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Traded My House for a Couple of Hundred Thousand DollarsÖ



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topics gone triple plat - Number 1 spot 3X PLAT
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 1 week ago '16        #151
postemupndunkit 
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 Ace2125 said
I hate boxden
Why

 1 week ago '09        #152
dadon85 
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My real estate guys.

Should a person get a mortgage to buy a 2nd home or use your 1st home for a home equity loan to buy the 2nd home?

Cheaper rates?


I seen people saying rent out the 1st home to pay for the 2nd

 1 week ago '05        #153
R0R0 
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 Blak King said
Now I donít have anywhere to go. I canít find another house that fit my needs not more than half a million. Rent in the area is as much as a half million house. No way Iím going to go to another house just like I left for more money.

Starting to think this is the worst mistake of my life. Gotta move in with my girl, my sonís mom or my parents.

Iím sickÖ

I never had that much bread and was like fxck it. Now Iím homeless with a lot of cash. Iím scared and no one cares. Iím really concerned.

Lost security to touch the White man Bread.

Help, Iím paranoid.
air bnb for rent
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 5 days ago '10        #154
stizz44  topics gone triple plat - Number 1 spot x1
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 dadon85 said
My real estate guys.

Should a person get a mortgage to buy a 2nd home or use your 1st home for a home equity loan to buy the 2nd home?

Cheaper rates?


I seen people saying rent out the 1st home to pay for the 2nd

I would do both. Whatever it takes to get that second property. Make sure you have a plan and can hit the 1% rule in 2-4 years.

Bout to buy my 5th property and havent had to take out a HELOC or anything yet, but wouldn't hesitate if needed.
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 5 days ago '09        #155
dadon85 
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 stizz44 said
I would do both. Whatever it takes to get that second property. Make sure you have a plan and can hit the 1% rule in 2-4 years.

Bout to buy my 5th property and havent had to take out a HELOC or anything yet, but wouldn't hesitate if needed.
1% rule?

I thought about being a landlord but having to keep up maintenance or deal with Abad tenant. How's your experience been. If you do that I mean

 5 days ago '10        #156
stizz44  topics gone triple plat - Number 1 spot x1
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 dadon85 said
1% rule?

I thought about being a landlord but having to keep up maintenance or deal with Abad tenant. How's your experience been. If you do that I mean

Been a landlord since 2012 and I never had to evict a tenant until the pandemic, in which I had to evict two units.


Hire a handyman from Yelp for repairs.

Maintenance, get a leaf blower or ask around and hire a lawn man.

Maintenance depends on which region you in. If you in the Northeast, you gonna need a plow guy.


sh*t gets much much easier with every year that goes by.
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 5 days ago '10        #157
stizz44  topics gone triple plat - Number 1 spot x1
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 dadon85 said
1% rule?

I thought about being a landlord but having to keep up maintenance or deal with Abad tenant. How's your experience been. If you do that I mean

1% Rule is a formula that says that the monthly rental income should be 1% of the purchase price. Its a measure to evaluate rental properties. Its not the end all be all, just an evaluation measure.

Property I purchased in 2012, I was able to raise rent and hit 1% right away.
Property I purchased in 2016, I'm $200 away from the 1%.
Property I purchased in 2018, had to raise rent slower and just hit 1% in 2021.
Property I purchased in 2019, could be at the 1% if I raised rent, but I don't want to right now.

All of my properties are cash flowing $500-$2400, so even if you not hitting the 1% its still a guide of where you want to be.
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 3 days ago '06        #158
I hug the strip 
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sh*t well now is a chance to get a duplex and rent out the other side
Ya could be living rent free
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 2 days ago '04        #159
J.BEEZY 
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 QdobaCasanova said
How tf you sell your house and not have a place to live after n*gga

This story gotta be bullsh*t
This
if it's not bullsh*t, OP wtf were u thinking

 2 days ago '05        #160
pnoi89  topics gone triple plat - Number 1 spot x4
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 dadon85 said
My real estate guys.

Should a person get a mortgage to buy a 2nd home or use your 1st home for a home equity loan to buy the 2nd home?

Cheaper rates?


I seen people saying rent out the 1st home to pay for the 2nd
Are you suggesting to use a home equity loan to pay off the entire 2nd home, or utilize that amount as a downpayment for a second mortgage?

If so, I'd suggest to cash-out, refi your first home, than utilize that cash to purchase the second home, either in full or financed utilizing a 30 year, fixed rate home.

As for rates, a second home that you'll have to prove (within 60 miles of your primary home) will be a lower rate compared to a second home that's a rental (and higher downpayment too, typically 25% down).

But again, it depends on your plans for the second home and your existing home.
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 2 days ago '09        #161
dadon85 
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 pnoi89 said
Are you suggesting to use a home equity loan to pay off the entire 2nd home, or utilize that amount as a downpayment for a second mortgage?

If so, I'd suggest to cash-out, refi your first home, than utilize that cash to purchase the second home, either in full or financed utilizing a 30 year, fixed rate home.

As for rates, a second home that you'll have to prove (within 60 miles of your primary home) will be a lower rate compared to a second home that's a rental (and higher downpayment too, typically 25% down).

But again, it depends on your plans for the second home and your existing home.
1st home paid off completely. I was just thinking of getting a 2nd home. Possibly rent out the 2nd home

You be spitting game on here consistently
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 2 days ago '05        #162
pnoi89  topics gone triple plat - Number 1 spot x4
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 dadon85 said
1st home paid off completely. I was just thinking of getting a 2nd home. Possibly rent out the 2nd home

You be spitting game on here consistently
Good info.

In terms of tapping into your equity for your first, paid-off home, you have multiple options:

1. Cash-Out, Refi. You can technically tap into this by cashing out ~80% of your equity.

Ex. Since your home's paid off, you have $0 mortgage. Let's say your home's appraised at $500k. You're able to cash out a max, 80% of that ($400k cash), then refinance a $400k mortgage at 30 years, fixed rate. That $400k will be tax free.

Yes, you'll have a mortgage; however, at a low rate of like 3% fixed in today's rates, the goal's to leverage that $400k WISELY and use it for a better return, such as the stock market, more real estate like using it for a downpayment (or paying off another home in full), etc.

2. HELOC. Home equity line of credit. You'll have a lien against your paid-off home where your home's collateral. The rate for this will be prime rate, which is variable (vs. fixed rate, like above). There's pro's and con's to this, but again, the goal's to utilize the funds to produce a better return.

I know most would hesitate on #1, but I'd say, EVEN if you have a mortgage again, the goal's to create passive income and building a*sets enough that it'll cover your mortgage and other living expenses, in the end.

Hope that helps!
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 2 days ago '15        #163
Teddy KGB 
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 Blak King said
You donít think thatís a waste of money? I feel like I might as well by a house with 2k mortgage.
No, itís not a waste of money, especially considering the first years of paying a mortgage are heavily skewed towards paying interest and not the principal balance. It is far better to pay rent and wait out the housing inflation and overpay by hundreds of thousands of dollars.

Here is an example of how the interest is front loaded.


+1   

 2 days ago '05        #164
pnoi89  topics gone triple plat - Number 1 spot x4
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 Teddy KGB said
No, itís not a waste of money, especially considering the first years of paying a mortgage are heavily skewed towards paying interest and not the principal balance. It is far better to pay rent and wait out the housing inflation and overpay by hundreds of thousands of dollars.

Here is an example of how the interest is front loaded.


Waiting for another 2008 crisis may have you waiting 5, 10, 15 years down the downÖ.. Too much focuses on the $ amount son interest, when the interest itself is at an all-time low, while rent is at an all-time high.

Buy when you can afford, leverage the debt while avoiding inflation on rent and enjoying the low interest rates while they last.
+1   

 2 days ago '15        #165
Teddy KGB 
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 pnoi89 said
Waiting for another 2008 crisis may have you waiting 5, 10, 15 years down the downÖ.. Too much focuses on the $ amount son interest, when the interest itself is at an all-time low, while rent is at an all-time high.

Buy when you can afford, leverage the debt while avoiding inflation on rent and enjoying the low interest rates while they last.
Thatís the big question. How much longer will it last? My view is not much longer, but I could be wrong. This rate of increase is not sustainable, and is being propped up by low interest rates and relief programs. Itís not going to last forever. Also, more new homes are being built. I definitely disagree that it could be anything close to 5-15 years. There is no bull-market on any investment that lasts that long. A dip is coming, but it might not be huge. I think itís prudent to at least wait for a plateau before buying.

 2 days ago '05        #166
pnoi89  topics gone triple plat - Number 1 spot x4
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 Teddy KGB said
Thatís the big question. How much longer will it last? My view is not much longer, but I could be wrong. This rate of increase is not sustainable, and is being propped up by low interest rates and relief programs. Itís not going to last forever. Also, more new homes are being built. I definitely disagree that it could be anything close to 5-15 years. There is no bull-market on any investment that lasts that long. A dip is coming, but it might not be huge. I think itís prudent to at least wait for a plateau before buying.
When the market drops, the interest rates may end up rising.

Ultimately, at some point, you canít afford to waste too much time. I know many, many friends that chose (or some cases couldnít afford to anyways) to wait for another 2008 back in 2012Ö.. Whelp. 9 years later, housing market doubled, rental market doubled, and theyíre still waiting for a magical housing market crash like 2008. Good luck.

 2 days ago '15        #167
Teddy KGB 
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 pnoi89 said
When the market drops, the interest rates may end up rising.

Ultimately, at some point, you canít afford to waste too much time. I know many, many friends that chose (or some cases couldnít afford to anyways) to wait for another 2008 back in 2012Ö.. Whelp. 9 years later, housing market doubled, rental market doubled, and theyíre still waiting for a magical housing market crash like 2008. Good luck.
Well, Iíve owned four houses in my life so far, so Iím not exactly new to the process. I just sold my house a month ago for way over asking price. Now that Iíve moved, Iím contemplating when to jump back in the housing market, because I donít want to give up all the gains I made. Itís not really about luck to me, itís more about strategy.

 2 days ago '05        #168
pnoi89  topics gone triple plat - Number 1 spot x4
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 Teddy KGB said
Well, Iíve owned four houses in my life so far, so Iím not exactly new to the process. I just sold my house a month ago for way over asking price. Now that Iíve moved, Iím contemplating when to jump back in the housing market, because I donít want to give up all the gains I made. Itís not really about luck to me, itís more about strategy.
Yeah, appraisal gaps are a thing out here and itís insane for me to fathom.

I hear ya on strategy. For you and me, itís different cause we already have multiple properties under our belt. For the majority of people in our generation? Theyíre in the 30ís or going into their 40ís and still donít have any wealth accumulated. A home and/or a stock portfolio are the entryways to wealth, but have cold feet and donít even own a single home yet and have nothing much else.

Hence, why I usually press on buying when you can afford. If they donít do it now, theyíll be old with no a*sets and relying on family to die for inheritance.

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