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Old 04-29-2013, 03:24 PM
 
Location: The Berk in Denver, CO USA
13,953 posts, read 20,207,715 times
Reputation: 22591

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Quote:
Originally Posted by SkyDog77 View Post
my house will sell for $550,000
In East Wash Park, that is a scraper.
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Old 04-29-2013, 05:25 PM
 
Location: Washington Park, Denver
6,907 posts, read 6,501,326 times
Reputation: 7355
Quote:
Originally Posted by davebarnes View Post
In East Wash Park, that is a scraper.
That house is West Wash Park, but yeah, I paid $650 for my scrape in East Wash Park. 7900sq/ft lot.
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Old 04-29-2013, 07:09 PM
 
Location: Denver, CO - Capitol Hill
557 posts, read 665,611 times
Reputation: 513
Quote:
Originally Posted by SkyDog77 View Post
I was just told by a very conservative realtor who does a lot of business in my neighborhood that my house will sell for $550,000 "all day". If you put 20% down and take out a $440,000 mortgage at 3.5% on a 30 year fixed, the P&I payment is $1,975. I estimate that my house will rent for $2500-$2700 when I move out later this summer.

If you did a 5 year ARM at 2.5%, the monthly payments go down to $1738 a month.

You will have to pay taxes and insurance, but you also get a mortgage interest deduction. It's all about having the 20% to put down and excellent credit. If you don't have those two things, it probably doesn't make as much sense.
You used a conservative estimate for the value of the house, but then assume every best case scenario you possibly could. Getting a rock bottom rate, having 20% to put down, avoiding pmi . . . And the mortgage interest deduction is not dollar for dollar savings.

But why make that comparison strictly looking at P&I, when insurance and taxes are required (which you noted, but omitted from $). On that kind of house, it would add at least another $300 a month. And if you didn't have the 20%, which most people don't (especially on a house that expensive), you're looking at another few hundred dollars for pmi each month. Getting back to my point of renting makes total sense when you can rent a nice, heart of downtown apartment or loft for ~1,400 or so. Granted, you're not gaining equity in anything, but the cost disparity is significant, not minimal, between your example and mine.

I don't really understand renting a house though (assuming the renter doesn't have the means or requirements for a purchase) outside of known short term stays, for that kind of money. But even when, why incur such a disproportionate cost, and still get no equity in return? Rent an apartment and save money, then look to buy.

Last edited by JD401; 04-29-2013 at 07:20 PM..
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Old 04-29-2013, 08:17 PM
 
Location: in the good ol' South
865 posts, read 2,126,463 times
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I've been doing a lot of research online (planning on moving out next yr), and I've noticed that a mortgage payment would be MUCH less than a rental, of equivalent size/location. The problem is, of course, like it's been stated, coming up with all that cash for a down payment. I'll be doing a lot of saving b/t now and then, and see what happens...
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Old 04-30-2013, 09:18 AM
 
Location: Denver, CO - Capitol Hill
557 posts, read 665,611 times
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Quote:
Originally Posted by dgfurman View Post
I've been doing a lot of research online (planning on moving out next yr), and I've noticed that a mortgage payment would be MUCH less than a rental, of equivalent size/location. The problem is, of course, like it's been stated, coming up with all that cash for a down payment. I'll be doing a lot of saving b/t now and then, and see what happens...
I don't think you'll find many 800-1000 sq ft houses.
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Old 04-30-2013, 09:21 AM
 
Location: Washington Park, Denver
6,907 posts, read 6,501,326 times
Reputation: 7355
Hot off my daily neighborhood update: https://www2.porchlightgroup.com//Pr...-CORONA-Street

Too close to Alameda for me, but hey!

Last edited by Mike from back east; 05-30-2013 at 06:11 PM..
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Old 04-30-2013, 09:27 AM
 
Location: The Berk in Denver, CO USA
13,953 posts, read 20,207,715 times
Reputation: 22591
Default There are many

4177 Winona Ct, Denver, CO 80212 - Zillow
4160 Zenobia St, Denver, CO 80212 - Zillow
3843 Osceola St, Denver, CO 80212 - Zillow
4490 Perry St, Denver, CO 80212 - Zillow
3123 W 39th Ave, Denver, CO 80211 - Zillow

Last edited by Mike from back east; 05-30-2013 at 06:11 PM..
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Old 04-30-2013, 06:22 PM
 
Location: Denver, CO - Capitol Hill
557 posts, read 665,611 times
Reputation: 513
Only 3 of those 5 met the criteria

So I stand corrected. There are some. But damn, who the hell would buy a sub 1000 sq ft house. That's ridiculous, not to mention for those prices.
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Old 04-30-2013, 06:23 PM
 
Location: Denver, CO - Capitol Hill
557 posts, read 665,611 times
Reputation: 513
Quote:
Originally Posted by SkyDog77 View Post
Hot off my daily neighborhood update: https://www2.porchlightgroup.com//Pr...-CORONA-Street

Too close to Alameda for me, but hey!
  • Finished sq.ft.
    1,849 sq.ft.
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Old 05-01-2013, 03:17 PM
 
Location: Denver, CO - Capitol Hill
557 posts, read 665,611 times
Reputation: 513
Quote:
Originally Posted by davebarnes View Post
How many do I have to find?
Did you just ignore the rest of the comment?

I was obviously being facetious.
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