[noone]

[quote=asianautica]$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.
[/quote]

I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.

[noone]

[quote=asianautica]$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.
[/quote]

I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.

[noone]

[quote=asianautica]$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.
[/quote]

I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.

[noone]

[quote=asianautica]$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.
[/quote]

I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.

[noone]

[quote=asianautica]$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.
[/quote]

I think your math is a bit off. I think you are forgetting that you have to pay the property taxes first. Then the deduction lowers the annual income that you have to pay taxes on. It’s not a tax credit.

You are correct that $225k at 6% with 0% down P&I will be about $1,350 (can you even get 6% with 0% down these days?). Adding taxes an insurance gets you up to about $1,600 a month. If you’re paying 1% in property taxes on $225k that’s $2,250 a year. Assuming the 30% tax bracket, you will be reducing your taxes by about $675 a year or $56 a month. So even including the tax deduction you’re monthly cost is over $1,500 not $1,200. For an older & smaller 3/2 in Mira Mesa that is probably the going rent.

[noone]

Keep in mind that Mira Mesa has a variety of homes. 3/2 can describe a 1,000 sq. ft. home or an 1,800 sq. ft. home. My crystal ball says that those homes on the larger side will probably hit near Asianautica’s $325k number. The smaller ones… they’ll probably land somewhere in the mid-high $200s.

[noone]

Keep in mind that Mira Mesa has a variety of homes. 3/2 can describe a 1,000 sq. ft. home or an 1,800 sq. ft. home. My crystal ball says that those homes on the larger side will probably hit near Asianautica’s $325k number. The smaller ones… they’ll probably land somewhere in the mid-high $200s.

[noone]

Keep in mind that Mira Mesa has a variety of homes. 3/2 can describe a 1,000 sq. ft. home or an 1,800 sq. ft. home. My crystal ball says that those homes on the larger side will probably hit near Asianautica’s $325k number. The smaller ones… they’ll probably land somewhere in the mid-high $200s.

[noone]

Keep in mind that Mira Mesa has a variety of homes. 3/2 can describe a 1,000 sq. ft. home or an 1,800 sq. ft. home. My crystal ball says that those homes on the larger side will probably hit near Asianautica’s $325k number. The smaller ones… they’ll probably land somewhere in the mid-high $200s.

[noone]

Keep in mind that Mira Mesa has a variety of homes. 3/2 can describe a 1,000 sq. ft. home or an 1,800 sq. ft. home. My crystal ball says that those homes on the larger side will probably hit near Asianautica’s $325k number. The smaller ones… they’ll probably land somewhere in the mid-high $200s.

[noone]

Another in the “Realtor needs a basic photo class” category

http://www.sdlookup.com/MLS-086027057-10236_Caminito_Toronjo_San_Diego_Ca_92131

[noone]

Another in the “Realtor needs a basic photo class” category

http://www.sdlookup.com/MLS-086027057-10236_Caminito_Toronjo_San_Diego_Ca_92131

[noone]

Another in the “Realtor needs a basic photo class” category

http://www.sdlookup.com/MLS-086027057-10236_Caminito_Toronjo_San_Diego_Ca_92131

[noone]

Another in the “Realtor needs a basic photo class” category

http://www.sdlookup.com/MLS-086027057-10236_Caminito_Toronjo_San_Diego_Ca_92131

[noone]

Another in the “Realtor needs a basic photo class” category

http://www.sdlookup.com/MLS-086027057-10236_Caminito_Toronjo_San_Diego_Ca_92131

[Author]

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