All Forum Posts by: Andrew Garner

Scott W. Insurance and taxes together are $1400 a year and my total payment is $795. $559 is principal and interest and $236 is PMI. I would like to refinance if I were to keep it which would lower the payment to about $450.00

I must admit my savings account is pretty low at $5k which I forgot to mention and would probably change most of the rental equation.

I do like your idea of a cash our refinance though. Thanks!

Thank you for all of the responses so far! To answer a few of the questions. We do not need to move now. I am fine waiting awhile. Second the rents in the area for a 3b/2ba are $1150.00.

Elliot Mendoza I am perfectly happy waiting to eat a better tasting cake!

I do have one more question. If anyone had a chance to look at the spreadsheet, I was told that my expenses are probably a little to low and I need to be using the 50% rule. How does that work exactly?

I have been lurking around this website for awhile now and been listening to the podcasts. Sorry if I put this in the wrong sub forum it looked like the right one to me.

Ok so I have been interested in investing in real estate for a long time and I finally feel like I will be able to within the next few months/years. I just graduated from college in December and I have landed a wonderful job! My wife and I currently own a house. We purchased this house for $112,000 in August of 2011, which happened to be pretty near the bottom of the market in the Phoenix, AZ market. We did a FHA 3.5% down and my wife is an agent so we actually made money on the purchase of the house. Any future real estate transaction costs will only be for the sale of the property.

On to my question… My job is about 35 miles one way from our current house so we would like to move a little closer to my job. My question is, should I sell this house pay off all the debts and move closer now and purchase my first rental in a year or should I keep the house and move closer when I have the money for a new down payment and have this house be my first rental?

Info:

Salary: $57500
Wife’s Salary: $36000

Debts:
Car 1: $9850 @ 5%
Car 2: $5376 @ 5%
CC: $2500 @ 0% until October
Student Loans: $6625 3% no payments until September
House: $105,200 @ 4.625% - Refi possibility to 3.5% if decide to keep it

The house is worth about $185k now (my wife can pull comps and I am positive of this amount the Phoenix home market has shot up dramatically) and we would probably move into a $225k house closer as the prices are much higher in town.

Rental analysis https://docs.google.com/spreadsheet/ccc?key=0AtNNyLLaQ_HjdEEwVm1yWE9hb01HZFZfS1hsTnByZGc#gid=0

Please let me know if there is any other information that you need. To help me with this question!