The Super Official Homeowners Thread

[Deceus]

I spent 30 years in Fairfax and Loudoun County - never stepped foot in Massanutten once but have been to all the other places mentioned. shrug

Remember you have to deduct your mortgage interest from your gain. You aren't making 6% on the full house amount, you're making 6% on your equity and roughly 3% on your mortgaged value. Based on your numbers, you're making about 4.25% to keep the place. That's a losing prospect against the market. Don't forget it would also cost money to refinance and put money down for PMI. Subtract more if you're paying someone to manage the property. I think a 2-3% rate of return is more accurate in your situation.

What's the break even on refinancing and closing costs? It's got to be a few years. Seems crazy to me to refinance if you think you might sell it before you break even... especially if you don't need to get from under the VA loan at this point.

Break even is as low as 2-3 years, obviously depends on the rate I get and the exact closing costs but wouldn't take long if I went from 4.6% to 3%. Won't need to for sure but would like to have full eligibility back ASAP so I'm free to move on anything I see as fast as I need to. Would hate for something perfect to pop up just a little early in my planned timeline, priced well and have to miss out again because I need 45 days to get funding or barely miss out because it's not quite done processing. I won't lose any sleep if I sell super early for some unforeseeable reason and the move cost me a 2 or 3 grand so I'm just gonna start the process now.

Not putting money in the market this year regardless but my point of view is this:

$350k * 3% is still 10.5k not counting rental income. $35k * 15% is 5.25k. I know the market overall is better but shorter term I'd still only gain half what I could simply holding onto the house. And that assumes I have the discpline to put it all in. The real deal breaker is it just doesn't feel safe putting money in unless there's another big dip. My luck, this long run comes to an end the day I drop a couple ten thousand into it. May consider selling and putting the house profit into the market when it does drop though. That's a different conversation for a different day. Right now I'm just trying to maintain momentum and build up something worth talking about.

I know there's a break even point there too especially if I considered throwing what would be money paid to rental expenses into the pot every single month but I know I'm not going to do that. The hidden benefit of the real estate route is it leaves me no choose but to be all in.

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