I’m sorting through a decision around where I live and could use some input.
I have a mortgage on a condo I purchased 4 years ago (590k), mortgage balance is 420k, could probably sell for $650K. After expenses & repairs and selling cost I figure I’d break even. I could rent it out and also break even, but unlikely to have any cash flow unless I recast the mortgage, and even then only a hundred or two per month. Current total cost is $2850/mo. This is in LA btw.
My SO and I have been together for 5 years but have always lived in our own places. He has a rent controlled apt for $2000/mo in a much more desirable neighborhood, but the place itself isn’t as nice and only has one parking space. His roommate of 5 years is moving out next month, which opens the opportunity for us to take the plunge and live together. We get along great so no worries there, but we’ve also made living apart work fine.
So options are:
1. Stay the course as is. He gets a new roommate (or not) and we keep living separately.
2. I move to his place and save almost $2k/mo splitting cheap rent. Question here is: do I sell the condo or try out land-lording?? Is it even worth thinking about or just move on? This would allow me to continue to save for the “forever home” (whatever that means) while deepening our commitment.
3. We buy or rent a new place. Cost of a 2br condo in his neighborhood would be at least 800k + hoa fees, so significantly higher. Rentals for the same start around 3k/mo, but likely more like 3500-4500/mo.
3. Ultimately we don’t want to stay in LA forever but don’t have a plan yet regarding next moves. Buying a house here would be minimum 1.5-2m for a starter w/o 2-3hr commutes!
Financially I’m almost FIRE in current situation. He is not and wants to keep working. I’m on the fence. If we moved to a cheaper city we could live off my stash, but that’s not being seriously considered at the moment.
Any thoughts here? Especially around selling or renting the condo if I did move?
Thanks!
I have a mortgage on a condo I purchased 4 years ago (590k), mortgage balance is 420k, could probably sell for $650K. After expenses & repairs and selling cost I figure I’d break even. I could rent it out and also break even, but unlikely to have any cash flow unless I recast the mortgage, and even then only a hundred or two per month. Current total cost is $2850/mo. This is in LA btw.
My SO and I have been together for 5 years but have always lived in our own places. He has a rent controlled apt for $2000/mo in a much more desirable neighborhood, but the place itself isn’t as nice and only has one parking space. His roommate of 5 years is moving out next month, which opens the opportunity for us to take the plunge and live together. We get along great so no worries there, but we’ve also made living apart work fine.
So options are:
1. Stay the course as is. He gets a new roommate (or not) and we keep living separately.
2. I move to his place and save almost $2k/mo splitting cheap rent. Question here is: do I sell the condo or try out land-lording?? Is it even worth thinking about or just move on? This would allow me to continue to save for the “forever home” (whatever that means) while deepening our commitment.
3. We buy or rent a new place. Cost of a 2br condo in his neighborhood would be at least 800k + hoa fees, so significantly higher. Rentals for the same start around 3k/mo, but likely more like 3500-4500/mo.
3. Ultimately we don’t want to stay in LA forever but don’t have a plan yet regarding next moves. Buying a house here would be minimum 1.5-2m for a starter w/o 2-3hr commutes!
Financially I’m almost FIRE in current situation. He is not and wants to keep working. I’m on the fence. If we moved to a cheaper city we could live off my stash, but that’s not being seriously considered at the moment.
Any thoughts here? Especially around selling or renting the condo if I did move?
Thanks!