[quote=pabloesqobar]My friend paid $275k for one on Pierce Street. It was with the help of a silent second with the City of El Cajon, or something. The unit next to him is on the market for $100k. He’s currently looking to rent it out. He can easily afford the payment but it sucks to see a friend take that kind of “loss”.[/quote]
That is disappointing to lose that much equity…good that he can afford it, just not the best investment.
I know all about “silent seconds”…My mortgage broker back in 2006 preapproved me for 275K through the CalHFA program, and every loan estimate I inquired to him about, he used the 7,500K silent second to lower my monthly payment. That was the 35-year loan with interest-only payments for the first 5 years. I’m so glad I didn’t buy a 250K condo back then….I would not be able to afford the payments!
FYI, if you go to the CalHFA website now, the 35-year loan is no longer an option.
