Should I kep my house forever?

lol, quick questions…

I bought my house right around retail, good neighborhood, great school district (house is acually in a school zone) for 128k. I put 20k down to avoid PMI and well, because I could. I owe about 107k (been here 2 years now). I paid 1 point to get a 4.75% 30 year note. I assume this was a no brainer good deal?

At this interest rate, would I be silly to not cash flow this house when I decide to move? It needs some work, unfortunatly its expensive work, like a new fence and leveled yard with retaining wall (Its not THAT bad but it bothers me and is a pain to mow!!). If I keep the house for a long time, it would be worth the investment…If not, then I plan to move in 5 years or so and sell it, so it wouldn’t be worth dropping the 10k it would cost to do it nice. (big corner lots not all its cracked up to be - yard work + texas summers = teh suck)

It’ll be awhile before we see rates like that again from what I understand, so I’m wondering if its something I should hang onto for cash flow even though I paid retail.

If you are thinking about turning it into a rental in a few years, why not if you can get enough rent to pay for mortgage, taxes, and expenses. You will get a higher quality renter with a higher quality property, so the improvements might be worthy. 4.75% is a great rate, and 5 years from now you will be to the point where you will be starting to knock out a good amount of principal. Plus, it’s a tax write off. I would say why not keep it.

RJ Baxter

I agree KEEP IT.

It will cash flow great and in a rentable area.

I know an investor that owns 200 houses now and most are even paid off and it is just straight cash flow now just think about that
(massive passive income).

Read Rich Dad Poor Dad by Robert Kiyosaki if you haven’t already that will really change your perspectives and goals for the good.

Have your money work for you instead of working for money.