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[scfr]

In February I got a new credit card for a bonus. The bonus is in the form of miles that can be redeemed for $500 worth of statement credits for travel-related charges. This particular bonus was a bit more complicated than the usual new cc bonus, because required a bit more record-keeping and calendaring (I have to make sure I keep the card active so the miles don't expire) but I think it's worth it because of the size of the bonus. I just got my first statement credit, for $100 and change.

Also, $200 in bonuses for new bank accounts that we opened in Feb posted ahead of schedule at the end of the month.

Feb was a slow work-for-pay month so I had time to do a little extra work pursing bonuses and that work is now bearing fruit.

[Gailete]

>>Feb was a slow work-for-pay month so I had time to do a little extra work pursing bonuses and that work is now bearing fruit. <<

Don't you love it when a plan comes together!

[disneysteve]

Long story not worth going into but my job owed me some money. I honestly didn't think I would ever actually see it (old reimbursement stuff). I got an email yesterday asking how much was owed because he wanted to try and settle up before I leave in 3 months. I came in this morning to a check for $3,000 sitting on my desk. Not a bad way to start my Monday.

[james.hendrickson]

Last weekend, we picked up about 5 bottles of cleaning supplies at an estate sale. There was some 409, dishwashing soap, all purpose lysol, etc. We paid something like $2 for stuff that would have cost $10 new.

[Danielvalerio506]

Assuming his past rent and mortgage are about the same, saving 25% of the interest is something back he wasn't getting before.

So if it's a $200,000 mortgage at 3% that's $6000. Savings 25% of that is $1500 in tax savings. Not bad.

Hello guys!!

Assuming his past rent and mortgage are about the same
I am a little bit confused here, were I live a mortgage payment usually is the double of a rent amount for the same house. Do you guys have the option to pay a mortgage at the same amount of a rent?

[Thrif-t]

I won an employee drawing and got a $10 panera gift card today😊

[Gailete]

Hello guys!!

Assuming his past rent and mortgage are about the same
I am a little bit confused here, were I live a mortgage payment usually is the double of a rent amount for the same house. Do you guys have the option to pay a mortgage at the same amount of a rent?

Not sure I understand completely what you are asking here. Mortgage payments anywhere are based on the cost of the building, less the downpayment. Then they change depending on how long the mortgage is for and the interest rate and if you have to pay a PMI, taxes and fire insurance through the mortgage.

Rent payments are based on the building itself and it's location. If in a bad section of town it isn't going to sell for much OR rent for much. It is the owners decision how much they want to rent it for and if they can find somone to pay that amount. However, there are no 'rules' about how much a mortgage is compared to renting the same place. The only payment options on a mortgage is if they want to make extra payments and when, and if they want to make the regular mortgage payment sooner that it is required to be paid. You can not pay LESS than the mortgage calls for without running into big trouble. Hope this helps.

[MonkeyMama]

Hello guys!!

Assuming his past rent and mortgage are about the same
I am a little bit confused here, were I live a mortgage payment usually is the double of a rent amount for the same house. Do you guys have the option to pay a mortgage at the same amount of a rent?

It depends on the individual market. In the last city I lived in, it would be significantly more expensive to rent than to own any property.

[Danielvalerio506]

Not sure I understand completely what you are asking here. Mortgage payments anywhere are based on the cost of the building, less the downpayment. Then they change depending on how long the mortgage is for and the interest rate and if you have to pay a PMI, taxes and fire insurance through the mortgage.

Rent payments are based on the building itself and it's location. If in a bad section of town it isn't going to sell for much OR rent for much. It is the owners decision how much they want to rent it for and if they can find somone to pay that amount. However, there are no 'rules' about how much a mortgage is compared to renting the same place. The only payment options on a mortgage is if they want to make extra payments and when, and if they want to make the regular mortgage payment sooner that it is required to be paid. You can not pay LESS than the mortgage calls for without running into big trouble. Hope this helps.

My question is if you guys have seen opportunities to buy a house and the mortgage minimum payment is the same as if you would´ve rented that same house. Here where I live it is completely normal that you will pay double or more than the double in mortgage for a normal house than if you would´ve rented that very same house.
For example let´s say you rent for $500 a month if you buy that same house even with the down payment and everything you would be paying $1200 for example.

[disneysteve]

Here where I live it is completely normal that you will pay double or more than the double in mortgage for a normal house than if you would´ve rented that very same house.
For example let´s say you rent for $500 a month if you buy that same house even with the down payment and everything you would be paying $1200 for example.

Where do you live?

Why would anyone rent out their house at a $700/month loss? And the actual loss would be even higher when you add in maintenance costs.

Typically, when someone rents out a home, they want to at least break even and ideally make a profit each month. That's kind of the point.

[Jluke]

regarding

Low rent. High mortgage cost.

Is that because property taxes are really high?

Sounds like a renter friendly area but not good for real estate investors wanting to make money.

Something isn't adding up

[Gailete]

My question is if you guys have seen opportunities to buy a house and the mortgage minimum payment is the same as if you would´ve rented that same house. Here where I live it is completely normal that you will pay double or more than the double in mortgage for a normal house than if you would´ve rented that very same house.
For example let´s say you rent for $500 a month if you buy that same house even with the down payment and everything you would be paying $1200 for example.

Not sure where you live, but that doesn't happen around here that I know of unless the owner of the rental owns it completely other than taxes on it and it depends renters at times as well. My husband's aunt just moved out of an apt. that she had been in for ~30+ years. Apparently, she never had a rent increase but at this point couldn't handle the stairs anymore. In yet the same town my son has been living in a house converted into 4 apartments. In the years, he had been there he has only had one rental raise and that was only $10-15. But he is a stable renter, ALWAYS pays his rent on time if not before, etc. I think in instances like this the landlord doesn't want to rock the boat by jacking up the rent to something my son can't afford to pay. Most place for rent in our town are all homes that had been converted from single family dwellings to 2-4 apartments. If you add up the rent payments for even what my son pays the landlord is getting around $1300 for a house that if still a one family dwelling would sell for maybe $80-100K or a bit more. I know most folks in this area would never pay $1300 plus taxes, fire insurance, etc. for an old house like it is. For that kind of monthly payment, you could buy some of the new construction that is going on in town for around $250000.

For the numbers to be sure I was right, I just doublechecked via my bank on a mortgage calculator. Seeing the current rates, makes me wonder if the loan for our house could come down somewhat?

[Danielvalerio506]

Where do you live?

Why would anyone rent out their house at a $700/month loss? And the actual loss would be even higher when you add in maintenance costs.

Typically, when someone rents out a home, they want to at least break even and ideally make a profit each month. That's kind of the point.

It´s not a $700 loss, people that rent is because they bought the house from a bank foreclosure so they bought it for a 40% or more discount so they break even or make a monthly profit. Other investors already own the property so it is all profit. I´ve never seen a mortgage payment for a property be the same amount as the rent amount ubnless the property is amazingly cheap you know under market value. That´s why I got confused...

[disneysteve]

It´s not a $700 loss, people that rent is because they bought the house from a bank foreclosure so they bought it for a 40% or more discount so they break even or make a monthly profit.

If the owner is making a profit, than the mortgage payment can't be $700 higher than the rent being charged, which is what you said. That's why we're all confused. The rent has to be equal to or greater than the mortgage payment in order for the owner to be breaking even or making a profit.

[Danielvalerio506]

If the owner is making a profit, than the mortgage payment can't be $700 higher than the rent being charged, which is what you said. That's why we're all confused. The rent has to be equal to or greater than the mortgage payment in order for the owner to be breaking even or making a profit.

What I mean is that people prefer to rent because rent is cheap vs buying your own house because mortgage payment is expensive so employees prefer to rent. An investor will look for a really good deal maybe a foreclosure so that he buys and he can pay the mortgage and rent it to those employees having a profit.
If market conditions change and rent are the same as mortgage payments then everyone will be able to buy a house and nobody will rent because they will prefer to buy.
When interest rates are high more people become renters, when interest rates are low more people become owners.