Pay off mortgage vs buy more properties Real Estate |
- Pay off mortgage vs buy more properties
- First Time Homebuyer: Home Inspection
- Should we ask the seller to replace the septic system?
- First big purchase, I'm terrified. What must I do?
- Tell clients my lender will call?
- Homeserve home repair insurance plans
- BVO or Direct Reimbursement for relo?
- Need help finding permit search website
- Building Home (Barn - Post and Beam) with Second and Third Story Living?
- I am thinking of aiming for a home built in the 1930’s please give suggestions and warnings.
- Thinking of doing Flips in California. What is a good rate of return?
- Need help figuring out how much I can safely spend on home and where to move to.
- First time home buying Questions (Tacoma WA)
- Looking for the best RealEstate company to work for near Orlando, FL
- [Seattle / King County] How much of a "fixer" should we buy?
- Question for Landlords of Reddits
- Is there a website that will show me tenanted properties available for purchase?
- Foreign real estate investment US-to-Canada
- Out of town/country investors of Reddit, where are you guys looking to buy next
- Help! Need advice and ideas!
- What happens if you put earnest money down
| Pay off mortgage vs buy more properties Posted: 04 Jul 2018 04:27 PM PDT Hello, I am looking for some thoughts on pay off vs buy more. I did a search and did not find any relevant results in the first three pages so I apologize if this is frequently asked. I am not looking for discussion on "pay off vs put it in the market" comparisons. The biggest thing is I will increase my cash flow per property by paying it off. Unsure of what I will lose by paying it off? Mortgage deductions? Any other tax breaks? Is it a wash or is it more advantageous to keep the mortgage and buy more rentals? Does anyone have an insight on this? Edit: Bot suggested I add location and other factors. I am in Oklahoma and currently have 4.75 to 5.5% loans (30 year). Thank you all for the feedback so far. I have posed the question to my CPA but haven't heard back as she is probably celebrating the 4th with family. I just wanted some ideas to discuss with her prior to our conversations on this topic. [link] [comments]  |
| First Time Homebuyer: Home Inspection Posted: 04 Jul 2018 09:50 PM PDT Hi All! My husband and I are buying our first house and we just got the home inspection done yesterday. We also opted to get a sewer inspection addon because there is a sewer drain and access in our back yard. I found out today that the 3rd party company our home inspection company hired only ran a line from our house to the the public access drain on the front street (or tried to, apparently the PVC is bent and needs fixing). He didn't explore any of the back drains though. Everyone is telling me that if tree roots or damage happens to any of those pipes; we're responsible for them even if they are just run off drains & not sewage drains. Would it be reasonable to ask him to come back out and run lines down those also to look for damage? I figured he was going to run cameras down all the lines on the property; not just the ones leading to the home. Thank you for your help in advance! [link] [comments]  |
| Should we ask the seller to replace the septic system? Posted: 04 Jul 2018 08:50 PM PDT My wife and I had an offer on a house in Washington state accepted. The system was originally put in in the 1950s, but the guy that came out said work had been done to it in the 90s. There is no record of the system with the county. If it was the original system from the 50s we could have had it grandfathered in but because the work was done in the 90s -- and it wasn't permitted -- the guy says it would be difficult to get a permit for it now. To get a permit, we would likely need to put in a whole new system. Here's my question. If we ask the seller to go to the expense of working with the county and a septic designer to see if they can obtain a permit, should that be good enough for us? Our concern is that the system is still very old. Our agent thinks it might be a tough sell to ask the seller to put in a brand new system if the system isn't actually failing. But we're worried that even if it isn't failing now, given its age, couldn't it fail in the near future? [link] [comments]  |
| First big purchase, I'm terrified. What must I do? Posted: 04 Jul 2018 07:56 AM PDT I'm 31 years old with a net worth of $600k and never had any debt. I'm buying a duplex in Seattle for $825k with 25% down (most of my other $ is tied up, or else I'd put more down). I've never been this stressed out about any purchase before, I'm terrified. People say "congratulations" and I'm just fearful of losing hundreds of thousands on this somehow, a crash or misjudging rental rates or overlooking something huge. PM me and I'd be happy to share a link to the exact property. I'm not bold enough to share it here publicly. I'm looking for any advice. My agent seems relaxed but hasn't helped temper my fears. One of my biggest questions is about tax benefit. Calculating the true "cost" of buying is such an obscenely complex equation, accounting for opportunity cost and whatnot. I think the taxes work something like this: Depreciation = ((65% value in structure)*($825k purchase price))/(27.5 years depreciation) = $19,400 per year depreciation deduction. Property tax tax = $7,692 per year. Mortgage interest paid in year 1 = $27,998. Total deductions = ($19,400 + $7,692 + $27,998) = $55,090, minus $12k standard deduction for a net deduction of $43,090 Total tax savings = (($43,090 deduction) * 0.25 tax rate) = $10,772/year, of which $4850 ($19400 depreciation * 0.25 tax rate) would be recaptured on sale. So the real savings is $5,922 per year, or about $500 per month. Plus the depreciation which is more like an interest-free loan until I sell, the value of that is very near negligible, I might not even include depreciation in my taxes just to keep it simpler. All that complicated tax stuff, I'm not sure it's right, and it's just one small piece of the puzzle. I'm really feeling overwhelmed. Without feeling like I fully understand the financial analysis - is it even humanly possible, given how complex? - it feels high risk. Especially with everyone talking about how hot the market is. By taking out a $600k mortgage when I have about $600k net worth, I'll be levered around 2 to 1. I could pay it down and get less levered hopefully rapidly. That feels relatively safe I guess. I think I could pay around $150/year into it, so in year 2 I'll have a $450k mortgage on $750k net worth, and year 3 $900k net worth with $300k mortgage. I'll feel safer then, when my debt to assets is around 1 to 3 instead of 1 to 1. But that's assuming no crash in 3 years. Jesus... my hair's going to fall out. I'm going to waste any real estate gains on hair restoration procedures and cardiac trouble from the stress. [link] [comments]  |
| Tell clients my lender will call? Posted: 04 Jul 2018 06:20 PM PDT My husband and I are both self-employed 1099 workers. We work with various clients who pay us hourly for work. I work steadily with the same client, and my husband works with different clients. My mortgage lender is asking me to provide names and phone numbers of our clients who pay us to verify our income. Is this normal? If so, should I call my clients and give them a head's up that my mortgage lender will be calling them? I feel like this will make for an awkward relationship with our clients, like they will feel pressured into using our services if our mortgage lender is calling them asking them to vouch for us. Our lender is asking for this since neither of us have a business license. We are just schedule C workers. Does anyone have any tips or advice on this? [link] [comments]  |
| Homeserve home repair insurance plans Posted: 04 Jul 2018 06:07 PM PDT Hi all, Landlord, Atlanta GA I've signed up for 2 combo plans with www.homeserveusa.com for HVAC repair and Plumbing repair (interior and exterior including water and sewage lines that run to street). The plumbing plan actually includes water heater repair and replacement as well. My plan totals about $60 a month. My question is this: Does anyone else use this warranty / insurance service and if so, are you satisfied? Have there been any "gotchas" where they didn't honor a claim for you? If this is a complete scam, would love to hear of a competitor that's better or just other ideas in general about repair cost mitigation. I thought this was a good idea to prevent any surprises and especially any large bills for water / sewer pipe repairs as I know those can run $5k-10k Thanks! [link] [comments]  |
| BVO or Direct Reimbursement for relo? Posted: 04 Jul 2018 08:17 PM PDT I own a house and have accepted a relocation offer that includes an option of BVO where the relo company buys the house and then sells it to the buyer. I also can do the sale with my own realtor and do a direct reimbursement for closing costs. I understand the BVO option is better for the company and is more convenient and faster closing for me but is there also a financial benefit to me? The only thing I can tell is that BVO is limited to 102% of appraised value. If my own realtor can sell for 110% of appraisal would there be a net loss using BVO? Edit: my house is in Los Angeles in a hot neighborhood. [link] [comments]  |
| Need help finding permit search website Posted: 04 Jul 2018 06:45 PM PDT I came across a permit search website, where you can enter the address of the property and it will list the permits and improvements that was done. I think it pulled from county and city sites, but it aggregated everything. Looking for the site as I'm house searching soon. Thanks in advance! Located in the US, in [PA] [link] [comments]  |
| Building Home (Barn - Post and Beam) with Second and Third Story Living? Posted: 04 Jul 2018 04:24 PM PDT Edit* this is in NY. We have a property that we could build a new residence on. To capitalize on views of mountains over tree line we think building maximum height (35 feet + cupola perhaps) is ideal. We don't need it to be crazy sqaure footage though. So would prefer ground floor garage, storage, etc. It would have one area with nice foyer too. Maybe incorporate a half bath there too? Gambrel roof barn seems ideal way to get good useful height on a third story. Again, views are great from higher and believe it would increase value tremendously. But is this an awkward set up that won't fly? Is a beautiful view not worth it? If second story / main story is set 10-15 feet in the air, it will allow for views out of a back window. Then a lofted area for third story. A cupola for even better viewing as long as it's not living space. If base floor is finished... Will need to build out more space for garage / storage (more money) and then I have too much living space when 3rd floor is considered (more money). Any advice? [link] [comments]  |
| I am thinking of aiming for a home built in the 1930’s please give suggestions and warnings. Posted: 04 Jul 2018 04:19 PM PDT I live in an area that has a good supply of them and older ones too. I am in the (USA). I grew up in an old home and don't like the look of newer ones inside or out. I find a lot of 70's split levels to be cheap looking, the 40's and 50's were when bad materials started to be used. The modern decades have more artificial materials and toxic drywall apparently. I heard the 30's are great houses. The few I toured had small basements that were ugly though. Is that going to always be the case? Are there any problems with them I should look out for? [link] [comments]  |
| Thinking of doing Flips in California. What is a good rate of return? Posted: 04 Jul 2018 05:46 PM PDT I have access to info for investment properties in Southern California. They will all need work etc., in order to prepare for the flip. What do you consider a good rate of return? Any advice? [link] [comments]  |
| Need help figuring out how much I can safely spend on home and where to move to. Posted: 04 Jul 2018 03:00 PM PDT So I have a low level but stable federal job and am looking at transferring pretty much anywhere in the US and buying a home. From there the goal is to buy several rental properties and retire relatively young. I'm single, no kids, no debt, live frugally. I'll earn 45-50k/year assuming I stay at my job and have about 30k for a down. The dream is a 3-4+ bedroom on .25+ acre. I intend on having two roommates for the first five years to pay down the mortgage. So the question is realistically how much house should I buy and where the best places to live? Obviously I want to avoid high crime and areas with poor job prospects. I'd love to be somewhere less busy, Los Angeles is driving me nuts. Beyond buying my first home I'm interested in living somewhere where I can invest in properties. I'll have a decent inheritance in the near future and can easily save 15k a year. What I'd like to do is build a small environment and then a property management company to do the work. I have spent a lot of time reading about looking for the perfect place to move to but honestly this isn't my forte. I've got my money invested and am getting a solid return, understand retirement savings too. But I'm done just living frugally and want to build wealth. I appreciate any and all help. [link] [comments]  |
| First time home buying Questions (Tacoma WA) Posted: 04 Jul 2018 02:39 PM PDT Hello, I am interested in buying a home I found in the suburbs of Joint Base Lewis McChord (University Place WA). I found a home listed at around $420,000. I found a quote of around $1850 /month mortgage with a 10% down payment ($42,000). We have another baby on the way at the end of the year, thus my wife is not working. When she begins to work again, her salary might be around $80,000. Mine is around $70,000, so our estimated household income would be around $150,000. My BAH from the Army is higher than the mortgage, however that $70,000 includes it. I know that with my wife's salary I can definitely afford the 3:1 ratio, however with mine, I cannot. I also don't plan on staying in WA for more than 10 years (I prefer the east coast and Midwest if the option arises), but feel that owning a home in this market will appreciate heavily and offer quite a bit of return. I also hate renting and would like to have my own property. Also, we're in our 20's. Married. I'm in the Army. We've got one child so far, another on the way in December. Our lease is up in mid-November. Here's a little more info on me - I have a 730-750 credit score My wife has a 680-705 credit score. We have 2 newer cars, paying around $700 /month which will be paid off in 2022/2023 but I plan on paying early. I don't get paid overtime, but I love driving and wouldn't mind being a Uber. I have no debt, student loans are paid for both of us, and everything. Our monthly expenses each month are generally around $3400-$4000 ($40,800-$48,000 /year) Includes EVERYTHING minus savings, retirement, etc. Which theoretically leaves me with $22,000-$29,200 of extra spending money I can save. After that spew, the question is - Would it be feasible for us to purchase this home? I doubt it will be available in November, but what about a house in that similar price range. It's in a very desirable suburb and the property value of the home increased more than 100% in 20 years, which is where a lot of the homes I'm looking at are located. Thanks! tl:dr - First time military homebuyers want to buy a home for a short period of time though wife is unemployed for the next few months in a very aggressive housing market. [link] [comments]  |
| Looking for the best RealEstate company to work for near Orlando, FL Posted: 04 Jul 2018 01:06 PM PDT I am a F (24)planning to start a career in Real Estate. I am not currently licensed as an agent but figured since I have a couple of years of administrative experience, I shoud start with an office position (receptionist or assistant). Once I become licensed, I will pursue an agent position within the company. I guess my questions are, What company would be best for moving up? What company has brand new agent accommodations? What company does not have a non-compete clause? THANK YOU in advanced for the insight and I am open to any other information about the world of Real Estate. [link] [comments]  |
| [Seattle / King County] How much of a "fixer" should we buy? Posted: 04 Jul 2018 12:30 PM PDT My fiancee and I are looking at making the jump from a condo to a true SFH in the greater Seattle / King County area (specifically we're looking in Renton). We are currently in escrow to sell our condo and assuming all goes well, we are set to net about $135k from the sale. In addition, my parents are offering us another $50k to help fund a down payment, which would give us $185k in cash. We're shopping in the $400-500k range, with the intent to put anywhere from 20-35% down to keep our mortgage payment reasonable. Although we'll have lots of cash to use with this transaction, we'd like to keep the loan principle to around $320k or less. Depending on the purchase price though, we could conceivably put our 20-35% down and still have some cash left over for fixes / renovations. With this in mind, we've started looking at homes that are on the cheaper end ($380-420k) with the thought that we could put a strong down payment down and still be left with plenty of cash to freshen the house up to our liking. Most of the listings we've been looking at look to be livable (i.e they would qualify for conventional financing), but either have dated or not as attractive interiors, or other aspects that might not be as appealing to buyers looking for move-in ready homes. My main question is what potential pitfalls might we run into if we went this direction, and how much we should or shouldn't bite off with fixing up a home like this. I would check for obvious issues during inspections like roof / foundation / plumbing / electrical issues, but what other major red flags should we look out for? To give an ideal scenario, we find a home where we can put 25% down and have 40-60k left over to re-do the kitchen and/or bathrooms, re-paint the house as needed, spruce up some landscaping, and hopefully be left with a house that we're happy with without having to spend a bunch up front in purchase price. Any advice / guidance is appreciated! [link] [comments]  |
| Question for Landlords of Reddits Posted: 04 Jul 2018 11:12 AM PDT A lot of the houses and basement apartments that I've been looking at obviously state non-smoking. I'm assuming this means smoking in and around the property? Or does this also include someone who does smoke even if they don't smoke in or around the property? Thanks in advance for any help =) Edit: The bot wants a location =P I live in the GTA, Ontario for those wondering. [link] [comments]  |
| Is there a website that will show me tenanted properties available for purchase? Posted: 04 Jul 2018 09:59 AM PDT I'm based in NYC, but would like to find properties to invest in for passive income that are in cheaper areas. I'm looking to buy in the sub $200k range and would ideally like to find something that's already tenanted with a property manager in place. If you know of any websites that disclose whether a property is being rented out, please let me know. Also, if you have any recommendations for areas to invest in with high yields in my price range please let me know. [link] [comments]  |
| Foreign real estate investment US-to-Canada Posted: 04 Jul 2018 09:51 AM PDT Hey folks. So I'm a green card holder in the US (Canadian citizen) looking to buy property in Canada to hold until I move back home. Has anyone financed a foreign property through a US Bank. If not, any suggestions on lenders? Thanks! [link] [comments]  |
| Out of town/country investors of Reddit, where are you guys looking to buy next Posted: 04 Jul 2018 08:45 AM PDT I want to broaden the places I should be looking at for real estate investments and was wondering what everyone is doing. Where you guys are getting the best ratios. Edit: I'm supposed to add a location so... Earth? [link] [comments]  |
| Posted: 04 Jul 2018 01:07 AM PDT Ok, so my parents and I are buying a house together as an investment but can't figure out the best way to structure the setup. Here's the overview: - Purchase price: $335k - Down payment: 20%, so $67k, funded by my parents - Monthly payment will be about $1,750 on a 30 year mortgage. - I will be living in the home and will be paying the mortgage. - The house has an unfinished basement that I will be paying for to get finished shortly after moving in. Will probably cost about $40k and we'll be putting in two bedrooms, 1 bath, a kitchen and a separate entrance. Should be able to rent out for about $1,000/ month. - The question: how should we structure the ownership/equity of the house? If I'm paying for the basement and finishing a lot of it myself, I do all the house upkeep, I'm paying the monthly mortgage and interest on the loan, and I'm also managing he basement apartment/property, how much equity should I have in the home bs my parents? Keep in mind we're doing this together as an investment, my parents aren't just gifting me $70k to buy a home, so I'd like it to be fair. Any ideas or input you have on ways to structure it would be helpful! Especially if you've done this sort of thing in the past... thanks! [link] [comments]  |
| What happens if you put earnest money down Posted: 04 Jul 2018 05:39 AM PDT For new construction and housing prices DROP ? Will you still be on the hook to purchase at the high price or lose your money or is there room for negotiations [link] [comments]  |
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