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Old 09-05-2013, 10:16 AM
 
55 posts, read 79,002 times
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My friend owns a house in Richardson's Saddle Brook Estates. Its a paid off house, currently being rented out and managed by a property management company. Its coming back on market this month and causing a rift between the couple as they decide wether to cash on current market and sell or keep it as a rental property. Its probably a $400k house on rent at $3300 or so with 10% going to the manager, expenses include property tax, insurance, upkeep and repairs.

I believe it is feeding to PISD and looks like a nice area. What would you do if you were in their shoes?
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Old 09-05-2013, 10:23 AM
 
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It's definitely feeding to PISD. Stinson Elementary.
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Old 09-05-2013, 10:57 AM
 
Location: Blah
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Where is this couple currently living, is it paid off, do they pay rent, if so, how much, how old is this couple?
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Old 09-05-2013, 11:17 AM
 
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They live in University Park. Their home is partially paid off and husband wants to use proceeds from sale to pay it off and live care free. Wife believes that they can pay it off themselves in 5-10 years by living frugally and keep both homes for their retirement and later leave these homes to their two daughters if possible. Husband is in mid forties and wife just had her 40th birthday last month.
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Old 09-05-2013, 12:41 PM
 
Location: Blah
4,153 posts, read 9,267,863 times
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Quote:
Originally Posted by Maple Shade View Post
They live in University Park. Their home is partially paid off and husband wants to use proceeds from sale to pay it off and live care free. Wife believes that they can pay it off themselves in 5-10 years by living frugally and keep both homes for their retirement and later leave these homes to their two daughters if possible. Husband is in mid forties and wife just had her 40th birthday last month.
How old are the children and how are they set for college?
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Old 09-05-2013, 01:23 PM
 
177 posts, read 311,887 times
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Cash out on top, and when the market turns over one day use the $ to buy properties on the cheap!

A very rich man named Warren Buffett once said, you should "sell when everyone else is buying and buy when everyone else is selling".........

Last edited by aggieplaya; 09-05-2013 at 01:36 PM..
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Old 09-05-2013, 07:39 PM
 
2,206 posts, read 4,748,197 times
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Quote:
Originally Posted by Maple Shade View Post
They live in University Park. Their home is partially paid off and husband wants to use proceeds from sale to pay it off and live care free. Wife believes that they can pay it off themselves in 5-10 years by living frugally and keep both homes for their retirement and later leave these homes to their two daughters if possible. Husband is in mid forties and wife just had her 40th birthday last month.
If the rent is covering the expenses then this is a no-brainer. You must factor in depreciation and make repairs - and set aside this $$ each year.

When I was in my early 20s I put most of my money into RE - both raw land and homes.

I bought several hundred acres at $500 an acre and now it is worth over 5K per acre. Just paid the last of it off this year.

I now am into two homes on decent sized parcels and about half way to paying those off with renters paying the expenses on those.

They should keep their heads down and keep plugging away!
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Old 09-05-2013, 07:41 PM
 
2,206 posts, read 4,748,197 times
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Quote:
Originally Posted by aggieplaya View Post
Cash out on top, and when the market turns over one day use the $ to buy properties on the cheap!

A very rich man named Warren Buffett once said, you should "sell when everyone else is buying and buy when everyone else is selling".........

You make your money when you buy.

Buy low, sell high, hold for the low, then ride it up again.

The ONLY exception is a cash flowing asset with > 20% margin after ALL expenses including depreciation AND your time.

Or a startup looking for a first round...

Takes patience and a long view.
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Old 09-05-2013, 08:43 PM
 
55 posts, read 79,002 times
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Originally Posted by SVTRay View Post
How old are the children and how are they set for college?
Their daughters are teen, currently in high school with roughly $25k in each college account.
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Old 09-05-2013, 08:49 PM
 
3,820 posts, read 8,747,540 times
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So... he wants to save these houses to let his daughters inherit someday? One gets a UP house and the other a house in Richardson. Granted, probably a nice house. I'd love to see how that will reading goes.
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