Will rent prices drop too??

[Bloat]

HLS,

Exactly right on the “bread and butter”, 2 & 3 bedrooms rentals. I’ve had one in Riverside for 20 years, but I know an agent who bought basic fixers and now has almost 30 and doesn’t need to work. He rents to sec 8’s and brags about his low vacancy and how his people can rehab anything for $2-3k.

The math favors the basic units. You can rent a $200k sfr for $1200, but you might get only $1800 for a $400k sfr and you are more likely to have hoa and expensive repairs, etc. McMansions would be the worst rental investment.

[HLS]

Most people will not qualify to buy another home with their current albatross on their credit report.

They can hardly deal with the debt that they already have.

If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.

Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.

The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.

[HLS]

Most people will not qualify to buy another home with their current albatross on their credit report.

They can hardly deal with the debt that they already have.

If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.

Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.

The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.

[HLS]

Most people will not qualify to buy another home with their current albatross on their credit report.

They can hardly deal with the debt that they already have.

If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.

Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.

The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.

[HLS]

Most people will not qualify to buy another home with their current albatross on their credit report.

They can hardly deal with the debt that they already have.

If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.

Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.

The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.

[HLS]

Most people will not qualify to buy another home with their current albatross on their credit report.

They can hardly deal with the debt that they already have.

If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.

Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.

The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.

[ltokuda]

“Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.”

That’s going to be an interesting development. In a strict sense, I don’t think this is loan fraud. The borrower bought the first house with the intent of paying off the loan. He buys the second house with the intent of paying off the second loan. The lender for the first house will get screwed by the default. But if it was a no recourse loan, what can the first lender do?

Also, it seems to make financial sense for the lender of the second home to approve the loan (assuming 25% downpayment or so). The second lender will see a borrower with good credit, a large downpayment, and have as collateral a “rental” unit that is probably cash flow positive. Even if the second lender suspected that the first lender would get screwed, would it matter? As long as the second lender believed that it would make money on the deal, I think the deal would go through.

Of course, most people won’t be in the position to be able to do this. But some definitely will and it’ll be interesting to see how it all plays out.

[ltokuda]

“Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.”

That’s going to be an interesting development. In a strict sense, I don’t think this is loan fraud. The borrower bought the first house with the intent of paying off the loan. He buys the second house with the intent of paying off the second loan. The lender for the first house will get screwed by the default. But if it was a no recourse loan, what can the first lender do?

Also, it seems to make financial sense for the lender of the second home to approve the loan (assuming 25% downpayment or so). The second lender will see a borrower with good credit, a large downpayment, and have as collateral a “rental” unit that is probably cash flow positive. Even if the second lender suspected that the first lender would get screwed, would it matter? As long as the second lender believed that it would make money on the deal, I think the deal would go through.

Of course, most people won’t be in the position to be able to do this. But some definitely will and it’ll be interesting to see how it all plays out.

[ltokuda]

“Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.”

That’s going to be an interesting development. In a strict sense, I don’t think this is loan fraud. The borrower bought the first house with the intent of paying off the loan. He buys the second house with the intent of paying off the second loan. The lender for the first house will get screwed by the default. But if it was a no recourse loan, what can the first lender do?

Also, it seems to make financial sense for the lender of the second home to approve the loan (assuming 25% downpayment or so). The second lender will see a borrower with good credit, a large downpayment, and have as collateral a “rental” unit that is probably cash flow positive. Even if the second lender suspected that the first lender would get screwed, would it matter? As long as the second lender believed that it would make money on the deal, I think the deal would go through.

Of course, most people won’t be in the position to be able to do this. But some definitely will and it’ll be interesting to see how it all plays out.

[ltokuda]

“Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.”

That’s going to be an interesting development. In a strict sense, I don’t think this is loan fraud. The borrower bought the first house with the intent of paying off the loan. He buys the second house with the intent of paying off the second loan. The lender for the first house will get screwed by the default. But if it was a no recourse loan, what can the first lender do?

Also, it seems to make financial sense for the lender of the second home to approve the loan (assuming 25% downpayment or so). The second lender will see a borrower with good credit, a large downpayment, and have as collateral a “rental” unit that is probably cash flow positive. Even if the second lender suspected that the first lender would get screwed, would it matter? As long as the second lender believed that it would make money on the deal, I think the deal would go through.

Of course, most people won’t be in the position to be able to do this. But some definitely will and it’ll be interesting to see how it all plays out.

[ltokuda]

“Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.”

That’s going to be an interesting development. In a strict sense, I don’t think this is loan fraud. The borrower bought the first house with the intent of paying off the loan. He buys the second house with the intent of paying off the second loan. The lender for the first house will get screwed by the default. But if it was a no recourse loan, what can the first lender do?

Also, it seems to make financial sense for the lender of the second home to approve the loan (assuming 25% downpayment or so). The second lender will see a borrower with good credit, a large downpayment, and have as collateral a “rental” unit that is probably cash flow positive. Even if the second lender suspected that the first lender would get screwed, would it matter? As long as the second lender believed that it would make money on the deal, I think the deal would go through.

Of course, most people won’t be in the position to be able to do this. But some definitely will and it’ll be interesting to see how it all plays out.

[Borat]

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Give it time. This boulder has just started rolling downhill.

[Borat]

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Give it time. This boulder has just started rolling downhill.

[Borat]

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Give it time. This boulder has just started rolling downhill.

[Borat]

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Give it time. This boulder has just started rolling downhill.

[Author]

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