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Re: Landlords - I need your advice!!!
Old 10-18-2006, 08:17 AM   #21
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Re: Landlords - I need your advice!!!

Quote:

The rent pays just over half my mortgage
You've got ALOT of equity ... can't imagine $1200 paying half of a 650k mortgage. That's the point of the "formula"/guideline.

With the run-up in prices over the last 10 years ... I am a seller. Veeerrryy difficult to make the numbers "work" at todays prices; but that doesn't stop some from trying. Heck just listen to the sellers, realtors, appraisers, home inspectors, lawyers .... they'll talk you into it - just so THEY get paid.
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Re: Landlords - I need your advice!!!
Old 10-18-2006, 09:17 AM   #22
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Re: Landlords - I need your advice!!!

Quote:
Originally Posted by tryan
You've got ALOT of equity ... can't imagine $1200 paying half of a 650k mortgage. That's the point of the "formula"/guideline.

With the run-up in prices over the last 10 years ... I am a seller. Veeerrryy difficult to make the numbers "work" at todays prices; but that doesn't stop some from trying. Heck just listen to the sellers, realtors, appraisers, home inspectors, lawyers .... they'll talk you into it - just so THEY get paid.
The mortgage is for $300k, I bought in 1997. I'm being realistic about the value of the house to take into account the recent down turn in the market, comparables sold for $750k a couple of years ago. With a 15 year mortgage at 4.5% fixed I'm now only paying a few hundred dollars in interest each month. Its nothing spectacular, but has been a good investment. I look at it like this, the rent covers the mortgage for the downstairs apartment. I'm close to owning the place outright at which point I can either just take the $1200/month income or sell, buy a smaller place and invest the remainder.
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