[Diego Mamani]

Prof, the rates I got for the rental properties are in the 5.0%-5.5% range; all 30-yr fixed, and closed about 10 months ago. The rentals are in the southeast, which works out for me b/c I have family there who have also bought investment properties.

[Diego Mamani]

All of this wouldn’t really matter if our businesses quoted prices “out of the door” as they do in Europe. This is one my biggest personal peeves… Here in the good old US, when a hotel quotes you, say, $99 per room per night, you don’t really know what the total cost will be when you check out. They add sales tax, hotel tax, city fees, etc., etc., and hotels take advantage of this lack of transparency to tack on “resort fees” and other 100%-profit add-ons. Your total cost may be anywhere in the $115 to $150 range for a “$99 rate.”

In good old Europe, and most other regions, if a hotel quotes you 80 euros for the room, that’s exactly what you pay. When you see the bill in the morning, they may itemize the total into room rate, VAT, gratuity (services), resort fee, etc., etc., but I don’t really care because my total will be exactly the 80 euros I was quoted.

Why can’t we have that? As a country, we have institutionalized the practice of “hidden prices and fees.”

[Diego Mamani]

[quote=Josh]I bought a house ealier this year. My wife and I are comfortable with the $2k monthly payment (…) Currently we have zero debt (…) My mother-in-law wants to let us borrow $75k for in investment property as she overheard us telling other people that we have no downpayment for a second property. [/quote]
I guess you meant to say “zero debt” not including your mortgage? Going back to your question, it all depends on what your DTI (debt-to-income) ratio would be if you finance the investment property, and also your FICO scores.

Your current rental income needs to be documented showing a signed lease and also copies of checks, etc. Your MIL’s 75K could be a gift, but it could also be a loan: again, documentation is needed listing the principal amount, interest rate, and repayment schedule.

As for personal experience, 10 months ago I was truly debt free (no mortgage, no car payments, no credit card balances, no student loan, etc.). I purchased three investmenmt properties out of state, and the banks gave me a hard time asking for documentation for every little deposit they saw in my bank account. But the loans were approved. Then 5-6 months later I bought a house here in So Cal, and was able to finance that too with 20% down because my DTI was still within their guidelines.

Good luck.

[Diego Mamani]

I don’t think this is a win-win policy, as some have said. For one, it will create upward pressure for house prices, so that less and less Americans will be able to afford houses.

Foreigners who want to buy houses in the US are already doing it, so this “extended tourist visa” proposal is not likely to increase the existing foreign demand noticeably.

And why do we need foreigners? There are plenty of cash-rich American investors ready to come in, buy houses, fix them up, and then rent them out at affordable levels. All we are waiting for is for Congress and the White House to stop doing everything they can to keep housing prices artificially inflated.

Once house prices come down to reality, investors will come in and buy. Families that are upside down or at risk of default will be able to stay in their houses, simply by changing their status from overextended debtors to renters, and problem solved. Years later, as these families accumulate savings and build a credit history, they’ll be able to buy the houses back with 20% down loans.

Now, that would be a win-win scenario!

[Diego Mamani]

[quote=sd_matt]Anything but let the prices fall to affordable levels.[/quote]

Exactly! Another moronic policy designed to keep housing prices unrealistically inflated.

[Diego Mamani]

[quote=flu]Take a look at the frozen yogurt place in UTC (…) Average customer spends $5.50 on frozen yogurt. The cost of their material probably around $0.50 cents. You do the math….[/quote]

…And the store’s rent probably comes to $2.50 per yogurt unit sold. And all the equipment and decoration? The bank loan payment probably adds another $2.25 per unit… YOU do the math! LOL.

[Diego Mamani]

[quote=flu]Take a look at the frozen yogurt place in UTC (…) Average customer spends $5.50 on frozen yogurt. The cost of their material probably around $0.50 cents. You do the math….[/quote]

…And the store’s rent probably comes to $2.50 per yogurt unit sold. And all the equipment and decoration? The bank loan payment probably adds another $2.25 per unit… YOU do the math! LOL.

[Diego Mamani]

[quote=flu]Take a look at the frozen yogurt place in UTC (…) Average customer spends $5.50 on frozen yogurt. The cost of their material probably around $0.50 cents. You do the math….[/quote]

…And the store’s rent probably comes to $2.50 per yogurt unit sold. And all the equipment and decoration? The bank loan payment probably adds another $2.25 per unit… YOU do the math! LOL.

[Diego Mamani]

[quote=flu]Take a look at the frozen yogurt place in UTC (…) Average customer spends $5.50 on frozen yogurt. The cost of their material probably around $0.50 cents. You do the math….[/quote]

…And the store’s rent probably comes to $2.50 per yogurt unit sold. And all the equipment and decoration? The bank loan payment probably adds another $2.25 per unit… YOU do the math! LOL.

[Diego Mamani]

[quote=flu]Take a look at the frozen yogurt place in UTC (…) Average customer spends $5.50 on frozen yogurt. The cost of their material probably around $0.50 cents. You do the math….[/quote]

…And the store’s rent probably comes to $2.50 per yogurt unit sold. And all the equipment and decoration? The bank loan payment probably adds another $2.25 per unit… YOU do the math! LOL.

[Diego Mamani]

I just went to freelunch.com, but they only have 30-yr fixed rates since 1996.

[Diego Mamani]

I just went to freelunch.com, but they only have 30-yr fixed rates since 1996.

[Diego Mamani]

I just went to freelunch.com, but they only have 30-yr fixed rates since 1996.

[Diego Mamani]

I just went to freelunch.com, but they only have 30-yr fixed rates since 1996.

[Diego Mamani]

I just went to freelunch.com, but they only have 30-yr fixed rates since 1996.

[Author]

Posts