Home Buying & Real Estate Thread

[vagixxer]

House we recently built and sold, but a free standing tub inside the shower on it

Another one we recently took down to foundation/footings and rebuilt

We currently have around 25 projects in development between new builds and historical rehabs.

Great work everyone in here and keep it up!

 

[Mark Antony]

Very nice, where are they?

 

[capital sb]

Still doing projects in Rva @VaGixxer  ? They look very nice.

 

[vagixxer]

Still doing projects in Rva @VaGixxer
 ? They look very nice.

Thanks fam. Yea we are still rolling out houses. Once I get through inventory I'm shifting to a more multi family/rental investment strategy.

Very nice, where are they?

Richmond, VA. First house we sold for 400k plus some upgrades

The second we pre sold for 327k

Both record price per sqft at the time.

 

[degenerate423]

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.

Appreciate the info! If you don't mind me asking, is Southeast Portland (bordering Happy Valley and Gresham) a desirable area to live? I see a couple homes that way and also a little north where the airport is (bordering Vancouver), but I'm wondering if they're priced so reasonably because no one wants to live there . Again, appreciate any help you can offer!

 

[capital sb]

Thanks fam. Yea we are still rolling out houses. Once I get through inventory I'm shifting to a more multi family/rental investment strategy.
Richmond, VA. First house we sold for 400k plus some upgrades

The second we pre sold for 327k

Both record price per sqft at the time.

I see why they were record high's the work looks great. Not the normal Richmond styling.

Smart , I really want to get into multi's in the Richmond area but that will be awhile from now.

What VCU is doing to the city has crazy potential .

 

[rafkin johnson]

anyone familiar with the michigan market...

i'm looking for some feedback 

thanks 

 

[turbospartan]

anyone familiar with the michigan market...

i'm looking for some feedback 

thanks 

I'm originally from MI. Where you looking?

 

[Bert.]

anyone familiar with the michigan market...

i'm looking for some feedback 

thanks 

Where at G

 

[usabasketball08]

I'm in my mid 20's looking to buy in the next 2 years or so. I make $100-120K. I know it's very early, but I have no idea what price range I should look in based on my income. My monthly debt is right under $1K, just a hefty student loan and car payment. No CC debt now and it will remain that way.

I'm assuming the bare minimum to put down should be like 5%, but I have no idea what I can afford even though I'm a long way out from buying. I'm just trying to think ahead. Property taxes in my area are high (2-2.5%) and prices have risen by 8-10% the past few yrs. I'm in DFW

 

[arrogant]

Always makes me mad when i see a dope crib for 400k, but then i realize id have to live in richmond, va and i say yea i am cool renting.  i am still saving to buy a place, but a place in my hood that meets my qualifications is at least 2.3 million, my qualifications arent aht much either, maybe 1300 sqf 2 bed 2 bath.

 

[arrogant]

 
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 dxceed the potential $6k - $20k in value from paying down the principal / property value increase?

In general, home values have to fall as rates rise.  People can afford less of a home as more of their payment goes to interest.  home values, in general, wil be falling as rates rise.  

 

[davinci]

anyone familiar with the San Diego market?

i'm looking for some tips/help

 

[ekrev98]

anyone familiar with the San Diego market?
i'm looking for some tips/help

I'm in San Diego. What did you need help with?

 

[turbospartan]

 
In general, home values have to fall as rates rise.  People can afford less of a home as more of their payment goes to interest.  home values, in general, wil be falling as rates rise.  

That is true.  It will be interesting to see how it plays out in the coming months.  Rates are around 4.15% for 30year right now, but many expect them to rise again as soon as this week. 

The previous house I mentioned a couple blocks away from me, is now under contract.  Listing went active on 2/9, under contract on 2/14.  Once sale is finalized and website updated, I will get to see what it actually sold for (if it went for over listing, under listing, etc.). 

 

[HankHill]

I'm in my mid 20's looking to buy in the next 2 years or so. I make $100-120K. I know it's very early, but I have no idea what price range I should look in based on my income. My monthly debt is right under $1K, just a hefty student loan and car payment. No CC debt now and it will remain that way.

I'm assuming the bare minimum to put down should be like 5%, but I have no idea what I can afford even though I'm a long way out from buying. I'm just trying to think ahead. Property taxes in my area are high (2-2.5%) and prices have risen by 8-10% the past few yrs. I'm in DFW

General rule of thumb is 2.5-3x your gross salary.

Are you renting now? Use that as a base to what you can afford monthly (include any property taxes, ownership or condo fees, insurance etc). Add on top whatever you're saving towards your down payment.

Example: I comfortably paying $1300 a month for rent and saving $600 a month towards a down payment. That puts me at $1900 for monthly housing cost once I buy a home. I would then calculate what value home I can afford with that (probably high $200ks). You can look at nerd wallets site (https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford).

If you have debt ending soon and don't plan on taking larger debt after buying the home, you can factor that in as well. Don't factor raises until after the fact in my opinion. Make a budget of expenses now versus when you have a home to play around with the numbers

Continuing example:
I'll pay off my car loan that frees up another $300 a month so I can apply that to my $1900 and have $2200 monthly. But if I plan on financing a new car, I'll just keep the housing cost to $1900

 

[davinci]

I'm in San Diego. What did you need help with?

Pmed

 

[still itachi]

I'm in my mid 20's looking to buy in the next 2 years or so. I make $100-120K. I know it's very early, but I have no idea what price range I should look in based on my income. My monthly debt is right under $1K, just a hefty student loan and car payment. No CC debt now and it will remain that way.

I'm assuming the bare minimum to put down should be like 5%, but I have no idea what I can afford even though I'm a long way out from buying. I'm just trying to think ahead. Property taxes in my area are high (2-2.5%) and prices have risen by 8-10% the past few yrs. I'm in DFW

Think about what you want your life to be about.

Conventional wisdom says you can afford up to 35% of your gross income in mortgage payments. But you have to decide for yourself is that really a life you want to lead. 

Do you want more lavish accommodations and a higher payment, or modest living but peace of mind.

My girlfriend and I each make roughly what you make. So when we went to look at houses, all these sales people were like, "but you can qualify for so much more!" in attempts to get us to spend $650k. But we knew that a smaller model, with a mortgage that could be handled by either of us individually in the case of emergency was better for us long term.

Do you have an emergency fund?

 

[NewWave90]

Do you follow the Dave Ramsey method of financial literacy?

 

[capital sb]

 
Always makes me mad when i see a dope crib for 400k, but then i realize id have to live in richmond, va and i say yea i am cool renting.  i am still saving to buy a place, but a place in my hood that meets my qualifications is at least 2.3 million, my qualifications arent aht much either, maybe 1300 sqf 2 bed 2 bath.

Why in rva?

 

[still itachi]

 

Do you follow the Dave Ramsey method of financial literacy?

How do you quote someone and just put stuff in there they didn't even type? lol.

Anyway, no I don't. I like him and did read The Total Money Makeover. However, while there are aspects of his philosophy I agree with (planning, living beneath your means) , there are as many aspects that I do not agree or do not follow (absolute aversion to leverage, envelope system). Also, if you've ever listened to his radio show you'd know that the proselytizing is a bit much too.

 

[NewWave90]

You have to delete what the person wrote up to the square brackets.
I do agree with the proselytizing point though. When you asked about the emergency fund that's what made me ask.

 

[allout46]

I didn't notice you were from NYC. I closed on my 2 fam in Queens in October. Where are you looking to buy a home ? If you need any help, PM me.

Whats good bro im from NYC do you mind if i hit you up for advice as well?

 

[dam itz lou]

Whats good bro im from NYC do you mind if i hit you up for advice as well?

No problem.

 

[aychd]

This thread is awesome. I'm a pure noob when it comes to buying a house and all the factors that you have to consider when buying a house. Does anyone have any advice where to start and learn. I literally want to master this and own a lot of property. Much appreciated!