- This topic has 10 replies, 2 voices, and was last updated 15 years, 9 months ago by
(former)FormerSanDiegan.
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May 14, 2009 at 8:59 AM #15675May 14, 2009 at 10:00 AM #398894
(former)FormerSanDiegan
ParticipantGenerally a good strategy. Buying a house now as owner occupied will get you better terms than you can ever get buy buying a rental after buying an owner occ.
Also, if you buy the first house as a primary now and convert to a rental in a couple years you can take advantage of the tax credits for 1st time buyers currently available.
Also, if you are focused on a property that makes sense as a rental, you will buy smarter, with less downside, since you will insist on break even or positive cash flow. You will likely be more conservative than most people would when buying a personal residence.
The downside when you buy your personal residence is that lenders typically count 75% of the rental property income when figuring DTI levels. Again, this will reduce the amount you can pay for your personal residence. There is a silver lining in this, it keeps you from stretching too far on the primary.
As for the cash. It makes sense to put 20% down to get the best rates on the first house.
May 14, 2009 at 10:00 AM #399147(former)FormerSanDiegan
ParticipantGenerally a good strategy. Buying a house now as owner occupied will get you better terms than you can ever get buy buying a rental after buying an owner occ.
Also, if you buy the first house as a primary now and convert to a rental in a couple years you can take advantage of the tax credits for 1st time buyers currently available.
Also, if you are focused on a property that makes sense as a rental, you will buy smarter, with less downside, since you will insist on break even or positive cash flow. You will likely be more conservative than most people would when buying a personal residence.
The downside when you buy your personal residence is that lenders typically count 75% of the rental property income when figuring DTI levels. Again, this will reduce the amount you can pay for your personal residence. There is a silver lining in this, it keeps you from stretching too far on the primary.
As for the cash. It makes sense to put 20% down to get the best rates on the first house.
May 14, 2009 at 10:00 AM #399376(former)FormerSanDiegan
ParticipantGenerally a good strategy. Buying a house now as owner occupied will get you better terms than you can ever get buy buying a rental after buying an owner occ.
Also, if you buy the first house as a primary now and convert to a rental in a couple years you can take advantage of the tax credits for 1st time buyers currently available.
Also, if you are focused on a property that makes sense as a rental, you will buy smarter, with less downside, since you will insist on break even or positive cash flow. You will likely be more conservative than most people would when buying a personal residence.
The downside when you buy your personal residence is that lenders typically count 75% of the rental property income when figuring DTI levels. Again, this will reduce the amount you can pay for your personal residence. There is a silver lining in this, it keeps you from stretching too far on the primary.
As for the cash. It makes sense to put 20% down to get the best rates on the first house.
May 14, 2009 at 10:00 AM #399434(former)FormerSanDiegan
ParticipantGenerally a good strategy. Buying a house now as owner occupied will get you better terms than you can ever get buy buying a rental after buying an owner occ.
Also, if you buy the first house as a primary now and convert to a rental in a couple years you can take advantage of the tax credits for 1st time buyers currently available.
Also, if you are focused on a property that makes sense as a rental, you will buy smarter, with less downside, since you will insist on break even or positive cash flow. You will likely be more conservative than most people would when buying a personal residence.
The downside when you buy your personal residence is that lenders typically count 75% of the rental property income when figuring DTI levels. Again, this will reduce the amount you can pay for your personal residence. There is a silver lining in this, it keeps you from stretching too far on the primary.
As for the cash. It makes sense to put 20% down to get the best rates on the first house.
May 14, 2009 at 10:00 AM #399585(former)FormerSanDiegan
ParticipantGenerally a good strategy. Buying a house now as owner occupied will get you better terms than you can ever get buy buying a rental after buying an owner occ.
Also, if you buy the first house as a primary now and convert to a rental in a couple years you can take advantage of the tax credits for 1st time buyers currently available.
Also, if you are focused on a property that makes sense as a rental, you will buy smarter, with less downside, since you will insist on break even or positive cash flow. You will likely be more conservative than most people would when buying a personal residence.
The downside when you buy your personal residence is that lenders typically count 75% of the rental property income when figuring DTI levels. Again, this will reduce the amount you can pay for your personal residence. There is a silver lining in this, it keeps you from stretching too far on the primary.
As for the cash. It makes sense to put 20% down to get the best rates on the first house.
May 14, 2009 at 10:02 AM #398899(former)FormerSanDiegan
ParticipantP.S. – I assumed you would buy the rental in a part of town where prices have had more of a decline than the coastal communities.
May 14, 2009 at 10:02 AM #399152(former)FormerSanDiegan
ParticipantP.S. – I assumed you would buy the rental in a part of town where prices have had more of a decline than the coastal communities.
May 14, 2009 at 10:02 AM #399381(former)FormerSanDiegan
ParticipantP.S. – I assumed you would buy the rental in a part of town where prices have had more of a decline than the coastal communities.
May 14, 2009 at 10:02 AM #399439(former)FormerSanDiegan
ParticipantP.S. – I assumed you would buy the rental in a part of town where prices have had more of a decline than the coastal communities.
May 14, 2009 at 10:02 AM #399590(former)FormerSanDiegan
ParticipantP.S. – I assumed you would buy the rental in a part of town where prices have had more of a decline than the coastal communities.
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