All Forum Posts by: Jerry Gates

Thank you for all the valuable information. I have started looking in these areas.

I see that there are some homes in Manchaca area as well. Any information about this area?

I am looking to buy SFH in Austin around 200k for investment purposes. Any suggestions on which area I should look around?

Thank you all for the insights. That really helps. I have no plans of investing the money right now and considering the depreciation and other expenses looks like its a much better investment to keep the house.

Thankyou @Kevin Young and @Susan Gillespie for the IRR information. I will hang on to the property for the foreseeable future unless the IRR numbers says otherwise.

We don't need cash right now, but just trying to figure out if this is a good investment to keep. We bought in 2010 for 510K, and it's close to Woodinville in Redmond ridge area.

Our property does not fit into 50% or the 2% rules; but I am still in a dilemma of weather to rent it out or sell the home. Any wisdom in the matter is really appreciated.

Here are the details:

• Market: Seattle area
• Mortgage is at 62% LTV @ 3.25/30 years and in year two.
• Rent: 0.6% Purchase price
• If we sell it now, we would make about 30K on top of down payment amount after covering the mortgage, commissions, closing.

Our home is in a very good rental market and I expect minimal vacancy rate for several years. Its a newer home (Built in 2009-2010), so I do not expect big maintenance expenses for some years either. We are currently managing the property ourselves. Rent leaves us with about 400/month after covering mortgage, taxes, insurance and HOA. Should we continue renting it and consider the equity+appreciation in cash flow?

Does the 50% or 2% rule matter in high priced markets like Seattle/SFO?

Thanks,

Jerry