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HLS
ParticipantBlue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?Although your idea is good, I think that the premise of your plan is flawed.
If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.ParticipantKev,
You need to start talking to people who understand what is happening, and not those who are in denial…Their income depends on being unrealistic/optimistic.
He’s entitled to his opinion.It might help in the midwest or cheap home areas, but it isn’t going to help So Cal.
Warren Buffet said it best: “Never ask a barber if you need a haircut”
ParticipantKev,
You need to start talking to people who understand what is happening, and not those who are in denial…Their income depends on being unrealistic/optimistic.
He’s entitled to his opinion.It might help in the midwest or cheap home areas, but it isn’t going to help So Cal.
Warren Buffet said it best: “Never ask a barber if you need a haircut”
ParticipantKev,
You need to start talking to people who understand what is happening, and not those who are in denial…Their income depends on being unrealistic/optimistic.
He’s entitled to his opinion.It might help in the midwest or cheap home areas, but it isn’t going to help So Cal.
Warren Buffet said it best: “Never ask a barber if you need a haircut”
ParticipantKev,
You need to start talking to people who understand what is happening, and not those who are in denial…Their income depends on being unrealistic/optimistic.
He’s entitled to his opinion.It might help in the midwest or cheap home areas, but it isn’t going to help So Cal.
Warren Buffet said it best: “Never ask a barber if you need a haircut”
ParticipantKev,
You need to start talking to people who understand what is happening, and not those who are in denial…Their income depends on being unrealistic/optimistic.
He’s entitled to his opinion.It might help in the midwest or cheap home areas, but it isn’t going to help So Cal.
Warren Buffet said it best: “Never ask a barber if you need a haircut”
ParticipantFSD, I just got back from flushing (and washing my hands)
Alex, what you and many others don’t seem to understand is that this whole circus was TOTALLY predictable, and some of us DID see it coming.
Having been in the market years ago, with multiple properties and selling out long before or near the top qualifies.
Like FSD, I coulda made lots more, but was conservative.
I learned & profited from the 90’s and wasn’t going to get caught with my pants down this time. You were probably in diapers.With the next wave of ARM resets still coming AND THEN the wave of neg am resets, there are two other shoes yet to fall.
Keep your eye on CNBC etc, and watch the “experts” say that they didn’t see this coming. They have said it in 2007 and will be saying it in 2008, and in 2009 and maybe still in 2010.
When you get a few years of life experience behind you, maybe your comments will become a little more useful, but I’m not going to count on it.
ParticipantFSD, I just got back from flushing (and washing my hands)
Alex, what you and many others don’t seem to understand is that this whole circus was TOTALLY predictable, and some of us DID see it coming.
Having been in the market years ago, with multiple properties and selling out long before or near the top qualifies.
Like FSD, I coulda made lots more, but was conservative.
I learned & profited from the 90’s and wasn’t going to get caught with my pants down this time. You were probably in diapers.With the next wave of ARM resets still coming AND THEN the wave of neg am resets, there are two other shoes yet to fall.
Keep your eye on CNBC etc, and watch the “experts” say that they didn’t see this coming. They have said it in 2007 and will be saying it in 2008, and in 2009 and maybe still in 2010.
When you get a few years of life experience behind you, maybe your comments will become a little more useful, but I’m not going to count on it.
ParticipantFSD, I just got back from flushing (and washing my hands)
Alex, what you and many others don’t seem to understand is that this whole circus was TOTALLY predictable, and some of us DID see it coming.
Having been in the market years ago, with multiple properties and selling out long before or near the top qualifies.
Like FSD, I coulda made lots more, but was conservative.
I learned & profited from the 90’s and wasn’t going to get caught with my pants down this time. You were probably in diapers.With the next wave of ARM resets still coming AND THEN the wave of neg am resets, there are two other shoes yet to fall.
Keep your eye on CNBC etc, and watch the “experts” say that they didn’t see this coming. They have said it in 2007 and will be saying it in 2008, and in 2009 and maybe still in 2010.
When you get a few years of life experience behind you, maybe your comments will become a little more useful, but I’m not going to count on it.
ParticipantFSD, I just got back from flushing (and washing my hands)
Alex, what you and many others don’t seem to understand is that this whole circus was TOTALLY predictable, and some of us DID see it coming.
Having been in the market years ago, with multiple properties and selling out long before or near the top qualifies.
Like FSD, I coulda made lots more, but was conservative.
I learned & profited from the 90’s and wasn’t going to get caught with my pants down this time. You were probably in diapers.With the next wave of ARM resets still coming AND THEN the wave of neg am resets, there are two other shoes yet to fall.
Keep your eye on CNBC etc, and watch the “experts” say that they didn’t see this coming. They have said it in 2007 and will be saying it in 2008, and in 2009 and maybe still in 2010.
When you get a few years of life experience behind you, maybe your comments will become a little more useful, but I’m not going to count on it.
ParticipantFSD, I just got back from flushing (and washing my hands)
Alex, what you and many others don’t seem to understand is that this whole circus was TOTALLY predictable, and some of us DID see it coming.
Having been in the market years ago, with multiple properties and selling out long before or near the top qualifies.
Like FSD, I coulda made lots more, but was conservative.
I learned & profited from the 90’s and wasn’t going to get caught with my pants down this time. You were probably in diapers.With the next wave of ARM resets still coming AND THEN the wave of neg am resets, there are two other shoes yet to fall.
Keep your eye on CNBC etc, and watch the “experts” say that they didn’t see this coming. They have said it in 2007 and will be saying it in 2008, and in 2009 and maybe still in 2010.
When you get a few years of life experience behind you, maybe your comments will become a little more useful, but I’m not going to count on it.
ParticipantBlue,
I’m in the mortgage biz in Murrieta and can give you the truth about your financing possibilities.
Anybody can say that, I’ll prove it to you.You didn’t say exactly how much you have to put down.
Did you ask for any seller contribution to your closing costs ?If it’s your dream home, it is already a whole lot less than you would have paid several years ago.
It is probably going to drop in value more, but monthly rents may not drop. It’s still going to cost you to live somehwere every month.If you are willing to look at a non-recourse purchase loan for what it is, then you will just be renting from the lender for awhile, with a slight possibility of appreciation, maybe, someday.
Without knowing what you qualify for, it’s impossible to quote a rate or payment.
With 10% down, If you are looking at a fully amortized payment, fixed for 30 years, with MI, at the PAR rate, your net housing expense (PITI) per month will be over $3000 per month EVEN IF your situation/credit score/income is perfect.
With 20% down, a $360K loan at par TODAY would have payments of $2154 PI. + TI
No matter what you decide to do in CA, buying rental property for CASH is not a wise thing to do.
There are other creative ways to look at your situation.
J, Your comments are simply foolish.
I’ve had the same accountant who I respect and have used for over 25 years, and he doesn’t understand the first thing about originating a loan, nor does he want to review loan docs. That’s not his concern.
AND
A home can be sold on the first day listed if it is priced right.J, Your generalizations are ridiculous.
ParticipantBlue,
I’m in the mortgage biz in Murrieta and can give you the truth about your financing possibilities.
Anybody can say that, I’ll prove it to you.You didn’t say exactly how much you have to put down.
Did you ask for any seller contribution to your closing costs ?If it’s your dream home, it is already a whole lot less than you would have paid several years ago.
It is probably going to drop in value more, but monthly rents may not drop. It’s still going to cost you to live somehwere every month.If you are willing to look at a non-recourse purchase loan for what it is, then you will just be renting from the lender for awhile, with a slight possibility of appreciation, maybe, someday.
Without knowing what you qualify for, it’s impossible to quote a rate or payment.
With 10% down, If you are looking at a fully amortized payment, fixed for 30 years, with MI, at the PAR rate, your net housing expense (PITI) per month will be over $3000 per month EVEN IF your situation/credit score/income is perfect.
With 20% down, a $360K loan at par TODAY would have payments of $2154 PI. + TI
No matter what you decide to do in CA, buying rental property for CASH is not a wise thing to do.
There are other creative ways to look at your situation.
J, Your comments are simply foolish.
I’ve had the same accountant who I respect and have used for over 25 years, and he doesn’t understand the first thing about originating a loan, nor does he want to review loan docs. That’s not his concern.
AND
A home can be sold on the first day listed if it is priced right.J, Your generalizations are ridiculous.
ParticipantBlue,
I’m in the mortgage biz in Murrieta and can give you the truth about your financing possibilities.
Anybody can say that, I’ll prove it to you.You didn’t say exactly how much you have to put down.
Did you ask for any seller contribution to your closing costs ?If it’s your dream home, it is already a whole lot less than you would have paid several years ago.
It is probably going to drop in value more, but monthly rents may not drop. It’s still going to cost you to live somehwere every month.If you are willing to look at a non-recourse purchase loan for what it is, then you will just be renting from the lender for awhile, with a slight possibility of appreciation, maybe, someday.
Without knowing what you qualify for, it’s impossible to quote a rate or payment.
With 10% down, If you are looking at a fully amortized payment, fixed for 30 years, with MI, at the PAR rate, your net housing expense (PITI) per month will be over $3000 per month EVEN IF your situation/credit score/income is perfect.
With 20% down, a $360K loan at par TODAY would have payments of $2154 PI. + TI
No matter what you decide to do in CA, buying rental property for CASH is not a wise thing to do.
There are other creative ways to look at your situation.
J, Your comments are simply foolish.
I’ve had the same accountant who I respect and have used for over 25 years, and he doesn’t understand the first thing about originating a loan, nor does he want to review loan docs. That’s not his concern.
AND
A home can be sold on the first day listed if it is priced right.J, Your generalizations are ridiculous.
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