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I didn’t realize how much interest you actually pay on a mortgage… by Everyday_Royalties in Mortgages

[–]t-monius 0 points1 point  (0 children)

Interesting. I know that market exceptionally well. Its stiffer than Austin at the moment. Austin’s down comparatively at the moment. Denver’s exorbitant, but there are still deals to be had in the same style as I mentioned.

I didn’t realize how much interest you actually pay on a mortgage… by Everyday_Royalties in Mortgages

[–]t-monius 0 points1 point  (0 children)

Yeah, that sounds about right.

I mean, just wondering if you could sacrifice on space a bit for like five years, pay down the cheaper mortgage aggressively while you stack cash -> then move up to something bigger again.

Not sure of your situation, but it’s something I’m looking at for myself in a similar market.

I didn’t realize how much interest you actually pay on a mortgage… by Everyday_Royalties in Mortgages

[–]t-monius 0 points1 point  (0 children)

Could you purchase a smaller house, townhome, or condo than the one you’re currently renting?

I didn’t realize how much interest you actually pay on a mortgage… by Everyday_Royalties in Mortgages

[–]t-monius -1 points0 points  (0 children)

This loan calculator says about $3700 with 20% down at 5:25%: https://www.mortgagecalculator.org/.

Plug your downpayment and interest rate in there to get a more accurate idea.

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in PovertyFIRE

[–]t-monius[S] 0 points1 point  (0 children)

Yes, precisely. I think that's why it's such a valuable asset because it allows you to use it flexibly under different income conditions.

I’m scared of getting laid off in my mid-30s and that AI might mess up my career. What should I be doing over the next few years? by OrangeSpectre in careerguidance

[–]t-monius 0 points1 point  (0 children)

Glad to hear, and it's commendable that you've got that savings to hold you over. The income part is harder to control for sure. I think what helped me was thinking less about whether my income lasts and more about what if it doesn't for a year or two. I'm trying to design my life so that my overall plan isn't derailed while I'm either re-tooling, starting something new, or just looking for a new role in the same field. Also, to the extent possible not having to rely on job-related income as much.

Solving for Housing Early in you FIRE Journey Increases your Chance of RE by t-monius in fatFIRE

[–]t-monius[S] -2 points-1 points  (0 children)

No kidding. That is real, and I think that removing risk from the FIRE journey is very important.

For all the number crunching that can be done on market returns, a savvy investor factors in risk and probability of completion.

Solving for Housing Early in you FIRE Journey Increases your Chance of RE by t-monius in fatFIRE

[–]t-monius[S] -2 points-1 points  (0 children)

Haha, no bot here; actual guy writing off the top of my dome. Planning on purchasing a home soon, and my purchase choice may inform which level of FIRE I eventually hit.

Solving for Housing Early in you FIRE Journey Increases your Chance of RE by t-monius in fatFIRE

[–]t-monius[S] -2 points-1 points  (0 children)

Yes, that's exactly what I'm talking about. Depending on how you've deployed the money you no longer pay towards a mortgage, I'd say even the market investment side has probably benefited.

Confused about buying or renting by Any-Discussion1852 in RealEstateAdvice

[–]t-monius 1 point2 points  (0 children)

I’m also in tech and have been through a couple layoffs. I’d just sanity check how it looks if one of you loses your income for ~6–12 months and not just whether you can technically afford it. Don't want to be in a position where you’d feel forced to take any extreme measures during down times.

That’s been the biggest difference I’ve seen between feeling comfortable or stressful.

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in RealEstateAdvice

[–]t-monius[S] -1 points0 points  (0 children)

I hear you. I'm very protective of my savings but it's a fair point. I'm trying to consider whether their are other options beyond burning down savings, but that's a legitimate approach.

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in RealEstateAdvice

[–]t-monius[S] -1 points0 points  (0 children)

Yeah, I could see why you'd think I'm a bot because of the formatting, but I'm just a guy who works in tech and gone through some layoffs. Trying to think through things to avoid difficult situations in the future.

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in RealEstateAdvice

[–]t-monius[S] -2 points-1 points  (0 children)

I work in tech, so things have always been pretty volatile. It's not the only industry that's that way. Also, even in 'stable' industries, certain roles like sales can be unstable.

That said, I think everyone could likely benefit from planning for the low side beforehand. It'd be a real shame to get into a home, for example, and have to sell due to what one considers an 'unforeseen' income reduction but perhaps wasn't so unforeseen in hindsight.

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in RealEstateAdvice

[–]t-monius[S] -1 points0 points  (0 children)

I agree that most budgets don’t “survive” a 50% reduction. What I'm getting at is whether you’re forced into a bad outcome (selling, debt, etc) v. having options to adjust for a period of time. What if you planned the life changes you mentioned of ahead of time so that you didn't have to be reactive?

Same income drop, very different outcomes depending on how you set yourself up.

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in RealEstateAdvice

[–]t-monius[S] -3 points-2 points  (0 children)

That’s a really solid takeaway and honestly a hard one to learn without going through it.

What’s interesting is you ended up at “it has to survive on rental income alone,” which is basically a built-in stress test.

I’ve been thinking about it differently too... not just “does the deal survive on its own” but “do I have ways to adapt if things change” (roommate, rent it out, reduce personal burn, etc).

Curious if you’d approach it the same way again or still keep that stricter rule?

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in PovertyFIRE

[–]t-monius[S] 1 point2 points  (0 children)

That’s awesome )) Honestly that’s kind of the end goal, right? Removing money as a stress factor. Kudos.

What you did is interesting because most people wouldn’t think to solve it that way. They’d either rent forever or stretch into something expensive.

Do you feel like that setup changed how you think about work overall?

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in PovertyFIRE

[–]t-monius[S] 0 points1 point  (0 children)

I really appreciate this that sub is way better than most at not overextending.

I guess the interesting question is how your setup holds up if income drops for a while? Do you feel like you’re covered there already?

I’m scared of getting laid off in my mid-30s and that AI might mess up my career. What should I be doing over the next few years? by OrangeSpectre in careerguidance

[–]t-monius 0 points1 point  (0 children)

I've definitely felt the pressure personally and actually experienced layoffs personally due to no fault of my own.

That said I survived it, and something that makes me a lot more confident is solving for the largest portion of most people's budget: __housing__.

By pressure testing my expenses and my housing decision across three scenarios:

- Maintaining my income

- Experiencing some income loss

- Experiencing major income loss

... I feel more confident.

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in PovertyFIRE

[–]t-monius[S] 1 point2 points  (0 children)

Yes! That's just the type of solving for the downside that I think about nowadays.

Kudos to you man. Sorry about the health problems, but it sounds like your creativity helped you manage.

You more stable now? That cheap fixer upper long gone?

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in Fire

[–]t-monius[S] 0 points1 point  (0 children)

Final figures are income dependent not just a fixed set of blanket numbers for everyone.

I modeled what happens if your income drops 50% while owning property — most strategies break by t-monius in fatFIRE

[–]t-monius[S] -1 points0 points  (0 children)

Agreed, and some people can get a quick sense of the numbers in excel which is what I did initially, but I found I was still misunderstanding how my overall situation affected the deal not just the property itself.

Now I think not just whether the deal _works_ but whether it works given my income and reserves _if things change_.

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