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Started By
Message
Should I sell my condo or not?
Posted on 1/21/13 at 5:33 pm
Posted on 1/21/13 at 5:33 pm
Here's my situation:
25 years old. single. graduate grad school in may. owe 17k to the federal government, with 6.8% interest beginning to accrue 6 months after graduation. owe 80k prom note to my mom for the condo. owe another 40k to my mom for living expenses while in school.
the condo should sell in the 110k range. i can and have rented it out for ~900 a month. The note to my mom is 545 and what i pull each month to keep in an escrow account is around 200, leaving me only 155ish take home.
Clearly I should sell the condo and pay off the prom note and the government loans, right?
25 years old. single. graduate grad school in may. owe 17k to the federal government, with 6.8% interest beginning to accrue 6 months after graduation. owe 80k prom note to my mom for the condo. owe another 40k to my mom for living expenses while in school.
the condo should sell in the 110k range. i can and have rented it out for ~900 a month. The note to my mom is 545 and what i pull each month to keep in an escrow account is around 200, leaving me only 155ish take home.
Clearly I should sell the condo and pay off the prom note and the government loans, right?
2
Posted on 1/21/13 at 5:43 pm to boosiebadazz
You didn't say what interest rate is on the prom note but I personally think it is usually a good idea to pay off debts to family ASAP even if it means taking a financial hit.
That said, it might be reasonable to work out a legal partnership with mom, refinance the condo at today's rates, and everyone wins. Much depends on the details between you and your mom, this is a conversation you should have with her and not with us. Good luck.
That said, it might be reasonable to work out a legal partnership with mom, refinance the condo at today's rates, and everyone wins. Much depends on the details between you and your mom, this is a conversation you should have with her and not with us. Good luck.
Posted on 1/21/13 at 5:48 pm to boosiebadazz
6 percent interest (i think) but she only wants her principle back. her and i have a great relationship and this isnt a strain or anything. if i wanted to hold onto it and pay it back over time, she would be ok with that. that money is not pressing to her. i just dont think i'd make enough if i held onto it. condo is also in BR and i am in lafayette and i dont want to play landlord from another city. i also hit my first patch of vacancy and that shite sucks, too. i think the clear move is to get rid of it but i just wanted to get other opinions
This post was edited on 1/21/13 at 5:48 pm
Posted on 1/21/13 at 6:05 pm to boosiebadazz
quote:
i dont want to play landlord from another city
That can be a good reason to get out right there. If your mom lives in BR it sounds like you can work something out with her if she wants to run the property.
But run the numbers, if renting it out makes sense a refi may be in order to get a lower cost of ownership, but I'd still involve mom heavily in this decision. Although there can be traps involved in borrowing from family it can be good if everything is done the right way.
Posted on 1/21/13 at 6:11 pm to foshizzle
we both live in lafayette
all she wants is the principal she put up, so i cant really lower the cost of ownership at this point
i can pay if off over a longer period of time, but i dont want to supplement the 145 i'll be able to clear a month with the money im going to be making by working in order to pay the note on the loan from the government (17k at 6.8%). that would take forever to pay off
i just dont think the numbers work for me to hold on to it. and i really dont want the headache, either.
all she wants is the principal she put up, so i cant really lower the cost of ownership at this point
i can pay if off over a longer period of time, but i dont want to supplement the 145 i'll be able to clear a month with the money im going to be making by working in order to pay the note on the loan from the government (17k at 6.8%). that would take forever to pay off
i just dont think the numbers work for me to hold on to it. and i really dont want the headache, either.
This post was edited on 1/21/13 at 11:12 pm
Posted on 1/21/13 at 9:32 pm to boosiebadazz
I would sell it.... I don't trust the BR condo market at all
Posted on 1/21/13 at 9:42 pm to BACONisMEATcandy
heard that playa
Posted on 1/21/13 at 10:15 pm to boosiebadazz
$900/month = Student Debt paid off in <24 months.
$900/month = Student Debt + Mom paid off in ~ (approx) 48 months.
I understand ymmv, but Geezus why would you sell a passive income generation tool like that? It could generate almost $10K/year for you for a decade easy. Yet you'd sell it to make $30K?
Makes sense. Not.
$900/month = Student Debt + Mom paid off in ~ (approx) 48 months.
I understand ymmv, but Geezus why would you sell a passive income generation tool like that? It could generate almost $10K/year for you for a decade easy. Yet you'd sell it to make $30K?
Makes sense. Not.
Posted on 1/21/13 at 10:17 pm to GFunk
So your saying there are going to be no costs and its all profit 
Posted on 1/21/13 at 10:41 pm to GFunk
Dude... Your math... Your thought process... I don't even know where to begin.
Posted on 1/21/13 at 11:12 pm to I Love Bama
i wish i was clearing 900 a month from it
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