This is the situation:
We have the opportunity to purchase a 4-unit building for $750,000. We can do a 5% down payment in cash, which is the original plan. However, we also have $30,000 in bonds (not counting the interest since they are less than five years old) and about 33,000 in mutual funds (we would have to pay 15% tax on gains from about 15,000), and my parents are willing to gift us $47,000 as a wedding gift. This would total $150,000, a 20% down payment to not have to pay BMI about (~350/month), and giving us a small positive operating expense ratio after calculating rents income, and insurance and bills expenses. At the 5% we'd have to pay ~$1,000/$1,200 out of pocket to met the mortgage and expenses total.
(None of these are our emergency fund, $20,000, we're not touching that.)
Currently the investments are netting us about $600 a month, but the vanguard funds have been a rollercoaster for the last year. By liquidating investments, our mortgage would drop by about $1,000 monthly.
Also, probably worth mentioning, I have about a ~$4,000 a month surplus in income from my job so I have wiggle room.
So the question is: would it be a good idea to liquidate all those investments to reach the 20% down, or should we leave those alone and do the 5% only? What do you all think? submitted by /u/FImilestones
[link] [comments]
We have the opportunity to purchase a 4-unit building for $750,000. We can do a 5% down payment in cash, which is the original plan. However, we also have $30,000 in bonds (not counting the interest since they are less than five years old) and about 33,000 in mutual funds (we would have to pay 15% tax on gains from about 15,000), and my parents are willing to gift us $47,000 as a wedding gift. This would total $150,000, a 20% down payment to not have to pay BMI about (~350/month), and giving us a small positive operating expense ratio after calculating rents income, and insurance and bills expenses. At the 5% we'd have to pay ~$1,000/$1,200 out of pocket to met the mortgage and expenses total.
(None of these are our emergency fund, $20,000, we're not touching that.)
Currently the investments are netting us about $600 a month, but the vanguard funds have been a rollercoaster for the last year. By liquidating investments, our mortgage would drop by about $1,000 monthly.
Also, probably worth mentioning, I have about a ~$4,000 a month surplus in income from my job so I have wiggle room.
So the question is: would it be a good idea to liquidate all those investments to reach the 20% down, or should we leave those alone and do the 5% only? What do you all think? submitted by /u/FImilestones
[link] [comments]