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Re: Long Term Care Insurance Redux

My somewhat extensive experience with elderly relatives in nursing homes is WAY different than what you describe. What I see is that the level of care is proportional to the frequency and randomness of family member visitors. Big private pay people got lousy care because the staff knew that no one ...
by Honobob
Sun Oct 27, 2013 4:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance Redux
Replies: 24
Views: 1413

Re: Long Term Care Insurance Redux

Perhaps for those above the middle, the answer is to be prepared to pay for 5 years and be ready to trust-up/gift the motherlode to children at the first sign that the 5 years will begin. And I know many feel that's unethical so for them the answer is to just spend it all down if necessary. Leesbro...
by Honobob
Sun Oct 27, 2013 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance Redux
Replies: 24
Views: 1413

Re: 2 good yrs in new biz & I/we want a house on the lake?

Do you think it is wise to buy a $850,000 home in a $280,000 neighborhood? Neighborhood prices don't mean a lot when comparing with a lake front home. My lake frontage home appraised at three times the local neighborhood prices, yet my square footage was not significantly different than those with ...
by Honobob
Sun Oct 27, 2013 2:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: 2 good yrs in new biz & I/we want a house on the lake?
Replies: 9
Views: 1167

Re: Inherited House w/ Mortgage. Rental Property?

I hope you looked at todays paper. In todays San Francisco Chronicle "The median monthly rent in San Francisco hit $3,398 in the third quarter, up 21% from the previous year.......The biggest increases were in economically disadvantaged neighborhoods, like Hunters Point, where rents shot up 46 ...
by Honobob
Sun Oct 27, 2013 2:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: 2 good yrs in new biz & I/we want a house on the lake?

Do you think it is wise to buy a $850,000 home in a $280,000 neighborhood?
by Honobob
Sun Oct 27, 2013 12:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: 2 good yrs in new biz & I/we want a house on the lake?
Replies: 9
Views: 1167

Re: Want to have kids, scared of the financial consequences

Are you seriously suggesting that a 110k income might result in a homeless family? This seems perhaps a bit unlikely. Yes, I am. 50% of marriages end in divorce. $110,000 income divided by two? Or maybe leaves single spouse/mother with NO income. She doesn't even have a house to lay claim to in the...
by Honobob
Sun Oct 27, 2013 11:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Inherited House w/ Mortgage. Rental Property?

http://www.mortgage-investments.com/resources/online-calculators/10-year-investment-in-real-estate/ dx41 sounds like you are now leaning towards keeping this property despite all the incorrect information you've been given about valuations. Here's a very good analysis spreadsheet that takes in ALL t...
by Honobob
Sat Oct 26, 2013 8:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: Inherited House w/ Mortgage. Rental Property?

Wow goldendude, it is all so clear now that I see actual numbers. So, about $40, 000 in rents then say 50 per cent in expenses resulting in. $20, 000 NOI Right so far? So a very very good cap rate would be 10 percent resulting in a value of about $200, 000. Is my math still good? Big numbers make m...
by Honobob
Sat Oct 26, 2013 2:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: Long Term Care Policy Poll

Late 40's. Looked at cost for Late 50's at that time and the break even point was only a few years so I figure I got 10 years coverage FREE!.
by Honobob
Sat Oct 26, 2013 2:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Policy Poll
Replies: 42
Views: 2764

Re: Inherited House w/ Mortgage. Rental Property?

Dang, these kids have been thru enough. I'm making an all cash offer of $300, 000. What good is having allthese millions in real estate profits if I can't help people that have been victimized by the info.ercial real estate scam.
by Honobob
Sat Oct 26, 2013 2:09 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: Inherited House w/ Mortgage. Rental Property?

Wow goldendude, it is all so clear now that I see actual numbers. So, about $40, 000 in rents then say 50 per cent in expenses resulting in. $20, 000 NOI Right so far? So a very very good cap rate would be 10 percent resulting in a value of about $200, 000. Is my math still good? Big numbers make me...
by Honobob
Sat Oct 26, 2013 2:04 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: Inherited House w/ Mortgage. Rental Property?

OK except the $195,000 appreciation HAPPENED! That's not speculative. My point was that in doing a CoC calculation on this specific property that your CoC would not be very indicative of returns based on the timing (purchase date vs. DoD vs. now). Yes sir. When doing ROI for a property you use curr...
by Honobob
Fri Oct 25, 2013 11:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: How many square feet is your home?

This is southern CA, where there are no basements, tiny/nonexistent yards, and small garages that most people use as storage rooms. Yup. And often stored with stuff that rarely seems to get used or cleared out so it expands and all the cars get park on the street. Or worse the garage gets used it a...
by Honobob
Fri Oct 25, 2013 11:03 pm
 
Forum: Personal Consumer Issues
Topic: How many square feet is your home?
Replies: 162
Views: 11123

Re: Inherited House w/ Mortgage. Rental Property?

+1. Houses fluctuate in the short term but generally appreciate in the long-term. Unless you have a ton of money to secure the investment, you need to back up that bet on appreciation with solid CoC returns or there is a very high risk of getting bit. How would you account for the $195,000 equity i...
by Honobob
Fri Oct 25, 2013 10:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: Want to have kids, scared of the financial consequences

[OT comments removed by admin LadyGeek]
by Honobob
Fri Oct 25, 2013 9:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Inherited House w/ Mortgage. Rental Property?

There is no such thing as a "cap rate" for a single family house. Cap rate is a mathematical concept used in real estate investing. Single family to commercial real estate, the mathematical concept does not change. Cash on cash? Based on your land and improvement value I'm guessing the 20...
by Honobob
Fri Oct 25, 2013 6:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: Long Term Care Insurance Redux

LTCi for the rich? OK, the real rich don't stay in SNF. I didn't see Eva Gabor, Casey Kasem or Liz at the nursing home. These people stay in their multi-million dollar homes and bring the SNF to them. How about the 50 year old working rich? The 60 year old retired mini rich? The 70 year old spending...
by Honobob
Fri Oct 25, 2013 6:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance Redux
Replies: 24
Views: 1413

Re: Want to have kids, scared of the financial consequences

stoptothink wrote: If they are not financially ready now (in your eyes), they never will be so they should just forget about it.

You get it! But I think IF he realizes the anticipated salary increases THEN they will be financially able to have children.
by Honobob
Fri Oct 25, 2013 4:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Want to have kids, scared of the financial consequences

You are stating that you are NOT paying market rent. The landlord is subsidizing your rent by 50-75%. If he is NOT paying taxes on market rent then I as a taxpayer am helping him subsidize YOUR rent. Dude, you remind me of my future-lawyer-7-year-old ... If you have a rental agreement signed and th...
by Honobob
Fri Oct 25, 2013 4:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Want to have kids, scared of the financial consequences

They accomplished the 6 month emergency when; 1. They had 2 incomes 2. They had subsidized housing. 3. They had NO child expenses. OP here. Not sure where the subsidized housing comments are coming from. We rent. We have a good deal because our landlord wants us to stay. Our neighborhood is gentrif...
by Honobob
Fri Oct 25, 2013 3:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Want to have kids, scared of the financial consequences

You make $180k a year. There will be financial consequences, but you won't be in the poor house. Actually they don't have a house, poor or other. They're renters. And despite having subsidized rent they still have no money saved for even a starter home. Take $70,000 of that $180,000 away and add th...
by Honobob
Fri Oct 25, 2013 3:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Want to have kids, scared of the financial consequences

You make $180k a year. There will be financial consequences, but you won't be in the poor house. Actually they don't have a house, poor or other. They're renters. And despite having subsidized rent they still have no money saved for even a starter home. Take $70,000 of that $180,000 away and add th...
by Honobob
Fri Oct 25, 2013 2:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Inherited House w/ Mortgage. Rental Property?

dx41 You are getting a lot of really bad information here. I afraid your inexperience with real estate makes you an easy target. Also I get the feeling that you don't care what the "numbers" are you just want to get you hands on your share of the equity. Nothing wrong with that but be hone...
by Honobob
Fri Oct 25, 2013 1:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: Want to have kids, scared of the financial consequences

You make $180k a year. There will be financial consequences, but you won't be in the poor house. Actually they don't have a house, poor or other. They're renters. And despite having subsidized rent they still have no money saved for even a starter home. Take $70,000 of that $180,000 away and add th...
by Honobob
Fri Oct 25, 2013 12:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Want to have kids, scared of the financial consequences

http://www.raleighnokidding.com/article ... icate.html An old poll but 70% wish they were childless. I think it would be more now. I think the better question is "WHY" do you want to start having kids AND "WHAT" are you willing to give up to accomplish that.
by Honobob
Fri Oct 25, 2013 2:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Want to have kids, scared of the financial consequences
Replies: 95
Views: 6276

Re: Inherited House w/ Mortgage. Rental Property?

Silicon Valley! This is the strongest argument for keeping the property. Well that and the fact it has increased in value $195,000 since your parents death. Have your support Realtors show you the increase in value over say the last 40 years. That should convince you not to cash in your “cash cow”! ...
by Honobob
Thu Oct 24, 2013 4:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited House w/ Mortgage. Rental Property?
Replies: 66
Views: 4922

Re: Long Term Care (again)

I Have a Lifetime policy. Last May I had a choice of 6 options to reduce my premiums. Three would remove my inflation protection AND drop Lifetime coverage to a 10, 6, or 3 year terms. NO WAY! Two would keep the inflation protection but reduce the Lifetime benefit to 6 or 3 year terms. NO WAY! Ten y...
by Honobob
Wed Oct 23, 2013 11:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Long Term Care (again)
Replies: 7
Views: 914

Re: Living on $5,000 a year

His social scene must be fascinating! :sharebeer
by Honobob
Mon Oct 14, 2013 12:38 pm
 
Forum: Personal Consumer Issues
Topic: Living on $5,000 a year
Replies: 28
Views: 2952

Re: Learning about buying real estate

me2164 wrote:Greetings!

I want to acquire some non residential real estate.

Mike

This eliminates a lot of real estate choices. How did you come to this decision?
by Honobob
Mon Oct 14, 2013 12:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Learning about buying real estate
Replies: 17
Views: 1227

Re: Buy house in cash vs. Mortgage, Help!

I guess I am just trying to avoid paying 2 to 3 times the value of my home over a 30 yr mortgage not to mention rates will continue to raise before I pull the trigger. Isnt there a better way!? Actually, you're not paying 2-3 times the "value", you're paying 2-3 times the original dollar ...
by Honobob
Sat Oct 12, 2013 6:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buy house in cash vs. Mortgage, Help!
Replies: 18
Views: 1779

Re: Home Builder backing out?

They should be able to close on the property and have the funds held in escrow. The funds will either be released by agreement between the builder and investor or court order. This should not impact the buyer at all.
by Honobob
Fri Oct 11, 2013 10:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Home Builder backing out?
Replies: 9
Views: 1408

Re: Condo Unit as an Investment Property

I regard owning residential real estate for rental in SF as a risky proposition. I'm sure some people do it with reasonable success, but I view property ownership rights as being rather flimsy in that city, especially once a place has been rented. You may have a better picture on that (I don't live...
by Honobob
Tue Oct 08, 2013 5:06 am
 
Forum: Personal Finance (Not Investing)
Topic: Condo Unit as an Investment Property
Replies: 8
Views: 1089

Re: LTC Insurance Revisited

jhawktx wrote:
Honobob wrote:
EmergDoc wrote:Sounds great...unless the company goes out of business.

What do you think would happen then?


Well, hopefully what would happen is the person would kick themselves for buying LTC insurance in the first place.

Why do you think they would do that?
by Honobob
Mon Oct 07, 2013 1:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: LTC Insurance Revisited
Replies: 20
Views: 1869

Re: LTC Insurance Revisited

EmergDoc wrote:Sounds great...unless the company goes out of business.

What do you think would happen then?
by Honobob
Mon Oct 07, 2013 12:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: LTC Insurance Revisited
Replies: 20
Views: 1869

Re: Day trip from San Francisco to Lake Tahoe

To me this isn't doable at all. 6 hrs total drive time....do the math. :) Very few people from SF go sking for the day....that's funny :) Are you discounting ALL the people that bus up for the day. The bus will leave you there if you don't get back on in the afternoon. 95% of the young people I kno...
by Honobob
Mon Sep 16, 2013 12:02 am
 
Forum: Personal Consumer Issues
Topic: Day trip from San Francisco to Lake Tahoe
Replies: 30
Views: 1642

Re: Would you rebalance out of your home ?

madbrain wrote:There is still a sizable retirement investment portfolio of about $900k.

why don't you lease your investment portfolio at say 10 grm or $90,000 a year or mortgage it and pocket $720,000 to be invested into your AA?
by Honobob
Sun Sep 15, 2013 10:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Would you rebalance out of your home ?
Replies: 34
Views: 2328

Re: Day trip from San Francisco to Lake Tahoe

Incidentally, I see you are from the Dallas area. The distance you are asking about is roughly the distance from Dallas to Austin and back. What would your advice be to someone wanting to drive to Austin from Dallas to spend a hour or two at the LBJ Presidential Library and drive back, all in a sin...
by Honobob
Sun Sep 15, 2013 10:00 pm
 
Forum: Personal Consumer Issues
Topic: Day trip from San Francisco to Lake Tahoe
Replies: 30
Views: 1642

Re: Would you rebalance out of your home ?

momar wrote:Not if I lived in Silicon Valley, which I think is where you live. I'd be waiting for it to triple.

That could take months! :happy
by Honobob
Sun Sep 15, 2013 1:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Would you rebalance out of your home ?
Replies: 34
Views: 2328

Re: Genworth Long Term Care

At the very least, they should update the form you're required to sign before purchasing the insurance--the form in which you attest that you could still afford the insurance if there were a 20% increase--to say that you could still afford it even if there were a 78% increase. I wonder how many of ...
by Honobob
Fri Sep 13, 2013 10:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Genworth Long Term Care
Replies: 19
Views: 2131

Re: Pay off home?

I'm stuck in this mortgage. I'm upside down in my loan. I can't move unless I want to do a shortsale or foreclosure, oh wait, I can't do that because I will have $87k liquid the in the same bank my mortgage is held in by end of next year. They'd take me to court in a heartbeat and I'd lose. Black a...
by Honobob
Fri Sep 13, 2013 5:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Pay off home?

but I still think the benefits outweigh putting the money in the markets in the short term. Thanks for all of your sound advice. You keep saying short term but your actions are all about long term. You are talking about making payments for as far out as 2038 for actual USE during that same period. ...
by Honobob
Fri Sep 13, 2013 3:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Pay off home?

How to get rich? 1. Place $87,000 2013 dollars into an illiquid asset that is losing value. Sounds risky. 2. Start saving the $450 a month P&i payment invested conservatively to get back to $87,000. 3. Takes about 16 years to get to $87,000. 4. In 2029 $87,000 will be worth about $53,000. Need t...
by Honobob
Thu Sep 12, 2013 11:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Pay off home?

Duplicate
by Honobob
Thu Sep 12, 2013 3:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Pay off home?

You are calling this short term risk adverse cash but you are talking about locking it into an illiquid asset. How much discount is your mortgage holder willing to give you to get all their cash now? You are trading $87, 000 investable cash today to have the ability to invest whatever your monthly ...
by Honobob
Thu Sep 12, 2013 3:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Pay off home?

You are calling this short term risk adverse cash but you are talking about locking it into an illiquid asset. How much discount is your mortgage holder willing to give you to get all their cash now? You are trading $87, 000 investable cash today to have the ability to invest whatever your monthly p...
by Honobob
Thu Sep 12, 2013 12:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: We have the money—now what? Real estate?

Buying a home is not the same as investing in real estate. They have fundamentally different purposes. The best real estate investments are typically places where you wouldn't want to live. To see if your single-family home is a good financial investment, run the following calculation: ((monthly re...
by Honobob
Wed Sep 11, 2013 10:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: We have the money—now what? Real estate?
Replies: 31
Views: 4116

Re: Should I buy a house before interest rates go up?

Current Plan/Situation: Anyone have insight on past mortgage interest rates before these historic lows? I am guessing that if the interest rates go up by 1-1.5% I am likely better off buying now, but that is a complete guess. Thoughts? It is easy to figure how much more a mortgage will cost at a hi...
by Honobob
Wed Sep 11, 2013 10:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I buy a house before interest rates go up?
Replies: 6
Views: 897

Re: Rental real estate post - what's the catch?

Then the question becomes: In an efficient market, where does this excess come from? My proposed answer is that it is compensation for 1) holding an illiquid asset that might decline in value, and 2) work involved in actually managing the property. Is this correct? What have I missed? You'd also be...
by Honobob
Tue Sep 10, 2013 9:16 pm
 
Forum: Investing - Theory, News & General
Topic: Rental real estate post - what's the catch?
Replies: 97
Views: 7644

Re: We have the money—now what? Real estate?

Thank you Honobob. I thought your post was on target and pretty funny. Also thoughtful advice. Location is so important in real estate. And great for you for making it work! For me that would translate into is it worth $300,000 more to have curb appeal, bedrooms bigger than a closet for my kids and...
by Honobob
Tue Sep 10, 2013 12:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: We have the money—now what? Real estate?
Replies: 31
Views: 4116
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