All Forum Posts by: Account Closed

Thank you!

We have the ability to pay $200K on our existing loan which is at 4%.

Instead I am wondering if I should invest in an addition (approx 600 sq feet), 1 master bedroom, 1 bath & space for office. Current home is ranch style, 2200 sq feet and we have the lot size to support this addition.

The addition will give us the ability to rent out a portion of the house (2 bedrooms + 1 bath) which could be rented for approx $2000 per month+utilities. This will not interfere with the main portion of the house.

The addition will also increase the property value by approx $500 per square feet.

$200K will not buy us another house in Bay Area, I am reluctant to go out of state and I don't want to invest in the stock market. So I think addition makes sense to me however not sure if I am missing anything?

Any chance would it be possible to add a dial in, So people who cannot attend in person can listen in?

Anyone?

One more! 

5. And would Prop 10 be applicable to ADU's as well?

Hello, I was ignorant about Prop 10 until I joined this forum. I have a few questions

1. If your place is rented for say $x, can you keep renting for that rent after Prop 10 is passed? or do you have to lower the rent?

2. If the tenant moves out, are you allowed to increase rent? If yes how much?

3. I am reading that builders will not be motivated to build new housing. why is that? Is it because a lot of people buy properties as investments and rental income?

4.  What will Prop 10 eventually do to home prices?

Thanks in advance!

So I think for landlords who rent at Market rates, probably Prop 10 wont hurt them as much? We just rented our townhome at Market rate. 

How much of a rent increase can you do in future with Prop 10?

My daughter's piano teacher gave me this tip, giveaway everything you haven't used in the past 2 years or not likely to use for another year. You might regret giving away a few thing however about 99% of the things wont even matter. I used this tip recently when we moved and I must say I didn't realize we had so much stuff. Now my new home feels so organized and I think I got my life back!  

I have also kept a giveaway bin in the laundry room where I have been collecting clothes, toys, etc & will make regular trips to the goodwill. 

@Kent McDaniel

I think its great you have no mortgage on your home. It is definitely an asset. You are using this asset to enjoy your personal lifestyle and I think some pleasures in life are just that, pleasures and equating it to money is probably unwise. 

Yes you can always generate income on it but pulling out by way of HELOC, that's your personal choice and the risk tolerance you have.

@Andy Bills

Andy I felt I was reading my story :) We have a home in Santa Clara, have a $500K loan left on it for 3.5%, we just rented it out for $4300 & bought a SFH in Milpitas for better schools (I have 2 girls)

The way I look at it, we would never be able to buy a property for such a low price & at such a low interest so why sell it? and someone else is helping us paydown the mortgage for the Santa Clara home

We ended up buying a home with a huge lot size in Milpitas (12K) and now I am looking to add value to the plot by adding an ADU & expanding rooms & generating some rental income.

I know the market is high but I feel if you buy a property where you can add value it would be well worth it even in this market.