Dramatic Downsizing - Dafuq Do I Doit?

[Desertbreh]

Sure, if you like your kids and respect your kids, its an easy way to......make even more money? So many ways. Buy some income producing real estate, gift your kid(s) 1/2 an interest in it. Manage the real estate as partners.

1. Bi-weekly management meetings where you shoot the shit, talk about the biz and all manner of other shit and consume a steak.
2. Annual Company Meeting at X. Company pays for the whole shooting match, you and Michelle bro out with the popster at a location to be determined.

Everybody wins.

This is a very interesting thought.

My dad has serious adversity to investing in real estate. I think due to the hassle and high chance of failure. At this point, I think he just wants to fuck around on vacation and whatnot.

Versus something reliable like stock picking? Chris, if I won the sperm lotto I would be way less into the stock market and way more into shit I have greater control over. Like a fking apartment building.

[goIftdibrad]

missed this.

Changes the game. But why not buy one of the cheaper places CAsH MONEY BITCHES instead of pissing away literal thousands on loan origination fees and interest over time and use the money that you are not paying on an actual mortgage to upgrade over a short time?

The closing cost stuff is all covered by the relocation package whether we buy a $50k or $500k place, so it's really a matter of interest and taxes being higher on a more expensive place vs a cheaper place having more money poured into upgrades that you'll never see a return on. Both options are a bad investment, but it'll probably be pretty much one or the other based on the conversation last night.

It's kind of like putting $10k in mods into a base vs buying a stock

re: interest. You will piss away another house worth of money in 15 years of interest on a typical home loan.

If they are gifting a large enough chunk that a cash purchase on a place (like one of those nice 150k joints) is possible, it's a discussion that 100% should be had.

imagine not having a mortgage. JUST FUCKING IMAGINE IT

[troyguitar]

The closing cost stuff is all covered by the relocation package whether we buy a $50k or $500k place, so it's really a matter of interest and taxes being higher on a more expensive place vs a cheaper place having more money poured into upgrades that you'll never see a return on. Both options are a bad investment, but it'll probably be pretty much one or the other based on the conversation last night.

It's kind of like putting $10k in mods into a base vs buying a stock

It's a little different IMO.

A house below market value (because it needs work) in a fantastic area has great investment opportunity.

This isn't a fantastic area and there isn't the option of buying in one of those instead.

~4% annual property tax and ~1% annual appreciation == there's no good investment here, just varying levels of ones so I'm looking at what's the least bad option, with of course some consideration for actually enjoying living there.

[ChrisoftheNorth]

This is a very interesting thought.

My dad has serious adversity to investing in real estate. I think due to the hassle and high chance of failure. At this point, I think he just wants to fuck around on vacation and whatnot.

Versus something reliable like stock picking? Chris, if I won the sperm lotto I would be way less into the stock market and way more into shit I have greater control over. Like a fking apartment building.

He doesn't want to do anything And I work a job that keeps me in the office for 10-12 hours a day. No way to manage properties and whatnot.

I've mentioned it to him a few times, he out instantly.

[Desertbreh]

The closing cost stuff is all covered by the relocation package whether we buy a $50k or $500k place, so it's really a matter of interest and taxes being higher on a more expensive place vs a cheaper place having more money poured into upgrades that you'll never see a return on. Both options are a bad investment, but it'll probably be pretty much one or the other based on the conversation last night.

It's kind of like putting $10k in mods into a base vs buying a stock

re: interest. You will piss away another house worth of money in 15 years of interest on a typical home loan.

If they are gifting a large enough chunk that a cash purchase on a place (like one of those nice 150k joints) is possible, it's a discussion that 100% should be had.

imagine not having a mortgage. JUST FUCKING IMAGINE IT

Implicit in the grant of these funds is an expectation that the rents will be invited to spend some time there. So split the difference and have a small mortgage that is going almost entirely to equity, and have a big enough place that the in laws can spend some time comfortably for everyone. THEY GET SOMETHING OUT OF THIS TOO. Gotta play by the rules.

[Desertbreh]

Versus something reliable like stock picking? Chris, if I won the sperm lotto I would be way less into the stock market and way more into shit I have greater control over. Like a fking apartment building.

He doesn't want to do anything And I work a job that keeps me in the office for 10-12 hours a day. No way to manage properties and whatnot.

I've mentioned it to him a few times, he out instantly.

Just have Michelle quit her job, stay at home and manage the whole thing.

[ChrisoftheNorth]

It's a little different IMO.

A house below market value (because it needs work) in a fantastic area has great investment opportunity.

This isn't a fantastic area and there isn't the option of buying in one of those instead.

~4% annual property tax and ~1% annual appreciation == there's no good investment here, just varying levels of ones so I'm looking at what's the least bad option, with of course some consideration for actually enjoying living there.

"fantastic area" is relative for the entire region. Some are better than others.

First is enjoyment in where you live, If you it to death, you might not end up with that.

[troyguitar]

The closing cost stuff is all covered by the relocation package whether we buy a $50k or $500k place, so it's really a matter of interest and taxes being higher on a more expensive place vs a cheaper place having more money poured into upgrades that you'll never see a return on. Both options are a bad investment, but it'll probably be pretty much one or the other based on the conversation last night.

It's kind of like putting $10k in mods into a base vs buying a stock

re: interest. You will piss away another house worth of money in 15 years of interest on a typical home loan.

If they are gifting a large enough chunk that a cash purchase on a place (like one of those nice 150k joints) is possible, it's a discussion that 100% should be had.

imagine not having a mortgage. JUST FUCKING IMAGINE IT

It's nowhere near that much, but just FYI:

The P&I on a here is roughly equal to the taxes+insurance, like one to one. The amount spent on interest even during the super first few years is only 1/3 of your total payment... so it's pretty easy to imagine not paying it - you'd have a slight reduction in expenses but nothing life-changing.

[Desertbreh]

I'm happy with this story for some reason, Troy being given money he has to on is a pretty amusing byline.

[troyguitar]

I'm happy with this story for some reason, Troy being given money he has to on is a pretty amusing byline.

[CaleDeRoo]

DFD Summer Slam 2020

4 hrs from philly, 4 from toronto, 5 from dc, 7 from the troit, 0 from corning

Probably some awesome driving roads and mountain biking.

Unfortunately it's NY, so all dirt roads are probably off-limits to

Not much twisty stuff here. The finger lakes region is great for looking out the side window though.

[troyguitar]

Not much twisty stuff here. The finger lakes region is great for looking out the side window though.

Really?

Even if there are curves, NYS cops are motherfuckers. 2 of my 3 lifetime speeding tickets were up there and I haven't spent much time in that state.

[goIftdibrad]

re: interest. You will piss away another house worth of money in 15 years of interest on a typical home loan.

If they are gifting a large enough chunk that a cash purchase on a place (like one of those nice 150k joints) is possible, it's a discussion that 100% should be had.

imagine not having a mortgage. JUST FUCKING IMAGINE IT

Implicit in the grant of these funds is an expectation that the rents will be invited to spend some time there. So split the difference and have a small mortgage that is going almost entirely to equity, and have a big enough place that the in laws can spend some time comfortably for everyone. THEY GET SOMETHING OUT OF THIS TOO. Gotta play by the rules.

Completely reasonable.

[goIftdibrad]

re: interest. You will piss away another house worth of money in 15 years of interest on a typical home loan.

If they are gifting a large enough chunk that a cash purchase on a place (like one of those nice 150k joints) is possible, it's a discussion that 100% should be had.

imagine not having a mortgage. JUST FUCKING IMAGINE IT

It's nowhere near that much, but just FYI:

The P&I on a here is roughly equal to the taxes+insurance, like one to one. The amount spent on interest even during the super first few years is only 1/3 of your total payment... so it's pretty easy to imagine not paying it - you'd have a slight reduction in expenses but nothing life-changing.

I put 20% down and have like a 3.5% rate and I still paid over 8k in interest the first year; the math aint that good now.

But i see your point about the taxes.

But yea, even if you can get up to over a 50% LTV ratio there are significant savings to be had in interest payments. Also maybe can consider a 15 year to save on interest.

[CaleDeRoo]

Not much twisty stuff here. The finger lakes region is great for looking out the side window though.

Really?

Not really that I know of. Maybe a few in the Adirondacks, Letchworth would be fun if it weren't for cops

[wap]

Now she wants this place:

https://www.zillow.com/homedetails/580- ... lpage=true

hitting this again. This is a no from me. It's all cheap finished, way too much space for 2 people, and fuck everything about that yard. Also, skylights on shingle roofs. The kitchen is all kinds of

And I reiterate, 307 days on zillow, there is a reason it isn't selling.

[CaleDeRoo]

Looks like there's a pretty large multi day F car event in the area each year.

https://www.fca2018.org/

Also looks like you have the old style Wegman's. You'll here more about Wegman's when you move. It's not that great but people here think it's not only the second coming of Jesus, but also the most important. You can save $20-30 a trip just by shopping at Walmart.

[troyguitar]

Looks like there's a pretty large multi day F car event in the area each year.

https://www.fca2018.org/

Also looks like you have the old style Wegman's. You'll here more about Wegman's when you move. It's not that great but people here think it's not only the second coming of Jesus, but also the most important. You can save $20-30 a trip just by shopping at Walmart.

Yeah I've been to both the Fiero show and Wegmans. We used to live in Williamsport, PA and my wife commuted from there up to Corning for 2 years.

[CaleDeRoo]

But have you been to BerettaFest?

[troyguitar]

But have you been to BerettaFest?

The gun show, right?

[CaleDeRoo]

But have you been to BerettaFest?

The gun show, right?

[Tar]

DFD Summer Slam 2020

4 hrs from philly, 4 from toronto, 5 from dc, 7 from the troit, 0 from corning

[Tar]

re: interest. You will piss away another house worth of money in 15 years of interest on a typical home loan.

If they are gifting a large enough chunk that a cash purchase on a place (like one of those nice 150k joints) is possible, it's a discussion that 100% should be had.

imagine not having a mortgage. JUST FUCKING IMAGINE IT

Implicit in the grant of these funds is an expectation that the rents will be invited to spend some time there. So split the difference and have a small mortgage that is going almost entirely to equity, and have a big enough place that the in laws can spend some time comfortably for everyone. THEY GET SOMETHING OUT OF THIS TOO. Gotta play by the rules.

Prerequisite of taking the loot. Desert is the voice of reason.

Re: paid off mortgage = saving the monthly outlay on the mortgage. You're still paying the taxes, utilities, repairs, insurance, car shit, food, entertainment, drugs/alcohol, etc etc. The money saved ends up going into something else shortly afterwards.

[wap]

You caught a break then, you are a have in 2019, not a have not. FWIW, I agree that this is a good use of $ by the rents. By all accounts their daughter and and their son in law are worthy recipients of their patronage so what's next? Also, you are king for a day for admitting this openly. Sometimes nice people catch a break by inheritance or otherwise. Rudy, Melon, and you and the wifepiece are but a few examples.

I think it's a growing trend with olds. My dad has mentioned a few times that he'd rather spend my inheritance with me. He's been bringing it up more and more recently since he retired, but no idea what will materialize. I'll be glad to do whatever with him.

I don't think this is a bad thing to be ashamed of at all. Just own it.

My mom has taken my bro and me to Greece, and me and the Mrs and bro and his Mrs and 2 CF on a cruise and a trip to Mackinac Island. As she says, she's spending our inheritance while she's still alive so we all enjoy it together. What she's really giving us is more 5/7 memories of her that we'll have forever.

[wap]

Implicit in the grant of these funds is an expectation that the rents will be invited to spend some time there. So split the difference and have a small mortgage that is going almost entirely to equity, and have a big enough place that the in laws can spend some time comfortably for everyone. THEY GET SOMETHING OUT OF THIS TOO. Gotta play by the rules.

Prerequisite of taking the loot. Desert is the voice of reason.

Re: paid off mortgage = saving the monthly outlay on the mortgage. You're still paying the taxes, utilities, repairs, insurance, car shit, food, entertainment, drugs/alcohol, etc etc. The money saved ends up going into something else shortly afterwards.

Us paying off our a year ago yielded a much more month to month windfall than I expected because, as Surf said, that money quickly goes to other things.
Still very glad we did it,