowed between $100k and $150k. Wasn’t 2008’s income $90k?

I am a CPA with a couple of long held rentals on my Schedule E with a tiny loss that I don’t get to write off due to income. I’m rusty on the tax stuff, in fact I avoid it, so best to verify with a CPA who knows more than I.

To 2008, I say run a spreadsheet on it, get it confirmed by an accountant. If you use tax software (TurboTax, etc) run some estimates through the schedule E and see how it plays to the bottom line.

[Bloat]

Your “cash out is $1700”?

Is this your total monthly payment.

While not good, holding might not be as bad as you think. You’ve got Principle of almost $400/month and you will write off int, tax, depn, hoa & expenses of close to $2k/mo that will return about $500 to your pocket.

The principle and tax write off are real money bringing your carrying cost to about $1k/month (before the reset). I’d just rent it out and hope to minimize vacancy and upkeep expenses. In 15 years you might be able to brag about it.

[Bloat]

Your “cash out is $1700”?

Is this your total monthly payment.

While not good, holding might not be as bad as you think. You’ve got Principle of almost $400/month and you will write off int, tax, depn, hoa & expenses of close to $2k/mo that will return about $500 to your pocket.

The principle and tax write off are real money bringing your carrying cost to about $1k/month (before the reset). I’d just rent it out and hope to minimize vacancy and upkeep expenses. In 15 years you might be able to brag about it.

[Bloat]

Your “cash out is $1700”?

Is this your total monthly payment.

While not good, holding might not be as bad as you think. You’ve got Principle of almost $400/month and you will write off int, tax, depn, hoa & expenses of close to $2k/mo that will return about $500 to your pocket.

The principle and tax write off are real money bringing your carrying cost to about $1k/month (before the reset). I’d just rent it out and hope to minimize vacancy and upkeep expenses. In 15 years you might be able to brag about it.

[Bloat]

Might consider the Shadowridge area of Vista where I’m located. IMO Shadowridge is the only part of Vista worth looking at & beats O’side. Good Elementary (Lake) & Middle School (Madison), marginal High School (RBV). Borders with more expensive Carlsbad. Also, for commuters, two new streets have just opened up to the freeway, one near the Carlsbad Amtrak. No Mello Roos and very low HOA. San Marcos has nice areas too, but with Mello Roos and maybe too far for your liking. San Clem is very nice, but with some rough spots and much more $$$.

[Bloat]

Might consider the Shadowridge area of Vista where I’m located. IMO Shadowridge is the only part of Vista worth looking at & beats O’side. Good Elementary (Lake) & Middle School (Madison), marginal High School (RBV). Borders with more expensive Carlsbad. Also, for commuters, two new streets have just opened up to the freeway, one near the Carlsbad Amtrak. No Mello Roos and very low HOA. San Marcos has nice areas too, but with Mello Roos and maybe too far for your liking. San Clem is very nice, but with some rough spots and much more $$$.

[Bloat]

They stated on their “about us” page –

http://www.sentrilock.com/about.asw

[Bloat]

They stated on their “about us” page –

http://www.sentrilock.com/about.asw

[Author]

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