Home Buying & Real Estate Thread

[handullz]

Me and my homey are pooling or resources and looking to buy some properties

The portfolio will be a mix of new high quality spots and value adds

Hopefully we can cross collateralize the properties or even get one mortgage facility.

We are planning to start with $150k, and pull the equity out through refi in a couple years and cop some more.

Family office type ****

 

[xbiker47]

both those places are beautiful

 

[glennvagmire]

Do you take the furniture back and return it after you sell the home?

 

[datznasty]

How much should I lowball by on a VA Repo? 1 owner, 5 yrs old. Based on the comps, if it was in fair condition, it'd sell for about 183 or 184 right now (103 a sq ft x 1700 + $2,000 for the 3rd carage)
. They have it listed at 149,9. I haven't done a walk through yet, but you can see it's not going to show well so I and my realtor can try to maximize that to throw a **** low offer. I've heard of people doing this moreso with short sales making offers they don't even expect to get accepted and it does but the concept seems the same, the bank just wants it off their hands. It's the neighborhood I wanted to move in when I bought my current house but they were asking way too much then.

3 bed, 2 bath, 3 car garage, 1700 sq/ft which is the same as I have now but this builder does more moulding on the ceiling and architectural beams and things that are nice

My house is still listed so I'm a bit ahead of myself but hopefully this realtor gets me sold

http://www.zillow.com/homedetails/2105-SW-Edinburough-Dr-Lawton-OK-73505/96388603_zpid/

 

[fat boy 915]

Hey guys, quick question.


I'm looking to buy my first home. I'm 27 and have about $80k liquid in a savings account.


I'm looking to buy a 2-3 bedroom home between $200k and $220k. Between a down payment, closing costs and all the other stuff, is this enough money for the house and to live comfortably (spending money on furniture and decorations) for the first 6 months?

 

[still itachi]

Hey guys, quick question.


I'm looking to buy my first home. I'm 27 and have about $80k liquid in a savings account.


I'm looking to buy a 2-3 bedroom home between $200k and $220k. Between a down payment, closing costs and all the other stuff, is this enough money for the house and to live comfortably (spending money on furniture and decorations) for the first 6 months?

I mean, c'mon, you have to know the answer to this question: you have 80k sitting around. If you have a job that will continue to give you additional revenue, and no other debts (you better not, with 80k collecting dust)  then of course the answer is yes.

Word of advice: If you can afford a larger monthly payment....save your bread, and don't put 20% down...use a 1st time home buyer program, and put down like 5% and keep your money in your pocket.

Also, stop letting money sit around in a savings account. Your money is losing purchasing power.

 

[fat boy 915]

I mean, c'mon, you have to know the answer to this question: you have 80k sitting around. If you have a job that will continue to give you additional revenue, and no other debts (you better not, with 80k collecting dust)  then of course the answer is yes.

Word of advice: If you can afford a larger monthly payment....save your bread, and don't put 20% down...use a 1st time home buyer program, and put down like 5% and keep your money in your pocket.

Also, stop letting money sit around in a savings account. Your money is losing purchasing power.

I know I have enough for the home, but I'm talking the first six months of home ownership.

Things such as getting cable and internet set up, electricity, any possible plumbing problems. What is a good amount of money to have stored away AFTER buying a home?

And the money is in my savings for the purpose of buying a home.

 

[pdino]

I know I have enough for the home, but I'm talking the first six months of home ownership.

Things such as getting cable and internet set up, electricity, any possible plumbing problems. What is a good amount of money to have stored away AFTER buying a home?

And the money is in my savings for the purpose of buying a home.

If you put 20% down + closing costs you're looking at 50k total to purchase the home. Depends if the place needs any repairs or anything, but you'll be fine with 30k to do just about anything you need.

 

[itshlittt]

You have to refi If you did an FHA to get out of PMI now

MIP*

 

[stork]

How much should I lowball by on a VA Repo?

is it an approved short sale price or not? if it's not approved then 115-120, this is just to get the bank to respond and counter at ~135-140. then you can counter offer back if necessary. ask your agent if they have a short sale negotiator, it may be helpful sometimes they have inside contacts with the I-bank or whoever owns the loan.

 

[fat boy 915]

If you put 20% down + closing costs you're looking at 50k total to purchase the home. Depends if the place needs any repairs or anything, but you'll be fine with 30k to do just about anything you need.

Thank you. I'm just worried about finally moving in and not having enough money to live comfortably and be able to do stuff to the house.

 

[206to813]

Currently dealing with a roadblock or maybe a deal killer in the sale of my house. Im the seller. Its been a long road, have had the house on the market for 4 months, finally got an offer and went under contract about 3 weeks ago. That was a blessing, i thought. VA buyer and the va appraisal came in 26k under the purchase price. The buyer has the down payment to make up the difference. Whether or not theyre willing to, we should know soon, otherwise we're back to square 1. I refi'd 2 yrs ago and it appraised for 23k more than the VA appraisal and his states our market sales trends are increasing

 

[ekrev98]

gorgeous bro

thank you!

Great work

If you dont mine me asking how many homes did you flip last year?

Either way keep us updated on your new projects

7 flips last year, 1 wholesale deal, and 4 traditional sales (listing and selling agent). I'm looking to do 15-20 flips this year. Last year was a lot of learning and i think i have everything dialed in now and the additional resources will definitely help in purchasing properties.

both those places are beautiful

thanks!

Do you take the furniture back and return it after you sell the home?

We hired a company to stage the property. We normally don't stage properties but the price points of these 2 properties calls for it.

Thank you. I'm just worried about finally moving in and not having enough money to live comfortably and be able to do stuff to the house.

with $30k, you'll have plenty of money left to do or buy what you need for your house. i rehab'd a 1200 sq ft home inside and out for $30k.

Currently dealing with a roadblock or maybe a deal killer in the sale of my house. Im the seller. Its been a long road, have had the house on the market for 4 months, finally got an offer and went under contract about 3 weeks ago. That was a blessing, i thought. VA buyer and the va appraisal came in 26k under the purchase price. The buyer has the down payment to make up the difference. Whether or not theyre willing to, we should know soon, otherwise we're back to square 1. I refi'd 2 yrs ago and it appraised for 23k more than the VA appraisal and his states our market sales trends are increasing

are you able to see that VA appraisal? hopefully everything works out! 

 

[degenerate423]

Anyone in here familiar with Portland, OR?  I'd like to buy my first rental property and a co-worker was telling me to check out Portland.  I haven't been recently. but curious if anyone knows if rentals are big out there or do most people own (mortgage)?

 

[tvobach]

 
Anyone in here familiar with Portland, OR?  I'd like to buy my first rental property and a co-worker was telling me to check out Portland.  I haven't been recently. but curious if anyone knows if rentals are big out there or do most people own (mortgage)?

Most people definitely rent. I have many coworkers who live in Portland and I'm out there often.

Owning in PDX is tough because of the market being so expensive. So, to answer your question, yes, rentals are big in Portland.

 

[archiballer]

Any real estate agents or flippers in utah? Preferably farmington area?? [emoji]128064[/emoji][emoji]128064[/emoji][emoji]128064[/emoji]

Me and the wife are looking to purchase in the near future. 200-250k. First time home buyers bla bla bla

 

[turbospartan]

For those of you that are landlords / rent out properties, do you follow the "1% rule"  (rent = 1% of home price, so $200k house should bring in $2k in rent per month)?  If so, do you ever have exceptions to that rule?

Just spitballing here, as I have no intentions of doing this right now.... but I currently own a home in the metro-Denver area and if I do decide to move, I'm considering renting it out versus selling it. 

Just some quick numbers, but we purchased the home for $288k in May 2015.  The last 3-4 years, home values have risen double-digit % each year .  Rolled by an Open House this weekend, where a house very similar to ours 2 blocks over was listed for $329k.    If my house could sell for even $320k this coming May (to make it 2 full years), the value would have increased by $32k.   $32k / 24 months = about $1300 in value increase, per month. 

Would a situation like this make it "worth it" to rent it out versus sell the home, even if it doesn't fall anywhere near the 1% rule?   Even one year of renting it out would reduce the principal by around $6k (~$500 per month x 12 months).  Add in the potential value increase of $1300 x 12 months = $15,600 value increase.   $15,600 + $6,000 = ~$20k in "value" to me. 

I know that you should never bank on on your property value increasing as part of the investment, but my research of the Denver market leads me to believe that there won't be any bubbles bursting anytime soon.  I could see the market slowing some, but then again there is a unique situation here where there is a large demand / low supply of "entry level homes".   There is a definite shortage of housing here, especially with the 100k or so new residents that move here each year.  Additionally, most of the new build houses out here are not entry level homes - they are luxury homes ($500k+).  It makes sense, as empty lots or even existing houses that are going to be scraped go for $200k, and a builder isn't going to scrape an existing structure just to build a $100k entry level home there to sell for $300k.  Another factor is that there is an existing "building defect law" here that is pushing many builders away from building condos as they are on the hook for any defects for 10-years.  So to avoid that, they just build apartment complexes instead. 

Sorry for the rambling.  Many people don't think its ever a good idea to become a landlord, especially if you are not managing the property yourself.  Even more so when the "investment" doesn't prescribe to the 1% rule.   I just wonder if the unique situation here would be worth it to try renting it out, even for a year, to see how it goes.  I understand there are still costs to maintaining a property, that a tenant can trash your place, etc.... but will those costs exceed the potential $6k - $20k in value from paying down the principal / property value increase?

 

[coolcool]

 

if you can handle being a landlord, there's obviously a benefit there.  Especially if rent covers your monthly payments.  I've never sold a property, but it sounds like if you don't do it urself, u lose a lot of cash to realtors.  u gotta screen your tenants very well and get lucky you get good ones.  on the flip side, I think the rent you get counts as income, negating the write off from taxes and interest.

will you be renting when you move or buy another place?

 

[beeniesfoams]

Can someone explain closing costs to me. some one told me they purchased a house FHA 3.5% down & their closing costs were over 24K. They bought the house for 260K.
Why were the closing costs more than their down payment? Is there a rule of thumb as to how much closing costs should be?

 

[coolcool]

down payment is included in the "closing cost."  there's also lawyer fees, deed insurance or something, realtor fees, etc.  someone correct me if I'm wrong!

 

[chadleroy]

Can someone explain closing costs to me. some one told me they purchased a house FHA 3.5% down & their closing costs were over 24K. They bought the house for 260K.
Why were the closing costs more than their down payment? Is there a rule of thumb as to how much closing costs should be?

I need to know this too

 

[pdino]

My duplex in Cali (most properties in Cali) doesn't meet the 1% rule, but I live almost for free, so it's worth it for me. If you really want to be hands-off you can get a property manager, but it'll take away from your cash flow of course. One thing to keep in mind is that rents will probably keep going up with more demand, while your mortgage will stay the same or get lower (if you get to refinance to a lower rate).

Can someone explain closing costs to me. some one told me they purchased a house FHA 3.5% down & their closing costs were over 24K. They bought the house for 260K.
Why were the closing costs more than their down payment? Is there a rule of thumb as to how much closing costs should be?

Closing costs usually total 2-5% of loan: appraisal (appraiser comes out and tells you how much house is worth), survey (verify boundaries), underwriting fees, title search fees(check if there are liens or issues with the property) , title insurance (in case someone claims your home is theirs), insurance, credit report.

Mine costs ~6k for 450k place.

 

[turbospartan]

 
if you can handle being a landlord, there's obviously a benefit there.  Especially if rent covers your monthly payments.  I've never sold a property, but it sounds like if you don't do it urself, u lose a lot of cash to realtors.  u gotta screen your tenants very well and get lucky you get good ones.  on the flip side, I think the rent you get counts as income, negating the write off from taxes and interest.

will you be renting when you move or buy another place?

I would be buying another place, which is also a factor.   Will need $ for down payment on the new place... but based on the numbers I provided above, it almost seems wise to just keep that place if it will continue at its current pace.  Obviously it is not going to increase in value 10%+ every single year for infinity, but it makes me wonder if it is worth holding onto for a little bit.  If it were possible to sell it this coming spring/summer (when most houses go for sale, and everybody is out-bidding each other making the prices rise) for $320k for example, but next spring/summer (201 the value would rise to say $340-$350k.... is it worth holding onto for an extra year, to gain another $20k+ in equity? 

 
My duplex in Cali (most properties in Cali) doesn't meet the 1% rule, but I live almost for free, so it's worth it for me. If you really want to be hands-off you can get a property manager, but it'll take away from your cash flow of course. One thing to keep in mind is that rents will probably keep going up with more demand, while your mortgage will stay the same or get lower (if you get to refinance to a lower rate).

I would use a Property Manager, because if we move - it will be out of Colorado.  But I think I could rent it for: Mortgage + Prop Mgr and still come out even, or possibly even ahead.  

Most real estate investors probably wouldn't touch it, if it isn't positive cash-flowing each month.  But my question is.... when does the equity increase + principal paydown make it worth it?  If I make $0 cash-flow per month, but by the end of the year it has added $10k (estimate on lower end, which would be about 3% gain) in equity and paid down the principal by $6k..... is it worth it then?  

All hypothetical though.  We aren't moving anytime soon, but it just something that I have kept in mind as I keep tabs on the current market conditions. 

 

[NewWave90]

if you can handle being a landlord, there's obviously a benefit there.  Especially if rent covers your monthly payments.  I've never sold a property, but it sounds like if you don't do it urself, u lose a lot of cash to realtors.  u gotta screen your tenants very well and get lucky you get good ones.  on the flip side, I think the rent you get counts as income, negating the write off from taxes and interest.

will you be renting when you move or buy another place?

Just to add to this, banks typically count rental income as personal income after 2 years.

 

[da shoefreak]

Thank you. I'm just worried about finally moving in and not having enough money to live comfortably and be able to do stuff to the house.

with $30k, you'll have plenty of money left to do or buy what you need for your house. i rehab'd a 1200 sq ft home inside and out for $30k.

 bro who is your contractor. I need that connect