Big Brain says: take the 300K home
Little Brain says: take the 1500 encounters
Personally, I would take the home and rent it for $3k/month. At a conservative 75% margin to account for vacancy and maintenance expenses I would net $27k. That gives me 135 dates per year and I retain the appreciating $300k asset.Wrong - you invest the $300k at a 5% ROI. That's $15k per year return and hobby 50 weeks out of the year @ $300 p/h.
ijs Originally Posted by tracer
Wrong - you invest the $300k at a 5% ROI. That's $15k per year return and hobby 50 weeks out of the year @ $300 p/h.I am with you on upgrading to the $300/hour, but not sure why I would settle for 5% ROI instead of over 8.5%. Note that the 8.5 assumes no increase in the property value, which is unlikely. The 5 assumes no cost for interest of the house purchase deducted from overall return.
Secure 100% LTV loan and purchase the house as well... Originally Posted by SNL9933
Personally, I would take the home and rent it for $3k/month. At a conservative 75% margin to account for vacancy and maintenance expenses I would net $27k. That gives me 135 dates per year and I retain the appreciating $300k asset.You win, prize the internetz. Great answer
ijs Originally Posted by tracer