Advice on RE investment plan

[gn]

I’m trying to think ahead, making real estate investment plans to execute when the market reaches the bottom (whenever that is).

I’m planning to buy a house (as primary residence) & some SFHs (as investment properties). The plan is to buy the primary residence first & then the others after that.

– Assuming that I’ll have 30% equity in the primary residence, when I attempt to buy the first investment property, will the lenders require that my income qualify for the payments on both the primary residence & the investment property ?

[sdduuuude]

You might consider buying the investments first. That way, you can live in them for a while, thus giving you legal right to take out an owner occupied loan, which will be at a better rate than an investor loan.

Also, I personally think condos will bottom sooner.

[sdduuuude]

You might consider buying the investments first. That way, you can live in them for a while, thus giving you legal right to take out an owner occupied loan, which will be at a better rate than an investor loan.

Also, I personally think condos will bottom sooner.

[sdduuuude]

You might consider buying the investments first. That way, you can live in them for a while, thus giving you legal right to take out an owner occupied loan, which will be at a better rate than an investor loan.

Also, I personally think condos will bottom sooner.

[sdduuuude]

You might consider buying the investments first. That way, you can live in them for a while, thus giving you legal right to take out an owner occupied loan, which will be at a better rate than an investor loan.

Also, I personally think condos will bottom sooner.

[sdduuuude]

You might consider buying the investments first. That way, you can live in them for a while, thus giving you legal right to take out an owner occupied loan, which will be at a better rate than an investor loan.

Also, I personally think condos will bottom sooner.

[(former)FormerSanDiegan]

I agree with sduuuude.

You should consider buying a personal residence that you will live in for a year or so, then rent it out and buy another personal residence.

As far as qualifying. In the old days (pre-2003) lenders typically required a lease agreement if you want to count the income from the rental property. They typically use 75% of the gross rent as income when computing your ratios.

The nice thing about this is that it forces you to be conservative when buying your next (personal residence) property.

To maximize profits you may have to be a renter for a few months between properties so that timing lease of the old property and buying a new one is not as important as getting the best deal.

[(former)FormerSanDiegan]

I agree with sduuuude.

You should consider buying a personal residence that you will live in for a year or so, then rent it out and buy another personal residence.

As far as qualifying. In the old days (pre-2003) lenders typically required a lease agreement if you want to count the income from the rental property. They typically use 75% of the gross rent as income when computing your ratios.

The nice thing about this is that it forces you to be conservative when buying your next (personal residence) property.

To maximize profits you may have to be a renter for a few months between properties so that timing lease of the old property and buying a new one is not as important as getting the best deal.

[(former)FormerSanDiegan]

I agree with sduuuude.

You should consider buying a personal residence that you will live in for a year or so, then rent it out and buy another personal residence.

As far as qualifying. In the old days (pre-2003) lenders typically required a lease agreement if you want to count the income from the rental property. They typically use 75% of the gross rent as income when computing your ratios.

The nice thing about this is that it forces you to be conservative when buying your next (personal residence) property.

To maximize profits you may have to be a renter for a few months between properties so that timing lease of the old property and buying a new one is not as important as getting the best deal.

[(former)FormerSanDiegan]

I agree with sduuuude.

You should consider buying a personal residence that you will live in for a year or so, then rent it out and buy another personal residence.

As far as qualifying. In the old days (pre-2003) lenders typically required a lease agreement if you want to count the income from the rental property. They typically use 75% of the gross rent as income when computing your ratios.

The nice thing about this is that it forces you to be conservative when buying your next (personal residence) property.

To maximize profits you may have to be a renter for a few months between properties so that timing lease of the old property and buying a new one is not as important as getting the best deal.

[(former)FormerSanDiegan]

I agree with sduuuude.

You should consider buying a personal residence that you will live in for a year or so, then rent it out and buy another personal residence.

As far as qualifying. In the old days (pre-2003) lenders typically required a lease agreement if you want to count the income from the rental property. They typically use 75% of the gross rent as income when computing your ratios.

The nice thing about this is that it forces you to be conservative when buying your next (personal residence) property.

To maximize profits you may have to be a renter for a few months between properties so that timing lease of the old property and buying a new one is not as important as getting the best deal.

[carlsbadworker]

I am actually thinking about the same thing so I can explain the rational of buying the primary residence first. The primary residence usually has more “quality” requirements and it justifies a higher price point (because you don’t have vacancy issue to deal with).
If you buy an investment first (e.g. condo), then you are hoping that the price will continue to drop for you to upgrade soon. Otherwise, you will be stuck in a house that you don’t like.
Investment comes after current consumption (which essentially what primary residence really is). If after I buy my primary residence, the price drops to a level that is so attractive, then I will invest in the property market. Otherwise, I might as well seek other investment opportunities.

I am not familiar with any tax/interest-rate advantages. So I hope someone would enlighten me what these impacts are.

[carlsbadworker]

I am actually thinking about the same thing so I can explain the rational of buying the primary residence first. The primary residence usually has more “quality” requirements and it justifies a higher price point (because you don’t have vacancy issue to deal with).
If you buy an investment first (e.g. condo), then you are hoping that the price will continue to drop for you to upgrade soon. Otherwise, you will be stuck in a house that you don’t like.
Investment comes after current consumption (which essentially what primary residence really is). If after I buy my primary residence, the price drops to a level that is so attractive, then I will invest in the property market. Otherwise, I might as well seek other investment opportunities.

I am not familiar with any tax/interest-rate advantages. So I hope someone would enlighten me what these impacts are.

[carlsbadworker]

I am actually thinking about the same thing so I can explain the rational of buying the primary residence first. The primary residence usually has more “quality” requirements and it justifies a higher price point (because you don’t have vacancy issue to deal with).
If you buy an investment first (e.g. condo), then you are hoping that the price will continue to drop for you to upgrade soon. Otherwise, you will be stuck in a house that you don’t like.
Investment comes after current consumption (which essentially what primary residence really is). If after I buy my primary residence, the price drops to a level that is so attractive, then I will invest in the property market. Otherwise, I might as well seek other investment opportunities.

I am not familiar with any tax/interest-rate advantages. So I hope someone would enlighten me what these impacts are.

[carlsbadworker]

I am actually thinking about the same thing so I can explain the rational of buying the primary residence first. The primary residence usually has more “quality” requirements and it justifies a higher price point (because you don’t have vacancy issue to deal with).
If you buy an investment first (e.g. condo), then you are hoping that the price will continue to drop for you to upgrade soon. Otherwise, you will be stuck in a house that you don’t like.
Investment comes after current consumption (which essentially what primary residence really is). If after I buy my primary residence, the price drops to a level that is so attractive, then I will invest in the property market. Otherwise, I might as well seek other investment opportunities.

I am not familiar with any tax/interest-rate advantages. So I hope someone would enlighten me what these impacts are.

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