Re: Landlords - I need your advice!!!
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.
OCCUPY ER, <=>
"The needs of the many outweigh the needs of the few, or the one." - Spock
Retired Mar 2014 at age 52
Target AA: 70% equity funds / 28% TIAA-Traditional/ 2% cash
Target WR: 0.0%,
Income from pension, rent, and eventually SS