housing on the west side, how do you do it?

[winter brew]

When you rent, you ARE paying insurance and taxes.....it's all part of the rent. Trust me, the owner is probably not losing money.
Even by your numbers you are $$ ahead buying with the tax benefit and building equity....and it'll build FAST when the market comes back in a little over 2 years

 

[ruffryder]

When you rent, you ARE paying insurance and taxes.....it's all part of the rent.

yah, you can do the calculations anyway you want..

Trust me, the owner is probably not losing money.

If you were to buy a house right now for the purpose of renting it in the north bend area, for the prices I showed, you would. What you forget is that most of the homes are 40 years old or so, and were bought for much less then the going rate now.

Even by your numbers you are $$ ahead buying with the tax benefit and building equity....and it'll build FAST when the market comes back in a little over 2 years

mm... equity, I would agree with, as to coming back fast in a little over two years? ... doubt it.

You need to be careful with the tax benefit, as it is only about 30% of the interest that you pay on the loan as well as 30% of the amount of real estate taxes. This total amount plus all other itemized deductions needs to be compared to taking the lump some deduction, not just at full value.

I need to work this out using real numbers to see the difference, it is some, but not as much as people seem to make it out as, thought until I actually work the numbers, I won't know. hmm... . Sounds like a good project for tonight!

 

[winter brew]

It has to make you ill writing that big check every month knowing it's gone forever....I know it did me when I rented. You have to admit if you can find what you want at a fair price, you'll be better off 10 years from now if you're buying. PLUS, you get to pay property taxes!! A privelage that every good democrat supports

 

[ruffryder]

It has to make you ill writing that big check every month knowing it's gone forever....I know it did me when I rented. You have to admit if you can find what you want at a fair price, you'll be better off 10 years from now if you're buying. PLUS, you get to pay property taxes!! A privelage that every good democrat supports

How does paying 300k in interest so you can buy a 300k home make you feel? ha ha. You are right though, rent is a waste, and not owning the place you live in keeps it from becoming your "home" too. Can't really put a price on that. Well, I might be able to.. lol

 

[deepdiver]

Yay that helps, but it doesn't do much to reduce your monthly payments, and sometimes the banks require you to have PMI (except for the VA) if you don't put money down.


I am not sure about that. Maybe if you are just looking at the mortgage, but if you include taxes and such, that does not look like the case.

From what I have seen in the north bend area houses for sale in the low 200k's are renting for around 1300 bucks, houses near the 300k's are renting for 1800 a month.

A 225k mortgage, at 4.5% financing, is 1,140 a month, with taxes of 3k a year or 250 a month, for a total of 1400 a month.

Ruffy,

Not sure what you are trying to accomplish..but....if you want to get into a home the best way is to buy one at auction on the court house steps of the county where you live. There are so many forclosures its crazy. My work collegue just bought a 550,000 for sale home for 220,000 at auction. Many of these forclosures are in awesome shape. Just get prequalified.

Homes are way over priced for what yopu get on the west side..if you want to be a landloard..buy ion the Phoenix area. I have three partners and we have been snatching up a few forclosures there for around 110,120K that will sell for 160K in there depressed market. We spent a month on each one on clean up and repairs..all are rented with positive cash flow..now we just need to get the market back up.

 

[Lake Cle Elum]

From a landlord prospective: Yammadog looked at this house, but someone in front of him took it:

Is 2,200 sq ft on 1.5 acre 6 miles east of Renton. Has 2 car garage and detached 3 car (28X36)....Lake Access......

Was for sale in early 2008 for $595,000 - price dropped a few times to $539,000.....3 offers between $485 and $500.....Sent walking.....1st leased for $1,450/mo when I moved to Cle Elum in Oct, 2008 - now a great tennant at $1,550/mo......Taxes and Ins are $500/ mo......

I'd sell when the lease is up in July for $450,000, but right now I profit $1,000/mo ( I have no mortage).....

Just throwing out numbers for those looking....Do the math, if I had a loan, I'd be backwards for sure. Best of luck, it's a crazy market out there.......

 

[ruffryder]

From a landlord prospective: Yammadog looked at this house, but someone in front of him took it:

Is 2,200 sq ft on 1.5 acre 6 miles east of Renton. Has 2 car garage and detached 3 car (28X36)....Lake Access......

Was for sale in early 2008 for $595,000 - price dropped a few times to $539,000.....3 offers between $485 and $500.....Sent walking.....1st leased for $1,450/mo when I moved to Cle Elum in Oct, 2008 - now a great tennant at $1,550/mo......Taxes and Ins are $500/ mo......

I'd sell when the lease is up in July for $450,000, but right now I profit $1,000/mo ( I have no mortage).....

Just throwing out numbers for those looking....Do the math, if I had a loan, I'd be backwards for sure. Best of luck, it's a crazy market out there.......

Thanks for the awesome example. I have noticed that the 200-300k range is getting much much better over the last couple of months. Even some ok homes going in the sub 200k range too.

Lake Cle Elum, the numbers you posted are crazy, well, in the stance that the rent on that place would not even be close to paying off the monthly payments if you had a loan on it.

You got any other amazing homes for rent way below mortgage payments?

 

[yammadog]

From a landlord prospective: Yammadog looked at this house, but someone in front of him took it:

Is 2,200 sq ft on 1.5 acre 6 miles east of Renton. Has 2 car garage and detached 3 car (28X36)....Lake Access......

Was for sale in early 2008 for $595,000 - price dropped a few times to $539,000.....3 offers between $485 and $500.....Sent walking.....1st leased for $1,450/mo when I moved to Cle Elum in Oct, 2008 - now a great tennant at $1,550/mo......Taxes and Ins are $500/ mo......

I'd sell when the lease is up in July for $450,000, but right now I profit $1,000/mo ( I have no mortage).....

Just throwing out numbers for those looking....Do the math, if I had a loan, I'd be backwards for sure. Best of luck, it's a crazy market out there.......

Yeah, that was a great spot....I need to be faster I guess...LOL....

 

[Lake Cle Elum]

Ruffy - I guess I could rent my cabin with a view of Lake Cle Elum? It just sits there now I live full time on 3 acres just east of town?

Yammadog: Sorry it didn't work out - I'd love to see someone fill the extra garage with sleds.......Next time...

 

[i'llDooit]

you must pay the full purchase price of the foreclosure on the courthouse steps. a good way to go if you can bring the coin.

 

[ruffryder]

you must pay the full purchase price of the foreclosure on the courthouse steps. a good way to go if you can bring the coin.

The interesting part of that, is that I have seen homes selling for 30-40k below the foreclosure sale price. Maybe I am looking at the numbers wrong, but that is what I have seen.

 

[i'llDooit]

there are investment groups that will assist you in a foreclosure purchase for a small % return. it take's quite a bit of time to do the research of the foreclosures on the "market", weather they are in good condition and are selling for a fair price on the steps,,, the banks set the price based on the last loan that failed the property,,, and this will sometimes be the prices you are talking about seeing

 

[ruffryder]

i'llDooit, thanks for the info!

yah know, if you spell your name a little different it looks a little funny... illdooit -> idooit - > idiot... lol.. early morning trying too hard to be funny I guess.

 

[Tmann]

do your homework if you go the auction route. You are liable for all leans against the property. If the house is 220k at the auction and has leans of 200 you now owe 420k. Lots of leg work and coin. Short sales can be good but often take about 6 months to close. Whatever you do get a Realtor that deals in the market you are looking in. I perform Home Inspections for a living and see all kinds of so called "Deals". Most are POS's from a structural stand point or have been stripped of everything and will take 50k to move in. PM when you need the inspection.