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10-02-2008, 04:42 AM
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#1
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Full time employment: Posting here.
Join Date: Aug 2007
Posts: 912
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I've finally talked DW into downsizing 10-15 years from now, when it will become even harder for me to maintain our oversized house and property. I'm thinking of a small house or half of a duplex (about $250k). I have the area picked out. I have this idea where I could buy it now and have my 80 y.o. MIL rent it from me. I'd put 20% down and mortgage the rest. It might come close to cash flowing if I can get a steal. Me and DW would move in in 10 -15 years and sell our house (about $700k). I just don't think I'll be able to get as good a deal 10-15 years from now as I could get now. I'm still working (for about 3 more years), and would probably have enough $ saved in 3 years to pay it off. Am I missing something, or could this work?
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10-02-2008, 06:23 AM
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#2
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Recycles dryer sheets
Join Date: Apr 2005
Posts: 234
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We have often thought about doing a similar thing but in 10-15 years we might prefer a different location or the area might deteriorate or our overall situation (health, family) might have changed or... or... or...
So we have decided not to plan so far in advance other than to save the funds to keep us flexible.
If your home is oversized and hard to maintain now, you might need a solution for this sooner than in 10-15 years, when it gets "even harder".
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10-02-2008, 07:05 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2008
Location: Texarkana, TX
Posts: 1,263
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Seems to me 10-15 years out is a bit far to be picking out a particular house now. (I hope MIL knows about this plan to be her landlord till she's 90 or 95  )
Since you are only working 3 more years - why not downsize now (or in 3 years)?
__________________
12/31/09 at age 49 - Still on Target!
unexpected correction to sig - Now retired 09/09 not quite yet 49!
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10-02-2008, 07:09 AM
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#4
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Full time employment: Posting here.
Join Date: Feb 2006
Posts: 553
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 Quote:
Originally Posted by Ronstar
I've finally talked DW into downsizing 10-15 years from now, when it will become even harder for me to maintain our oversized house and property. I'm thinking of a small house or half of a duplex (about $250k). I have the area picked out. I have this idea where I could buy it now and have my 80 y.o. MIL rent it from me. I'd put 20% down and mortgage the rest. It might come close to cash flowing if I can get a steal. Me and DW would move in in 10 -15 years and sell our house (about $700k). I just don't think I'll be able to get as good a deal 10-15 years from now as I could get now. I'm still working (for about 3 more years), and would probably have enough $ saved in 3 years to pay it off. Am I missing something, or could this work?
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Sounds like a good idea, rental property is a great way to go. My one criticism would be to ask why you plan to keep living in a house that's "oversized". Why not sell the big house and buy a duplex and live in it with your MIL. Sounds good financially, I don't know how you'd manage with the MIL living so closely 
I bought a two family 10 years ago. I live on the top 2 floors and rent out the ground floor apartment for $1500 a month. I live close to a couple of universities so there's a good pool of renters. The rent covers my escrow and mortgage interest payments so I'll living in the place free of charge and paying off the principal quickly.
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10-02-2008, 07:26 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,431
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Downsizing is the way to go. That's in my plan and I have almost convinced DW. She is still stressing over the fate of all her stuff like family junk heirlooms. She also thinks we need to have an attached hotel facility in case anyone wants to visit us. I keep telling her to get used to it or get a real j*b. Mega-house isn't in my retirement budget.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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10-02-2008, 10:09 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,168
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Quote:
Originally Posted by 2B
Downsizing is the way to go. That's in my plan and I have almost convinced DW. She is still stressing over the fate of all her stuff like family junk heirlooms. She also thinks we need to have an attached hotel facility in case anyone wants to visit us. I keep telling her to get used to it or get a real j*b. Mega-house isn't in my retirement budget.
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I'd be careful of that attitude, but then again, I don't know your wife.  Seriously though, I agree about downsizing and now is probably the time to consider purchasing your retirement home (and renting it out to your MIL). As for moving from your current mega-house, now is probably NOT the time due to falling home prices. There's nothing wrong with staying where you are for the next few years, particularly when your time horizon for moving to your retirement home is at least 10 years in the future.
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
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10-02-2008, 10:26 AM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 10,802
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Quote:
Originally Posted by 2B
I keep telling her to get used to it or get a real j*b. Mega-house isn't in my retirement budget.
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I am very slow learner, but one thing I have learned is that women do not often like the implication that whatever way they spend their time is not a "real job".
Ha
__________________
Above all, humans are political animals.
Nota bene: I am either a moron or an idiot. So don't pay any attention to anything I say or you are one too. Please consult your financial advisor, astrologer or proctologist for whatever it may be that you are seeking.
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10-02-2008, 10:37 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,431
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Quote:
Originally Posted by haha
I am very slow learner, but one thing I have learned is that women do not often like the implication that whatever way they spend their time is not a "real job".
Ha |
She hates me saying that she doesn't have a real job but here is the basic fact. So far, her YTD gross income is just under $2,500. She works part time with a very limited demand for her time. If she got a "real job," I'd think she could get around $40 - 50,000 per year.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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10-02-2008, 10:52 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,168
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Quote:
Originally Posted by 2B
She hates me saying that she doesn't have a real job but here is the basic fact. So far, her YTD gross income is just under $2,500. She works part time with a very limited demand for her time. If she got a "real job," I'd think she could get around $40 - 50,000 per year.
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Not to derail the thread, but why doesn't she get a job paying that kind of money?
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
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10-02-2008, 10:53 AM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 10,802
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Quote:
Originally Posted by 2B
She hates me saying that she doesn't have a real job but here is the basic fact. So far, her YTD gross income is just under $2,500. She works part time with a very limited demand for her time. If she got a "real job," I'd think she could get around $40 - 50,000 per year.
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I definitely do not disagree. If she is your GF, tell her to get a real job or hit the road. If on the other hand you are married to her, tell her how wonderful and hard working she is.
Not recognizing power doesn't make power disappear.
__________________
Above all, humans are political animals.
Nota bene: I am either a moron or an idiot. So don't pay any attention to anything I say or you are one too. Please consult your financial advisor, astrologer or proctologist for whatever it may be that you are seeking.
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10-02-2008, 11:46 AM
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#11
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Thinks s/he gets paid by the post
Join Date: May 2004
Posts: 4,311
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Quote:
Originally Posted by 2B
Downsizing is the way to go. That's in my plan and I have almost convinced DW. She is still stressing over the fate of all her stuff like family junk heirlooms. She also thinks we need to have an attached hotel facility in case anyone wants to visit us. I keep telling her to get used to it or get a real j*b. Mega-house isn't in my retirement budget.
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I sense a larger problem. But, different couples handle things in different ways. What I might say (tempered by having spent some time in the doghose over the years) :
"Downsizing is the way to go. That's in my our plan and I have almost convinced DW that we've agreed on. She is still stressing over the fate of all her stuff the things like family junk heirlooms. She also thinks we need to have an attached hotel facility in case anyone wants to visit us. I keep telling her to have suggested that she try to see the advantages of downsizing get used to it or get a real j*b. or that she consider ways she could use her talents to increase our income. Mega-house isn't in my our retirement budget."
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
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10-02-2008, 11:53 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,168
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Quote:
Originally Posted by samclem
I sense a larger problem. But, different couples handle things in different ways. What I might say (tempered by having spent some time in the doghose over the years) :
"Downsizing is the way to go. That's in my our plan and I have almost convinced DW that we've agreed on. She is still stressing over the fate of all her stuff the things like family junk heirlooms. She also thinks we need to have an attached hotel facility in case anyone wants to visit us. I keep telling her to have suggested that she try to see the advantages of downsizing get used to it or get a real j*b. or that she consider ways she could use her talents to increase our income. Mega-house isn't in my our retirement budget."
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We have a winner! 
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
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10-02-2008, 12:05 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Location: Mississippi
Posts: 4,262
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Is this downsizing or what? A $1.75 house sold on Ebay. With my portfolio going down the toilet, might be what I have to downsize to. 
Bid of $1.75 on eBay gets abandoned Saginaw home - Yahoo! News
__________________
Full time wuss............
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10-02-2008, 07:54 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 1,005
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I'm downsized now and can't keep up with the yardwork and maintenance! I only have a 1400 sq foot ranch.
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10-02-2008, 09:39 AM
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#15
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Moderator
Join Date: Jan 2007
Location: New Orleans
Posts: 10,404
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It is very difficult to predict what you might want, including location, 10-15 years down the road.
I would do it as an investment. You would probably have to do a lot of the upkeep on whatever house your MIL lives in anyway, right? So, it probably wouldn't be much more trouble or work than any other investment. You have a ready-made tenant who wouldn't trash the place or leave in the middle of the night without paying the rent, definitely a big advantage for your venture into the landlord business. You could guarantee her that the rent wouldn't increase, and that would be great for her, too.
If you decide to buy it, I would also suggest keeping your mind open to the possibility that you may prefer to live elsewhere later on. If that turns out to be the case, eventually you will have two houses to sell.
__________________
"Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harborless immensities." - - H. Melville, 1851
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10-02-2008, 12:41 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 2,020
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Living in a 250 sq ft room, I can't comment on downsizing. I am going to suggest to my wife that she get a real job, though. Likely downsizing will be even easier at that point.
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10-02-2008, 12:43 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,168
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Quote:
Originally Posted by Marquette
Living in a 250 sq ft room, I can't comment on downsizing. I am going to suggest to my wife that she get a real job, though. Likely downsizing will be even easier at that point.
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What's left of your portfolio will be downsized in the process.
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
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10-02-2008, 12:44 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 1,005
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Quote:
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Living in a 250 sq ft room, I can't comment on downsizing. I am going to suggest to my wife that she get a real job, though. Likely downsizing will be even easier at that point.
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Haha, thanks that made me laugh!
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10-02-2008, 05:54 PM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,526
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It all sounds like a great plan, but you're going to get "I dont want to live in the house my mother passed away in".
Presuming you wont be moving in with the still living MIL at some point...
__________________
Many an optimist has become rich by buying out a pessimist
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10-02-2008, 09:13 PM
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#20
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Moderator
Join Date: Jan 2007
Location: New Orleans
Posts: 10,404
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Quote:
Originally Posted by cute fuzzy bunny
It all sounds like a great plan, but you're going to get "I dont want to live in the house my mother passed away in".
Presuming you wont be moving in with the still living MIL at some point...
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Very perceptive. Many people just cannot live in the house where their loved one died (or lived, even if the death was elsewhere). Actually I got a great deal on my present house due to a similar situation, forcing a quick sale.
__________________
"Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harborless immensities." - - H. Melville, 1851
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