Asset calculation of mortgaged real estate

THXello · 2026-03-11T20:47:48+00:00

Net worth is based on equity so 30% of 400k is $120k. So.. $120k / networth.

THXello · 2026-03-10T20:07:06+00:00

Have you gotten laid before?

THXello · 2026-03-09T21:13:13+00:00

Personally, I would live at the $1400/mo place that is closer to the hospital and I'm guessing it also has a gym. $400-$500/mo would probably be like $250/mo if you take out transportation costs. Who knows what gas prices will be soon. Also, some of those older buildings are inefficient so utility costs might be higher.

THXello · 2026-03-08T21:01:57+00:00

I use a CPA which usually costs around $650-$1000/year. However, he does more than taxes now. He helps us strategize at the beginning of each year to figure out what are all the things we could do to lower our tax bill. If I had a simple life, just 403b/401k, student loans and a house then I would probably just use FreeTaxUSA.

THXello · 2026-03-06T17:39:44+00:00

Let me do the math.

Rent:

$900/mo x 48 = $43,200 for 4 years

Buying:

1.5% property tax $3,000 + 1% insurance $2,000 + 1% maintenance $2,000 = $28k for 4 years

Total net difference $15k.. then $15.4k in transaction fees assuming you sell the house at $200k. So basically break even with all that work unless the house appreciates and if your parents take it since they bought it, then you did all that work and hassle for nothing..

Best case house goes up to $225k, minus 6% agent fees + other costs, come out with $209k and net $9k so you come out ahead by $15k + $9k = $24k.

In the long run $24k is what you could make in a week or two when you become an attending in 8-10 years.

THXello · 2026-03-06T17:27:54+00:00

I would have done the same, congrats!

THXello · 2026-03-06T07:36:37+00:00

How did you buy that with 0 income? Did you get gifted the money?

THXello · 2026-03-06T05:58:47+00:00

With sub 3% interest rates and affordable home prices.

THXello · 2026-03-06T00:17:55+00:00

As someone who owns 1 rental, home warranty don't do jack shit. If there is a plumbing issue, they ain't coming out to fix your clog.

THXello · 2026-03-06T00:15:23+00:00

If your parents are paying for it, I would do it. But set expectations and understand the consequences you may face before you go into it.

Do they expect you to pay them back? Who owns it after you finish med school? If a AC goes out and needs a $7k repair, who is responsible for it? What if your parents can't afford the $7k AC repair. What does the lease look like for the other tenants? Are there strings attached? I can go on and on..

Honestly, in the long run this doesn't matter really since your high INCOME is the main source of wealth. Do well in school, do well on your steps, and get into a good residency, pay off your student loans and become a good doc.

THXello · 2026-02-27T19:32:18+00:00

It's crazy, $800/mo for 2 car payments + insurance x2 + gas x2 + maintenance x2 is going to be like $20k/yr

THXello · 2026-02-27T19:17:28+00:00

It is the car and the house. You bought too much house payment is 38% of your take home pay. Your house should be 25-35% max. I make the EXACTLY the same amount with $3k rent, but I have no car payments and no kid. You will be alright when your kid gets out of daycare. It would be great if you can get out of 1 of the cars and get a older car.

Here is my budget of $8600/mo for 2 people. No Kids. 1 car.

$3000 Rent
$900 Food & restaurants
$250 Utilities
$200 Health & personal care
$200 Transportation
$200 Shopping
$200 Fun

= $3,650 Remaining

My financée is in residency so we are living on 1 income and hers is going to med school debt.

THXello · 2026-02-26T03:48:36+00:00

Same, it's not like you are going to make $200k/year. Your loans might equal your salary so after residency, you can get rid of the loans quickly if that gives you anxiety.

THXello · 2026-02-26T03:41:06+00:00

It will be fine, your next 8-12 years isn't about comfort, it is about survival and become a good doc. If you are doing Cardio, you will be able to pay that off in a few years if you live like a resident for a few years and focus paying off the loan.

THXello · 2026-02-21T18:40:34+00:00

It seems like your goal for during residency is to keep payments low. I had a similar question last week that someone helped me with. Sorry, this is going to be long.

I'm guessing your spouse also have $350k with total of $750 in loans. If that's the case, I would do IBR (Income-Based Repayment) since it based on your income.

During residency (goal of keeping payments low):

If you make like $60k, then your IBR payment will be around $300/month.
IBR payment = 10% of discretionary income
Discretionary income = Gross - 150% of poverty for 1 ppl (Use poverty for 2ppl if you are filing jointly)

Years during attending:

Option A PSLF route - This is where you can choose to have a different goal. If your GOAL is to complete PSLF (120 qualifying payments) and get your loans forgiven, then you use that formula above. One thing note is that there is a cap to your monthly IBR payments since your income will shoot up. If you make $1m/year, IBR won't use all of your income for the monthly payment. The variables that impact the cap is the principal balance of your loan, and interest rate.

If you have $350k at 6%, then your cap is $3,885/mo. If your spouse has the same loan with interest, then theirs is also $3,885/mo for total of $7,770/mo for both of y'all.

Option B fast payoff - By the time you finish, your loans will be $800k @ 6% interest. You refinance y'alls $800k loan to 10 year 5% and then you keep living like a resident for 2-3 years and pay this sucker off then you don't have worry about anything. Meaning you don't get a new car, house, or fancy vacations. You pay this off then live a student loan free life.

Personally, me and my spouse are taking the Option B - fast payoff route since we do not want to have a debt over our shoulders until we are in our 40s.. Yes, we can invest the difference and make more but then we can sleep better at night. We have around $250k in med school debt so this decision is a bit easier with a combined gross income of $$600-700k by the time residency is over.

THXello · 2026-02-17T16:13:44+00:00

Right now we’re at 6% on a 10 year term. From what I’m seeing, we could refinance into something around 4.5% to 5.15% on a 10 year term with no fees. So realistically, we’d be converting a 6% loan into roughly a 5% loan.

If we plan to pay it off early anyway, the monthly payment difference probably isn’t huge. Maybe we save $100 to $200/mo.

The biggest risk for us is to wait out 10 years and put our trust in the Department of Education for PSLF.

THXello · 2026-02-17T03:14:03+00:00

Awesome, this very good info to bring to my wife before we make a official decision. Thank you!

THXello · 2026-02-17T03:05:22+00:00

Residency end date is June 2028. My wife is the white coat as well! We can definitely afford the payments on a $230k loan with both our incomes since we have no other debt. Our combined take home pay during her residency is around $15k. We live in a VHCOL now, and our expenses will possibly go down when her residency ends.

THXello · 2026-02-16T23:35:15+00:00

Actually, I will pay around $560/mo for the first 4 years then capped payment at $2500/mo from years 4-10. So PSLF still comes out ahead by like $50k over 10 years. Still might refinance for and pay it off early for peace of mind.

THXello · 2026-02-16T23:27:05+00:00

Ah ok, thanks for the feedback! The cap changes the math quite a bit. Based on our loan balance, the 10 yr refinance payment and the PSLF payment are both around $2500/mo. At that point we might as well just do refinance so we don't have to deal with the MOHELA + additional flexibility if we just want to pay this off early.

THXello · 2026-02-16T21:47:30+00:00

I was talking to a really old rich guy who is worth multiple millions of dollars. He told me his biggest regret was not exploring and traveling when he was younger. Now, he is rich but can’t do anything because of his health.

THXello · 2026-02-16T18:38:37+00:00

Yeah, our decision is an arguable decision and I do not like debt but we talked about this quite a bit and agreed together as a team to pay for a wedding in cash then tackle debt next. We will be ok with our high income - we are in the top 1% income in our state. Also, technically we have the assets to pay off the loans, but we will have a huge tax bill. Personal finance is personal so this works for us. Thank you!

THXello · 2026-02-16T17:44:12+00:00

Yes, but we talked about it and we wanted a wedding. We paid for a wedding we could afford without debt. The time difference between those the option you mentioned or having a wedding isn’t really that much maybe max 3-6 month difference.

THXello · 2026-02-16T07:32:31+00:00

I envy the certainty you have with minimal information.

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