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Just because the FED has propped up the housing market
09-16-2019, 09:21 AM
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#31
- Jacobcapra
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- Jacobcapra
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I remember my first troll attempt
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09-16-2019, 09:30 AM
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#32
- Sinergy2010
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Mortgages are another prison sentence, Unless your house will raise in value at least 7 to 10% each year, houses are no longer a good investment. 30 year mortgages? No thanks. Millionaires/billionaires are leasing everything now adays, Houses just drain money unless you just own them. If you buy it for next to nothing, okay makes sense, but if your buying at a top of a bubble and paying a premium you are just making 3 people wealthy 1) Realtors 2) Previous owners 3) Bankers.
My BitCoin wallet if you are feeling generous.
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09-16-2019, 09:42 AM
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#33
Originally Posted By Sinergy2010⏩
not true...Mortgages are another prison sentence,Unless your house will raise in value at least 7 to 10% each year,houses are no longer a good investment. 30 year mortgages? No thanks. Millionaires/billionaires are leasing everything now adays, Houses just drain money unless you just own them. If you buy it for next to nothing, okay makes sense, but if your buying at a top of a bubble and paying a premium you are just making 3 people wealthy 1) Realtors 2) Previous owners 3) Bankers.
Because math is easy, and I am already dicking around in excel, let's take a look at a $400k home.
20% down = $79,998
Monthly payment (insurance, taxes, interest, etc) = $1956
Total paid over a 30 year period: $784,158
If that home appreciates just 2.5% every year, you will be "even" before year 28. In fact, by your final year, you will be at +$75.8k.
Basically, you got a 9.6% return on an investment. Notexcitingbut still a solid play, and not to mention, your investment actually served a purpose (a roof over your head) where as your other investments you don't see anything from. Have your cake and eat it too...
"It won't get better, just different."
09-16-2019, 09:47 AM
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#34
- BigTimeOperator
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Good points in this thrad. Financial gurus say take out only a 15 year mortgage at a time, even if it means a smaller house. On land in a rural area is a better life, even if you have to commute. (see where emergency medical services are ,though.)
There is another issue that if you fail to pay property taxes, and the Government can take your house and land, who really owns it?
There is another issue that if you fail to pay property taxes, and the Government can take your house and land, who really owns it?
09-16-2019, 09:54 AM
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#35
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Wow funny none of you armchair financial gurus have even considered the prospect of the lost investment that your huge down payment takes away from you.
brb putting 100k down on a house you will be paying that in interest the first 5 years
brb investing that 100k at just a 5% annual growth rate for 28 years will yield you $397,853
you short sighted *******s dont even consider the prospect of saving money and investing when you could acutally MAKE MORE then buying a house if you invest what you would of put as a down payment properly. This includes amounts of $50k even $20k would be better than being the banks little bish. Not to mention all those repairs, taxes and the like.
This thread just proves the bank has you sheep hook line and sinker, cant even put up a mathematical rebuttle without you morons getting angry and butthurt about it haha
NPC: "I must buy a house its the only way I will ever have anything of value in my pathetic life" lol
brb putting 100k down on a house you will be paying that in interest the first 5 years
brb investing that 100k at just a 5% annual growth rate for 28 years will yield you $397,853
you short sighted *******s dont even consider the prospect of saving money and investing when you could acutally MAKE MORE then buying a house if you invest what you would of put as a down payment properly. This includes amounts of $50k even $20k would be better than being the banks little bish. Not to mention all those repairs, taxes and the like.
This thread just proves the bank has you sheep hook line and sinker, cant even put up a mathematical rebuttle without you morons getting angry and butthurt about it haha
NPC: "I must buy a house its the only way I will ever have anything of value in my pathetic life" lol
09-16-2019, 10:08 AM
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#36
Originally Posted By chino3⏩
You forgot upkeep costs, with those factored in, you essentially break even owning your own home. Still a good deal considering of course.not true...
Because math is easy, and I am already dicking around in excel, let's take a look at a $400k home.
20% down = $79,998
Monthly payment (insurance, taxes, interest, etc) = $1956
Total paid over a 30 year period: $784,158
If that home appreciates just 2.5% every year, you will be "even" before year 28. In fact, by your final year, you will be at +$75.8k.
Basically, you got a 9.6% return on an investment. Notexcitingbut still a solid play, and not to mention, your investment actually served a purpose (a roof over your head) where as your other investments you don't see anything from. Have your cake and eat it too...
Because math is easy, and I am already dicking around in excel, let's take a look at a $400k home.
20% down = $79,998
Monthly payment (insurance, taxes, interest, etc) = $1956
Total paid over a 30 year period: $784,158
If that home appreciates just 2.5% every year, you will be "even" before year 28. In fact, by your final year, you will be at +$75.8k.
Basically, you got a 9.6% return on an investment. Notexcitingbut still a solid play, and not to mention, your investment actually served a purpose (a roof over your head) where as your other investments you don't see anything from. Have your cake and eat it too...
09-16-2019, 10:15 AM
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#37
Originally Posted By Midi77⏩
I didn't include them, but I also didn't include the tax benefits of owning a home...You forgot upkeep costs, with those factored in, you essentially break even owning your own home. Still a good deal considering of course.
"It won't get better, just different."
09-16-2019, 10:19 AM
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#38
09-16-2019, 10:27 AM
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#39
- ANumber1
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Originally Posted By Midi77⏩
You forgot upkeep costs, with those factored in, you essentially break even owning your own home. Still a good deal considering of course.
Originally Posted By GainzMcgee⏩
It's literallythebasic cognitive mistake that people make buying a house. They either fail to take into account the costs that were already priced into rent, or fail to actually save and invest the difference when they rent. In the first scenario, you end up draining your savings and/or putting emergency home repairs on a credit card. In the second, you think you're living larger than you are and end up with nothing saved.you short sighted *******s dont even consider the prospect of saving money and investing when you could acutally MAKE MORE then buying a house if you invest what you would of put as a down payment properly. This includes amounts of $50k even $20k would be better than being the banks little bish. Not to mention all those repairs, taxes and the like.
It's the same mental mistake people make failing to account for the different between pre-tax and after-tax dollars in a Traditional IRA vs Roth. ("Look! I can invest so much more and they take less out of my paycheck!")
"But my mortgage payment is less than rent, brah!"
I own a home. I'm actually transitioning out to a smaller rental because I've completed my plan for the property. In addition to remodeling the kitchen - planned - in the last three-to-six months I've had five grand in unexpected, uninsured work and ten grand in insured repairs, which would have been uninsured if I hadn't been cautious enough to take the cheap rider that covered it. Kill me.
The opportunity cost of the time you spend handling this chit is expensive, too. Part of what you're paying for in a well-managed rental is somebody handling bids and dealing with the tradie nonsense so you don't have to.
Nah, fukk that. I’m not doing that.
09-16-2019, 10:33 AM
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#40
- MikeLowrrrey
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Originally Posted By GainzMcgee⏩
But what about rising rent? What if rich foreigners start buying everything up, then what?Wow funny none of you armchair financial gurus have even considered the prospect of the lost investment that your huge down payment takes away from you.
brb putting 100k down on a house you will be paying that in interest the first 5 years
brb investing that 100k at just a 5% annual growth rate for 28 years will yield you $397,853
you short sighted *******s dont even consider the prospect of saving money and investing when you could acutally MAKE MORE then buying a house if you invest what you would of put as a down payment properly. This includes amounts of $50k even $20k would be better than being the banks little bish. Not to mention all those repairs, taxes and the like.
This thread just proves the bank has you sheep hook line and sinker, cant even put up a mathematical rebuttle without you morons getting angry and butthurt about it haha
NPC: "I must buy a house its the only way I will ever have anything of value in my pathetic life" lol
brb putting 100k down on a house you will be paying that in interest the first 5 years
brb investing that 100k at just a 5% annual growth rate for 28 years will yield you $397,853
you short sighted *******s dont even consider the prospect of saving money and investing when you could acutally MAKE MORE then buying a house if you invest what you would of put as a down payment properly. This includes amounts of $50k even $20k would be better than being the banks little bish. Not to mention all those repairs, taxes and the like.
This thread just proves the bank has you sheep hook line and sinker, cant even put up a mathematical rebuttle without you morons getting angry and butthurt about it haha
NPC: "I must buy a house its the only way I will ever have anything of value in my pathetic life" lol
I understand your logic of investing, but most people don't even have $2500 in their bank, let alone saving money to invest in stocks. Most people have no discipline + too lazy to learn and are far better off buying
Originally Posted By ANumber1⏩
Well now you have me on the fence. Sounds like Renting + Investing = Buying a house with cash is the best case scenario. Though you'll still have to deal with repairs when you buy.It's literallythebasic cognitive mistake that people make buying a house. They either fail to take into account the costs that were already priced into rent, or fail to actually save and invest the difference when they rent. In the first scenario, you end up draining your savings and/or putting emergency home repairs on a credit card. In the second, you think you're living larger than you are and end up with nothing saved.
It's the same mental mistake people make failing to account for the different between pre-tax and after-tax dollars in a Traditional IRA vs Roth. ("Look! I can invest so much more and they take less out of my paycheck!")
"But my mortgage payment is less than rent, brah!"
I own a home. I'm actually transitioning out to a smaller rental because I've completed my plan for the property. In addition to remodeling the kitchen - planned - in the last three-to-six months I've had five grand in unexpected, uninsured work and ten grand in insured repairs, which would have been uninsured if I hadn't been cautious enough to take the cheap rider that covered it. Kill me.
The opportunity cost of the time you spend handling this chit is expensive, too. Part of what you're paying for in a well-managed rental is somebody handling bids and dealing with the tradie nonsense so you don't have to.
It's the same mental mistake people make failing to account for the different between pre-tax and after-tax dollars in a Traditional IRA vs Roth. ("Look! I can invest so much more and they take less out of my paycheck!")
"But my mortgage payment is less than rent, brah!"
I own a home. I'm actually transitioning out to a smaller rental because I've completed my plan for the property. In addition to remodeling the kitchen - planned - in the last three-to-six months I've had five grand in unexpected, uninsured work and ten grand in insured repairs, which would have been uninsured if I hadn't been cautious enough to take the cheap rider that covered it. Kill me.
The opportunity cost of the time you spend handling this chit is expensive, too. Part of what you're paying for in a well-managed rental is somebody handling bids and dealing with the tradie nonsense so you don't have to.
The only problem is keeping Rent prices down. Do you just find a new higher paying job? Or hope your employer is able to keep up?
09-16-2019, 10:40 AM
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#41
One thing OP didn't mention about home ownership that a lot of people gloss over:
When you buy at one price you are generally making the same payment while currency keeps becoming worth less and less and rents keep rising from inflation
BRB My dad bought a house in 2001 for 80k
BRB $450/month mortgage payment right now
BRB cost of a 1 bedroom in reasonable shape is $900
BRB you seriously couldn't even find a room in a basement to rent for $450/month these days.
When you buy at one price you are generally making the same payment while currency keeps becoming worth less and less and rents keep rising from inflation
BRB My dad bought a house in 2001 for 80k
BRB $450/month mortgage payment right now
BRB cost of a 1 bedroom in reasonable shape is $900
BRB you seriously couldn't even find a room in a basement to rent for $450/month these days.
09-16-2019, 10:47 AM
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#42
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Originally Posted By MikeLowrrrey⏩
In my community, this isn't a factor, but obviously market moves are an issue on both sides.Well now you have me on the fence. Sounds like Renting + Investing = Buying a house with cash is the best case scenario. Though you'll still have to deal with repairs when you buy.
The only problem is keeping Rent prices down. Do you just find a new higher paying job? Or hope your employer is able to keep up?
The only problem is keeping Rent prices down. Do you just find a new higher paying job? Or hope your employer is able to keep up?
If you rent, what do you do if rents increase dramatically? If you own, what do you do if property values tank while you're mortgaged to the hilt?
The best you can do is diversify. Controlling housing costs so that you can invest more widely than just "this one house in this one neighborhood" is your best defense. The "buy all the house you can afford because real estate is going to go up forever" shtick mortgage lenders were pushing ruined a lot of lives in 2008.
Nah, fukk that. I’m not doing that.
09-16-2019, 10:57 AM
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#43
Originally Posted By ANumber1⏩
I get this from a short term investment view, but as long as it's a payment you can afford and you didn't go full potato with an ARM, you're fine until the market eventually recovers.In my community, this isn't a factor, but obviously market moves are an issue on both sides.
If you rent, what do you do if rents increase dramatically?If you own, what do you do if property values tank while you're mortgaged to the hilt?
The best you can do is diversify. Controlling housing costs so that you can invest more widely than just "this one house in this one neighborhood" is your best defense. The "buy all the house you can afford because real estate is going to go up forever" shtick mortgage lenders were pushing ruined a lot of lives in 2008.
If you rent, what do you do if rents increase dramatically?If you own, what do you do if property values tank while you're mortgaged to the hilt?
The best you can do is diversify. Controlling housing costs so that you can invest more widely than just "this one house in this one neighborhood" is your best defense. The "buy all the house you can afford because real estate is going to go up forever" shtick mortgage lenders were pushing ruined a lot of lives in 2008.
But let's say it never recovers, and use my previous numbers as an example.
$400k home that you end up paying $784k into. In 30 years, it some how NEVER appreciated, and you can only recover the original sale amount, so you are $384k "in the hole."
BUT, let's look at renting, and take a figure that is HALF of what I used for this model's mortgage, so rent is $978/month. And Let's say you see an average 3% increase annually for 30 years (lol), after 30 years you will have payed $558k.
In this horrific model, you are "out of pocket" $384k for buying/selling, but $558k for renting. You have "saved" $174k
All that said, if you plan on living somewhere for a long ass time, BUY BUY BUY. If you see yourself moving in 5 years, shoot maybe even less than 10 years, rentingmaybe a better option depending on what you do with your money.
"It won't get better, just different."
09-16-2019, 11:02 AM
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#44
- CulturalDecay
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Originally Posted By chino3⏩
You also didn't include the huge tax advantages of homeownership.....not true...
Because math is easy, and I am already dicking around in excel, let's take a look at a $400k home.
20% down = $79,998
Monthly payment (insurance, taxes, interest, etc) = $1956
Total paid over a 30 year period: $784,158
If that home appreciates just 2.5% every year, you will be "even" before year 28. In fact, by your final year, you will be at +$75.8k.
Basically, you got a 9.6% return on an investment. Notexcitingbut still a solid play, and not to mention, your investment actually served a purpose (a roof over your head) where as your other investments you don't see anything from. Have your cake and eat it too...
Because math is easy, and I am already dicking around in excel, let's take a look at a $400k home.
20% down = $79,998
Monthly payment (insurance, taxes, interest, etc) = $1956
Total paid over a 30 year period: $784,158
If that home appreciates just 2.5% every year, you will be "even" before year 28. In fact, by your final year, you will be at +$75.8k.
Basically, you got a 9.6% return on an investment. Notexcitingbut still a solid play, and not to mention, your investment actually served a purpose (a roof over your head) where as your other investments you don't see anything from. Have your cake and eat it too...
Also the ability to take out a HELOC or a second mortgage to finance another house or rental property (I haven't done this, but it's an option)
Also the ability to rent out the house YOU OWN for rental income - calculate that into your ROI
And calculate the cost to you if you did not buy and rented for those same 30 years, also calculate the average rental increase over those 30 years?
Oh yeah.....also realize you won't be making the same amount of money are you now, versus 30 years from how, should go up significantly if you aren't a 'tard like OP
09-16-2019, 11:09 AM
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#45
- jeshelton
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Originally Posted By badbl00d⏩
Some days, you are my favorite poster on the misc. Today is one of those days.Oh look another grown ass man, living in another grown ass man's house.
445/340/545
09-16-2019, 11:12 AM
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#46
- ANumber1
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Originally Posted By chino3⏩
Sure, but once again, let's go back to what I said before, which is the basic cognitive mistake people make about failing to account for the additional costs of ownership which are already priced into rent.I get this from a short term investment view, but as long as it's a payment you can afford and you didn't go full potato with an ARM, you're fine until the market eventually recovers.
But let's say it never recovers, and use my previous numbers as an example.
$400k home that you end up paying $784k into. In 30 years, it some how NEVER appreciated, and you can only recover the original sale amount, so you are $384k "in the hole."
BUT, let's look at renting, and take a figure that is HALF of what I used for this model's mortgage, so rent is $978/month. And Let's say you see an average 3% increase annually for 30 years (lol), after 30 years you will have payed $558k.
In this horrific model, you are "out of pocket" $384k for buying/selling, but $558k for renting. You have "saved" $174k
But let's say it never recovers, and use my previous numbers as an example.
$400k home that you end up paying $784k into. In 30 years, it some how NEVER appreciated, and you can only recover the original sale amount, so you are $384k "in the hole."
BUT, let's look at renting, and take a figure that is HALF of what I used for this model's mortgage, so rent is $978/month. And Let's say you see an average 3% increase annually for 30 years (lol), after 30 years you will have payed $558k.
In this horrific model, you are "out of pocket" $384k for buying/selling, but $558k for renting. You have "saved" $174k
In 30 years, you'll pay 30 property tax bills, which vary wildly by state but supposedly average 1.2% of the value. On a $400k property, that's $4.8k x 30 = $144,000, not to mention the possible legal fight with the county to get your property reassessed after you bought it for twice that.
Then there's maintenance. In 30 years, your appliances, roof, hot water heater, furnace, air conditioner are all going to go, and you're probably looking at full gut remodels of the kitchen and bath.At leastonce. Some types of flooring will need to replaced 2-4 times. Hopefully you don't discover expensive situations with asbestos, lead, or mold during this adventure.
Then there's HOA fees, which apply to most new single-family homes in this country, and I believe average a couple hundred a month. $200 x 12 x 30 = $72,000.
...and we're just talking in 2018 dollars. All of these values are inflating over thirty years, too, just like rent.
Originally Posted By chino3⏩
I think this is a generally reasonable rule of thumb. I just don't think the choice should be made on the assumption that you're going to come outwayahead. Instead, a buyer should ask "Would I still be glad I bought this house if I knew I was only going to break even with renting?"All that said, if you plan on living somewhere for a long ass time, BUY BUY BUY. If you see yourself moving in 5 years, shoot maybe even less than 10 years, rentingmaybe a better option depending on what you do with your money.
If so, go with God. There is no free lunch. Nine times out of ten, if you find a higher return and it seems like cash on the table, it's because you've overlooked a hidden expense or risk. At a bare minimum, even if everything goes very smoothly, landlords are spending many hours running around doing chit you're going to be doing with your own valuable time now.
I realized it was time to get out of this house when I started wondering if I was still glad I bought it. Like a sloot, when I see the situation turning, I'd rather end things with it while I still have fond memories.
Nah, fukk that. I’m not doing that.
09-16-2019, 11:15 AM
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#47
Originally Posted By GainzMcgee⏩
shut up you poverty douche bag.Doesnt mean you are the smartest guy in the room. LMFAO at mortgage cells.
brb living in a souless suburb next to bob that only talks about the weather
brb having to get a new roof, appliances and remodel your entire kitchen after 5 years
brb when market finally does tank for good house will be worthless
brb being the banks BISH for 30 years
brb thinking a piece of plywood built by illegal mexicans is a good "investment"
brb thinking your house is "worth" something when you havent even sold it and got cash in hand yet
just lmfaoo at mortgagecels.
bonus lmfaoo : thinking you actually own something when if you dont pay your tax bill daddy government will take your chit with the quickness.
brb living in a souless suburb next to bob that only talks about the weather
brb having to get a new roof, appliances and remodel your entire kitchen after 5 years
brb when market finally does tank for good house will be worthless
brb being the banks BISH for 30 years
brb thinking a piece of plywood built by illegal mexicans is a good "investment"
brb thinking your house is "worth" something when you havent even sold it and got cash in hand yet
just lmfaoo at mortgagecels.
bonus lmfaoo : thinking you actually own something when if you dont pay your tax bill daddy government will take your chit with the quickness.
maybe if you worked harder in life you would have made more money allowing you to buy more things.
Merica
<I.L.H.|C.O.E.>
RIP YGST
09-16-2019, 11:24 AM
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#48
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Originally Posted By 4ea⏩
imagine being this brainwashed and angry because someone shows mathematical proof that it may not be the best idea to rent a house from the bank for 30 years. LMFAOshut up you poverty douche bag.
maybe if you worked harder in life you would have made more money allowing you to buy more things.
maybe if you worked harder in life you would have made more money allowing you to buy more things.
09-16-2019, 11:37 AM
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#49
- Witrebel
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But who was 3 and 4 unit multi family properties....
If purchased properly, a 30 year mortgage backed multi family has a few profit centers:
1) The obvious monthly net income that you can skim off the top
2) The built in equity increase every month from your tenants paying your mortgage
3) The potential for appreciation increase
4) Future payments being paid back in FUTURE value of money, not present value, a nice safe haven from hyperinflation.
Yes, I am currently in escrow on a 3 unit. $20k down on a $490k property. PITI roughly $3000 and fair market rent around $4500 for all units. After a year of living on the property I can move out and rent it out fully.
Expecting severe short term depreciation when this market corrects, but long term it seems like a no brainer. Putting away 17% of gross monthly rent per month for Vacancy/Repairs/Capex, still leaves me a modest profit monthly to re-invest in the next property.
CLIFFS:
Single Family Residence are for *******s
Multi Family Master Race checking in
If purchased properly, a 30 year mortgage backed multi family has a few profit centers:
1) The obvious monthly net income that you can skim off the top
2) The built in equity increase every month from your tenants paying your mortgage
3) The potential for appreciation increase
4) Future payments being paid back in FUTURE value of money, not present value, a nice safe haven from hyperinflation.
Yes, I am currently in escrow on a 3 unit. $20k down on a $490k property. PITI roughly $3000 and fair market rent around $4500 for all units. After a year of living on the property I can move out and rent it out fully.
Expecting severe short term depreciation when this market corrects, but long term it seems like a no brainer. Putting away 17% of gross monthly rent per month for Vacancy/Repairs/Capex, still leaves me a modest profit monthly to re-invest in the next property.
CLIFFS:
Single Family Residence are for *******s
Multi Family Master Race checking in
We are all gunna make it
09-16-2019, 11:55 AM
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#50
- jackamo2887
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I am so confused.
So is the best option just be homeless?
Renting is ****ing retarded, and apparently according to the misc so is owning a house.
So is the best option just be homeless?
Renting is ****ing retarded, and apparently according to the misc so is owning a house.
Survival. When the jungle tears itself down and builds itself into something new. Guys like you and me, we end up dead. Doesn’t really mean anything. Or, if we happen to live through it, well that doesn’t mean anything either.
09-16-2019, 11:59 AM
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#51
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Originally Posted By jackamo2887⏩
Neither are retarded. They just both cost money and should be viewed objectively as such.I am so confused.
So is the best option just be homeless?
Renting is ****ing retarded, and apparently according to the misc so is owning a house.
So is the best option just be homeless?
Renting is ****ing retarded, and apparently according to the misc so is owning a house.
Literally spent thirty minutes on my lawn just now with the plumbers again because the GD city ran the sewer line at a 45 degree angle under my driveway and now they're not sure they can honor the original estimate to install a backflow valve because they may have to pull the toilet, run a locator, and maybe break up my driveway if the city can't give them a straight answer on where the fitting is. I'm going to bill that conversation to the "I'm a homeowner" account as another $50 of my fukkin' time.
You guys caught me with this thread right when I'm at max skepticism on this topic.
Nah, fukk that. I’m not doing that.
09-16-2019, 12:10 PM
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#52
- Witrebel
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- Witrebel
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Originally Posted By jackamo2887⏩
House hacking is the solution. Find a 2-4 unit property, get an FHA loan and put down 3.5-5% up front.I am so confused.
So is the best option just be homeless?
Renting is ****ing retarded, and apparently according to the misc so is owning a house.
So is the best option just be homeless?
Renting is ****ing retarded, and apparently according to the misc so is owning a house.
As a rule of thumb, if the realistic monthly rent is not 1% or greater than the purchase price, it is NOT a good purchase.
Might take a few months to find such a property, or even take some hand written letters to local owners you may find on the town assessors website (AKA do some homework). You also may have to compromise slightly on the quality/location versus your ideal "first home". But you can essentially pull off a rent free owner occupied property, and down the road it becomes a cash flowing rental property/asset.
We are all gunna make it
09-16-2019, 12:14 PM
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#53
Originally Posted By Witrebel⏩
lol wtf did you find this "rule of thumb?" Maybe this works in some backwoods hillbilly town or sketch ass ghettoHouse hacking is the solution. Find a 2-4 unit property, get an FHA loan and put down 3.5-5% up front.
As a rule of thumb, if the realistic monthly rent is not 1% or greater than the purchase price, it is NOT a good purchase.
Might take a few months to find such a property, or even take some hand written letters to local owners you may find on the town assessors website (AKA do some homework). You also may have to compromise slightly on the quality/location versus your ideal "first home". But you can essentially pull off a rent free owner occupied property, and down the road it becomes a cash flowing rental property/asset.
As a rule of thumb, if the realistic monthly rent is not 1% or greater than the purchase price, it is NOT a good purchase.
Might take a few months to find such a property, or even take some hand written letters to local owners you may find on the town assessors website (AKA do some homework). You also may have to compromise slightly on the quality/location versus your ideal "first home". But you can essentially pull off a rent free owner occupied property, and down the road it becomes a cash flowing rental property/asset.
"It won't get better, just different."
09-16-2019, 12:16 PM
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#54
- CulturalDecay
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- CulturalDecay
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Originally Posted By Witrebel⏩
Congrats, not a bad move at all.But who was 3 and 4 unit multi family properties....
If purchased properly, a 30 year mortgage backed multi family has a few profit centers:
1) The obvious monthly net income that you can skim off the top
2) The built in equity increase every month from your tenants paying your mortgage
3) The potential for appreciation increase
4) Future payments being paid back in FUTURE value of money, not present value, a nice safe haven from hyperinflation.
Yes, I am currently in escrow on a 3 unit. $20k down on a $490k property. PITI roughly $3000 and fair market rent around $4500 for all units. After a year of living on the property I can move out and rent it out fully.
Expecting severe short term depreciation when this market corrects, but long term it seems like a no brainer. Putting away 17% of gross monthly rent per month for Vacancy/Repairs/Capex, still leaves me a modest profit monthly to re-invest in the next property.
CLIFFS:
Single Family Residence are for *******s
Multi Family Master Race checking in
If purchased properly, a 30 year mortgage backed multi family has a few profit centers:
1) The obvious monthly net income that you can skim off the top
2) The built in equity increase every month from your tenants paying your mortgage
3) The potential for appreciation increase
4) Future payments being paid back in FUTURE value of money, not present value, a nice safe haven from hyperinflation.
Yes, I am currently in escrow on a 3 unit. $20k down on a $490k property. PITI roughly $3000 and fair market rent around $4500 for all units. After a year of living on the property I can move out and rent it out fully.
Expecting severe short term depreciation when this market corrects, but long term it seems like a no brainer. Putting away 17% of gross monthly rent per month for Vacancy/Repairs/Capex, still leaves me a modest profit monthly to re-invest in the next property.
CLIFFS:
Single Family Residence are for *******s
Multi Family Master Race checking in
However, if I were you I'd strongly consider going with Single-Family homes - going with Duplex's or Mutli's leave you open to more property management work, more wear & tear on the property as people will be coming / going more frequently, you have more appliances / bathrooms / kitchens to fix and remodel.
And bigger picture, Single Family units are appreciating faster, and will also not drop as much in a correction (but I don't think we are anywhere close to a RE correction, lending standards are still pretty tight, and people are paying their mortgages will real money earned from stable jobs - not a bubble.
Either route your choose - it's a million times better than renting lawl.
09-16-2019, 12:16 PM
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#55
- Kawhilights
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- Kawhilights
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Originally Posted By jackamo2887⏩
Homelessness is the goat. It increases test by 500%, but the true benefit is armchair CFO's on the misc won't judge you.I am so confused.
So is the best option just be homeless?
Renting is ****ing retarded, and apparently according to the misc so is owning a house.
So is the best option just be homeless?
Renting is ****ing retarded, and apparently according to the misc so is owning a house.
Lurking since '05 - the days of VS gorilla/cloud/goku threads
09-16-2019, 12:19 PM
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#56
- Jms89
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- Jms89
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LMAO u mad i bought my house at 24 and already have a verifiable 60k in equity. You do realize your landlord is taking all the expenses that a homeowner has, and marking them up, then charging them to you and profiting off of you.
How to buy a house properly:
-invest in a good neighborhood
-put down just enough to not pay pmi
-take out a 15 year fixed or pay a 30 year as a 15 year to avoid massive interest
-buy something newer or renovated if you aren't handy to avoid unexpected maintenance costs
How to buy a house properly:
-invest in a good neighborhood
-put down just enough to not pay pmi
-take out a 15 year fixed or pay a 30 year as a 15 year to avoid massive interest
-buy something newer or renovated if you aren't handy to avoid unexpected maintenance costs
This fool's running a Honda 2000
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09-16-2019, 12:26 PM
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#57
- Witrebel
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Originally Posted By CulturalDecay⏩
I look at it a little differently, but I am working to build a portfolio more than just have a place to live. For me, a single family represents a mortgage payment that can suddenly be 100% my responsibility if the unit goes vacant. Versus a 3 unit where I can basically pay the mortgage with a single unit being vacant, and have the mortgage covered 50% with 2 units vacant. Down the road I will probably start acquiring single families, but for now the math in my market doesn't really start to make sense until you hit 3 units. My first choice was a nice simple duplex, but in the northeast those properties are rarely self sufficient.Congrats, not a bad move at all.
However, if I were you I'd strongly consider going with Single-Family homes - going with Duplex's or Mutli's leave you open to more property management work, more wear & tear on the property as people will be coming / going more frequently, you have more appliances / bathrooms / kitchens to fix and remodel.
And bigger picture, Single Family units are appreciating faster, and will also not drop as much in a correction (but I don't think we are anywhere close to a RE correction, lending standards are still pretty tight, and people are paying their mortgages will real money earned from stable jobs - not a bubble.
Either route your choose - it's a million times better than renting lawl.
However, if I were you I'd strongly consider going with Single-Family homes - going with Duplex's or Mutli's leave you open to more property management work, more wear & tear on the property as people will be coming / going more frequently, you have more appliances / bathrooms / kitchens to fix and remodel.
And bigger picture, Single Family units are appreciating faster, and will also not drop as much in a correction (but I don't think we are anywhere close to a RE correction, lending standards are still pretty tight, and people are paying their mortgages will real money earned from stable jobs - not a bubble.
Either route your choose - it's a million times better than renting lawl.
Interesting that you think multi family will depreciate MORE than SF. The appreciation shows just the inverse. Multi family pricing is tightly tied to rental income, which historically is less volatile than housing prices. I.e. when prices plummet, rent stays relatively stable. Which leads me to believe that when/if things correct, my 3 unit will have a much more stable valuation than the surrounding single families.
Originally Posted By chino3⏩
This is pretty much one of the O.G. metrics of quickly evaluation rental properties. Some actually suggest only buying properties where gross monthly rent is 2% or greater, but those deals are RARE to find and generally only happen in terrible neighborhoods/war zone type areas. If you want nice property with good tenants its pretty hard to find a deal on the market that actually meets the 1% rule. In my case I am closer to 0.9%, but given the market and location I am okay with it.lol wtf did you find this "rule of thumb?" Maybe this works in some backwoods hillbilly town or sketch ass ghetto
We are all gunna make it
09-16-2019, 12:30 PM
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#58
- jiujitsubro
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- jiujitsubro
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My uncle bought a house in the 1970s at 100k.
It's worth 700k now. He bitches about taxes and insurance but at the end of the day its his secret loan stash.
A sloot I smashed. Her parents bought a house around 90k in a bad neighborhood. Businesses were built around it. It's now worth 1m-1.5m. She gets offers every day.
It's all about that lump sum and smart buying.
It's worth 700k now. He bitches about taxes and insurance but at the end of the day its his secret loan stash.
A sloot I smashed. Her parents bought a house around 90k in a bad neighborhood. Businesses were built around it. It's now worth 1m-1.5m. She gets offers every day.
It's all about that lump sum and smart buying.
"There are some who do not fear death for they are more afraid of really living."-Ancient proverb
Between the buried and me
09-16-2019, 12:34 PM
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#59
- ANumber1
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- ANumber1
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Originally Posted By jiujitsubro⏩
Yep. If you have a real possibility of buying into a gentrifying area, that's a potential win.A sloot I smashed. Her parents bought a house around 90k in a bad neighborhood. Businesses were built around it. It's now worth 1m-1.5m. She gets offers every day.
It's all about that lump sum and smart buying.
It's all about that lump sum and smart buying.
Nah, fukk that. I’m not doing that.
09-16-2019, 12:40 PM
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#60
c.o.p.e
enjoy the never ending rising rent costs due to inflation and city growth while i enjoy a 30 year fixed, and then i...own it. you'll never own anything
except depression and *******ry as you stay wagecucked for the rest of your life
enjoy the never ending rising rent costs due to inflation and city growth while i enjoy a 30 year fixed, and then i...own it. you'll never own anything
except depression and *******ry as you stay wagecucked for the rest of your life
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