Forum Replies Created
-
AuthorPosts
-
HLS
ParticipantWho is the tenant paying rent to ?
Areas of LA have rent control, that is the reason it may be difficult to get rid of them.
They may be allowed to stay.Talk to a real estate attorney in the area of the property. If they are buying for a primary residence, there may be a loophole to get tenant out with a month to month agreement.
If they have a lease it is valid.
the rent may be very low.I know a guy in LA who has lived in a unit in LA for over 25 years.
His rent is about 30% of what current market rent is. He’s not going anywhere.
San Francisco has similar restrictions.ParticipantYou can possibly charge $100+ a month more with the 3 appliances.
You can offer any prospective tenants the option, with or without.If you get a 1yr lease at $100 a month more, collecting $1200 goes a long way towards buying these 3 items new.
Depending on the area & type of tenant you attract, many renters do not own these 3 items.
Knowing that you have these in good working order can be much safer than what a tenant might have.
If what the tenant has leaks or busts, they can cause a lot of damage, far more than what you have as a security deposit.ParticipantThere will always be people looking to rent regardless of price or interest rates.
Many people cannot qualify for a loan so it’s pointless to compare rent vs. buy.
Many other people just don’t care.Market rent is market rent, period.
Anybody who bases what rent should be based on their payment is a fool.If interest rates were higher, I don’t see how house prices will hold up. There will be a drawn out period of denial, but reality will eventually win. It will be even more difficult to qualify for a loan.
The auto industry has sold millions of cars based on nothing more than the monthly payment.
The housing market has followed this foolishness.Most people do not care how much they are paying for a house or a car, they only care about their monthly payment.
Millions have become complacent about the stock market & housing market. If/when the next crash occurs, 99.9% of people will be saying “Nobody saw this coming”
If you do a search online for $3500++ a month rentals, in many cases it’s much cheaper to rent than to buy. The market rent does usually not increase proportionately based on the increase in value of a house.
If home prices did fall, market rent probably wouldn’t change much.
ParticipantTypically, Realtors do not come up with square footage, it’s not their expertise to measure a house. It’s public record.
Living area square footage is measured from the exterior of the dwelling, excluding the garage.(not by measuring interior rooms)On an appraisal it will show as GLA (Gross Living Area)
http://www.nexusanalytix.com/index.php?option=com_content&view=article&id=117:how-is-the-gross-living-area-gla-calculated&catid=50:appraisal-questions&Itemid=25Some configurations can be tricky to measure but the county records should confirm what the permitted square footage is.
Appraisers will often confirm this.
When a property claims a higher square footage
than what was permitted, this is a red flag and possible problem for a loan underwriter and they will request permits.
Unpermitted additions can be a reason for a loan to be declined.Garage areas that are properly finished AND permitted may be included in GLA
ParticipantIf the separate unit was not done with permits, the property may not qualify for a loan.
While logic or common sense tells you the property is worth more than other properties that do not have a separate unit, the reality is that it may have to be sold for less because it can only be sold to a cash buyer.
ParticipantIt shouldn’t take long but it is a ‘govt’ program.
depends on their workload etc…There usually is an initial property inspection and they may require some repairs to approve the home. Safety & habitability concerns.
In some cases you can get above market rent.The tenant is usually approved for $XXX from section 8 and the tenant is responsible for paying you the difference.
Make sure that the Section 8 portion gets sent directly to YOU, never to the tenant.
Section 8 tenants may have a specific case worker who you can call directly and ask any concerns that you have.
I’ve had some great Section 8 tenants.
They have to behave to continue to receive assistance.
If it turns out to be a long term tenant, you will probably have an inspection once a yearApril 13, 2015 at 2:30 PM in reply to: OT – 2 Story Dining/ Living Rooms and the cost to add an addition above them #784670ParticipantOne big consideration is if there are any windows high up on your existing walls and if the new floor will mesh with the level of existing windows.
Do you need the new area to be completely enclosed or would you consider a half wall which may limit the need for any additional ductwork, also depending on how hot/cold that side of the house gets.
Your style of floor plan usually has flood lights or some type of lighting up high, wiring may not be a big deal, it depends on what you plan on having in your new area other than lighting. Existing breaker may be fine.
Insulation is typically only in attic, adding floor space shouldn’t have any affect.
A contractor should be able to provide a bid!
ParticipantFirst off, if you have been depreciating the Boston property for income tax purposes, your adjusted cost basis is considerably less than $300K. Has it been a rental since 1999 ?
IF YOU SELL; Your federal taxable profit will be the difference (Based on the adjusted cost) possibly 15% long term gains but you will probably owe the Commonwealth of MA income tax also, and may owe CA some too….A 1031 exchange is possible to defer your tax liability but somewhat complicated if you have never done one.
You will need an accommodator and you cannot ever have control of the funds. They must go from escrow to the accommodator, never through your control.
You probably will need to have at least as much debt on the new property as you currently have in MA.
You will have an adjusted cost basis on the new property and once you move into it and it is no longer a rental you will probably incur tax liability, state and federal.
1031 rules are tough. Talk to an experienced tax advisor who is familiar with 1031 exchanges.
One mistake can cost you the entire tax liability rather than deferring it.Participant[quote=bewildering]”VA loans have no mortg ins. Veterans deserve a break.”
I heard that VA loans are the worse type as the fees and rates are horrible. Maybe things have changed.[/quote]
I wonder who told you that….
The same people who say that credit cards are evil ?
Some loan people might say that because they cannot do VA loans (??)VA loans are amazing. Rates are VERY good and although there are some fees, they can be factored in to the rate and it still offers an excellent loan for a qualified borrower.
Nothing down, limited closing costs and no mortgage insurance. Available with crappy credit score, 620+ (SIX HUNDRED TWENTY)
There are different entitlements.Participant[quote=spdrun]I mostly agree, but I do think that banks/servicers should show some compassion when exigent circumstances arise.[/quote]
WHY ?? 😉
who is going to decide how bad someone’s situation is AND what degree of help they should get.
Who shall decide what ‘exigent’ circumstances are ?It’s a slap in the face to people who work 2 or 3 jobs and live a life of stress but pay their bills without expecting any help.
I know people with loans at 6-8x their annual income, *living way beyond their means*
AND I know people who opted for loans at 2-3X their annual income.
***Why should the former get any ‘compassion’ if they run into a problem ??Actually there IS ‘compassion’
It varies state by state.
In CA as a Trust Deed (NON judicial foreclosure)
state, you normally have a 6 month window that you can catch up on late mortgage payments (+ late charges etc) before getting foreclosed on.
Isn’t that enough ?In CA you can go 5 years without paying property taxes before tax liens become a problem.
Many states have a ‘Right of Redemption’
which means that even if you get foreclosed on, you may be able to get the house back by paying what was owed.
IT’S INSANE in some states that window could be up to 2 years! (Tennessee)ParticipantIt’s ridiculous to blame lenders/banks etc for the mess.
That’s like blaming a restaurant or liquor store owner for selling alcohol to an alcoholic
OR blaming stores that sell cigarettes to someone that gets lung cancer etc.
You can also kill someone with a steak knife, or a big plastic bag. Are the providers guilty of anything ?Of course there are legitimate reasons for foreclosure and people should understand their options but NEVER EXPECT to be allowed to keep a home that they cannot afford.
The idiots in congress that pretended like they would fix the ‘problem’ were the same clueless idiots that allowed the problem to happen.
ParticipantMBS are definitely here to stay.
They were not the reason for the bubble.The reason for the bubble was REALLY simple…..
The entitlement attitude(& ignorance) of people wanting to buy something that they could not afford to pay for
BUT were willing to take risks that they did not understand.
Stated income was not the problem. Nothing down was the problem.
You cannot blame people who offer/create a service/product that people want to abuse.
The pity party for ‘victims’ is appalling.On a micro level it’s no different than student loans or credit card debt but the principal amounts
are generally much lower.Our entire system is a fragile house of cards.
It’s gone global. Debt is a disease that’s easy to catch. Makes ebola look like a tiny itch.
The entire premise is beyond scary if you really understand what has happened.The entire concept of ‘Buy now, pay later’ is out of control. The faith in the 401K system is out of control.
The complacency & security & faith in the govt to fix problems that most people have is completely false & dangerous.Participant[quote=moneymaker] now have a 15 year (3.5%) [/quote]
MM,
If you’re interested, contact me privately for a free analysis of your current situation.
IF you qualify to refinance again, depending on your loan balance, you might be able to pay your loan off several years earlier at ZERO cost to you.I don’t care if you do it through me or not,
I’d like to look at your situation.
Hundreds of millions of dollars is being wasted in interest by good people who don’t see the option.
There’s no pressure and no obligation.
I’ll give you the facts and you can decide what to do.ParticipantNothing can ever be ‘reinstated’ to something that never existed.
PMI cannot be added to a loan at any point in the future to an existing loan. With FHA it’s called MIP/MMI.Refinancing with less than 20% equity will add mortgage insurance.
In some cases it can make sense for someone with a higher rate without mortgage insurance to refinance
into a loan with mortgage insurance at a lower rate.VA loans have no mortg ins. Veterans deserve a break. With other loans it’s possible to have a program called ‘Lender Paid’ mortgage insurance (LPMI)
‘Banks’ aren’t getting a free ride.
What most people don’t seem to understand OR want to believe is that a ‘bank’ doesn’t own your loan nor did they lend you their money for 30 years.
BANKS HAVE DIVISONS THAT ARE MORTGAGE BROKERS.
They make money by originating loans.
Many people falsely believe that all banks have great mortgage rates or are easier to deal with.There is one guy that is given credit for changing the way mortgage money was created. Lewis Ranieri.
http://en.wikipedia.org/wiki/Lewis_RanieriMost long term loans are sold off into ‘mortgage backed securities'(MBS) and are not owned by ‘banks’. It’s a complicated system.
GNMA (Ginnie Mae) guarantees the payment of principal & interest on MBS. http://en.wikipedia.org/wiki/Government_National_Mortgage_AssociationWhy are banks viewed as big bad major crooks ?
Nobody has to use a bank.
Nobody has to pay credit card interest.
They offer a service that comes with costs.If you think that there is no risk with low down mortgages and like the current interest rates and don’t think that there should be PMI,
you could buy MBS and hope that you receive the return that you are promised.IMO it would be better if mortgage insurance didn’t exist and 20% down was required to a buy a house.
Houses would sell for MUCH less and fewer people
would be ‘home owners’I agree with you that a (poor) buyer should not have to subsidize the risk of the wealthy(banks)
… I don’t think that the (poor) buyer who has little equity should be allowed to buy a house in the first place. That’s the concept that is wrong. -
AuthorPosts
