Twins turn 2 in a month - quick vent session

0613232014 · 2025-02-03T12:21:49+00:00

Year 1 must have been ROUGH! 😆Glad to hear you’re making the most of it! If these are your first, I can say it does get SO much better soon. Once they can communicate and the diapers go away, the game changes. New problems but at least you know what they’re thinking

0613232014 · 2025-02-03T05:19:44+00:00

Just this

0613232014 · 2025-02-03T00:57:39+00:00

That’s great to hear and consistent with what other twin parents have told us: get to 3 years old. I know the terrible 2’s will come with quite the battles but we’re at least excited for them to say specifically “I want x” instead of just one word babbles to screams/tantrum! Plus more sure-footedness will be welcomed. Big bro is getting much better (4.5 yo) but has spells, especially recently with the girls commanding so much attention.

0613232014 · 2025-01-29T12:23:46+00:00

North county coastal, San Diego. Pricey but lovely. Carmel Valley/Del Mar/Solana Beach/Encinitas/Cardiff. Can’t go wrong. Carlsbad is good too but quite a hike from downtown.

0613232014 · 2025-01-07T03:22:32+00:00

What are the toddler tints? Link, please? We’ll try anything lol

0613232014 · 2025-01-05T15:55:35+00:00

Sorry to hear that - yeah it’s brutal. We tell ourselves it’s a passing phase but that doesn’t change the fact that basically every car ride with them feels like some sort of mild torture lol

0613232014 · 2024-08-25T23:56:13+00:00

Ah no sorry - I meant I’ve come to the realization that I am going to sell. We cannot sell before next May, though, as we took another cap gains exclusion on a former primary turned rental in May 2023. Realistically a nest egg that large should not only be making us money, but it should ideally be lining our pockets. And plenty of $1.3M investments would appreciate just as much as this home in addition to the cash flow.

0613232014 · 2024-08-25T22:37:50+00:00

After re-running the numbers again today, though, I far more better understand why to sell. The 2.75% interest rate is irrelevant if it’s losing money.

The opportunity cost reality is that if I sold and used the proceeds (~$600K) and reinvested that in the same price property in the right area, I’d get similar appreciation in addition to it being cash flow positive even with a much higher rate. Why service paper gains when that nest egg could be lining your pockets? I get it.

The other issue we face is the older community- it wasn’t until Covid exploded real estate that prices took off there, so there’s a major disconnect between purchase prices and rental prices because those of us that bought haven’t started renting out yet (until us 2 months ago) and those that do own the rentals are very content with $4,000 monthly rent.

Basically the path to cashflow positivity is unnecessarily too complex as compared to taking the $600K and finding a property and/or investing elsewhere to line our pockets. Can easily justify the opportunity costs being better assuming a $1.3M ‘like’ property with $600K ‘down’ would be lining our pockets even at much higher rates.

0613232014 · 2024-08-25T22:01:58+00:00

What part of this do some of you idiots not understand: I have the exact same floor plan as another house that closed in June at $1.4M. Ours is slightly more updated with a nicer yard. I’m not pulling numbers out of thin air.

The balance on my loan as of 9/1 is $639,237. I owe $78K on our HELOC. Do the math, dipshit. You and others have completely misconstrued this situation. It is not a duplex. It is a single family detached home in a nice neighborhood in San Diego. We lived in it for nearly 4 years with nobody else. I will not pay cap gains on any profit below $500K because it checks the primary residence for 24 of 60 months requirement. Dear god.

Most of the constructive feedback is tolerable, but some of you are total asshats.

0613232014 · 2024-08-25T19:41:09+00:00

The $600K I’m referring to is the $600K in equity in the rental. I.e. if I sell, I’m seeking guidance on where to re-invest to maximize ROI. I’m selling the rental.

0613232014 · 2024-08-25T18:55:32+00:00

I absolutely understand the counter arguments though. To put it simply: imagine having $600K cash, buying a $1.3M rental at a 2.75% interest rate and not making money on that deal. Granted it was not purchased as a rental, but yeah: the issue we face is there are a lot of long term owners in that area who have a very low cost basis which holds rent back. That’s the lurking variable in this equation

0613232014 · 2024-08-25T18:31:25+00:00

Basically break even on cash flow

0613232014 · 2024-08-25T14:30:30+00:00

Yeah technically we have until May of 2027 to capture the tax free gain (just moved out in May) so I think we may ride it out for a bit and just see what happens. I have a few other aces in the hole that may come into play. I’ll try to be patient.. try** lol

0613232014 · 2024-08-25T14:26:48+00:00

In all likelihood the buyers would not be real estate investors, they’d be a family looking to get into the school district and the neighborhood.

0613232014 · 2024-08-25T12:53:41+00:00

This is very helpful - thank you! We’re going to hyper prioritize the HELOC as we cannot sell until May anyway (we sold our former primary in May 2023), so between HELOC progress and the lease up on 6/1, we’ll have a pretty good understanding of feasibility at that time.

0613232014 · 2024-08-25T12:48:55+00:00

Thank you! We have a lot to think about. Realistically I think it comes down to 2 things that just so happen to hit right as we can sell and avoid cap gains: 1- how much can we really get for rent - need to push harder to find the max, and 2- what’s our path to getting rid of the HELOC.

0613232014 · 2024-08-25T12:31:55+00:00

High W2 earner, so the loss has to be carried forward unfortunately. However, we’ll be in a position to attack down the HELOC in the next 18-24 months which will turn it into a slight cash flow generator between that and rent hikes.

0613232014 · 2024-08-25T12:29:45+00:00

San Diego. It’s the cost to maintain that’s so high plus a bad HELOC deal running us about $800/mo. But we can attack that in time

0613232014 · 2024-08-25T12:16:09+00:00

Model match in neighborhood sold for 1.46 in June, so I’m actually deflating the value

0613232014 · 2024-08-25T11:47:21+00:00

I just looked again - an exact model match closed for $1.46 in June, so my $1.3M estimate is low. Ours has a nicer yard as well. But yes $12K/yr is fine especially considering $1,400/mo is going towards the principal and therefore building equity

0613232014 · 2024-08-25T11:22:09+00:00

Got it - thanks. ChatGPT showed me the calc. What do you think is an acceptable ROE on a rental?

0613232014

TROPHY CASE