Search found 1580 matches

by Carefreeap
Sat Feb 25, 2017 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Invest or pay down rental property mortgage
Replies: 8
Views: 178

Re: Invest or pay down rental property mortgage

I don't think you are factoring in that paying off the rental is going to increase your rental income and you will be taxed at your max rate. Do you have a big cap gain on the property because if you do those PALCO will come in VERY handy. Have you looked into a refi of the ARM? I'm surprised that i...
by Carefreeap
Sat Feb 25, 2017 12:01 pm
Forum: Personal Consumer Issues
Topic: backyard - Accessory Dwelling Unit ...
Replies: 13
Views: 1937

Re: backyard - Accessory Dwelling Unit ...

I checked with the planning department and they do allow the accessory dwelling unit in the backyard. There are setback requirements but I can still build a 10x20 very well. I found a local builder online who specializes in building these kinds of units. I sent him a note and he gave me a rough est...
by Carefreeap
Fri Feb 24, 2017 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing a new house -- Are we being stupid to consider it?
Replies: 35
Views: 3559

Re: Purchasing a new house -- Are we being stupid to consider it?

- The benefit of moving now versus in a couple of years is that the kids could stay in the same home for years to come and won't have to deal with switching schools. I guess I'm trying to give them the same upbringing that I had (parents are in the same house 40 years later), which I know can be a ...
by Carefreeap
Fri Feb 24, 2017 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing a new house -- Are we being stupid to consider it?
Replies: 35
Views: 3559

Re: Purchasing a new house -- Are we being stupid to consider it?

I don't think you are stupid to be thinking about it but I think the acquisition approach isn't wise. I do think we're getting pretty frothy on real estate values in high demand metro areas. You've already experienced what happens when you buy at the top of the market. 10 years later you still can't...
by Carefreeap
Thu Feb 23, 2017 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Father runs an empire at age 80; not my business?
Replies: 18
Views: 3902

Re: Father runs an empire at age 80; not my business?

I once worked for one of these "empire owners" in his late 70s. Eventually he realized the day was going to come when he could not drive, would have less physical mobility, lessened mental capacity, etc. Not wanting to burden his survivors with selling or dismantling a fairly complicated ...
by Carefreeap
Wed Feb 22, 2017 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Real estate vs debt payments
Replies: 17
Views: 1053

Re: Real estate vs debt payments

He does not have a negative net worth unless his house is $510k or less. Since it was bought for $520k at the market bottom I highly doubt that. That income could easily support the payment on the lot. The problem is having the cash available. However this is exactly the kind of opportunity I would...
by Carefreeap
Tue Feb 21, 2017 11:45 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate vs debt payments
Replies: 17
Views: 1053

Re: Real estate vs debt payments

So a little more history. I have had a real job for 5 years. Past 4 years were 250k/year. Now a partner at 500k this year. Expect 400k-600K moving forward. When I finished school, I had 350k in student loans. Some unexpected expenses and 30k in vitro expenses result in me being behind where I'd hop...
by Carefreeap
Tue Feb 21, 2017 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate vs debt payments
Replies: 17
Views: 1053

Re: Real estate vs debt payments

I like the idea but how would you pay for it?

What's the general metro area?
by Carefreeap
Tue Feb 21, 2017 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Should we purchase a $1 Million dollar home with all cash?
Replies: 43
Views: 5156

Re: Should we purchase a $1 Million dollar home with all cash?

The other option, now that you have increased cash and cash flow, is finding a better RENTAL property (not a property that the OP purchased for rental...) that is more expensive than current but meets your needs to live in. Invest the rest-- since OP didn't say that they would retire there. The pro...
by Carefreeap
Tue Feb 21, 2017 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Got an unexpected tax collections notice...
Replies: 23
Views: 3361

Re: Got an unexpected tax collections notice...

Update for Tax Season 2016 This has been educational and is a little crazy. The state garnished part of my income tax refund to pay back this alleged debt. I called the state office, since they are in charge of collecting taxes for my city now. They told me I should call the assigned debt collectio...
by Carefreeap
Tue Feb 21, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Mother-in-law Financial Problems
Replies: 20
Views: 2145

Re: Mother-in-law Financial Problems

This is going to be a tough situation. I wouldn't get my hopes up too high that she's going to change her spending issues until she can get some professional help. My mother was like this. Retail therapy was one of the ways she responded to stress in her life. She probably always had ADD and very po...
by Carefreeap
Mon Feb 20, 2017 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Need advice on girlfriend debt/finances
Replies: 82
Views: 6799

Re: Need advice on girlfriend debt/finances

Thanks for all of the replies. So far I have only contributed about $300 (just in the last week) she sold an old router of mine and I gifted her an ebates check that went right towards her CC debt. I have no problem with what I did and do not regret it. Most, if not all of us, agree that more hours...
by Carefreeap
Mon Feb 20, 2017 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Should we purchase a $1 Million dollar home with all cash?
Replies: 43
Views: 5156

Re: Should we purchase a $1 Million dollar home with all cash?

I might have missed it but the original poster is 43 and as a wild guess they I would think they might be ten years or so from an early retirement. Having a large mortgage payment makes it a lot more complicated to retire so their retirement plans should also be taken into account. . But he's got 1...
by Carefreeap
Sun Feb 19, 2017 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: capital gains on sale of home
Replies: 6
Views: 487

Re: capital gains on sale of home

Don't forget that if you have done any major improvements in the time that you have lived there, it would count towards your cost basis. Not routine upkeep, but improvements or remodel expenses. lafder And things like replacing hot water heaters, furnaces et cetera are considered "capital impr...
by Carefreeap
Sun Feb 19, 2017 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should we purchase a $1 Million dollar home with all cash?
Replies: 43
Views: 5156

Re: Should we purchase a $1 Million dollar home with all cash?

You must be looking at Novato or San Rafael? I can't imagine where else you could find a SFR in Marin for <$1M. I wouldn't put it all in the house. If you're in the IT or Biomedical field there's a good chance you will wind up relocating at some point. I'd put enough down to make the house cash-flow...
by Carefreeap
Sun Feb 19, 2017 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: 1.3 million dollars in debt
Replies: 36
Views: 8169

Re: 1.3 million dollars in debt

[quote="Meg77"] This is a relatively short term problem given your high income. Take advantage of this before you jack up your living costs with fancy cars and a bigger home and all the other trappings of "success." Trust me, I'm a banker who deals with very high earners like you...
by Carefreeap
Sun Feb 19, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Cash out 457(b)?
Replies: 4
Views: 464

Re: Cash out 457(b)?

Make sure you read your plan carefully. Once you sever service with your employer, you can generally cash out your 457 without the 10% penalty. I am unsure how it works if you move to another employer with a 457. I like the idea of the ROTH because it keeps the money earmarked for retirement. One is...
by Carefreeap
Sat Feb 18, 2017 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Progress Made - What Now? (Pay off cheap mtg or invest)
Replies: 22
Views: 2005

Re: Progress Made - What Now? (Pay off cheap mtg or invest)

Do you want to own more rentals? If so, I'd be stashing the cash for the next buying opportunity. I liked the recommendation to have a kid; that would definitely throw a spanner in the works! :wink: I think this is part of my dilemma. I don't really want to buy another rental right now, but when/if...
by Carefreeap
Fri Feb 17, 2017 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Best way to set up small account for incidentals after Mom passes away?
Replies: 19
Views: 1574

Re: Best way to set up small account for incidentals after Mom passes away?

I am not a lawyer, but you need to be careful with gifts transferred from someone potentially requiring nursing home care. I believe there is a 5 year "lookback" period for asset transfers before Medicad is granted. My understanding is that Medicad pays for medical expenses for individual...
by Carefreeap
Fri Feb 17, 2017 10:18 am
Forum: Personal Finance (Not Investing)
Topic: buying umbrella insurance in CA
Replies: 7
Views: 591

Re: buying umbrella insurance in CA

We have ours through State Farm. It's probably not the cheapest but between a house, three vehicles and three rental houses we're more complicated than most. What I really like is that State Farm's umbrella covers our rental condo which is insured by USAA.
by Carefreeap
Fri Feb 17, 2017 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Progress Made - What Now? (Pay off cheap mtg or invest)
Replies: 22
Views: 2005

Re: Progress Made - What Now? (Pay off cheap mtg or invest)

Do you want to own more rentals? If so, I'd be stashing the cash for the next buying opportunity.

I liked the recommendation to have a kid; that would definitely throw a spanner in the works! :wink:
by Carefreeap
Thu Feb 16, 2017 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to set up small account for incidentals after Mom passes away?
Replies: 19
Views: 1574

Re: Best way to set up small account for incidentals after Mom passes away?

Thanks, all! The POA is indeed the executor. And yes, there is a checking account. (I just wrote "savings" for shorthand.) However, it is not a joint account; it is only in my mom's name. Currently, my sister draws upon it as mom's agent (but, of course, that goes away upon death). I have...
by Carefreeap
Mon Feb 13, 2017 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: BH thoughts on housing crash
Replies: 60
Views: 3042

Re: BH thoughts on housing crash

Wanting to raise a 5 YO in a good neighborhood is very understandable. Nothing wrong with aspiring to 'move up', to want to live in a place where you feel more comfortable and secure. But don't play the 'keeping up with the Jones' game. There are always people who are 'better off', live in 'nicer' ...
by Carefreeap
Mon Feb 13, 2017 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: BH thoughts on housing crash
Replies: 60
Views: 3042

Re: BH thoughts on housing crash

Wanting to raise a 5 YO in a good neighborhood is very understandable. Nothing wrong with aspiring to 'move up', to want to live in a place where you feel more comfortable and secure. But don't play the 'keeping up with the Jones' game. There are always people who are 'better off', live in 'nicer' ...
by Carefreeap
Mon Feb 13, 2017 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: BH thoughts on housing crash
Replies: 60
Views: 3042

Re: BH thoughts on housing crash

I do think we are getting frothy in some markets and the I.E. always gets hit hard with market corrections because of it's distance from major job centers. Saying that we are going to have a "crash" is an exaggeration. I don't anticipate a 50% change in values like we saw in the last melt-...
by Carefreeap
Wed Feb 08, 2017 9:45 pm
Forum: Personal Consumer Issues
Topic: Napa/Sonoma Recommendations
Replies: 46
Views: 2483

Re: Napa/Sonoma Recommendations

Former Sonoma County resident here. Sonoma County also has alot to offer besides wineries. I would recommend the drive along the Russian River to the coast. Stop by the Armstrong Redwood, Sonoma Coast State Park, Bodega Bay (where Hitchcock's The Birds was filmed). Lots of small villages, wineries,...
by Carefreeap
Wed Feb 08, 2017 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1630

Re: Life estate at death

There was a recent thread, maybe within the last two months, about how the IRS treats life estates whereby the gifter essentially isn't giving anything if they retain possession via a life estate. And therefore the property does get the stepped up value as of the gifter's date of death. ETA: Check o...
by Carefreeap
Wed Feb 08, 2017 6:48 pm
Forum: Personal Consumer Issues
Topic: Napa/Sonoma Recommendations
Replies: 46
Views: 2483

Re: Napa/Sonoma Recommendations

Former Sonoma County resident here. Sonoma County also has alot to offer besides wineries. I would recommend the drive along the Russian River to the coast. Stop by the Armstrong Redwood, Sonoma Coast State Park, Bodega Bay (where Hitchcock's The Birds was filmed). Lots of small villages, wineries,...
by Carefreeap
Wed Feb 08, 2017 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Putting timeshare in a living trust
Replies: 24
Views: 1764

Re: Putting timeshare in a living trust

My in-laws own 2 weeks of a timeshare in Kauai. It's something they bought 25-30 years ago and they've used them consistently since then, resulting in great family vacations and amazing memories. As they're nearly 70, they've started putting all their assets in a Living Trust to avoid probate in Ca...
by Carefreeap
Wed Feb 08, 2017 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Putting timeshare in a living trust
Replies: 24
Views: 1764

Re: Putting timeshare in a living trust

Do your parents really vacation in the exact same place every year? Or do they rotate different family members going there each year? They need to figure out the eventual exit plan. After the parents die, do all the children want to continue going there? After a few of the children die or are too e...
by Carefreeap
Wed Feb 08, 2017 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Putting timeshare in a living trust
Replies: 24
Views: 1764

Re: Putting timeshare in a living trust

My in-laws own 2 weeks of a timeshare in Kauai. It's something they bought 25-30 years ago and they've used them consistently since then, resulting in great family vacations and amazing memories. As they're nearly 70, they've started putting all their assets in a Living Trust to avoid probate in Ca...
by Carefreeap
Wed Feb 08, 2017 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Please help with real estate question
Replies: 40
Views: 2348

Re: Please help with real estate question

Another issue is that if you own the house and they live in it "rent-free" then as far as the IRS is concerned you are making a gift to them of the fair market value of the rent each year. Let's imagine that fair market value of the rent for a house like that would be $3,000/month or $36,...
by Carefreeap
Tue Feb 07, 2017 7:24 pm
Forum: Personal Consumer Issues
Topic: Hardwood floors vs Wood Look Tile?
Replies: 68
Views: 5322

Re: Hardwood floors vs Wood Look Tile?

We have friends who have installed the wood look tile in their family room and kitchen. It looks great and appears to be holding up well. The one thing that I haven't heard anyone mention yet, is the noise issue. You are installing tile in an area that hasn't had tile. You will notice the difference...
by Carefreeap
Tue Feb 07, 2017 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Please help with real estate question
Replies: 40
Views: 2348

Re: Please help with real estate question

I think under section d 6 of the Garn St. Germain Act the OP could take over his parents' mortgage https://www.law.cornell.edu/uscode/text/12/1701j-3 But I think while noble, it's a terrible idea. Mixing money and family hardly ever ends well. Even though you make good money having that $500k loan o...
by Carefreeap
Sun Feb 05, 2017 5:34 pm
Forum: Personal Consumer Issues
Topic: Grand Canyon in May. Booked already!
Replies: 29
Views: 2759

Re: Grand Canyon in May. Booked already!

And that worry about not being healthy enough? This September I solo hiked the entire JMT at age 55. I hope I turn out to be one of "oldsters" who hikes well into her 80s! 8-) That is great! I hiked Yosemite Valley to Lake Vermillion in my 20s but had to quit there because of a bum Achill...
by Carefreeap
Sun Feb 05, 2017 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Sell rental property?
Replies: 11
Views: 1248

Re: Sell rental property?

I could sell now and clear around $25K, then have that $180 a month to invest. Plus no risk of loss of tenant, repairs, etc. This is exactly what I would do. You're losing money every month, vacancy, a bad tenant or an expensive repair (furnace, roof, A/C, appliances) would put you further in the r...
by Carefreeap
Sun Feb 05, 2017 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate in the name of the parents or adult children
Replies: 15
Views: 1066

Re: Real Estate in the name of the parents or adult children

Thanks. I guess I need to dig more into those threads. Links to best threads to explain those tax/liability areas would be helpful. Kid 1 lives in NY, kid 2 lives in VA. There is a high likelihood that your parents are going to want to move closer to one of their kids in the relatively near future....
by Carefreeap
Sun Feb 05, 2017 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Real Estate in the name of the parents or adult children
Replies: 15
Views: 1066

Re: Real Estate in the name of the parents or adult children

There are lots of existing threads on the issues of family owned real estate. Big factors are; Tax issues such as losing the step up basis of appreciated assets Liability issues such as co-owning real estate with relatives (and their issues). Your parents really should speak to an attorney who speci...
by Carefreeap
Sun Feb 05, 2017 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Do you account for likely life expectancy in retirement?
Replies: 63
Views: 4582

Re: Do you account for likely life expectancy in retirement?

I just convinced myself that my wife and I will live to 100. Why? It's a nice round number that hopefully I'll be able to subtract my age from even in my dotage to know how much time is left. If I die earlier, then I left assets on the table - so to speak. Lol, my planning logic as well. :wink: Alt...
by Carefreeap
Sun Feb 05, 2017 11:08 am
Forum: Personal Consumer Issues
Topic: Grand Canyon in May. Booked already!
Replies: 29
Views: 2759

Re: Grand Canyon in May. Booked already!

And that worry about not being healthy enough? This September I solo hiked the entire JMT at age 55. I hope I turn out to be one of "oldsters" who hikes well into her 80s! 8-) That is great! I hiked Yosemite Valley to Lake Vermillion in my 20s but had to quit there because of a bum Achill...
by Carefreeap
Sat Feb 04, 2017 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off a rental property
Replies: 9
Views: 1092

Re: Paying off a rental property

We paid off a rental property in 2010 as part of a retirement planning process. We were living out of the country at the time and were planning on moving back into the house when my husband retired in mid 2012. I'm not convinced that it was the wisest financial move. With the benefit of hindsight we...
by Carefreeap
Fri Feb 03, 2017 5:17 pm
Forum: Personal Consumer Issues
Topic: Grand Canyon in May. Booked already!
Replies: 29
Views: 2759

Re: Grand Canyon in May. Booked already!

Many years ago it was brought to my attention by an experienced National Parks goer that the accommodations inside the parks that are cancelled leading up to the arrival date are posted ten days in advance of arrival. On two different occasions I was able to get inside the park reservations exactly...
by Carefreeap
Fri Feb 03, 2017 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Holding a Relative's Mortgage
Replies: 20
Views: 1372

Re: Holding a Relative's Mortage

I was looking to refinance my mortgage back in early 1990 (13.50% to 10.50%) and my mother was looking for better CD rates. We both went to my mother's lawyer, he drew up an assignment of the current mortgage from the bank to my mother and then drew up a one page amendment of terms changing the rat...
by Carefreeap
Fri Feb 03, 2017 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Holding a Relative's Mortgage
Replies: 20
Views: 1372

Re: Holding a Relative's Mortage

Who was the beneficiary of the note? Would a stream of income been beneficial? Is this addressed to me? If so, I'm not sure I understand. The note was payable to my MIL. At her death, her estate was divided among her three children, one of which was my wife. So we paid off the mortgage to the estat...
by Carefreeap
Fri Feb 03, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Holding a Relative's Mortgage
Replies: 20
Views: 1372

Re: Holding a Relative's Mortage

These are pretty common. Not sure why everyone is getting up in arms over it. Many families loan money to each other to keep the interest paid in the family vs to a bank especially considering the interest rate on the loan is usually higher than the measly rates paid by savings accounts and CD'S (e...
by Carefreeap
Fri Feb 03, 2017 12:07 am
Forum: Personal Finance (Not Investing)
Topic: Purchasing 4 Family House for Rental Income
Replies: 34
Views: 2263

Re: Purchasing 4 Family House for Rental Income

I'm cringing reading this thread. This is a really terrible idea. I know several people who have gotten into these kinds of partnerships and nearly all of them ended in a disaster. As time goes on you guys will have different priorities (get married / have kids) and things will happen that are outs...
by Carefreeap
Thu Feb 02, 2017 11:47 pm
Forum: Personal Finance (Not Investing)
Topic: Holding a Relative's Mortgage
Replies: 20
Views: 1372

Re: Holding a Relative's Mortage

She should probably have an attorney draft a Promissory Note and Deed of Trust or whatever vehicle is used in the state in which the property is located. The documents are state specific and you need an attorney who specializes in real estate law. The banks have you sign a big bundle of papers for a...
by Carefreeap
Thu Feb 02, 2017 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Holding a Relative's Mortgage
Replies: 20
Views: 1372

Re: Holding a Relative's Mortage

At her age it would seem that if the nephew refinances the loan with her as the lienholder it is quite likely that the settlement of her estate would be significantly complicated by the ownership of this "paper". If the loan has a term of 15 or 30 years it is quite possible that the benef...
by Carefreeap
Thu Feb 02, 2017 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: Another can I afford this $2M house thread...
Replies: 70
Views: 6961

Re: Another can I afford this $2M house thread...

Thank you everyone for the invaluable advice. We did make an offer...unfortunately found out this morning that it sold for way above asking and our budget. :oops: Oh well. This was a great exercise though in determining our exact ceiling figure. Thanks again. As painful as it is, it's often helpful...
by Carefreeap
Thu Feb 02, 2017 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone and gotta tell someone
Replies: 61
Views: 5385

Re: Milestone and gotta tell someone

Impressive for a CA resident. Congrats! There's a few of us. :wink: I'm not sure that it was best financial decision we've made to pay off cheap, long term money at the bottom of the market (2010) but it gives my husband peace of mind. Most people we know can't believe that we live a very comfortab...

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