I've owned a home for 4 years and im 29 years old. Don't get too excited its only worth 220k because I live in the Midwest, bought it for 210k. I want to upgrade and thought if I sold, I'd get the 10k in appreciation + my 20k down payment back, but I realized I will likely be required to pay 22k in closing costs to sell. I didn't really think about that part when I bought.Im pretty handy at home maintenance stuff and have enough in savings to deal with some vacancies/legal issues if they arise, so should I just keep this as a rental property? The mortage is 1500 a month and I might be able to rent it for 1700 a month, and if I keep it for the next 26 years I can raise that rent relative to inflation, then once paid off either keep renting it out till I die or sell it and actually make enough profit from appreciation to not get wrecked by closing costs.Idk about paying two separate mortgages during my whole life tho.. but I anticipate that 1500/month to only get easier to pay as I get older and my income increases.
Sell it and then move to japan to fuck teen pussy on the cheap since the yen is collapsingeasy
take your time finding good tenants
If you didn't have enough sense to get a high paying career and/or your parents aren't rich, you shouldn't expect to ever have your own house
>>62428560just buy REITs, the hassle of landlording isn't worth 1.7k/month
>>62428802Who are you talking to? I literally said I have my own home
That’s why i never donate to this dumb website, they literally think they deserve more bitcoin gibs after the Julian Assange debacle, money make them arrogant.
>>62428965Also now we have LLM running in the local pc, they can take their centralised knowledge bases and shove it up their ass. It has a good run and it also has a good fall.
Anon,I'm 31. Own a home in the midwest as well. Owe 147k on a 500 sq ft POS on half an acre (I overpaid). Anyway.... If I were you, I'd stay in the home and pay if down for a few years. Once you pay it down a bit, have some cash reserves left over for BS when tenants treat your home like a disposable product. THEY WILL TRASH YOUR HOUSE. After you've got 50-70% equity in your house, rent it out at the full market rate and put the profits into the stock market.
>>62428992> THEY WILL TRASH YOUR HOUSE.It is not your house after you have paid up, it is your royal estate.
>>62429104KEK
>>62428934The bank has your home retard. You are renting until you finish paying them for it.
>>62429894Literally no one, especially the rich, buys a home outright you massive dumbass, you always finance and keep the cash you would otherwise have spent invested, where it will earn significantly more than it would have in the home. The wealthiest people in the world "are renting from the bank", gd are retards like you really who I'm sharing /biz/ with?
>>62429950you are a genuine retardliterally all chinks and arabs buy property in the US outright
>>62429957Because theyre retarded browns like you>have 200k in cash and put it all on a house>rent out house for 1.5k a month, increasing it relative to average annual inflation>invest all rent money into the market>house appreciates at average rates>in 20 years you'll have 1.9 milvs>have 200k in cash>invest it in the market>buy a 200k home with an fha loan and down payment assistance, pretty much nothing out of pocket>rent it for 1.5k monthly and raise it annually relative to average inflation>home appreciates at average rates>invest any rental profit into the market>in 20 years, with the value of the home, the equity in it, plus the investment accounts you'll have 3.1 milThis is why browns stay poor
>>62428560
>>62428560you have to pay tax on your landlord income so it's not worth it at your mortgage cost
>>62430220based renter and market investor
>>62428560why are you selling it? are you moving? do you not like the house anymore? do you just want to rent?you're not sitting on a cash cow, you're sitting on a 220k home that rents for 1500/mo (8%)...which is not going to attract high quality tenantsyou will need a property manager (you don't know what you're doing) and they will charge 5-10% to deal with tenants who complain about every fucking thing (unless they are bad tenants, then your neighbors will complain about what they're doing)your property tax will increase (likely double) as it is no longer your primary residence, your home insurance will also increase as you will need a "landlord's policy".... you will need to pay someone to maintain the yard because the tenants will not maintain it well enoughyour tenants will move out after 1-2 years and you will miss out on 1-2 months of income while you clean, repair, and find new tenants... additionally your payments will be shorted when tenants find things that "break" and your property manager contracts the repair out to people who charge top dollar to fix themyour rental income is taxable, however your mortgage interest, maintenance, repairs, property taxes, management fees are all tax deductions, and you can even deduct depreciation (3.6% of 210k per year for 25 years), although depreciation is recaptured when you sellyou're in a no-win situation, you're going to have to pay ~4% to realtors when you sell, as well as title insurance, transfer taxes... which will get rid of any "appreciation" and equity you have paid down in the 4 years you were there... and if you rent it out, you probably cash flow negative with the increased property tax, increased home insurance, maintenance/repairs, rental vacancies
>>62430220your math is hilariously wrong>stocks average 9% returns, 193,000(1.09)^20 = 1.08 million>you then have to pay interest for 20 years at 6.5% (this will cost ~152k)>you have to pay upfront PMI (1.75% = ~3k) and PMI for the life of the loan (0.55% per year = ~20k) because you're choosing FHA since you have bad creditso you're at 905k after 20 yearsif you pay cash...>you free up 1500/mo to invest>9% annual returns, 20 years (240 months)>1.0075^240 = ~6 growth factor>future value = 1500 (6-1)/0.0075 = 1 million>also have the option of not having to pay home insurancethis would be 1 million in 20 years
>>62428560you don't qualify for a second home mortgage.if you don't believe me, go ask. A banker will tell you
>>62428973I don't trust AI unless it gives me sources
>>62428560>.. but I anticipate that 1500/month to only get easier to pay as I get older and my income increases.This is a disaster waiting to happen. If you want God to fuck you over, then sure, bank on life only going up and up. Life has a funny way of knocking you off your feet just when you build enough confidence to make moves
>>62431479god isn't real.
