Home Buying & Real Estate Thread

[just reason]

Love this thread and haven't visited in awhile.. still getting my feet wet in real estate.. had my first closing last month and just scheduled my next closing for march.. super excited.. and my first listing is going up soon..


anyone in need of help or knows of anyone needing help in ny/nj let me know..

 

[getback]

Probably been discussed, but what's a good downpayment on $200-250K condo or townhouse?

 

[pdino]

^Depends what type of loan you put down on it. If it's going to be owner-occupied, you can do a FHA 3.5%  down loan. Need 10k if you go this route for downpayment.

If you want to save the most $ over time, put down 20% and go conventional, you're looking at 40-50k depending on the purchase price.

 

[getback]

 
^Depends what time of loan you put down on it. If it's going to be owner-occupied, you can do a FHA 3.5%  down loan. Need 10k if you go this route for downpayment.

If you want to save the most $ over time, put down 20% and go conventional, you're looking at 40-50k depending on the purchase price.

Repped. I've just been curious, because I'm staying with the rentals saving up trying to expedite the process.

 

[edshoecator]

Rocket experiences fellas?

BofA been ok, but looking for the best rates with little to no cost to refi

 

[iamdef]

 
Probably been discussed, but what's a good downpayment on $200-250K condo or townhouse?

I think the general rule on down payments is 10% minimum on anything

 

[NewWave90]

Closed on my first rental property. Thanks to the thread I learned about Bigger Pockets. Any of you looking to buy rentals and looking for insight just ask. I've learned a fair amount through this deal.

 

[deereebs]

Closed on my first rental property. Thanks to the thread I learned about Bigger Pockets. Any of you looking to buy rentals and looking for insight just ask. I've learned a fair amount through this deal.

Congrats! I came across BP a few months ago and have been shredding through the podcasts. On 180 of 210. Where's your house at? What are the ''numbers" in a nutshell? I have goals to purchase my first rental in 2017. Any advice you'd offer? What was the biggest challenge for you? For me it's just finding the right realtor to get the best deal. I don't know how I'd do with mail marketing. Ideally my first by would be a bank foreclosed home off of MLS

 

[NewWave90]

Congrats! I came across BP a few months ago and have been shredding through the podcasts. On 180 of 210. Where's your house at? What are the ''numbers" in a nutshell? I have goals to purchase my first rental in 2017. Any advice you'd offer? What was the biggest challenge for you? For me it's just finding the right realtor to get the best deal. I don't know how I'd do with mail marketing. Ideally my first by would be a bank foreclosed home off of MLS

Congrats! I came across BP a few months ago and have been shredding through the podcasts. On 180 of 210. Where's your house at? What are the ''numbers" in a nutshell? I have goals to purchase my first rental in 2017. Any advice you'd offer? What was the biggest challenge for you? For me it's just finding the right realtor to get the best deal. I don't know how I'd do with mail marketing. Ideally my first by would be a bank foreclosed home off of MLS[/quote]
The biggest challenge was getting a reliable contractor. I went through 2 of them trying to find a good one.
My advice would be to get a good attorney, that's very important.
The advice I'd offer to you is to be patient but don't over think yourself.
Its in Mercer County New Jersey
Sale price 110k; 25% down bank required it; mortgage 800 m/; 2000 m/ gross rent.

 

[deereebs]

Very nice!  With you recommending a good attorney, I also was thinking about a solid agent too.  When is it ethically "required" to stay with an agent?  After you click their listings emails, once you meet in person for tours of homes?  Just curious, with so many agents out there, it seems that if they're not truly great, they can be expendable pretty quick if they don't get the right searches and prep work done.  Is it terrible to say "adios" once things get stagnant?

 

[NewWave90]

As far as a buyer there really isn't any obligation to stay with a particular agent. Your main defense in avoiding a subpar agent is going to be referrals. If you haven't already look into attending a real estate investing meeting or group, where you'll find people who can help out in your particular market.

 

[lightweight champion]

I think the general rule on down payments is 10% minimum on anything

3.5% if you apply as a first time homebuyer. Some institutions are even offering zero down with approved credit, usually 720 or higher.

Navy Federal Credit Union is offering zero down with less than a 720 score and no PMI which is a great deal. But, on the flipside of that the interest rate will probably be around 6-7%

 

[dam itz lou]

There's a 3 family across the street from my house thats for sale. The same building a few houses down just sold for $975K which is low because one of the tenants is paying wayyyyyy below market rent and has a 2 year lease. You should be able to get an easy $2400 for each unit. Theyre all 4/2 bath.

I wish I had the funds. :\

 

[stork]

$7k/mo, that's doesn't seem that close to 1% of a mill, or the numbers are different?

also how is the house hack going? that's what you bought correct?

 

[vtotheinay]

This thread is fantastic. Looking to get a property in AZ (mesa, gilbert, chandler, scottsdale, tempe) area within the next 12-15 months with a friend or 2 as partners so we can have the $$. If anyone is from those areas and is wiling to just talk and maybe help me with some advice a PM would be greatly appreciated. I am coming from the Los Angeles area so don't have a ton of experience with those areas yet other than visiting a few times. Been reading a ton of stuff and listening to podcasts on biggerpockets to help familiarize myself with all this real estate stuff. It's all very new to me still.

 

[pdino]

For ya'll serious about investing out-of-state, I highly recommend getting a home inspector prior to purchase.

 

[phillie]

 
For ya'll serious about investing out-of-state, I highly recommend getting a home inspector prior to purchase.

That's generally a requirement before closing unless purchasing at a steep discount.

 

[chino905]

First time checking out this thread. Good to see a bunch of you also listen to BP podcast. I first found out about it by reading the book "The Book on Investing in Real Estate with No (and Low) Money Down".

I'm about to hopefully make my first purchase soon. I'm going to first speak to my bank and get pre-approval this week before spending time checking out property.

Question- For those who have enough money to put the 20% down payment on a house plus closing cost, would you go the conventional way or would you still use the FHA loan option?

 

[lilchico4life]

First time checking out this thread. Good to see a bunch of you also listen to BP podcast. I first found out about it by reading the book "The Book on Investing in Real Estate with No (and Low) Money Down".

I'm about to hopefully make my first purchase soon. I'm going to first speak to my bank and get pre-approval this week before spending time checking out property.

Question- For those who have enough money to put the 20% down payment on a house plus closing cost, would you go the conventional way or would you still use the FHA loan option?

I despise dealing with banks. Find yourself a private mortgage lender.

As for the type of loan, you're only eligible for FHA if it is your primary residence. A great way to take advantage of that is to purchase a multifamily and reside in one of the units and rent out the others.

I prefer to go the conventional route to avoid PMI and such.

 

[smokey13]

First time checking out this thread. Good to see a bunch of you also listen to BP podcast. I first found out about it by reading the book "The Book on Investing in Real Estate with No (and Low) Money Down".

I'm about to hopefully make my first purchase soon. I'm going to first speak to my bank and get pre-approval this week before spending time checking out property.

Question- For those who have enough money to put the 20% down payment on a house plus closing cost, would you go the conventional way or would you still use the FHA loan option?

If I didn't have a lot of cash on top of the 20% I might do a FHA. Comes in handy in case a big item needs to be replace or repaired. Or maybe another deal comes along.


Or say you're doing the BRRRR method. That could be your reno money. Plus you would be doing a refi to buy your next properties so you wouldn't have PMI for too long

 

[beeniesfoams]

Can someone explain paying your PMI off in a lump sum?
I'll give some particulars 300K home 5% down conventional.

 

[dam itz lou]

First time checking out this thread. Good to see a bunch of you also listen to BP podcast. I first found out about it by reading the book "The Book on Investing in Real Estate with No (and Low) Money Down".

I'm about to hopefully make my first purchase soon. I'm going to first speak to my bank and get pre-approval this week before spending time checking out property.

Question- For those who have enough money to put the 20% down payment on a house plus closing cost, would you go the conventional way or would you still use the FHA loan option?

FHA loans really suck. You really gotta take a look at the numbers and see if they make sense. You pay a 1.75% fee of the total loan. You don't have to pay that fee if you go conventional. You have to refinance to get out of paying PMI which can be expensive in some areas. Rates are low now so if you refinance in a few years with a higher rate that will eat into your savings.

I did an FHA loan myself. I hate the loan, but if we were to rent both units it would cover the mortgage and then some. It's the only reason I did it.

Can someone explain paying your PMI off in a lump sum?
I'll give some particulars 300K home 5% down conventional.

You put 45K towards your principal and you call the bank to take off the PMI.

 

[SneakerProSr.]

You have to refi If you did an FHA to get out of PMI now

 

[beeniesfoams]

FHA loans really suck. You really gotta take a look at the numbers and see if they make sense. You pay a 1.75% fee of the total loan. You don't have to pay that fee if you go conventional. You have to refinance to get out of paying PMI which can be expensive in some areas. Rates are low now so if you refinance in a few years with a higher rate that will eat into your savings.

I did an FHA loan myself. I hate the loan, but if we were to rent both units it would cover the mortgage and then some. It's the only reason I did it.
You put 45K towards your principal and you call the bank to take off the PMI.

Sounds like when you reach 20% equity. I'm talking about when you close on a house. Is it possible to pay the PMI off in a lump sum right after you close?

 

[chino905]

hmm. thanks guys for the input! I'll speak with some banks and mortgage lenders, but maybe i'll go the conventional way. It's going to be my first property, and I will reside in it, so FHA will still be useful if i decide to go get a 2 family house and rent the 2nd unit. Still on the fence about 1 vs 2 family homes, especially in NYC, but it would be a good investment. I'm just not good with home improvement so i'm a bit hesitant if problems occur with the tenant.