Mtg Payments? Nice Profit on Puma Path Sale?
Ppl posted - public records re PP house showed no liens or mortgage, at least not recorded in Chaffee County, the appropriate county for recording it. Which means if accurate BM had no "whoopin' mortgage payment" on that prop. Conceivably a loan secured by PP prop. from a fam member might not be recorded. So, likely no payment at all, but a man in BM's position may owe big $$$ for other debt (ex: legal or illegal gambling), as others have said. We don't know as a fact one way or the other, imo.
My main point was responding to a post saying the sale would result in a nice profit. Yes and no, imo.
Buy home $ 1,575,000; sell $ 1,759,000, difference = $ 184,000 = 11.6 % for two yrs, or 5.8 % per yr.
Yep, not gonna sneeze at it, if it's a $ 184,000 cap. gain/profit. Would not be bad at all.
But per post 415 calculations, ^ is not the seller's actual capital gain/profit.
Seller's actual capital gain is more likely in range of $ 30,175 to $ 74,801.
If $ 30,175 gain, then = 1.9 % for two yrs or .9 % per yr, which is less than 1 % yr!!!
If $ 74,801 gain, then = 4.6 % for two yrs, or 2.3 % per yr! Not sneezing at it.
If it sells at initial full asking price, viewed strictly as an investment, the house is okay, not spectacular imo.
Anybody is welcome to check my math, which may be a bit shaky.
And @borndem as you say, selling the PP home gets BM away from scene of (potential) crime. jm2cts.
@borndem sbm re my post 415. Aw, gee shucks; you are too kind. Calculating that was not a brain strain but trying to lay the $ out in a format, so ppl could follow the math (if they wanted to) was a bit tedious. Wish I could have used a spreadsheet.Thanks for the amazing calculations. Lotsa work on your part, @al66pine! ... the sale of the house... at least he'll get out of a whoppin' mortgage payment/debt, and away from the possible scene of the crime...
Ppl posted - public records re PP house showed no liens or mortgage, at least not recorded in Chaffee County, the appropriate county for recording it. Which means if accurate BM had no "whoopin' mortgage payment" on that prop. Conceivably a loan secured by PP prop. from a fam member might not be recorded. So, likely no payment at all, but a man in BM's position may owe big $$$ for other debt (ex: legal or illegal gambling), as others have said. We don't know as a fact one way or the other, imo.
My main point was responding to a post saying the sale would result in a nice profit. Yes and no, imo.
Buy home $ 1,575,000; sell $ 1,759,000, difference = $ 184,000 = 11.6 % for two yrs, or 5.8 % per yr.
Yep, not gonna sneeze at it, if it's a $ 184,000 cap. gain/profit. Would not be bad at all.
But per post 415 calculations, ^ is not the seller's actual capital gain/profit.
Seller's actual capital gain is more likely in range of $ 30,175 to $ 74,801.
If $ 30,175 gain, then = 1.9 % for two yrs or .9 % per yr, which is less than 1 % yr!!!
If $ 74,801 gain, then = 4.6 % for two yrs, or 2.3 % per yr! Not sneezing at it.
If it sells at initial full asking price, viewed strictly as an investment, the house is okay, not spectacular imo.
Anybody is welcome to check my math, which may be a bit shaky.
And @borndem as you say, selling the PP home gets BM away from scene of (potential) crime. jm2cts.