Forum Replies Created
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sc_alum
Participant“From the street level, I would say rent in and around Temecula is falling sharply.”
It does look like that, yeah…
Silly question, but rental income is taxable income AFTER you’ve deducted mortgage costs, right? It’s net, not gross?
So I either walk away with about 50/60k (equity) now (+ closing cost considerations, though that’s not cash in hand, just cash not spent)…
Or in a sense “buy” my house for 50/60k… assuming rent more or less balances mortgage. Maybe it ends up costing us a couple grand a year, but not a huge deal…
*Sigh* I am thoroughly engrossed in all the replies, but I honestly can’t say I’m any closer to a decision. The poster that said that I’m going to end up regretting whichever option I choose is probably right on the money. Grass is always greener…
If rent and real estate stay flat for 5+ years, I look ahead to that time… I’m about 35k-ish more paid down in my equity, so that 50/60k is now maybe closer to 100k… but now I’ve got closing costs to pay, so subtract +-22k… So 5ish years out and I’m maybe 10k up, net… assuming nobody trashes the place and that I’ve got decent occupancy… big if’s.
So short term it makes no sense… but then if we get modest appreciation and modest rent appreciation beyond that time frame, it starts to look like a brighter picture…
The decision boils down to whether I want to be a long term landlord of a big house from far away, I guess. We may at some point come back to So Cal, though to San Diego, if we did, so then it wouldn’t be so long distance…
Sorry, just using this as a blank space to do some musing – back to your regularly scheduled programming.
Participant“From the street level, I would say rent in and around Temecula is falling sharply.”
It does look like that, yeah…
Silly question, but rental income is taxable income AFTER you’ve deducted mortgage costs, right? It’s net, not gross?
So I either walk away with about 50/60k (equity) now (+ closing cost considerations, though that’s not cash in hand, just cash not spent)…
Or in a sense “buy” my house for 50/60k… assuming rent more or less balances mortgage. Maybe it ends up costing us a couple grand a year, but not a huge deal…
*Sigh* I am thoroughly engrossed in all the replies, but I honestly can’t say I’m any closer to a decision. The poster that said that I’m going to end up regretting whichever option I choose is probably right on the money. Grass is always greener…
If rent and real estate stay flat for 5+ years, I look ahead to that time… I’m about 35k-ish more paid down in my equity, so that 50/60k is now maybe closer to 100k… but now I’ve got closing costs to pay, so subtract +-22k… So 5ish years out and I’m maybe 10k up, net… assuming nobody trashes the place and that I’ve got decent occupancy… big if’s.
So short term it makes no sense… but then if we get modest appreciation and modest rent appreciation beyond that time frame, it starts to look like a brighter picture…
The decision boils down to whether I want to be a long term landlord of a big house from far away, I guess. We may at some point come back to So Cal, though to San Diego, if we did, so then it wouldn’t be so long distance…
Sorry, just using this as a blank space to do some musing – back to your regularly scheduled programming.
Participant“From the street level, I would say rent in and around Temecula is falling sharply.”
It does look like that, yeah…
Silly question, but rental income is taxable income AFTER you’ve deducted mortgage costs, right? It’s net, not gross?
So I either walk away with about 50/60k (equity) now (+ closing cost considerations, though that’s not cash in hand, just cash not spent)…
Or in a sense “buy” my house for 50/60k… assuming rent more or less balances mortgage. Maybe it ends up costing us a couple grand a year, but not a huge deal…
*Sigh* I am thoroughly engrossed in all the replies, but I honestly can’t say I’m any closer to a decision. The poster that said that I’m going to end up regretting whichever option I choose is probably right on the money. Grass is always greener…
If rent and real estate stay flat for 5+ years, I look ahead to that time… I’m about 35k-ish more paid down in my equity, so that 50/60k is now maybe closer to 100k… but now I’ve got closing costs to pay, so subtract +-22k… So 5ish years out and I’m maybe 10k up, net… assuming nobody trashes the place and that I’ve got decent occupancy… big if’s.
So short term it makes no sense… but then if we get modest appreciation and modest rent appreciation beyond that time frame, it starts to look like a brighter picture…
The decision boils down to whether I want to be a long term landlord of a big house from far away, I guess. We may at some point come back to So Cal, though to San Diego, if we did, so then it wouldn’t be so long distance…
Sorry, just using this as a blank space to do some musing – back to your regularly scheduled programming.
Participant“From the street level, I would say rent in and around Temecula is falling sharply.”
It does look like that, yeah…
Silly question, but rental income is taxable income AFTER you’ve deducted mortgage costs, right? It’s net, not gross?
So I either walk away with about 50/60k (equity) now (+ closing cost considerations, though that’s not cash in hand, just cash not spent)…
Or in a sense “buy” my house for 50/60k… assuming rent more or less balances mortgage. Maybe it ends up costing us a couple grand a year, but not a huge deal…
*Sigh* I am thoroughly engrossed in all the replies, but I honestly can’t say I’m any closer to a decision. The poster that said that I’m going to end up regretting whichever option I choose is probably right on the money. Grass is always greener…
If rent and real estate stay flat for 5+ years, I look ahead to that time… I’m about 35k-ish more paid down in my equity, so that 50/60k is now maybe closer to 100k… but now I’ve got closing costs to pay, so subtract +-22k… So 5ish years out and I’m maybe 10k up, net… assuming nobody trashes the place and that I’ve got decent occupancy… big if’s.
So short term it makes no sense… but then if we get modest appreciation and modest rent appreciation beyond that time frame, it starts to look like a brighter picture…
The decision boils down to whether I want to be a long term landlord of a big house from far away, I guess. We may at some point come back to So Cal, though to San Diego, if we did, so then it wouldn’t be so long distance…
Sorry, just using this as a blank space to do some musing – back to your regularly scheduled programming.
ParticipantFor anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:
“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.
The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”
ParticipantFor anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:
“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.
The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”
ParticipantFor anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:
“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.
The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”
ParticipantFor anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:
“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.
The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”
ParticipantFor anyone who is interested – found the following. Looks like the IRS is onto my ploy and is one step ahead (emphasis is mine)… no dice:
“… law allows a deduction for a loss from the sale of a personal residence that has been converted to rental property. But it limits the amount of the write-off. No deduction for any drop in value before you begin to rent.
The starting point is the property’s (1) adjusted basis at the time of conversion or (2) fair market value at the time of conversion, whichever is lower.”
ParticipantPerspective is appreciated in spades!
When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.
I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…
TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?
Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…
ParticipantPerspective is appreciated in spades!
When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.
I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…
TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?
Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…
ParticipantPerspective is appreciated in spades!
When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.
I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…
TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?
Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…
ParticipantPerspective is appreciated in spades!
When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.
I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…
TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?
Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…
ParticipantPerspective is appreciated in spades!
When we bought (first house) we had intended to stay here for the long term – we loved the area and had jobs with flexible telecommutes. We bought the house to enjoy it, and so the upgrades are all things that enhance our enjoyment of the house and I don’t regret any of them. Careers take unexpected paths, though.
I honestly came into this thread thinking that cutting our losses was the way to go, but some of the rent-champions have given me good things to consider. Especially the rental property loss write-off… that one could be especially handy. I’ll look up the restrictions, but any preliminary info on how long it has to be a rental before it qualifies? I’d imagine at least one tax year (when you don’t take the mortgage interest deduction)? iiiiinteresting…
TG – if you’re still following: As the area expert – I’ve got my doubts about the ability of the city to recover and thrive in the next 5-7 years. It seems like business have shuttered as quickly as they’ve opened in the past few. Some inside sources have also hinted at layoffs coming at Abbott in the very near future (manufacturing as well as white collar). I don’t think we can do much in the way of recovery until San Diego does, and most folks on the site think SD still has quite a ways to go… thoughts?
Final thought (for this particular post): House is 6 years old – how long before I can expect the big maintenance-related repairs to start to come due, generally speaking? I don’t know that I have the stomach for that…
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