Hello foolish friends, long time, no see.. but is good because I haven't needed you all much since getting out of BIG debt.. thats a very good thing.. right? :-).I have refered some friends here.. hopefully they have been given some fool enlightenment. I have been spending my time, dejunking, cleaning and gardening and with my now three grandbabies. I have found it much easier to toss, or donate things since the debt load is gone. We are still using our credit cards.. and sometimes, I wonder if we overspend from doing so. Right now.. we have $600 left of a washer/dryer purchase from Feb.. which is riding at 0 for a year with Lowes (love the samsung front loaders by the way) And hubby got a much, much needed grill last month..did my reseach and went with a webber genesis stainless steel, cover and tools.. which was just over 900. Its so nice and with good care hope it will last us for many, many years to come. So here's whats new and why I am seeking you all today. (the bible does say seek the coucil of friends). hubbys boss took a postion in a neighboring state last week, My guy possibly has the opportuninty to jumpship as well. He currently works way way to much. (given a salary and some bene's three years ago and he works almost nonstop. If he is not out physically he is running stuff from a phone. I don't see that changeing he is in to his 5th year. From our current home it is just over an hours drive to where he reports and then he runs form one to 4 different military installations daily. Its rare that we have dinner before 8 p.m. sometimes later. So off the cuff.. his boss says to him last week.. I can probably get you another 10K, if you can come down here too. when hubby didn't say.. yes, immediately.. the boss said.. let me pass it in to cooperate that you might be willing and let them possibly work on you an offer. Over the weekend, I have looked at homes in the possible new area and happily see that we could potentially buy a nicer or bigger home there or get something about the same as we have here for less than home sales are in our area. A quick mapquest shows just over a 4 hours drive from that area to my grandkids.. so we could do some driving/meeting to pick up and exchange to be sure we stay close with them .. VERY IMPORTANT> So some questions.. our current home is paid (just last year) and in this market.. we would consider renting this home if we left the area. The latest assessment has gone down in value to 155,200. If I remember correctly it was about 74/76,000 in 1991 at purchase. Could we take a full loan on this home to purchase a new home.. and what is a full loan? I am green in this area.. or would we just need to borrow out a down payment for a new house. We are debt free but no money stacked. For the last 6 months.. we have been spending money on new things we needed.. and new heat/air/exterior lighting/plumbing/insullation and a bathroom remodel that HOPEfully will get finished this month. We were going to go on from there and do new windows, interior doors, floors and new kitchen cabinets/appliaces. but obviously if we rent.. maybe carpet instead of the hardwoods and other choices like such. Sorry, I got long.. any advice or opinions appreaciated.. I will check back this afternoon. Going to try to go water again. rain needed badly! Cherie
With everything going on in your life, why on earth would you want to a) become landlords with all the time and hassle that involves and b) acquire more debt?Sell the house and use the $ to buy another one, or just rent at the new location for a while. There's absolutely no reason to buy right away.I would also suggest that since you have no house payment, and still have no savings that taking a loan for a house payment might not be wise until you have figured out how to boost your savings habit (Hint: No one "needs" a $900 grill).
...My guy ... works way way to much... almost nonstop... I don't see that changing......in the possible new area ... we could potentially buy a nicer or bigger home there or get something about the same as we have here for less than home sales are in our area...Sell your current house. Buy something smaller and much less expensive in the new area, or rent. Save the difference, and start saving aggressively out of current cash flow so that your husband can retire, or switch to a lower-income lower-stress job, before he has a heart attack.... We are debt free but no money stacked...You are not debt free. You owe on the washer/dryer and probably the grill.
we would consider renting this home if we left the area.If you weren't going to change areas, would you consider moving into a different home in your current area, and becoming a landlord? Because if not, you don't really want to be a landlord, you just want to avoid selling your current home.Sell your house.The latest assessment has gone down in value to 155,200. If I remember correctly it was about 74/76,000 in 1991 at purchase. Could we take a full loan on this home to purchase a new home.. and what is a full loan?A 'full loan' is probably 75% - 80% of the appraised value, so if your assessment is correct, that would mean $116k - $124k. However, at least while the home is not a rental home, you can't deduct the interest on more than $100k, as you are taking equity out of your house, so I would not recommend taking out any more than that.Additionally, you have the issue of taking out money to buy a new home - which means that this loan would not be a loan on your primary residence, which means higher rates.We are debt free but no money stacked.Paying off your mortgage and trapping all your assets in your home without having adequate savings leaves you less flexibility in taking advantage of situations like this.AJ
Are you sure that you aren't just going to be jumping from the frying pan into the fire? Right now, your DH is apparently running himself ragged at work. Now his former boss, who presumably had something to do with him running himself ragged at work, wants to try to arrange for him to work with him in another location. What kind of guarantee do you have that your husband won't just continue to work himself to a frazzle in a new location if you move?Now about the house: I'd make no hard decisions on that until you know for sure if your hasband is actually going to be offered a job with better pay and better hours.Regarding your "debt-free" status. No, you aren't debt free, although your debt is minor. But according to your post, and perhaps I misread the post: You still owe $600 on the washer/dryer and another $900 on the grill. BTW: if you live in an area where you use the grill year-round, I can see spending that much on it. If you live in a part of the country that has "BBQ season" you way overspent for what you got.So at this point, whether it's interest free or not, at a minimum you owe $1500. You paid the house off last year and since February you've incurred $1500 in debt. Before you make any life altering decisions, you need to get a handle on your spending. You seem to be confusing no house note with I can spend more than I make. Not a good way to do things.If, after checking out all the options, you decide that the new job really is what your DH wants. Sell the house. If you don't sell it, not only will you be on the hook for all the repairs that inevitably happen the second people who don't own the home move in, but since you'll be living so far away, you'll probably need to have a property management company handle the details, and that costs money. If you can sell the house for the mid-150s, then you'd be looking at a little more than $75K which could be used as a partial downpayment on another house. However, I would suggest taking a large portion of the proceeds of the sale and put them into an emergency fund. And then use it for emergencies, not new appliances.LWW
Only if you can charge enough rent to cover property taxes, management fees (unless you want to drive 4 hrs every time there is a problem) routine maintenenace and improvements, and all the monthly costs of your primary home as well, then renting out your current home is maybe not the best option. However, how fast you can sell your old home in this real estate market is also a big question mark.I would talk to a real estate agent who could advise you as to the rental market as well as give you a feel on the strength or weakness of real estate in your area. I would not borrow off the old home to fund the purchase of a new one. FuskieWho agrees with the suggestion of renting in the new location for a while until you are sure the new job (assuming there is one - no offer yet as I understand it) will take...
If you do plan on refinancing, you will need to do that before you convert to a rental, otherwise you may have problems getting financing due to it not being "seasoned" as a rental property.Unless you really, really want to be a landlord and have renters come in and treat your house like a rental property (esp. after all the remodeling you are/have done) than I'd opt to sell. You'll pay no taxes on the gain, and can buy your new house and have some money left to fund retirement, which it sounds like you may need.
legalwordwarrior,You wrote, BTW: if you live in an area where you use the grill year-round, I can see spending that much on it. If you live in a part of the country that has "BBQ season" you way overspent for what you got.FWIW, I've used a grill in the pouring rain and with snow on the ground. A grill can be quite versatile if it's near a door and sheltered from the worst of the elements.With that said, I consider our current $500 grill (Was that the price aj485? Or did we get it for $400? I forget.) is quite fancy and quite expensive. It's also overkill for two people. Likely we'll never use it's full potential since we only entertain family a couple times/year and that's not usually something off the grill... If money were tight, we'd probably still be using an old $100 rust bucket...- Joel
well, this isn't the LBYM Board where we compete to see who can save the most $ washing baggies...:)...but I have to say I grilled for 6 last night on a normal kettle type Weber I got at a garage sale. Chicken sate...yum!
FWIW, I've used a grill in the pouring rain and with snow on the ground. A grill can be quite versatile if it's near a door and sheltered from the worst of the elements.Joel,I'm in TX too and we use the grill as an outdoor oven/stove. So I agree. I think we spent about $600 on ours about 6 or 7 years ago. This was after DH had ordered replacement parts for pretty much every bit of the previous one and we finally had to let it go. It was a Bakers and Chefs and was awesome.The reason I mentioned "grilling season" is because there are folks further north than we are who only use their grills when there is no snow on the ground. My stepdad was one of those. He was from MN, and was the first person to ever mention grilling season to me. DH almost fell over when he did! Anyway, the idea of spending $900 on something that would be kept in storage from October through March every year just seemed wasteful.And before anyone starts: yes, I am fully aware that there are many, many people who live in cold climates and grill years 'round. PRobably while wearing a swimsuit!LWW
...but I have to say I grilled for 6 last night on a normal kettle type Weber I got at a garage sale. Chicken sate...yum!Totally yum! We made pork explosion over the weekend. It was seriously delicious. A combination of cooked bacon, sausage and thick-cut bacon worked into a weave that was grilled/smoked for 2 hours. Someday, when DH needs a new heart valve, his pig valve will have no fear of rejection ;0) LWW
And before anyone starts: yes, I am fully aware that there are many, many people who live in cold climates and grill years 'round.Yup!!PRobably while wearing a swimsuit!Um... no. hehehe.
<<well, this isn't the LBYM Board where we compete to see who can save the most $ washing baggies...:)...but I have to say I grilled for 6 last night on a normal kettle type Weber I got at a garage sale. Chicken sate...yum! >> I have a rickety old kettle grill that gets used only a few times per year---- almost always on Cub Scout outings for roasting hot dogs, marshmallows or making 'smores.The nice thing about that kettle is that children and parents can crowd all the way around it to roast their treats. It both gives a sense of togetherness as a group without unreasonably crowding people.I carve roasting sticks from branches off poplar trees around here, which work very well. While such things sound trivial, after doing this kind of thing a good many times for a group, you develop a measure of expertise and understanding of what it takes to make an event work well.Seattle Pioneer
Dang Yall.. some help not attack..Yes, have considered being a land lord before now. And was going to looking into it further for investment as the projects at the current home became completed. We have asked for option to buy home next door from elderly lady.. if she decided to sell. My parents have been land lords for many years.. my mom has a good retirement income from now three homes she owns. We are young grandparents :-). Boss doesn't run my guy ragged.. HE DOES.. as he wants to be a great superintendent. A commute to ONE military installation of 20/30 minutes would be much easier on him than over an hours drive each day each way ..and then running from there to 3 others. Considered requesting a 6 month paid rental with the offer that comes.. and hes pretty certain its coming. I haven't paid off the washer/dryer.. just because I am paying no interest on it anyways.. and the GRILL will be paid off when the bill comes. We use it from March - Oct.. 3 or 4or 5 nights a week.. and when all the family is here there are 24 of us..
Dang Yall.. some help not attack..You asked for "advice or opinions." That is what you've been given. It just happens to be advice that doesn't agree with what you already decided that you wanted to do. That doesn't make it an attack. Read the advice as if you hadn't already decided what you wanted to do. You have been given some advice that should be considered. What you decide to do with it is your decision.Another issue to think about is your capital gains liability when you eventually decide to get rid of the house. I believe that you can sell it now and buy another with no capital gains liability for the difference between the $75k you paid for it and the $155k it is worth now.If you rent it, it will be listed as an asset that you paid $75k for. When you eventually sell it you will owe capital gains on the difference between the purchase and sell price. That will be a significant amount of money.
Dang Yall.. some help not attack..You asked for advice and opinions. Just because they don't agree with what you wanted to hear, they aren't attacks.Yes, have considered being a land lord before now. And was going to looking into it further for investment as the projects at the current home became completed. We have asked for option to buy home next door from elderly lady.. if she decided to sell.Okay, but 4 hours away is a lot different than next door. The complications of renting out a home that is 4 hours away are a lot bigger than renting out one that is next door. If you drop everything when you get the call that the xxxxx is broken, you probably have a minimum of 4 1/2 - 5 hours before you can gather up the tools and get there to fix it, and even then, you may not have brought the right tools. Next door, it's 5 minutes to go assess the situation, and then another 5 minutes to find the right tool(s) before you can start fixing it.And you still didn't answer the question - would you be willing to move out of your current house and move into another one nearby in order to rent your current house out?With the new tax rules for rental housing that used to be your principal residence, you will be giving up some of your capital gains tax exclusion. And if you don't understand the complexities of this, you really need to consult a tax advisor before making the decision to turn your current house into a rental.If you want to be a landlord, then buy a house to rent out, whichever place you end up. But don't become a first-time landlord on a house that's 4 hours away just because you don't want to sell your current house.We are young grandparents :-).That doesn't negate the fact that you seem to have no liquid assets, and few assets other than the equity in your house. You said that you have no savings (i.e. liquid assets). Having no savings, even with a paid off house, is causing you a liquidity crisis of 'how do we come up with a downpayment for another house without selling this one?'Boss doesn't run my guy ragged.. HE DOES.. as he wants to be a great superintendent. A commute to ONE military installation of 20/30 minutes would be much easier on him than over an hours drive each day each way ..and then running from there to 3 others.The boss doesn't keep your guy from running himself ragged, so he's condoning it - just as bad, and not likely to improve with the move. While he has to drive to other installations, it's considered part of his job, so the fact that he's working 10 or more hours a day isn't going to change as part of a new job, it will just be that he won't be driving to other places as part of his new job - he'll still be working those long hours as long as the boss condones it. And part of the reason the boss is asking DH to come along is because he knows that DH will work those long hours.The commute itself would be a good reason for you to turn your current house into a rental and move to a house thats closer to DH's current job. If you haven't considered turning this house into a rental that's 20 or 30 minutes away, then why do you want to turn this house into a rental that's 4 hours away?AJ
I'm very proud of the cookers my husband has made out of 55 gallon drums and various other things; one is a smoker and the other is not.(and if anyone will be in Texas in early Aug. look for my birthday party on facebook) Then again, DH is rather good with fire, physics, metals and cooking.joycets
Dang Yall.. some help not attack..Cherie, if you just wanted a bunch of people to say "Oh yes, by all means have your husband change jobs, and move 4 hours away and take out a loan against your paid-off house and rent it out instead of selling it."I think you might have come to the wrong board.LWW
I was thinking of suggesting she try the "buying and selling a house" board, but I read through the replies first.joycets
I was thinking of suggesting she try the "buying and selling a house" board...She did.
You seem to have made up your mind. Given that, I'm not sure why you asked for advice. No attacks were given.- Quality of life matters - if you want to be an absentee Landlord, knock yourself out. I wouldn't manage a property 4-hours from my house that I needed to keep rented for income to pay bills under any circumstances.- If you don't mind potentially losing the capital gains exemption, or are sure you can sell that property with no delays or problems within the timeframe given to still use it - fine, rent it out.Many of us think differently, but we aren't you. You did ask, and I think got a pretty consistent response from many different people. What you do with that is your decision.
FWIW, I've used a grill in the pouring rain and with snow on the ground. A grill can be quite versatile if it's near a door and sheltered from the worst of the elements.Us, too! (Well, Gary does the grilling. I'm in charge of the sides.) He's been outside in his coat and earmuffs with snow falling on the grill.Our grill is a hand-me-down propane from my husband's grandmother. It's over 25 years old and still works great. We just replaced the burner this summer, and that cost us around $30. But, I don't have a problem with someone buying a $900 stainless steel grill if they can afford it. Everyone's entitled to spend their money on luxury now and again. My husband goes to a lot of demo derby events. I buy froo-froo yarns. Some people work hard and like to play with a fancy-pants grill.
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