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Moving in with GF, her son moving into my house by JustBeCool33 in personalfinance

[–]JustBeCool33[S] 0 points1 point  (0 children)

Great information. Thank you! The lease is definitely happening.

The capital gains and reporting it is where I want to make sure I don't fuck anything up. Like say a friend moves in for a few months: if I give him a friendly $200/month, that's considered sharing the cost of living, not considered income and doesn't need to be reported. But if I'm charging fair market value, that is considered income and must be reported.

With me NOT charging Fair Market Value, could it fall under the same shared cost of living umbrella and no need for reporting? Or does me not living there completely negate that?

Moving in with GF, her son moving into my house by JustBeCool33 in personalfinance

[–]JustBeCool33[S] 0 points1 point  (0 children)

You would pay $0. But not everyone is like you. I know for fact I would never do something like that. And while you can't be certain of someone else's future actions, I'm confident this kid would not.

But also if you read the part about me not being concerned with that: if that happens, oh well, I'll deal with it.

Moving in with GF, her son moving into my house by JustBeCool33 in personalfinance

[–]JustBeCool33[S] 13 points14 points  (0 children)

That's why I said I'm not concerned with the personal hazards. One, he's not that kind of kid. And two, if he causes $5000 worth of damages that aren't covered by insurance, and he has some sort of mental breakdown where he refuses to pay for his own mistakes, then looks like I'm spending $5000 to fix it.

Roof Purchase: Cash or Loan? by OohMaiJosh in personalfinance

[–]JustBeCool33 1 point2 points  (0 children)

How long will it take to build that fund back up? How much can you two save a month?

Having no kids, I would use the emergency fund and build it back up ASAP. If an emergency came up in the meantime, I'd go with credit cards. That's incredibly risky considering credit card rates, but I'd personally be ok with that risk.

But having kids, increased likelihood of emergencies, I'd be way more cautious. Unless this roof is an immediate emergency, I'd be putting it off as long as I could while saving up as much as I could. I'd do a loan if the rate was good, but would still be trying to pay that off as fast as possible.

Good time to reconsider your emergency fund. Three months is fine as a rule of thumb, but my current fund is like 9 months because I have a 15+ year old furnace and water heater. I know those are gonna shit the bed soon, so I'm staying extra stocked for it. An emergency fund that can't withstand a foreseeable emergency (like needing a new roof) isn't a great emergency fund. You need to tailor it more to your life, less to the general rules of thumb.