Bought house in bay area (2017). Overpaid for what turned into a fixer upper. 1.25m and dumped even more money into it. Biggest financial mistake I ever made. Mortgage + property tax is $5,500 per month ($1,500 of that is principal). I have the opportunity to rent a smaller place for very cheap (through family member) for $1,500 a month. After accounting for the money I put into it and agent commission I would probably break even if I sell. Sell or stay? TC 350 (stay at home wife and 1 kid). P.s wife wants to stay but I have the final decision.
You shouldn't be making final decision since your wife is the one who will be spending all the time in the house
Which part of the Bay Area? Are you satisfied with it after doing the work? It sounds like you didn’t make out too badly if you’re able to break even now! Why not keep it and rent it out, while you and your family live in the cheap rental?
If you rent it out and rent another house. You are paying taxes on the rent money you collect, but can’t deduct taxes on the rent you pay. The other thing is if you rent out your house long enough, you can’t get primary residence capital tax deduction on its appreciation, which is as high as 500k.
San Francisco. Not really satisfied because I dumped tons of money and didn't get much added value for what I did, if any at all. Things like new electrical (ripped out the knob and tube, and replaced everything and brought to current code), new plumbing, windows, lots of water proofing, improving drainage, etc.... But No fancy bathroom or nice floors (things you actually get some value for). Unfortunately that kind of work is not valued. I would be a bad flipper! Ive considered renting, but I would only get $3,500 - $4,000, which is a terrible cap rate. Might as well stick the money in VTSAX.
Your wife should have the final decision. You make big mistakes
Yeah rite .... speaking of shopping sprees of Louis Vuitton
Better than shopping sprees of overpriced houses
Sell
Dun goofed
SELL
I'll buy the house for 800k, no questions asked. Kid, no thanks. About wife, send pictures first and personality chart. Can negotiate on the last one.
My wife is stay at home - she is the final decision maker
Then save. And buy when the market comes off of this bubble.
Sell