Poll: Help with looking at options to move out

[plumber]

OP, a different idea.

US Military. It will change your life. Provides you a safe place, your going to eat and have a roof. Also likely will have other men around you that will help you if you do your best. Also likely to travel to places with women of different kinds.

If not knowing what to do, its a real choice.

Likely after you can get a MUCH better job, or just like what your doing and advance...

 

[RickTheToad]

@RickTheToad
Why you say that? He is paying right now $0 and is making $3100 a month, if he buys he will be -$payment and making $1500 to $1800 a month.

^^That is before expenses.
There are bills, moving costs like buying stuff, insurance, maintenance, property tax.
Don't forget about utility bills.

If rent is $1000-1200, and you can own for around $1200; one would think it would be a better idea to buy than to rent. The price I gave includes everything you mentioned sans utility bills (he'd have them anyway). Maintenance in a condo isn't much. The HOA takes care of most of the heavy lifting (well, they are supposed to).

 

[sevbucmash]

own for around $1200

Does this price includes the insurance?

Maintenance in a condo isn't much

My mother pays close to $1000 per month.

 

[BPH]

OP, a different idea.

US Military. It will change your life. Provides you a safe place, your going to eat and have a roof. Also likely will have other men around you that will help you if you do your best. Also likely to travel to places with women of different kinds.

If not knowing what to do, its a real choice.

Likely after you can get a MUCH better job, or just like what your doing and advance...

Absolutely not. My old job before I moved back in with my parents was working at a mortgage lender that primarily dealt with VA loans.

The veterans I spoke to were some of the most insufferable, unhappy, and angriest people I ever talked to - and I don't blame them. The way veterans are "thanked" by their country upon return for their sacrifice is pretty laughable, especially when that sacrifice includes missing limbs and mental disorders. I think it's a good resource for people who literally have nothing, but my situation is nowhere near that bad; just uncomfortable and stagnant.

If rent is $1000-1200, and you can own for around $1200; one would think it would be a better idea to buy than to rent. The price I gave includes everything you mentioned sans utility bills (he'd have them anyway). Maintenance in a condo isn't much. The HOA takes care of most of the heavy lifting (well, they are supposed to).

I asked this somewhere else and I did some responses similar to yours...can you walk me through how this is a good idea? It sounds like there are a lot of things that need to happen for this to make sense; pay $1,000+ each and every month for 15-30 years, and hope somebody is willing to pay somewhere in your projected range of $2,300 each and every month after that first year in rent and assume that I'm even able to find a home that would accept my offer with a down payment I can afford...all while locking myself into Delaware, the place I'm trying to move out from, for those 15-30 years, while taking on hundreds of thousands of dollars in debt.

I'm sure you can make this work with your experience, but me?

 

[Chow Mein]

You're just always angry huh?

Him being in real estate for 15 years has nothing to do with MY (lack of) knowledge of how to make that work. I'd be going from living at home barely able to afford rent in most places, to taking on a $123,000 gambling debt for 30 years along with all the expenses that come with it.

Does that seem like a logical progression to you?

Think of it from another perspective as an investment of less than $350 a month where you have a more stable living situation.

 

[BPH]

Think of it from another perspective as an investment of less than $350 a month where you have a more stable living situation.

Where is $350 coming from?

 

[FlexpertHamilton]

I would be best to purchase something.

626 W 4th St, Wilmington, DE 19801 | MLS #DENC2065938 | Zillow

This 1800 square feet Townhouse home has 4 bedrooms and 2 bathrooms. It is located at 626 W 4th St, Wilmington, DE.

www.zillow.com

As an example. Offer $130k.

FHA 5% down - $6500.00
Closing costs - $2000.00

monthly mortgage with PMI - $1,215.32

Mortgage Calculator

Check out the web's best mortgage calculator. Estimate your monthly payments with PMI, taxes, homeowner's insurance, HOA fees, current loan rates & more. Also offers loan performance graphs, biweekly savings comparisons and easy to print amortization schedules.

www.mortgagecalculator.org

Stay there a year, turn into a rental, and earn around $2300.00 a month. Congrats, you are now making a profit of around $1085.00 as a landlord. Move into another unit, stay there for another year, rinse and repeat. In two or three years, you have $2500.00 - $3500.00 monthly in passive NET income. All expenses are now investment expenses (mortgage, insurance, taxes, etc), and you write them off, thus lowering your taxable income. Add in depreciation as a bonus.

What about maintenance costs?

 

[BPH]

What about maintenance costs?

I too would like to know the expected costs that would go into this outside of just the mortgage.

 

[RickTheToad]

What about maintenance costs?

It’s a condo. Aside from a stuffed drain (which can be billed to the tenant) and appliances, what other costs are there? You have some turn over costs, but that’s with anything in real estate.

 

[RickTheToad]

Absolutely not. My old job before I moved back in with my parents was working at a mortgage lender that primarily dealt with VA loans.

The veterans I spoke to were some of the most insufferable, unhappy, and angriest people I ever talked to - and I don't blame them. The way veterans are "thanked" by their country upon return for their sacrifice is pretty laughable, especially when that sacrifice includes missing limbs and mental disorders. I think it's a good resource for people who literally have nothing, but my situation is nowhere near that bad; just uncomfortable and stagnant.



I asked this somewhere else and I did some responses similar to yours...can you walk me through how this is a good idea? It sounds like there are a lot of things that need to happen for this to make sense; pay $1,000+ each and every month for 15-30 years, and hope somebody is willing to pay somewhere in your projected range of $2,300 each and every month after that first year in rent and assume that I'm even able to find a home that would accept my offer with a down payment I can afford...all while locking myself into Delaware, the place I'm trying to move out from, for those 15-30 years, while taking on hundreds of thousands of dollars in debt.

I'm sure you can make this work with your experience, but me?

If you are renting at $1200-$1500 a month, but you can own for a little more, you will be ahead. You have the mortgage deduction for yourself. In general, prices rise over time (inflation), so in 15-30 years, the value, on average, should increase around 4% (inflation adjusted). Should you turn it into a rental, all expenses for the rental (mortgage, taxes, insurance, utilities, HOA fees, etc.) are completely tax deductible. The biggest tax deduction you can receive would be the depreciation. Depreciation on a residential property is 27.5 years. So, with some simple math, let’s say the depreciation is based off of $200,000. For the next 27.5 years, as a rental, you will receive s $7,272.73 tax credit against your income and the condos income. In other words, if you owe $7,000.00 in taxes (employment and rental income), you would only be responsible for $272.73.

Hopefully, that helps clear things up.

 

[BaronOfHair]

You're raking in $38gs a year... Unless you're getting a higher paying gig, I wish you luck renting anything other than a stall in the men's room at a 24 hour Wal Mart, if you insist on moving to Philly

Have you considered moving somewhere more economical than The Northeastern US, hoss?

 

[BaronOfHair]

The veterans I spoke to were some of the most insufferable, unhappy, and angriest people I ever talked to - and I don't blame them. The way veterans are "thanked" by their country upon return for their sacrifice is pretty laughable, especially when that sacrifice includes missing limbs and mental disorders

That's what happens when one expects someone else to have your back, no matter what, without ever considering the very real possibility that they'll decide to do otherwise

 

[BPH]

That's what happens when one expects someone else to have your back, no matter what, without ever considering the very real possibility that they'll decide to do otherwise

You do know you can edit posts, right?

You don't have to leave multiple replies in a row as a new thought comes to mind.

 

[BaronOfHair]

You do know you can edit posts, right?

You don't have to leave multiple replies in a row as a new thought comes to mind.

I don't have to cream my pants each time I daydream that I'm Vlad Tepes, dining in the middle of a field full of my impaled adversaries either.... Peripherally speaking though, this life is all we have, so I milk every ounce of pleasure I can out of whatever time is left

 

[SW15]

Have you considered moving somewhere more economical than The Northeastern US, hoss?

Some of the options he had outside of the Northeastern US have gotten more expensive.

Phoenix, AZ and the big cities in Texas have all gotten more expensive. In the 1990s-2010s, plenty of people went to Phoenix to escape high costs in California. I've been living in Dallas for the last 10+ years and have watched it get more expensive.

It's possible that @BPH could go to a place like Knoxville, TN and have it be reasonable in costs.

Places with a lot of pussie options like Miami, Tampa, Phoenix, Dallas, and Houston are going to be more expensive than they once were.

 

[FlexpertHamilton]

It’s a condo. Aside from a stuffed drain (which can be billed to the tenant) and appliances, what other costs are there? You have some turn over costs, but that’s with anything in real estate.

HVAC, roofing, plumbing alone can be tens of thousands over a 10 year period.

 

[RickTheToad]

HVAC, roofing, plumbing alone can be tens of thousands over a 10 year period.

Roofing isn't something you'd be responsible for directly in a condo. When a roof has to be replaced, a special assessment would be issued for all condo owners. Remember, rent raises usually every year 3% - 5% (or more). One way or another, the tenant or owner is paying for those repairs.

 

[FlexpertHamilton]

Roofing isn't something you'd be responsible for directly in a condo. When a roof has to be replaced, a special assessment would be issued for all condo owners. Remember, rent raises usually every year 3% - 5% (or more). One way or another, the tenant or owner is paying for those repairs.

Rent doesn't typically rise much at all if you renew your lease, in my experience it's usually at most $10-20 a year when you renew, and some people are still paying rents based on prices ten years ago.

 

[Chow Mein]

Rent doesn't typically rise much at all if you renew your lease, in my experience it's usually at most $10-20 a year when you renew, and some people are still paying rents based on prices ten years ago.

My man’s living in his own little world

 

[BillyPilgrim]

Rent doesn't typically rise much at all if you renew your lease, in my experience it's usually at most $10-20 a year when you renew, and some people are still paying rents based on prices ten years ago.

Zanesville?