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Old 10-04-2018, 11:12 AM
 
Location: Lower East Side, NYC
2,119 posts, read 1,370,116 times
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From a flat comparison, house 2.
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Old 10-04-2018, 12:20 PM
 
Location: Censorshipville...
2,672 posts, read 6,236,505 times
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That's a great suggestion about getting a better idea on what an expansion would cost. The idea was to move into house 2 for at least 2 years and then decide if we wanted to live there long term. If we didn't then we'd look at either selling and buying something or buying something and using the rental income from house 2 to help out with the larger mortgage. If we decided to stay, that 2 years would give us a pretty good idea if the smaller kitchen would work for our needs. If it didn't then we'd explore doing a bump out.

The expansion could be paid for a couple different ways. I haven't decided which is the better way yet. Heloc would be easy but rates are higher these days. I'm able to take a 5 year loan against my retirement account up to 50k. I'm essentially paying myself back so the rates are lower at around 2.8% though how it would affect my returns long term is hard to determine. 50k is about 10% of my retirement accounts so it shouldn't be too detrimental to the long term outlook. Another option is to take out the contribution from my Roth.
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Old 10-04-2018, 01:34 PM
 
1,120 posts, read 648,702 times
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Quote:
Originally Posted by JonathanLB View Post
I was going to say the same thing. Both houses are tiny! For a couple, Uhh, maybe. Still small for more than one single guy living alone. Also both way too far away! If I was 12 miles from my job, which is the suburbs here, that’s already a nightmare commute. 20-40 miles is absurd. I’d sell them both and buy a 2,500 square foot place or so 10 miles from work!
Lol, it is ridiculous that so many people in this country think a huge house is a requirement. I am married with two kids and live in a 1300 square foot house and there is plenty of room. I grew up with 3 siblings in 1,200 square foot house and that wasn't much of an issue either. I personally refuse to be a slave to my mortgage so that I can retire at a reasonable age.
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Old 10-04-2018, 01:49 PM
 
4,414 posts, read 2,570,015 times
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Quote:
Originally Posted by oneasterisk View Post
That's a great suggestion about getting a better idea on what an expansion would cost. The idea was to move into house 2 for at least 2 years and then decide if we wanted to live there long term. If we didn't then we'd look at either selling and buying something or buying something and using the rental income from house 2 to help out with the larger mortgage. If we decided to stay, that 2 years would give us a pretty good idea if the smaller kitchen would work for our needs. If it didn't then we'd explore doing a bump out.

The expansion could be paid for a couple different ways. I haven't decided which is the better way yet. Heloc would be easy but rates are higher these days. I'm able to take a 5 year loan against my retirement account up to 50k. I'm essentially paying myself back so the rates are lower at around 2.8% though how it would affect my returns long term is hard to determine. 50k is about 10% of my retirement accounts so it shouldn't be too detrimental to the long term outlook. Another option is to take out the contribution from my Roth.
ABSOLUTELY NOT.
DO NOT touch your retirement for the addition!!!!!

That pay yourself back stuff is crap. It doesn't benefit you at all. Keep your hands off ALL your retirement accounts!!! THEY are for retirement ONLY! Trust me youll absolutely regret it if you touch them.

Now, lets think outside the box::

Also, if your mind is not absolutely sure the smaller house 2 is going to work, with or without the bump out addition, then how about buying a new house that WILL work now, and simply renting BOTH 1 and 2 out to cover the mortgage on new house #3???? How much is owed on the houses?
What kind of rents could you get?
Lets say you get a 15 or 20 year mortgage, house 1 rent pays the regular mortgage and house two rent all goes directly to principle each month? Youll easily pay off house 3 in 10 years id think.

Thst is not a fast way to be mortgage free immediately, but 10 years isnt bad either, especially if all 3 houses are paid off within 10 years.

And if houses 1 and 2 still grow in value, you cash in three ways...a) you get increased value b) you get rental income c) you get new house mortgage free in a short time.

Another thing to tbink about: are you going to want to downsize for retirement? Are you going to retire there? Or go somewhere else? Why not then move into 2 and just save yourself another move in 20 years?

If you want to move to another area, and you DO buy 3rd, youll have 3 houses to sell to be able to buy your retirement home mortgage free in another area, especially if its a lower COL area.

Just some food for thought.

I would not make a move until youve thought this all out, got some statistics on a 3rd house cost and mortgage, tye cost of bump out for 2nd house and decide what the/run the numbers on ALL SENARIOS.

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Old 10-05-2018, 04:27 PM
Status: "Excited to move to Vegas!" (set 3 days ago)
 
Location: Beaverton, OR
5,371 posts, read 5,820,264 times
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Quote:
Originally Posted by clawsondude View Post
Lol, it is ridiculous that so many people in this country think a huge house is a requirement. I am married with two kids and live in a 1300 square foot house and there is plenty of room. I grew up with 3 siblings in 1,200 square foot house and that wasn't much of an issue either. I personally refuse to be a slave to my mortgage so that I can retire at a reasonable age.
Uhh you must all sleep at exactly the same times, nobody ever naps, and nobody wants to do or watch anything different at any given time. That is TINY! For one person itís fine but Iíve lived in two 1,600 square foot condos / townhomes (and that size is appropriate for a condo or townhome, not a house!) with my GF and we werenít happy at all, way too small. Especially when you work from home, thatís a teeny tiny space for people to spend most of their lives. Our 2,800 square foot place is spread over 3 floors and works great for us, we love it and are so much happier. But I have no mortgage at all either. The next house will be more like 4,500 square feet and since that city doesnít really make 3 story houses, thatís the minimum size that would work for our needs and even then 99% of them donít - not enough separation of space.
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Old 10-05-2018, 05:33 PM
 
1,120 posts, read 648,702 times
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Quote:
Originally Posted by JonathanLB View Post
Uhh you must all sleep at exactly the same times, nobody ever naps, and nobody wants to do or watch anything different at any given time. That is TINY! For one person it’s fine but I’ve lived in two 1,600 square foot condos / townhomes (and that size is appropriate for a condo or townhome, not a house!) with my GF and we weren’t happy at all, way too small. Especially when you work from home, that’s a teeny tiny space for people to spend most of their lives. Our 2,800 square foot place is spread over 3 floors and works great for us, we love it and are so much happier. But I have no mortgage at all either. The next house will be more like 4,500 square feet and since that city doesn’t really make 3 story houses, that’s the minimum size that would work for our needs and even then 99% of them don’t - not enough separation of space.
Lol okay man. Most families around the world live in less space than we do. I can’t imagine 1,300 square feet being small for two people.
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Old 10-05-2018, 06:41 PM
 
Location: Florida
4,308 posts, read 3,641,951 times
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Just thinking of one factor - location. I would take house 2 since closer to everything.
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Old 10-07-2018, 04:26 PM
 
Location: Monterey County California
272 posts, read 247,216 times
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i say move to whichever house works better for you but keep that rental. Let those tennants pay it off for you. Trust me the time they are paying goes by very fast and the rent goes up every year. Nice to have that little second income coming in.
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Old 10-08-2018, 12:05 PM
 
Location: Censorshipville...
2,672 posts, read 6,236,505 times
Reputation: 1543
Quote:
Originally Posted by JonathanLB View Post
Uhh you must all sleep at exactly the same times, nobody ever naps, and nobody wants to do or watch anything different at any given time. That is TINY! For one person itís fine but Iíve lived in two 1,600 square foot condos / townhomes (and that size is appropriate for a condo or townhome, not a house!) with my GF and we werenít happy at all, way too small. Especially when you work from home, thatís a teeny tiny space for people to spend most of their lives. Our 2,800 square foot place is spread over 3 floors and works great for us, we love it and are so much happier. But I have no mortgage at all either. The next house will be more like 4,500 square feet and since that city doesnít really make 3 story houses, thatís the minimum size that would work for our needs and even then 99% of them donít - not enough separation of space.
Geez a 4500 square foot house for 2 people? That seems excessive. Even 2800 square seems like it'd be too much for 2 people. Heck the average apartment size in NYC is

I'm married and enjoy doing things with my wife. Yes we spend lots of time together, watching the same shows or playing board games together. Our 2 kids are pretty much in the same area with us, or at least within earshot.

If you think about it, most people use their house just to store their stuff and not really enjoy it. If you work 8 hours at a job away from home and commute 30 minutes one way, you're gone about 9-10 hours. Then you get home and are at home for a few hours before going to sleep. Are you really enjoying the huge house while you're sleeping and away from home?
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Old 10-08-2018, 12:10 PM
 
Location: Censorshipville...
2,672 posts, read 6,236,505 times
Reputation: 1543
Quote:
Originally Posted by onlymike View Post
i say move to whichever house works better for you but keep that rental. Let those tennants pay it off for you. Trust me the time they are paying goes by very fast and the rent goes up every year. Nice to have that little second income coming in.
We thought about moving into house 2 and renting out house 1, but house 1 isn't in a great rental area. We've seen houses for rent in our area sit for a while, and they don't rent for us much.

Renting out house 2 has been really great way for extra income and grow an asset. I bought it as a foreclosure in 2009. Mortgage has always been below $1000, but I've been able to rent it out starting for $1500, it's now going for $1850 a month.
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