Real Estate Market. Thoughts?

If they haven't re financed and paid a prox 150 for it in 2013. Their payment is about 700. Which is what investors who want the security of being paid off would do. If they dump all the profits on the mortgage it should be paid off in the next year or two.

More likely the refinanced somewhere in the past two years and got their original cash down (30k) back out to invest elsewhere.

The purchase price is usually available if you look around and are curious. If you find a purchase price that is after the build that's likely the appraised refinance value. This has no bearing on what it's worth really.

I'll chime in here because I'm renting out a house I own in COS. (technically, the bank owns the house in my name... but we all know how that works)

The property is in the Wolf Ranch neighborhood, by Research and Powers. Really nice area: lots of parks, top schools, good access to just about everything, reasonable HOA.

We bought it in 2013 for $340k with plans to stay in it for at least 6 years before moving. Of course, the Air Force crapped all over that plan and moved us after less than 2 years.

I spent 4 months screening prospective renters very carefully to find someone who would care for my property as well as I would. (No property manager is going to care that much... they just want someone in the property so they get paid) We found a family that seems pretty normal and passed all the tests (criminal checks, financial/credit checks, etc.) and we agreed to a 3 year rental contract.

When all is said and done, the rent check is less than $50 more than the mortgage payment (PITI). It's not currently a source of income for us, but the way I see it, someone else is slowly paying for an asset that we will own when they leave. The good news is that property values have gone up a good bit since we bought and the renters are taking good care of things while paying the mortgage. At the end of the lease, they will have paid more than $65k toward principle and interest. I'm really hoping they are interested in extending the contract. At this rate, we could have the house paid off in 15 years or less as we continue to dump a few hundred extra a month toward principle.

Disclaimer: This is not an ideal situation and there is considerable risk involved. I would not recommend that anyone buys a house and then moves out of state while playing long-distance landlord.

How are they paying over 65k in principle alone in only three years with the rent being only $50 more than the mortgage? I pay an extra 50% of my total mortgage each month and am only paying the principle down about $7,200 each year. I have a 30 year loan, is yours a 15 year?

Never mind, I've got it figured out. Math...

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Originally Posted by Irving

How are they paying over 65k in principle alone in only three years with the rent being only $50 more than the mortgage? I pay an extra 50% of my total mortgage each month and am only paying the principle down about $7,200 each year. I have a 30 year loan, is yours a 15 year?

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Quote:

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Originally Posted by HoneyBadger

At the end of the lease, they will have paid more than $65k toward principle and interest.

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Quote:

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Originally Posted by Irving

Never mind, I've got it figured out. Math...

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Reading skillz, not maths. :)

Ugh...this is why I have a job where I write with chalk everyday, that isn't a teacher.