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Updated about 19 hours ago on . Most recent reply
Potential New Build
I am looking at a potential new build. We currently have a 7yr old town-home that is a rental. I am current stationed overseas. My wife and I both work, besides the current house we are debt free. We could pay off the house but have been holding onto a chunk of $ to see what (was hoping for some more stock volatility). It is currently a little over $300K in a money market earning ~4.2%.
The current house we have a mortgage for about $170k at 7.25%. At this point it has just been a tax write-off. I am currently slightly negative every month after mortgage. That is because I make an additional payment on principal every month on top of the normal mortgage.
We're looking at buying a new town-house in the same area. Done what research I can from overseas. I would again be managed by my PM. It is currently going for $250K. Was thinking about putting 50% down and traditional the rest.
I have read plenty of books by Turner, Keller, and a few others. One of the biggest things I see is don't just read, do. So I am trying to do. However, I am still new at this. With such a large amount of money, I would rather ask for opinions than make a mistake, if I can avoid it.
Things I have also thought of:
- I plan for the worse and hope for the best. So I can float my mortgages if I need to w/o renters
- toyed with different down payment options
- Rent would go for about 1500-1700 so not a 2% or even really a 1% but I am looking at the long game. Not planning on tossing the house after a few years.
- I managed to get my property manager to drop their fee by 1% per property since I am working with them on this deal currently (currently 10%)
The HOA is slightly more on the new house (70$ a month). But it includes the same thing as my previous (clubhouse, fitness center, lawn care, roof and external property care). the new HOA also would have a pool. I know some people are really anti-HOA, and I am not a fan myself, but it makes scheduling lawn care or relying on a tenant one last thing to worry about.