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Chat Thread: biff brings board balance

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Going to see Dave Chappelle at a small theater in Durham tomorrow night. Definitely looking forward to it. These shows were kind of weirdly announced like a week in advance.
 
ImTheCaptain said:
almost seems like "houses as an asset" is a dumb concept
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Not really. It is the one asset where it's easy for people to have leverage and potentially make a ton of money with a relatively little amount down. You also can walk away if you want, which is nice. I'd be weary of buying in places with high price/rent ratios where there's plenty of land available 5-10 miles from where you are, however. That's what got Las Vegas.
 
yeah i think i already agreed in the basic definition.

cash poor boomers feeling content because they own a 2000' house that hasn't seen a can of paint in 25 years are idiots but that's the fantasy
 
On this topic, and hypothetically speaking of course, if you owned a townhouse that would net roughly $300 a month in rental income after mortgage, HOA, and upkeep, would you hold on to it and rent it out? Or just sell it and take the equity (not necessarily needed to buy new house)?
 
tigerswood said:
On this topic, and hypothetically speaking of course, if you owned a townhouse that would net roughly $300 a month in rental income after mortgage, HOA, and upkeep, would you hold on to it and rent it out? Or just sell it and take the equity (not necessarily needed to buy new house)?
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$300 after all costs + you're saving money on principal + any appreciation isn't bad. I suppose the question is how much would you be hurting if your tenant moved out and it took you a year to find a replacement tenant? What about 2 years?
 
tigerswood said:
On this topic, and hypothetically speaking of course, if you owned a townhouse that would net roughly $300 a month in rental income after mortgage, HOA, and upkeep, would you hold on to it and rent it out? Or just sell it and take the equity (not necessarily needed to buy new house)?
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Depends on the location of the condo. Dealing with all of that BS and downtime between tenants isn't worth it to me unless I have strong upside on location, ie Uptown or near the light rail. Sell it and buy a new car, have a baby, fund a 529, or invest. Condo developments in suburban locations with absentee owners can go downhill pretty quickly and you're not as likely to get the appreciation that a single family home in the same area would.
 
palmab03 said:
$300 after all costs + you're saving money on principal + any appreciation isn't bad. I suppose the question is how much would you be hurting if your tenant moved out and it took you a year to find a replacement tenant? What about 2 years?
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two years to find a new tenant???
 
Dude, it's a 2BR condo in Charlotte, not a 110-year old mill in Salisbury. Shouldn't be empty more than a month or two and, as you know, tenants often stick around for years.
 
palmab03 said:
$300 after all costs + you're saving money on principal + any appreciation isn't bad. I suppose the question is how much would you be hurting if your tenant moved out and it took you a year to find a replacement tenant? What about 2 years?
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Forget about 2 years. If you are renting a townhouse for $1500 and net $300. With a six month vacancy (assuming no other costs), it would take two years of profits to make up for being empty for six months.
 
tigerswood said:
On this topic, and hypothetically speaking of course, if you owned a townhouse that would net roughly $300 a month in rental income after mortgage, HOA, and upkeep, would you hold on to it and rent it out? Or just sell it and take the equity (not necessarily needed to buy new house)?
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What is your alternative use for the money you would get out of it? Could you buy another asset (real estate or other) that would make you more money or be expected to appreciate more or faster? If so, sell it and do that. If not, keep it.
 
Why would his condo be empty for 6 - 24 months ?

Overall apartment vacancy in Charlotte is 7%. Rents are increasing 3.1%. And the population is growing daily.

The market is not an issue. The question is whether you're positively leveraged on the property and maximizing return.
 
scooter84 said:
What is your alternative use for the money you would get out of it? Could you buy another asset (real estate or other) that would make you more money or be expected to appreciate more or faster? If so, sell it and do that. If not, keep it.
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I'd invest it in the market, probably.

Seems like it would be pretty easy to keep it rented, as it's a relatively new (built in 2008) brick 3 BR, 2.5 bath in between Uptown and South Park, about a mile from the light rail. Doesn't have the same level of appreciation as a SFR, but don't think it has near the bubble-risk either. I don't have the time or energy right now to buy a fixer-upper in a gentrifying neighborhood, or I might try that along with thousands of other Charlotteans.

Main thing I need to figure out is tax benefits of keeping it, if any, under the Trump IRS.
 
I think, based off of the argument that we had a year ago, that I met zq’s principal tonight.
 
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