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January 14, 2011 at 4:21 PM in reply to: sell current home or rent? not sure how to calculate #654713January 14, 2011 at 4:21 PM in reply to: sell current home or rent? not sure how to calculate #655042
(former)FormerSanDiegan
Participant[quote=finance_king]I could possibly pay down the loan with pitching more money into the “investment” hoping to make it positively geared. If I can do that, then I will cap off the amount I paid to buy the house, and the renter will pay the rest.
This is all banking on the fact that we aren’t going to be in a 20 depression. But, if that happens, I think I have bigger problems then this house.[/quote]
Before you even consider the economics, I would only consider keeping it as a rental if you want to be a landlord over the long term and if the property makes sense as an investment property.
How much would you net in a sale ? (Sale price minus closing costs/commisions, use ~ 7% as a guesstimate).
Sounds like negative cash flow of $200 per month. How much principal are you paying each month ?
ParticipantGo with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.
Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.
ParticipantGo with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.
Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.
ParticipantGo with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.
Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.
ParticipantGo with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.
Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.
ParticipantGo with option 3. The 1/8 point for getting rid of PMI saves you more than 130 bucks a month in the early years.
Theoretically, you could do better over the long run with loan #2, but the break-even period is too long.
ParticipantRule #1 : Never try to buy a property when you are expecting. It is too emotional a time. (same goes for planning a wedding, etc).
Rule #2 : If you violate rule #1, don’t ask for advice from a bearish-leaning blog forum.
Rule #3 : If you violate rules #1 and #2, listen to your spouse.
ParticipantRule #1 : Never try to buy a property when you are expecting. It is too emotional a time. (same goes for planning a wedding, etc).
Rule #2 : If you violate rule #1, don’t ask for advice from a bearish-leaning blog forum.
Rule #3 : If you violate rules #1 and #2, listen to your spouse.
ParticipantRule #1 : Never try to buy a property when you are expecting. It is too emotional a time. (same goes for planning a wedding, etc).
Rule #2 : If you violate rule #1, don’t ask for advice from a bearish-leaning blog forum.
Rule #3 : If you violate rules #1 and #2, listen to your spouse.
ParticipantRule #1 : Never try to buy a property when you are expecting. It is too emotional a time. (same goes for planning a wedding, etc).
Rule #2 : If you violate rule #1, don’t ask for advice from a bearish-leaning blog forum.
Rule #3 : If you violate rules #1 and #2, listen to your spouse.
ParticipantRule #1 : Never try to buy a property when you are expecting. It is too emotional a time. (same goes for planning a wedding, etc).
Rule #2 : If you violate rule #1, don’t ask for advice from a bearish-leaning blog forum.
Rule #3 : If you violate rules #1 and #2, listen to your spouse.
ParticipantA scrape is considered new construction, as opposed to a remodel. New construciton brings with it additional fees and costs.
Also, important is the tax basis, depending on how long you’ve owned the property. If you remodel or add on to an existing property you essentially keep the Tax basis for the property, with an adjustment for the added remodel.
For example, we put over 1000 square feet onto an existing 8000 sf house in the early 2000’s. We also impacted nearly all of the existing 800 sf. Our original tax basis was under 300K. When the remodel was complete the county tacked on the remodel upgrades as only another 115 K in value.
With new construction, the county will determine the value for the entire property and the clock starts anew for Prop 13.
ParticipantA scrape is considered new construction, as opposed to a remodel. New construciton brings with it additional fees and costs.
Also, important is the tax basis, depending on how long you’ve owned the property. If you remodel or add on to an existing property you essentially keep the Tax basis for the property, with an adjustment for the added remodel.
For example, we put over 1000 square feet onto an existing 8000 sf house in the early 2000’s. We also impacted nearly all of the existing 800 sf. Our original tax basis was under 300K. When the remodel was complete the county tacked on the remodel upgrades as only another 115 K in value.
With new construction, the county will determine the value for the entire property and the clock starts anew for Prop 13.
ParticipantA scrape is considered new construction, as opposed to a remodel. New construciton brings with it additional fees and costs.
Also, important is the tax basis, depending on how long you’ve owned the property. If you remodel or add on to an existing property you essentially keep the Tax basis for the property, with an adjustment for the added remodel.
For example, we put over 1000 square feet onto an existing 8000 sf house in the early 2000’s. We also impacted nearly all of the existing 800 sf. Our original tax basis was under 300K. When the remodel was complete the county tacked on the remodel upgrades as only another 115 K in value.
With new construction, the county will determine the value for the entire property and the clock starts anew for Prop 13.
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