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(former)FormerSanDiegan
Participant[quote=Allan from Fallbrook]peterb: I mentioned something similar to this on another thread when I said I thought we’d see a return to 1930s style WPA-type projects (i.e. infrastructure related goverment spending on a very large scale).
The US infrastructure is in a dire state, and it will probably take massive amounts of government spending (a la what occurred during FDR’s reconstruction programs, WWII, or the Japanese government programs of the 1990s) to turn things around.[/quote]
Maybe be are due for a New Deal type of initiative. But this time it should be focused on achieving energy independence.
ParticipantBarron’s may be lucky and turn out to be right (within 3-6 months) on a national scale. After all, things look like a disaster right now, which is typical of a bottom.
However, I think I’ll wait until The Economist has a cover story on the Bottom.
ParticipantBarron’s may be lucky and turn out to be right (within 3-6 months) on a national scale. After all, things look like a disaster right now, which is typical of a bottom.
However, I think I’ll wait until The Economist has a cover story on the Bottom.
ParticipantBarron’s may be lucky and turn out to be right (within 3-6 months) on a national scale. After all, things look like a disaster right now, which is typical of a bottom.
However, I think I’ll wait until The Economist has a cover story on the Bottom.
ParticipantBarron’s may be lucky and turn out to be right (within 3-6 months) on a national scale. After all, things look like a disaster right now, which is typical of a bottom.
However, I think I’ll wait until The Economist has a cover story on the Bottom.
ParticipantBarron’s may be lucky and turn out to be right (within 3-6 months) on a national scale. After all, things look like a disaster right now, which is typical of a bottom.
However, I think I’ll wait until The Economist has a cover story on the Bottom.
July 15, 2008 at 6:55 PM in reply to: At 150x rent, 100% financing, would you buy if cash negative $200/mo? #239997ParticipantBig difference between 150x and 175x.
I would start to consider buying a SFR for investment purposes at 150x rent. (For a principal residence it makes sense maybe even slightly higher than this) Forget the HELOC. You want the best terms on the mortgage with 20-25% down.
Condos, I would want a bit lower because of HOA.Example: 350K SFR would be 2333 monthly rent at 150x.
Assume 25% down. 6.5% 30-yr fixed.
monthlies …
P&I = 1660
Insurance = 100
Taxes = 330Total PITI = 2090
Assume 233 per month property management, and you roughly break even before maintenance.
Assume maintenance averages $200 per month (typically it’s more like $0 per month, then $500-$3000 periodically).
Depreciation is equal to about 150-200 per month in tax benefit depending on your circumstances.
So, after tax this is about break-even cash flow.
Your benefit is that you get principal pay down of about $250 per month.
Your risk is that the value of the home declines, rents decline and vacancies.Somewhere less than 150x starts to work for me for SFR.
IF annual condo HOA fees are 0.6% or less than the value, it might start to make sense there as well. Also, strength of the specific rental market is key.
July 15, 2008 at 6:55 PM in reply to: At 150x rent, 100% financing, would you buy if cash negative $200/mo? #240133ParticipantBig difference between 150x and 175x.
I would start to consider buying a SFR for investment purposes at 150x rent. (For a principal residence it makes sense maybe even slightly higher than this) Forget the HELOC. You want the best terms on the mortgage with 20-25% down.
Condos, I would want a bit lower because of HOA.Example: 350K SFR would be 2333 monthly rent at 150x.
Assume 25% down. 6.5% 30-yr fixed.
monthlies …
P&I = 1660
Insurance = 100
Taxes = 330Total PITI = 2090
Assume 233 per month property management, and you roughly break even before maintenance.
Assume maintenance averages $200 per month (typically it’s more like $0 per month, then $500-$3000 periodically).
Depreciation is equal to about 150-200 per month in tax benefit depending on your circumstances.
So, after tax this is about break-even cash flow.
Your benefit is that you get principal pay down of about $250 per month.
Your risk is that the value of the home declines, rents decline and vacancies.Somewhere less than 150x starts to work for me for SFR.
IF annual condo HOA fees are 0.6% or less than the value, it might start to make sense there as well. Also, strength of the specific rental market is key.
July 15, 2008 at 6:55 PM in reply to: At 150x rent, 100% financing, would you buy if cash negative $200/mo? #240140ParticipantBig difference between 150x and 175x.
I would start to consider buying a SFR for investment purposes at 150x rent. (For a principal residence it makes sense maybe even slightly higher than this) Forget the HELOC. You want the best terms on the mortgage with 20-25% down.
Condos, I would want a bit lower because of HOA.Example: 350K SFR would be 2333 monthly rent at 150x.
Assume 25% down. 6.5% 30-yr fixed.
monthlies …
P&I = 1660
Insurance = 100
Taxes = 330Total PITI = 2090
Assume 233 per month property management, and you roughly break even before maintenance.
Assume maintenance averages $200 per month (typically it’s more like $0 per month, then $500-$3000 periodically).
Depreciation is equal to about 150-200 per month in tax benefit depending on your circumstances.
So, after tax this is about break-even cash flow.
Your benefit is that you get principal pay down of about $250 per month.
Your risk is that the value of the home declines, rents decline and vacancies.Somewhere less than 150x starts to work for me for SFR.
IF annual condo HOA fees are 0.6% or less than the value, it might start to make sense there as well. Also, strength of the specific rental market is key.
July 15, 2008 at 6:55 PM in reply to: At 150x rent, 100% financing, would you buy if cash negative $200/mo? #240193ParticipantBig difference between 150x and 175x.
I would start to consider buying a SFR for investment purposes at 150x rent. (For a principal residence it makes sense maybe even slightly higher than this) Forget the HELOC. You want the best terms on the mortgage with 20-25% down.
Condos, I would want a bit lower because of HOA.Example: 350K SFR would be 2333 monthly rent at 150x.
Assume 25% down. 6.5% 30-yr fixed.
monthlies …
P&I = 1660
Insurance = 100
Taxes = 330Total PITI = 2090
Assume 233 per month property management, and you roughly break even before maintenance.
Assume maintenance averages $200 per month (typically it’s more like $0 per month, then $500-$3000 periodically).
Depreciation is equal to about 150-200 per month in tax benefit depending on your circumstances.
So, after tax this is about break-even cash flow.
Your benefit is that you get principal pay down of about $250 per month.
Your risk is that the value of the home declines, rents decline and vacancies.Somewhere less than 150x starts to work for me for SFR.
IF annual condo HOA fees are 0.6% or less than the value, it might start to make sense there as well. Also, strength of the specific rental market is key.
July 15, 2008 at 6:55 PM in reply to: At 150x rent, 100% financing, would you buy if cash negative $200/mo? #240200ParticipantBig difference between 150x and 175x.
I would start to consider buying a SFR for investment purposes at 150x rent. (For a principal residence it makes sense maybe even slightly higher than this) Forget the HELOC. You want the best terms on the mortgage with 20-25% down.
Condos, I would want a bit lower because of HOA.Example: 350K SFR would be 2333 monthly rent at 150x.
Assume 25% down. 6.5% 30-yr fixed.
monthlies …
P&I = 1660
Insurance = 100
Taxes = 330Total PITI = 2090
Assume 233 per month property management, and you roughly break even before maintenance.
Assume maintenance averages $200 per month (typically it’s more like $0 per month, then $500-$3000 periodically).
Depreciation is equal to about 150-200 per month in tax benefit depending on your circumstances.
So, after tax this is about break-even cash flow.
Your benefit is that you get principal pay down of about $250 per month.
Your risk is that the value of the home declines, rents decline and vacancies.Somewhere less than 150x starts to work for me for SFR.
IF annual condo HOA fees are 0.6% or less than the value, it might start to make sense there as well. Also, strength of the specific rental market is key.
July 15, 2008 at 5:36 PM in reply to: My letter to my congressman and Senetors, what do you think of it? #239932ParticipantAt least 50 % of the price of gasoline is due to speculation and has nothing to do with the true demand for oil. It blows my mind that just these few people were allowed to make the entire country poor so that they could get very, very rich. It also blows my mind that these people get rich then have the nerve to ask for taxpayers’ money when they are in financial trouble.
This part of your manifesto detracts from the issue of housing. The notion that a few people speculating in oil pushed the price up by 50% is unfounded. Further, the idea that these few people are making the entire country poor while making themselves very, very rich is sophomoric.
I think you are wasting your time, but generally it is better to have a succinct two-paragraph explanation of the issue.
Also, letters to congresspersons should never include the phrase “blows my mind” more than once.
July 15, 2008 at 5:36 PM in reply to: My letter to my congressman and Senetors, what do you think of it? #240069ParticipantAt least 50 % of the price of gasoline is due to speculation and has nothing to do with the true demand for oil. It blows my mind that just these few people were allowed to make the entire country poor so that they could get very, very rich. It also blows my mind that these people get rich then have the nerve to ask for taxpayers’ money when they are in financial trouble.
This part of your manifesto detracts from the issue of housing. The notion that a few people speculating in oil pushed the price up by 50% is unfounded. Further, the idea that these few people are making the entire country poor while making themselves very, very rich is sophomoric.
I think you are wasting your time, but generally it is better to have a succinct two-paragraph explanation of the issue.
Also, letters to congresspersons should never include the phrase “blows my mind” more than once.
July 15, 2008 at 5:36 PM in reply to: My letter to my congressman and Senetors, what do you think of it? #240073ParticipantAt least 50 % of the price of gasoline is due to speculation and has nothing to do with the true demand for oil. It blows my mind that just these few people were allowed to make the entire country poor so that they could get very, very rich. It also blows my mind that these people get rich then have the nerve to ask for taxpayers’ money when they are in financial trouble.
This part of your manifesto detracts from the issue of housing. The notion that a few people speculating in oil pushed the price up by 50% is unfounded. Further, the idea that these few people are making the entire country poor while making themselves very, very rich is sophomoric.
I think you are wasting your time, but generally it is better to have a succinct two-paragraph explanation of the issue.
Also, letters to congresspersons should never include the phrase “blows my mind” more than once.
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