Home Owners Thread

[simmode1]

^^^ Speaking of 2 unit homes, who's in the income property game? I've gotten hooked on the hgtv Income Property show, so now the wife & I are considering a duplex for our first home, while we lease out the other unit. Thoughts? What have you guys experienced?

[nathanong87]

Originally Posted by Mr.Doback

If you don't have kids/major fiscal responsibilities, it isn't too hard to get approved for a loan that large. My buddy just bought a house for $450k and that is with a 65k/yr salary, no wife/kids and we are both 2 years out of school and make the same income.

really? cuz the numbers in my mind dont workout. Either ALL income in going to mortgage (even with a reasonably low rate) or as corbic said, he/she is going into debt. From a quick eval i cannot figure out the 450k house loan on a 65k/yr salary.

[Corbic]

Originally Posted by nathanong87

really? cuz the numbers in my mind dont workout. Either ALL income in going to mortgage (even with a reasonably low rate) or as corbic said, he/she is going into debt. From a quick eval i cannot figure out the 450k house loan on a 65k/yr salary.

Exactly.

450k at 4% for 30 years is $2,617 a month with a .5% PMI and 1.25% tax rate.

He still needs home owners insurance.

After taxes and typical 401k + HC deductions your friend is making at most $3,500 a month.

So....he has $900 a month to pay all of life's expensive. He'll be house poor for 30 years.

[Corbic]

Originally Posted by simmode1

^^^ Speaking of 2 unit homes, who's in the income property game? I've gotten hooked on the hgtv Income Property show, so now the wife & I are considering a duplex for our first home, while we lease out the other unit. Thoughts? What have you guys experienced?

Bwa ha ha ha....


*20 minutes layer*


....ha ha ha ha

So you want to rent and have your moronic tenants as neighbors?

HGTV is as real as Jersey Shore and Keeping up with Kim. My advice is find some local renters and ask them about how awesome it is.

It's serious work and you will deal with some serious losers.

[simmode1]

^^^ Exactly why I'm asking here. That show makes living in your income property seem too good to be true.

[ZenkiKid]

Originally Posted by exitspeed

Here's the thing. It costs you NOTHING to work with a realtor to help you find a house until you buy one. They are experts though (usually). Let them help you. They can answer questions They can give you advice. They can tell you about the process so you aren't counting on advice from a bunch of car guys.

1000000%. Realtors dont get paid by you, they get paid by the seller. Dont be afraid to seek a realtor because its free for us potential home buyers.

[Corbic]

Originally Posted by ZenkiKid

1000000%. Realtors dont get paid by you, they get paid by the seller. Dont be afraid to seek a realtor because its free for us potential home buyers.

To help you realtors will want you to sign a 6 month agreement.

Also, they are worse then use car salesman. They just want you to buy something fast so they get their 6% and move on.

[tricky_ab]

Seeing this thread at the top of the page reminded me... I totally forgot to post up a few shots of my current house.

[exitspeed]

^

Nice. Like the colors.

Originally Posted by Corbic

To help you realtors will want you to sign a 6 month agreement.

Also, they are worse then use car salesman. They just want you to buy something fast so they get their 6% and move on.

I speak from more experience than probably anyone regular poster on this forum. Not true or the realtors you've met suck/know. Most realtors won't REQUIRE you to sign a Buyers Agent agreement. If they ask and you aren't comfortable doing so you can tell them that and they should be fine with not having one if you are pre-approved and serious. And contract doesn't do jack shit other than guarantee that if you buy a house, you buy a house through them during that contract. People are fucking assholes sometimes. They will run an agent around showing them dozens of homes over weeks and weeks and months and then turn around and buy a house from some realtor they just met for whatever reason. Also, if you are in a contract with an agent and you decide you don't like them they will most likely let you out. It also still doesn't mean you have to pay them jack. Its just to protect them from getting burned by people not really looking or not really qualified. If you blame the Realtor for that you are probably the asshole. lol. Also, if you have a Realtor pressuring you to buy a house, find a new one. Finally, they can never MAKE you buy a house. Even if you have an offer on a house. I heard my wife say "You can't MAKE a buyer buy a house, but you can make a seller sell a house.".

So in closing, find a good agent that you like sign or don't sign a Buyers Agent and go out and buy a house through them.

Update on my house. Just a quick preview. The kitchen is close to being done but because of the change in temperature we won't be able to finish the sliding "barn" doors until spring. So I'll wait to post full pics.

The deer pillow is just for irony. We don't hunt and are't country ass people, but it fits in with WI. lol

[ZenkiKid]

me and the soon to be wife will begin our piggy bank for our downpayment next year. (Were looking at doing a 30 year FHA) and will seek pre approval in January just to see where we currently stand.

A friend of mine is now a realtor and she told us point blank that seeking pre approval wont hurt us since were still starting out in life. The pre-approval sum will only get higher overtime due to income increases and etc.

I was also told that if youre dead serious about buying a house that search engines like Zillow are completely useless except for window shopping. Apparently realtors have a more thorough and up to date search engine for properties that they themselves only have access to.

[exitspeed]

Originally Posted by ZenkiKid

me and the soon to be wife will begin our piggy bank for our downpayment next year. (Were looking at doing a 30 year FHA) and will seek pre approval in January just to see where we currently stand.

A friend of mine is now a realtor and she told us point blank that seeking pre approval wont hurt us since were still starting out in life. The pre-approval sum will only get higher overtime due to income increases and etc.

Definitely get pre-approved. You need to see what you can afford and what you'll get approved for (approx). There's no point in looking at houses until you know how much you can afford. Looking at a home $100k more than you will get approved for or vise versa is a waste of yours and the realtor's time.

[ZenkiKid]

Originally Posted by exitspeed

Definitely get pre-approved. You need to see what you can afford and what you'll get approved for (approx). There's no point in looking at houses until you know how much you can afford. Looking at a home $100k more than you will get approved for or vise versa is a waste of yours and the realtor's time.

Yeah I will in january after my final paycheck for the year comes through. At least ill have a clearer picture of what I made last year before I go in there and seek pre-approval.

[exitspeed]

Originally Posted by ZenkiKid

Yeah I will in january after my final paycheck for the year comes through. At least ill have a clearer picture of what I made last year before I go in there and seek pre-approval.

Yeah, you'll need all that for sure. Our loan was a PITA because I'm self employed but only technically had a year and a half of income on my own. If we would have waited until I had 2 years we could have gotten approved for a lot more but we were comfortable with what we were approved for.

[Corbic]

Originally Posted by exitspeed

Yeah, you'll need all that for sure. Our loan was a PITA because I'm self employed but only technically had a year and a half of income on my own. If we would have waited until I had 2 years we could have gotten approved for a lot more but we were comfortable with what we were approved for.

That's another thing, Just because your approved for an amount doesn't mean you should spend that much. They take into no consideration your life style or ability to save.

So "Pre-Approved" /= "can afford"

[exitspeed]

Originally Posted by Corbic

That's another thing, Just because your approved for an amount doesn't mean you should spend that much. They take into no consideration your life style or ability to save.

So "Pre-Approved" /= "can afford"

Correct. Don't over buy. That's why we just stuck with our initial approval.

[simmode1]

Yeah, Zillow & Trulia are jokes to real estate agents. 80% the time you look on there, the house has already been sold/off the market for months. Maybe even years. Agents use a far more up to date system.

My wife is a real estate agent & ohhh boy.... There is no shortage of ppl trying to waste her damn time. Not only do I recommend getting a preapproval, but I also encourage you to attend a first time home buyers workshop. This way you know what to expect from your agent & the current market.

[tricky_ab]

Originally Posted by exitspeed

^

Nice. Like the colors.

Thanks!

Originally Posted by Corbic

That's another thing, Just because your approved for an amount doesn't mean you should spend that much. They take into no consideration your life style or ability to save.

So "Pre-Approved" /= "can afford"

THIS! Seriously, when we were looking, we were pre approved for something like $150K more then what we ended up spending on a house.

They don't factor in real world costs, only repayment, taxes, and gas/hydro (well in my province anyways).

[gbaby2089]

Originally Posted by tricky_ab

Seeing this thread at the top of the page reminded me... I totally forgot to post up a few shots of my current house.

Looks excellent! I wouldn't change a thing (outside of replacing that England stuff with Spain stuff )

Originally Posted by exitspeed

The deer pillow is just for irony. We don't hunt and are't country ass people, but it fits in with WI. lol

I love WI, always will; but good gosh do I hate the country bumpkins in this state...or the city kids who think they're country bumpkins.

[exitspeed]

Originally Posted by gbaby2089

Looks excellent! I wouldn't change a thing (outside of replacing that England stuff with Spain stuff )



I love WI, always will; but good gosh do I hate the country bumpkins in this state...or the city kids who think they're country bumpkins.

Yeah half my friends and family are more rural folks and the other half are city folks. I like the variation in culture honestly.

[ZenkiKid]

Originally Posted by simmode1

My wife is a real estate agent & ohhh boy.... There is no shortage of ppl trying to waste her damn time. Not only do I recommend getting a preapproval, but I also encourage you to attend a first time home buyers workshop. This way you know what to expect from your agent & the current market.

I attended one of these..

Besides pre approval and recommending taking out an additional amount for home improvement, it was alot of shit I already knew and alot of smoke being blown up my ass.

[simmode1]

^^^ Well, good that you were more informed than the average buyer. But most are completely clueless how the process works or how little time you get to make a decisive choice.

[exitspeed]

How funny is it that I don't even come on Zilvia for car discussions any more but rather home discussions? lol Old Folks Crew.

[Corbic]

Originally Posted by exitspeed

How funny is it that I don't even come on Zilvia fr car discussions any more but rather home discussions? lol Old Folks Crew.

Ironically I'm the same.

[sw20>>s14]

Originally Posted by ZenkiKid

I was also told that if youre dead serious about buying a house that search engines like Zillow are completely useless except for window shopping. Apparently realtors have a more thorough and up to date search engine for properties that they themselves only have access to.

The MLS is any realtor's first stop from my understanding.

[exitspeed]

Correct. The MLS is what is used.

[tricky_ab]

While looking for our place, our realtor sent us listings that met our criteria daily. It saved us a bunch of time, and really helped us get the drop on others if we want to see a place.

Honestly, having a great realtor will make or break the process for you. If they don't make the process comfortable and seamless for you, then switch it up.

Originally Posted by exitspeed

How funny is it that I don't even come on Zilvia for car discussions any more but rather home discussions? lol Old Folks Crew.

HAHA Pretty much...

I actually look forward to this thread whenever I see it at the top of the page.

Originally Posted by gbaby2089

Looks excellent! I wouldn't change a thing (outside of replacing that England stuff with Spain stuff )

BOOOOOOOOOOOOOOOOOOOOOOOO!

Oh and thank you

[dbeiler]

Do people really take on 30 year mortgages? F that. Do the math on amount of interest you'll be paying for half your lifetime. Seems much smarter to buy a more affordable, subpar house on a 15 year mortgage. Eventually sell the house and use it for a down payment on the dream house. This means more of the monthly mortgage payment will be going towards the principal instead of disappearing as interest.

Guess 30 year mortgages are part of the American dream. Get something spectacular now..... spend the rest of your life paying for it...... trap yourselves into a crappy, hated job because now you NEED the money.

[JohnnyDrfiter22]

Or you could buy a house using a 30 yr mortgage, than after 4-5yrs of paying switch to a 15yr fixed loan. BAM

Originally Posted by dbeiler

Do people really take on 30 year mortgages? F that. Do the math on amount of interest you'll be paying for half your lifetime. Seems much smarter to buy a more affordable, subpar house on a 15 year mortgage. Eventually sell the house and use it for a down payment on the dream house. This means more of the monthly mortgage payment will be going towards the principal instead of disappearing as interest.

Guess 30 year mortgages are part of the American dream. Get something spectacular now..... spend the rest of your life paying for it...... trap yourselves into a crappy, hated job because now you NEED the money.

[Corbic]

Originally Posted by JohnnyDrfiter22

Or you could buy a house using a 30 yr mortgage, than after 4-5yrs of paying switch to a 15yr fixed loan. BAM

So 20 year mortgage? Or 5 years renting then 15 years paying off?

That 4-5 years is likely barely enough to pay the interest. Then you have to refinance and pay all those bank fees all over again.

[CrimsonRockett]

Originally Posted by dbeiler

Do people really take on 30 year mortgages? F that. Do the math on amount of interest you'll be paying for half your lifetime. Seems much smarter to buy a more affordable, subpar house on a 15 year mortgage. Eventually sell the house and use it for a down payment on the dream house. This means more of the monthly mortgage payment will be going towards the principal instead of disappearing as interest.

Guess 30 year mortgages are part of the American dream. Get something spectacular now..... spend the rest of your life paying for it...... trap yourselves into a crappy, hated job because now you NEED the money.

It's easier said than done.

It has more to do with the cost of houses out here in CA. People want more, but want that low payment. The only way you get to the low payment is by extending the term. I cringe at the thought of a 40 year mortgage.

Being in the car business, I see it happen all day long. People financing cars for 6-7 years now because they want a certain payment.

We personally went with a 30 year mortgage, but to have that cushion. Thanks to our extremely low payment, we've made a ton of principal only payments, we were able to fully remodel comfortably, and put more money toward savings. If we stay on track, we'll have this house paid off by 2023. This is by no means limiting ourselves to an extreme.

The nice part is, the going rate for a rental of our size and condition is actually double what our monthly payment is. We have approximately $220k in equity at the moment. Our plan is to save up enough money for another down payment and get ourselves that second house in a more favorable location. With a baby on the way, schools are top on my list.

My one suggestion to people looking to start off in real estate, never bite off more than you can chew. I worked with enough people over the years to have learned to be prepared for the unexpected. Just because a bank approved you for a large loan doesn't mean you should go for it. Always have that worst case scenario in mind. What will you do if you lose your job, injure yourself and can't work, etc.

Then, there are those who take out a second mortgage for personal or investment purposes. If done right, it can definitely put you in a better position financially, but I've met too many people who have lost it all. I'd rather wait another year or two of saving up before I borrow from my own house.