Posted by Brad Crouch on May 26, 2000 at 02:17:33:
that in order to pay $550 per month in rent, it actually means you must earn around $825 to make that payment (due to Federal & State income taxes). This is because rent is paid with “after tax” dollars.
As a “homeowner” you are not “renting”. You pay THOSE monthly payments with “after tax” dollars. So you don’t really have to wait for the “purchase price” payments to go down to a lower level than the current rent in order to avoid “loss”.
Naturally, the amounts mentioned would be slightly lower if you live in a state with no state income tax.
Brad
Should i try to buy this one? - Posted by Tim Fitzpatrick
Posted by Tim Fitzpatrick on May 23, 2000 at 20:32:57:
This is the most interesting site i have ever found!!!
Thank You all for your input
Ive been renting this house for 3 years.
5 bedroom/1.5 bathrooms 3 story row house.
When i moved here it was unoccupied for about 2 years,the owner raised his family here, he moved into a single home, and rented this one. He had a real bad tenant that wreaked the house. He made repairs(took him about 1 year to fix it all)and put it on the market. It didnt sell so he put it up for rent again for $650.00 per month/reduced it to $550.00 per month with the deal being he could show it…still on the market! Needless to say it didnt sell yet only 2 people have showed up to see it and that was about 2 years ago. Across the street is a working mans bar with a fair amount of noise in the summer. When i moved in it was listed for $74,500.00.
6 months ago the house at the other end of the row, just like this one, sold for $50,000.00 and it was in need of updating…windows, carpet, ect…just like this one! Im a handy guy and i dont bother him with the little things that go wrong(it takes him too long to show up to fix things, and he gets upset about it) What are your thoughts on this property? I know he wants to sell but with me here he has no “pain” How would you work this one?
Im sorry this was long but i wanted to give you a history on the place.
Tim Fitzpatrick
I would try… - Posted by Bud Branstetter
Posted by Bud Branstetter on May 23, 2000 at 21:25:11:
I would first try to determine what the FMV of the property is. The 50K one down the block may or may not be comparable. I would get an option to purchase with as much rent credit as I can get. When the payment on the purchase price becomes lower than your net rent then it is time to consider buying. With interest rates up recently it is a question as to where they will be when you want to buy.