Real estate/Financial? Anyone in the know? - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

cornerspeed92 · 01-31-2017, 02:19 PM

Here's my situation. I finally met the right woman,im 58 and she is 46, i have my house and she has her house. She has the nicer property so im moving in with her and not sure what to do with my house. In 5-7 years we want to retire and move out of Calif, we were thinking about selling my house and using the money to buy some property, and then selling her house when it's time and use the money to build our house. We have also talked about both of us selling and buying a house that would be ours. We have talked about renting it which would drive me crazy having someone in my house. Im a little uncomfortable as her house will never be mine and not sure how i will feel after a year or two not having my own home. So ultimately my ? is this, would it be a good financial move to both sell and buy a house for us for the 5-7 years, or should we just stay the course?

ChibiBlackSheep · 01-31-2017, 02:54 PM

I wouldn't sell either home until you are married.

If you move in, and sell your house, you are screwed if things don't work out.

If you both sell, and buy a new home together, then it is a big legal move and you need to make sure that the new home title is written correctly, and that you have positive equity in the house (or no payments at all).

If you never plan on getting married, I would rent your current home and talk to a lawyer about contingency plans in the lease in case you need to move back in.

Billy10mm · 01-31-2017, 02:56 PM

It's never a smart financial move to buy a house you only want to live in for 5 to 7 years. The closing costs will go up in smoke. If where you are is a renters market, renting might make sense. But since the two of you already own two homes between you, the smart financial move is to move into one and decide what to do with the other.

If you can rent the other for more than the monthly mortgage+insurance+taxes, then it likely makes financial sense to rent it out for as long as possible. Take your time and pick tenants that you trust, it is by far the most important part of the process. Don't rent to anyone you have any reservations about. Look for young, responsible families. Avoid single people if possible.

If you really can't stomach that thought (someone else in your house), sell it now and invest the money. As it is, who knows what's going to happen to the real estate, financial, consumer, and job markets in this country in the next few months/years, and inflation rates.

ZED SLED · 01-31-2017, 03:40 PM

cradle robber

O.F. · 01-31-2017, 04:02 PM

58, you really want to become a landlord now? Think about it...hard.

sherob · 01-31-2017, 04:49 PM

Quote:

Originally Posted by O.F.

58, you really want to become a landlord now? Think about it...hard.

You could hire a company to manage all of that, but they get a piece of that lease payment too.

Pre-nup!!!! If something happens a year or two down the road, and you sold that property... she shouldn't get any of it, should she? You would want her to keep her house, you should keep your profit... or property if you buy any from the sale of the house!

Think ahead, just in case. Things change when relationships turn to shit!

frenchsquared · 01-31-2017, 05:06 PM

I don't know why everyone would not want to rent. I have 8 rentals. Basically you get a free house. I would rent yours for a few years to make sure you are happy with her house. Then later you can sell them both and get your house so its not her house.

Rent $500 to $3000 a month... closing cost.... $1500.... how do you not get that back? Find a better bank to do your closing.

Or you pay rent of $1500 a month for a house for 5 years. 1500 * 12 * 5 = $90,000 how the hell is it not cheaper to buy?

cornerspeed92 · 01-31-2017, 06:18 PM

Thanks everyone for your input

Johnny Mac · 01-31-2017, 07:55 PM

Congrats hope it works out for the two of you.

BTW a man never gives up his man cave. Unless he's married, and then he gets half a garage if he's lucky.

PostNup · 01-31-2017, 07:59 PM

Renter's Warehouse - They are like $80 a month here in Phoenix.

They do the background checks, they collect the checks, a portion goes into an escrow account and BEST of all - when the water heater or AC goes out a 3:00am... they are the ones that get the call NOT you.

Something to think about.

Billy10mm · 01-31-2017, 08:29 PM

Quote:

Originally Posted by frenchsquared

I don't know why everyone would not want to rent. I have 8 rentals. Basically you get a free house. I would rent yours for a few years to make sure you are happy with her house. Then later you can sell them both and get your house so its not her house.

Rent $500 to $3000 a month... closing cost.... $1500.... how do you not get that back? Find a better bank to do your closing.

Or you pay rent of $1500 a month for a house for 5 years. 1500 * 12 * 5 = $90,000 how the hell is it not cheaper to buy?

I don't know where you're closing for $1500, but here in NY, closing costs on a house or condo with a purchase price around $400K are north of $20K when all said and done. It seriously prohibits refinancing around here.

GTIanZ28 · 01-31-2017, 10:01 PM

Quote:

Originally Posted by Billy10mm

I don't know where you're closing for $1500, but here in NY, closing costs on a house or condo with a purchase price around $400K are north of $20K when all said and done. It seriously prohibits refinancing around here.

I was thinking the same. I just refinanced our home and use a small/local mortgage company. The closing cost / title company / county fees etc total about $8000.

To answer the OP:
I agree on the marriage and prenup stuff and potentially waiting.

Something I havent seen mentioned is the market itself. It's at a peak here in Portland. My mortgage broker thinks we will see a crash in 2 years or so and I was thinking the same before we ever talked about it.

Now isn't a good time to buy here. Home values have skyrocketed (ours has gone up 50% in 4 years.)

What I'm getting at is that I think it would be a great time to sell assuming you have good equity in the home. Then when home values tank again look to buy another home.

That is part of what we plan to do and part of the reason we refinanced. If the market crashes we'll buy another home and rent out our current home. Then when the market recovers and home prices reach their peak again we'll consider selling the rental.

Lafourche1 · 02-01-2017, 10:20 AM

I have some experience with this situation. I moved in with her and rented my two other homes. These were both a bit higher end rentals that worked due to locations next to hospitals (medical professionals renting while they planned their next move).

Questions to answer:
How much of tax break do you get for property taxes and interest? Will you be looking for a faster tax advantage with depreciation (I don't recommend this personally but your tax professional may see it differently).

Bank the tax refund monies. You can expect a major repair every two years (HVAC), roof, plumbing, garage door issues. These are deductible depending on how you are setup tax wise but, are cash money out of pocket at the time of repair (how is your roof?).

After 8 years as a landlord, the return will be recognized at the time of sale. This is making the assumptions that your rent covered payment, insurance, property tax AND your tax refunds covered the repairs needed on the properties. Over X years time, given all the math works out, you have reduced the principal by X years payments and can now pocket that additional cash. You can end up with a larger chunk in your pocket that you really didn't have to come out of pocket to realize.

Find a good TAX Person. Talk this out. Renting is risky. You may have expenses you did not expect (busted hot water heater in ceiling - yes we put hot water heaters in the attic here - stupid place).

arod55 · 02-01-2017, 07:41 PM

I have been a landlord for a very long time, over thirty years. As a landlord you have to really screen your perspective tenants. That includes credit report, previous landlords and as long as you give a tenant 24 hour notice you can certainly check on your property. When you use a property manager you even have to check on them. A lot of property managers collect the rent check and do nothing else. I make it a habit to check on my properties at least twice a year. Like other people stated the only time you hear from them when there is a problem. Remember it your investment and do not ignore problems when they arise. Here in California when a tenant is late on the rent you must give them a three day notice to pay rent or quit. If you don"t do that the eviction process becomes more difficult if you have to go to court. Yes it does require work but eventually you acquire equity in your investment.

01-31-2017, 02:19 PM	#1
cornerspeed92 Drives: 2013 1SS 1LE Join Date: Jul 2012 Location: Colorado Posts: 4,188 View My Garage	Real estate/Financial? Anyone in the know? Here's my situation. I finally met the right woman,im 58 and she is 46, i have my house and she has her house. She has the nicer property so im moving in with her and not sure what to do with my house. In 5-7 years we want to retire and move out of Calif, we were thinking about selling my house and using the money to buy some property, and then selling her house when it's time and use the money to build our house. We have also talked about both of us selling and buying a house that would be ours. We have talked about renting it which would drive me crazy having someone in my house. Im a little uncomfortable as her house will never be mine and not sure how i will feel after a year or two not having my own home. So ultimately my ? is this, would it be a good financial move to both sell and buy a house for us for the 5-7 years, or should we just stay the course? __________________

01-31-2017, 02:54 PM	#2
ChibiBlackSheep Drives: 2012 2SS/RS, 1968 SS Join Date: Feb 2012 Location: Southeast, PA Posts: 2,116	I wouldn't sell either home until you are married. If you move in, and sell your house, you are screwed if things don't work out. If you both sell, and buy a new home together, then it is a big legal move and you need to make sure that the new home title is written correctly, and that you have positive equity in the house (or no payments at all). If you never plan on getting married, I would rent your current home and talk to a lawyer about contingency plans in the lease in case you need to move back in. __________________ LS3 Crate Engine Swap \| CSP Custom Cam 232/240 .615/.615 113 +3 \| Stainless Power LT Headers \| Z28 Intake \| Borla S-Type Exhaust \| FTI Triple-Disc Billet 3200 Stall 2012 Camaro 2SS/RS \| 1968 Camaro SS \| 2020 Cadillac CT5 Premium Luxury \| 2021 Spark LS

01-31-2017, 02:56 PM	#3
Billy10mm Drives: 2014 Camaro 2SS 1LE NPP Join Date: Nov 2013 Location: Hartsdale, NY Posts: 1,434	It's never a smart financial move to buy a house you only want to live in for 5 to 7 years. The closing costs will go up in smoke. If where you are is a renters market, renting might make sense. But since the two of you already own two homes between you, the smart financial move is to move into one and decide what to do with the other. If you can rent the other for more than the monthly mortgage+insurance+taxes, then it likely makes financial sense to rent it out for as long as possible. Take your time and pick tenants that you trust, it is by far the most important part of the process. Don't rent to anyone you have any reservations about. Look for young, responsible families. Avoid single people if possible. If you really can't stomach that thought (someone else in your house), sell it now and invest the money. As it is, who knows what's going to happen to the real estate, financial, consumer, and job markets in this country in the next few months/years, and inflation rates. __________________ My thoughts on some things: Driving Nannies: If I'm that far out of shape on the street, something has gone terribly wrong and by all means Mr. Computer man, come and get me. G2s: Rock throwing is like like a tramp stamp; although problematic, it's a sign of good things to come.

01-31-2017, 03:40 PM	#4
ZED SLED Drives: 2017 Mosaic Bk ZL1 M6 Join Date: Jul 2009 Location: South of Raleigh, NC Posts: 9,614 View My Garage	cradle robber __________________

01-31-2017, 05:06 PM	#7
frenchsquared Drives: 15 Z28, 01 Corvette, 96 Corvette Join Date: Dec 2016 Location: Colorado Posts: 863	I don't know why everyone would not want to rent. I have 8 rentals. Basically you get a free house. I would rent yours for a few years to make sure you are happy with her house. Then later you can sell them both and get your house so its not her house. Rent $500 to $3000 a month... closing cost.... $1500.... how do you not get that back? Find a better bank to do your closing. Or you pay rent of $1500 a month for a house for 5 years. 1500 * 12 * 5 = $90,000 how the hell is it not cheaper to buy? __________________ 2018 Sierra RCSB \| 2015 Z28 Camaro \| 1989 B2200 with a 327 \| 1996 LT4 Z51 Corvette \| 1973 427 Nova

01-31-2017, 04:02 PM	#5
O.F. Drives: 2015 BLK/BLK 2SS/RS MN6 Join Date: Oct 2016 Location: New Hampshuh Posts: 266	58, you really want to become a landlord now? Think about it...hard.

01-31-2017, 06:18 PM	#8
cornerspeed92 Drives: 2013 1SS 1LE Join Date: Jul 2012 Location: Colorado Posts: 4,188 View My Garage	Thanks everyone for your input __________________

01-31-2017, 07:55 PM	#9
Johnny Mac Drives: 2015 ZL1 Join Date: Jan 2015 Location: Socal Posts: 159	Congrats hope it works out for the two of you. BTW a man never gives up his man cave. Unless he's married, and then he gets half a garage if he's lucky.

01-31-2017, 07:59 PM	#10
PostNup CAR-DASHIAN Drives: 2015 Ashen Gray Metallic 2SS/RS L99 Join Date: Nov 2015 Location: Gilbert, AZ Posts: 541	Renter's Warehouse - They are like $80 a month here in Phoenix. They do the background checks, they collect the checks, a portion goes into an escrow account and BEST of all - when the water heater or AC goes out a 3:00am... they are the ones that get the call NOT you. Something to think about. __________________ PERFORMANCE: ColdAirInductions CAI, ADM Race Scoop, Cordes Performance Racing Ported TB/IM/Custom VVT Cam, WFO Milled Heads, Stainless Power 1 7/8" LT/3" HFCs, JBA 3" Comp. Cat-Back, Taylor 10.4mm Plug Wires, Tim King Performance Stage 3 6L80, Circle D Billet 3600 Stall, Nic D ECM/TCM Tune, - 458rwhp/413rwtq (prior to PIM), Forgestar F14 (F)18" / (R)17" Rims. SUSPENSION: Z/28 Rear UCA Bushings, Carlyle Racing LCA/TA, BMR Adj. Toe Rods/Xtreme Anti-Roll Bar, Justice Pete Castor Locks/Radius Rod Inserts, Pegasus Billet Rear Cradle Bushings, Mickey Thompson Street SS II 305/45/17 tires.

02-01-2017, 10:20 AM	#13
Lafourche1 Drives: 2019 CLA 450 Mercedes Join Date: May 2016 Location: South Louisiana Posts: 1,107	I have some experience with this situation. I moved in with her and rented my two other homes. These were both a bit higher end rentals that worked due to locations next to hospitals (medical professionals renting while they planned their next move). Questions to answer: How much of tax break do you get for property taxes and interest? Will you be looking for a faster tax advantage with depreciation (I don't recommend this personally but your tax professional may see it differently). Bank the tax refund monies. You can expect a major repair every two years (HVAC), roof, plumbing, garage door issues. These are deductible depending on how you are setup tax wise but, are cash money out of pocket at the time of repair (how is your roof?). After 8 years as a landlord, the return will be recognized at the time of sale. This is making the assumptions that your rent covered payment, insurance, property tax AND your tax refunds covered the repairs needed on the properties. Over X years time, given all the math works out, you have reduced the principal by X years payments and can now pocket that additional cash. You can end up with a larger chunk in your pocket that you really didn't have to come out of pocket to realize. Find a good TAX Person. Talk this out. Renting is risky. You may have expenses you did not expect (busted hot water heater in ceiling - yes we put hot water heaters in the attic here - stupid place). __________________ 2019 Lunar Blue Metallic Mercedes CLS 450 2021 C43 AMG Mercedes Coupe Metallic Cardinal Red 2014 Lincoln MKT EcoBoost (The Bus)

02-01-2017, 07:41 PM	#14
arod55 AROD55 Drives: 1955 Chevy Bel Air Hardtop Join Date: Apr 2009 Location: Bonita, Ca. 91902 Posts: 1,862 View My Garage	I have been a landlord for a very long time, over thirty years. As a landlord you have to really screen your perspective tenants. That includes credit report, previous landlords and as long as you give a tenant 24 hour notice you can certainly check on your property. When you use a property manager you even have to check on them. A lot of property managers collect the rent check and do nothing else. I make it a habit to check on my properties at least twice a year. Like other people stated the only time you hear from them when there is a problem. Remember it your investment and do not ignore problems when they arise. Here in California when a tenant is late on the rent you must give them a three day notice to pay rent or quit. If you don"t do that the eviction process becomes more difficult if you have to go to court. Yes it does require work but eventually you acquire equity in your investment.