All Forum Posts by: Andrew G.

Thanks so much! Appreciate the local insights. Unfortunately we're a bit restricted on location because we are balancing two work locations - Devens & MIT. Any thoughts on evaluating ROI differences between the two options?

We are moving to Boston (zip 02144) and have about $200K available for a down payment. Rent for an apartment that would meet our needs is $2-2.2K/mo. We will be in Boston for 3 years at least.

Painting in broad strokes, it seems like any house hack I can find in the area would not do much better than breaking even each month (assuming we don't live there).

Of course, when you factor in that we would be paying towards P&I rather than towards rent, the hack looks attractive.

Am I better off investing elsewhere and just paying rent in Boston? It adds up to $75K over 3 years which is hard to stomach but I have a suspicion that doing so might actually be the better decision.

Thank you. 

For those who say sell - can I get investment mortgages with no income after quitting my job?

For those who say hold - even if I need a HELOC to cover negative cash flow?

Thank you, seems like more arguments in favor of selling than holding. In general I do not expect to move back to this area. Any thoughts on the following question mentioned earlier?

- I may not have the time/energy to reinvest the proceeds in anything but completely passive vehicles (stocks, CDs, savings accounts, etc) over the next two years while I focus on school. What if interest rates are much higher after that, or a market shift means there will be less to be had for the same amount? Even if I manage to carve out time, will anyone lend to me while I have no salary?

I appreciate all of the input thus far! The arguments for selling generally seem to make a lot of sense, though I'm not sure tuition is a good reason to sell. I think I could stomach ~$30-50k in student debt.

That's a fair point. I think the best way to frame the question is "which option has the highest present value over the next 15 years?" Sounds like if I were to do a NPV analysis but throw in an uncertainty factor for appreciation rather than just assuming a 3% increase, I might start to lean away from holding.

Even if I don't expect to return to this area?

Interesting, thank you very much for this information. What about the following factors?

-This area seems to be on quite the upswing with a lot of growth. Tech companies are coming into the area, etc and chances of significant appreciation feel much better than 50/50.

-3.5% fixed interest rate is amazing and seems unlikely to happen again.

- Commissions & selling fees will wipe out 15% of the 300k equity.

- I may not have the time/energy to reinvest the proceeds in anything but completely passive vehicles (stocks, CDs, savings accounts, etc) over the next two years while I focus on school. What if interest rates are much higher after that, or a market shift means there will be less to be had for the same amount? Even if I manage to carve out time, will anyone lend to me while I have no salary?

- In case I've underestimated the rent that could be charged for this unit, is there a monthly cash flow that would be reasonable? Given the high property values in CA, 1% / month would be completely ridiculous but I could see it potentially fetching $4k. This is still far short of the $30-$40k annual cash flow you describe.

Moving across the country for a 2-year graduate program with a $120K total cost of attendance over 2 years (includes room & board) after scholarships.

I own a 3b/2.5ba townhouse in Los Angeles (Culver City area) that can rent for ~3500 monthly, perhaps a bit more. My PITI is $3100 and HOA fees (incl assessments) come out to 450/mo. Currently two of the bedrooms are occupied by tenants and I occupy the third.

Mortgage balance is $515k, bought for 615k in 2014 and would probably appraise for 820k now. Rate is 3.5% fixed.

Should have 80-90k in the bank at time of moving. Will also have a 100k heloc (0 balance) available plus 20k in unsubsidized Stafford loans available per year, along with other student loan options.

I could choose to manage remotely, hire a property manager, or sell. Seems like managing remotely has the highest present value assuming a 3% appreciation and escalating the rent and expenses at similar rates.

I'd love to be able to keep this place as a 20+ year investment that will appreciate (especially given the low interest rate and pain of paying agent commissions), but want to be objective.

My soon-to-be fiance (~$80k gross salary) is moving with me and can help absorb some negative cashflow but for discussion's sake I'd like to assume most of the school expenses won't be funded by her.

Thoughts?