We sold our house, HOORAY

Discussion in 'Teacher Time Out' started by engineerkyle, Sep 13, 2014.

  1. engineerkyle

    engineerkyle Companion

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    Sep 13, 2014

    Hi All,

    Well, we took a risk and it payed off. I don't mean to gloat, but I'm trying to figure out just exactly what went down with my real estate deals.

    OK, this is some personal finance... round numbers, and all you econ teachers out there may be able to chime in.


    Lets say...

    Somebody buys a house just before the bubble burst for $223. In 2007, that somebody finally decides to do something with the line of credit he set up and buys a second house dirt cheap, $50 cash. He takes his family there and rents out the first house for 4 years at $1300 per month. This covers the mortgages.

    Our gambler, call him Mr. Greenstreet, allows the tenants to move out and closes on his house Monday, for a cash sale of $176.

    Mr. Greenstreet still owes $103 from the original purchase and $47 on the line of credit (Which comes due in one year) At closing, he is able payoff both mortgages and, after considerable selling expenses, pockets about $10.

    Now he and him family pay no house payment, owning their second house free and clear. The majority advised Mr. Greenstreet to simply refinance and keep the cash flow from the good tenants on tap. But he hates paying interest.

    Some will say, anyone that payed 223 and sold it for 176 lost a bundle. I don't think so.

    See my other projects at
    engineerkyle.com
     
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  3. swansong1

    swansong1 Virtuoso

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    Sep 13, 2014

    Congratulation! You are going to love the financial freedom. I recently paid off all my expenses (credit accounts, etc) and now my only monthly bill is the utilities. It's a wonderful feeling!!
     
  4. scmom

    scmom Enthusiast

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    Sep 13, 2014

    Congrats!

    Your models are amazing! Such attention to detail. You do fine work.
     

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