05-03-2021, 11:27 AM
I almost tossed my hat in the ring this weekend. The neighbors across the street put their house up for $409,000, so I'd have to liquidate $81,800 if I went asking to make the 20% downpayment. I think the monthly mortgage payment would have worked out to roughly $2100 given that rental mortgage rates are higher than owner occupied, and the real estate agent told me I could probably rent it for $2500, so there's a net $300 or so cash flow there. I like the diversification that renting a property provides, but here's why I decided against doing this.
1) I'm trying to minimize my tax bill for next year as is, such a liquidation would greatly enlarge it.
2) Repairs and such on a house from ~1920 would naturally eat up the $300 or so net cash flow, not to mention things not usually covered by renters like the quarterly water bills.
3) During months when I don't have a tenant, I would have to pay the mortgage myself. While I am paying child support, that will be difficult.
In the end, I decided that starting my real estate empire might be something I look into after child support payments end. Whenever that is
1) I'm trying to minimize my tax bill for next year as is, such a liquidation would greatly enlarge it.
2) Repairs and such on a house from ~1920 would naturally eat up the $300 or so net cash flow, not to mention things not usually covered by renters like the quarterly water bills.
3) During months when I don't have a tenant, I would have to pay the mortgage myself. While I am paying child support, that will be difficult.
In the end, I decided that starting my real estate empire might be something I look into after child support payments end. Whenever that is