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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]"Starter" homes/condos are incredibly stupid.[/quote]

Disagree.  I've been renting the townhouse I bought before I got married.  I've had great luck with tenants and manage it myself.  The rent is more than 2x the mortgage payment and I've been able to pay off most of the loan.  I bought for under 200k.   They are selling for around $500k now. The mortgage is under 30k.[/quote]

Just wait to you have to pay taxes on that profit...[/quote]

The taxes aren't that bad they are usually under you payroll taxes so not a big deal. Remember if you make a 1000 dollars and pay 20% that is still 800 bucks you didn't have before. Bad notion of not making money cause you have to pay taxes on it.[/quote]

But if she sells it while it's her primary residence, or within the next two years, she will get $300k tax free. If not, she will pay about $60k in taxes. You think that's chump change?[/quote]

The house will still continue to appreciate. Rents will increase. Sell in 10yrs could have substantially more than the 300k. Who cares it you pay 60k out of 300k. That is 240k you didn't have before. You are going to pay taxes and the losses they can accumulate on the house from improvement and repairs can counter a lot of the taxes even with the recapture of the depreciation. Bad notion not make money cause you have to pay taxes on it.[/quote]

Are you not aware that other assets appreciate too?  In particular, assets whose value is less strongly correlated with the value of your primary residence than another house?[/quote]

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