[(former)FormerSanDiegan]

We refinanced our SFR rental property in December.
I believe that we needed about 70% LTV (30% down) for the best rates (we have nearly 50% equity, so I don’t know the exact cutoff), but I think you can go to 75% LTV (25% down), and not suffer signifcant rate increases.

We paid about 1 extra point to get the same rate you could get at the time for owner occupied. Our rate was below 5%.

In our case, the income requirements were still pretty ridiculous (~ 50% DTI or more was allowed), so we did not even have to include the income from the rental to qualify. Our lender told us near the end of the process that this requirement was becoming more stringent, however.

Here’s what I would use for rules-of-thumb:

1. assume 25% down payment
2. Assume rates 0.25% above onwner-occ.
3. Assume you need to have a DTI below 45%, excluding the rental income from your income calculation (but including the loan PITI)

I am not sure if/how rental income would be included in today’s market for purchase. In the old days (before 2003) a rental agreement was sufficient. But I think there are more restrictions now.

[(former)FormerSanDiegan]

We refinanced our SFR rental property in December.
I believe that we needed about 70% LTV (30% down) for the best rates (we have nearly 50% equity, so I don’t know the exact cutoff), but I think you can go to 75% LTV (25% down), and not suffer signifcant rate increases.

We paid about 1 extra point to get the same rate you could get at the time for owner occupied. Our rate was below 5%.

In our case, the income requirements were still pretty ridiculous (~ 50% DTI or more was allowed), so we did not even have to include the income from the rental to qualify. Our lender told us near the end of the process that this requirement was becoming more stringent, however.

Here’s what I would use for rules-of-thumb:

1. assume 25% down payment
2. Assume rates 0.25% above onwner-occ.
3. Assume you need to have a DTI below 45%, excluding the rental income from your income calculation (but including the loan PITI)

I am not sure if/how rental income would be included in today’s market for purchase. In the old days (before 2003) a rental agreement was sufficient. But I think there are more restrictions now.

[(former)FormerSanDiegan]

[quote=sdduuuude]You hit the time precicely, but unfortunately screwed up on the location.[/quote]

Can’t win ’em all.

[quote=Casca]Someone is always hitting a bottom somewhere.[/quote]

Nice 🙂
Many ways to intepret that one.

[(former)FormerSanDiegan]

[quote=sdduuuude]You hit the time precicely, but unfortunately screwed up on the location.[/quote]

Can’t win ’em all.

[quote=Casca]Someone is always hitting a bottom somewhere.[/quote]

Nice 🙂
Many ways to intepret that one.

[(former)FormerSanDiegan]

[quote=sdduuuude]You hit the time precicely, but unfortunately screwed up on the location.[/quote]

Can’t win ’em all.

[quote=Casca]Someone is always hitting a bottom somewhere.[/quote]

Nice 🙂
Many ways to intepret that one.

[(former)FormerSanDiegan]

[quote=sdduuuude]You hit the time precicely, but unfortunately screwed up on the location.[/quote]

Can’t win ’em all.

[quote=Casca]Someone is always hitting a bottom somewhere.[/quote]

Nice 🙂
Many ways to intepret that one.

[(former)FormerSanDiegan]

[quote=sdduuuude]You hit the time precicely, but unfortunately screwed up on the location.[/quote]

Can’t win ’em all.

[quote=Casca]Someone is always hitting a bottom somewhere.[/quote]

Nice 🙂
Many ways to intepret that one.

[(former)FormerSanDiegan]

Since the rand has seen a run-up of about 35% in the past year, relative to the dollar, I think it makes sense to move some funds into dollar-denominated assets as a hedge while you are in the US. I also read somewhere that the South Africa Real estate market was among the strongest in the world in 2009. SO, partly diversifying out of rand-denominated assets into dollars would seem prudent if you are planning to be in the US for a number of years.

Where you put that depends on your tiume horizon. If you are going to be in the US temporarily (e.g. 5 years or less) I would avoid buying property, unless it represents less than 25% or so of your net worth.

I would also avoid buying investment property anywhere unless you have lived in the area for a time and understand the subtleties of the neighborhoods in which you invest.

As for REITs. They have had a nice run over the past year. Dividend payouts are still above other investments, but I would not jump all-in on REITs at this point. Look for pull-backs and buy into them with small increments. I’ve held a couple REITs throughout the past decade (notably, Realty Income : O), and I have been happy with using that as a tool for balancing my portfolio and boosting my overall yield. Recently, I started tip-toeing back in using REZ (ETF for residential real estate) thinking that at some point the rental market will pick up with the economy (people that have moved back home or doubled up will find their own apt when they get back to work).

[(former)FormerSanDiegan]

Since the rand has seen a run-up of about 35% in the past year, relative to the dollar, I think it makes sense to move some funds into dollar-denominated assets as a hedge while you are in the US. I also read somewhere that the South Africa Real estate market was among the strongest in the world in 2009. SO, partly diversifying out of rand-denominated assets into dollars would seem prudent if you are planning to be in the US for a number of years.

Where you put that depends on your tiume horizon. If you are going to be in the US temporarily (e.g. 5 years or less) I would avoid buying property, unless it represents less than 25% or so of your net worth.

I would also avoid buying investment property anywhere unless you have lived in the area for a time and understand the subtleties of the neighborhoods in which you invest.

As for REITs. They have had a nice run over the past year. Dividend payouts are still above other investments, but I would not jump all-in on REITs at this point. Look for pull-backs and buy into them with small increments. I’ve held a couple REITs throughout the past decade (notably, Realty Income : O), and I have been happy with using that as a tool for balancing my portfolio and boosting my overall yield. Recently, I started tip-toeing back in using REZ (ETF for residential real estate) thinking that at some point the rental market will pick up with the economy (people that have moved back home or doubled up will find their own apt when they get back to work).

[(former)FormerSanDiegan]

Since the rand has seen a run-up of about 35% in the past year, relative to the dollar, I think it makes sense to move some funds into dollar-denominated assets as a hedge while you are in the US. I also read somewhere that the South Africa Real estate market was among the strongest in the world in 2009. SO, partly diversifying out of rand-denominated assets into dollars would seem prudent if you are planning to be in the US for a number of years.

Where you put that depends on your tiume horizon. If you are going to be in the US temporarily (e.g. 5 years or less) I would avoid buying property, unless it represents less than 25% or so of your net worth.

I would also avoid buying investment property anywhere unless you have lived in the area for a time and understand the subtleties of the neighborhoods in which you invest.

As for REITs. They have had a nice run over the past year. Dividend payouts are still above other investments, but I would not jump all-in on REITs at this point. Look for pull-backs and buy into them with small increments. I’ve held a couple REITs throughout the past decade (notably, Realty Income : O), and I have been happy with using that as a tool for balancing my portfolio and boosting my overall yield. Recently, I started tip-toeing back in using REZ (ETF for residential real estate) thinking that at some point the rental market will pick up with the economy (people that have moved back home or doubled up will find their own apt when they get back to work).

[(former)FormerSanDiegan]

Since the rand has seen a run-up of about 35% in the past year, relative to the dollar, I think it makes sense to move some funds into dollar-denominated assets as a hedge while you are in the US. I also read somewhere that the South Africa Real estate market was among the strongest in the world in 2009. SO, partly diversifying out of rand-denominated assets into dollars would seem prudent if you are planning to be in the US for a number of years.

Where you put that depends on your tiume horizon. If you are going to be in the US temporarily (e.g. 5 years or less) I would avoid buying property, unless it represents less than 25% or so of your net worth.

I would also avoid buying investment property anywhere unless you have lived in the area for a time and understand the subtleties of the neighborhoods in which you invest.

As for REITs. They have had a nice run over the past year. Dividend payouts are still above other investments, but I would not jump all-in on REITs at this point. Look for pull-backs and buy into them with small increments. I’ve held a couple REITs throughout the past decade (notably, Realty Income : O), and I have been happy with using that as a tool for balancing my portfolio and boosting my overall yield. Recently, I started tip-toeing back in using REZ (ETF for residential real estate) thinking that at some point the rental market will pick up with the economy (people that have moved back home or doubled up will find their own apt when they get back to work).

[(former)FormerSanDiegan]

Since the rand has seen a run-up of about 35% in the past year, relative to the dollar, I think it makes sense to move some funds into dollar-denominated assets as a hedge while you are in the US. I also read somewhere that the South Africa Real estate market was among the strongest in the world in 2009. SO, partly diversifying out of rand-denominated assets into dollars would seem prudent if you are planning to be in the US for a number of years.

Where you put that depends on your tiume horizon. If you are going to be in the US temporarily (e.g. 5 years or less) I would avoid buying property, unless it represents less than 25% or so of your net worth.

I would also avoid buying investment property anywhere unless you have lived in the area for a time and understand the subtleties of the neighborhoods in which you invest.

As for REITs. They have had a nice run over the past year. Dividend payouts are still above other investments, but I would not jump all-in on REITs at this point. Look for pull-backs and buy into them with small increments. I’ve held a couple REITs throughout the past decade (notably, Realty Income : O), and I have been happy with using that as a tool for balancing my portfolio and boosting my overall yield. Recently, I started tip-toeing back in using REZ (ETF for residential real estate) thinking that at some point the rental market will pick up with the economy (people that have moved back home or doubled up will find their own apt when they get back to work).

[(former)FormerSanDiegan]

Is it too early for me to declare success in calling the bottom and throw my hat into the Senate race ?

[(former)FormerSanDiegan]

Is it too early for me to declare success in calling the bottom and throw my hat into the Senate race ?

[(former)FormerSanDiegan]

Is it too early for me to declare success in calling the bottom and throw my hat into the Senate race ?

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