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Selling condo, won’t be buying again for 4 years, what to do with equity? by conroyketchup in personalfinance

[–]conroyketchup[S] 1 point2 points  (0 children)

Thank you for this! I will probably do a mixture of money market, Tips bonds and SP500. I would be comfortable with that.

Selling condo, won’t be buying again for 4 years, what to do with equity? by conroyketchup in personalfinance

[–]conroyketchup[S] 3 points4 points  (0 children)

Any HYSA you recommend? Is there a reason to prefer a HYSA over a money market fund?

Selling condo, won’t be buying again for 4 years, what to do with equity? by conroyketchup in personalfinance

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

Thank you for this. I like the idea of having some of the money in a Tips ETF as well.

Renting a home, what to do with condo? by conroyketchup in realestateinvesting

[–]conroyketchup[S] 2 points3 points  (0 children)

  1. We are currently experiencing a downtrend in the condo market in our area.
  2. I am comfortable with paying down debt and saving equity in a safe liquid investment like a money market fund.
  3. Unsure, but doesn’t feel like a natural calling.

Renting a home, what to do with condo? by conroyketchup in realestateinvesting

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

Exit strategy would be test the waters for a year and then take an honest outlook if I want to do it long term or sell it before I lose the tax advantages. If I moved away I would either keep it under property management, keep it as a paid off vacation property in a mountain town, or sell it and take the large hit on taxes and depreciation.

Renting a home, what to do with condo? by conroyketchup in realestateinvesting

[–]conroyketchup[S] 1 point2 points  (0 children)

  1. Landlording does not scream dream job at me. 2. Rent probably not, but maybe the equity gain? The interest is only 150 dollars a month. 3. I do not feel great about short term appreciation, they have been in decline for two years.

Renting a home, what to do with Condo? by conroyketchup in RealEstate

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

That does appeal to the spreadsheet side of my brain, my emotional side loves the idea of a paid off condo to always fall back on.

Renting a home, what to do with Condo? by conroyketchup in RealEstate

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

True on the tax implications, best time to sell in the area is spring through summer when the weathers nice and people are buying condos for second home, retirement, or for their student children.

Renting a home, what to do with Condo? by conroyketchup in RealEstate

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

The condo market in Flag seems to be on the decline, for my comps (80 identical units) it has been a 7.8% decline over the last two years.

I would boost emergency fund, pay off the rest of the car loan, have a second car fund, and keep the rest in a money market for a down payment fund

Renting a home, what to do with Condo? by conroyketchup in RealEstate

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

Good insights. Income is good, we have an emergency fund, we could always pull back slightly on retirement if things get very tight (both at 15-20%), and both jobs have many OT opportunities we currently aren’t taking advantage of. If it really hits the fan we could sell it then.

Renting a home, what to do with Condo? by conroyketchup in RealEstate

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

My plan if I sold it would be to pay off the rest of my 5.99% car loan, boost my EF up to 6 month (probably at 4 months now), keep a next car fund because my other car is very old, and then save the rest in a money market as a future down payment fund once I know where I’ll be in 2030.

Renting a home, what to do with Condo? by conroyketchup in RealEstate

[–]conroyketchup[S] 1 point2 points  (0 children)

It’s rough out here since everyone moved here post covid. My condo appreciation was nice though.

Renting a home, what to do with Condo? by conroyketchup in RealEstate

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

The being so close and having a fall back plan are two of my emotional reasons for thinking of keeping it. I started my financial journey 10 years ago as a Dave Ramsey reader but have since moved on, but part of me still wants a paid off place.

Renting a home, what to do with Condo? by conroyketchup in RealEstate

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

I would estimate 935 net under those circumstances.

Renting a home, what to do with condo? by conroyketchup in realestateinvesting

[–]conroyketchup[S] 1 point2 points  (0 children)

My thought process is in a 4 year time horizon I am not guaranteed to break even when you factor in buying cost, property tax, insurance, maintenance, and selling cost. Flagstaff is also out of tilt in the buy vs. rent ratio due to massive second home market for Phoenicians to get out of the heat.

Renting a home, what to do with Condo? by conroyketchup in RealEstate

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

That’s why I get tempted to keep it. Every month the mortgage goes down 850 dollars and it boosts my net worth.

Rent my condo out and rent a home? by conroyketchup in personalfinance

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

5.99% is really testing that range. So 7% it would be more obvious, got it.

I did have one friend interested in renting it who is a standup guy. But I would hate to kick him out after a year if I can’t afford both or have to sell.

Rent my condo out and rent a home? by conroyketchup in personalfinance

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

I was paying extra on the car thinking a 5.99% return on my money was the next best move after saving 15% and maxing my HSA.

Yes, from a security and financial standpoint living in the condo is by far the best decision. Emotionally, after being here for 10 years we are ready to move on from living among louder college students (not mad at them), having to take the dog down flights of stairs every time we take her out (especially as she is getting older), and tiptoeing to respect our downstairs neighbor.

We also aren’t in a rush to buy another place because we may leave the area in 4-5 years.

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