Options are a wonderful thing to have. In this economy though, it is always a bit hard to judge what your best options are.
Now that I’m employed we can free up the extra savings of mine and add this to our entrepreneurial funds that we’d been putting away for some time. This gives us about $35,000 of spare cash to work with at the moment.
Our initial objective with these funds was to buy property in Portland. While we are still interested in pursuing this option, we are also taking a step back to make sure that we are weighing the alternatives for their merits as well.
At the moment there is a fabulous one bedroom plus in NW Portland still on the market that I fell in love with back in November. We love it but realize that working the numbers everything would have to land in our favor to make it break even. This would include a low interest rate, reduction in price, and rent at just above average.
We could go for something less expensive to ensure that we were cash flow positive, but we might not have a place that we would potentially want to live in at some point. I also have a less favorable opinion of studios for their value since they turn over quickly and have limited appreciation.
We could also wait and continue to save, as the market doesn’t look like it is rebounding any time soon. Then we could buy what we want and be cash flow positive. But we’ve also been saving for awhile and would like to make things happen.
We could also take the less complicated route of just buying secure bonds and getting a $200 monthly cash throw off without the hassle and risk of real estate.
So many choices. We are glad to have options.
Readers: As always we’d love to hear your two cents on which option we should pursue.
Miel
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