great video you broke it down ... i always tell people buying a home with low interest rate is for suckers .they say i am stupid .. you explained it perfect ..... new sub
How do you start investing in rental properties when you already have a mortgage? I see you have rental properties and your own residential home. How do lenders keep giving loans to someone with many mortgages. Is a rental property treated differently when it comes to DTI? Maybe you can make a video on steps for owining rental property? Cool topic! Thanks!
Sure, I'll add it to my list. But essentially, a 2nd home is much harder to buy than the 1st. you need a lot of reserves (cash or assets) to cover/satisfy the lender. They asked me for 6 months of reserves to cover BOTH mortgages and they allowed me to use cash/401k/retirement accounts so it's important to have that. If you want to straight buy an investment, be prepared to have 20%-25% percent down and a lot of reserves and potentially experience. The reserves amount can be less if you have real estate experience (usually at least 1 year). We didn't have any (even though my wife works for a property management company managing apartments). For us, what I did was buy a "rental" property to live in first (e.g. cheap starter home that could be rented later) then converted it to a rental (still paying primary home rates) then moved out after 5 years into my current home. Since I made mistakes and was still in an FHA, i had to refinance out of it into an investment conventional loan. If i were to buy another rental today, I'd need 20-25% down and I already have the experience required so my reserves will most likely be low since I have over 5 years of rental income/history/experience.
Are you going to sell now considering the inflated value and equity gains today? Running the same possibility on my own home. Sufferance is it’s my primary and I would likely then buy in the same market. Thoughts please.
@@MillennialFinance101 that makes sense, I see positive cash flow as a rental also BUT over $100k in equity today is probably worth more than $300-$400 month over the next 20yrs. My eyes are starting to cross 😫
Lol that equity may always be there. We don’t know how much it will drop in correction. If you got a better place for it, then maybe it might be a good idea. Or do a 1031 exchange. If you sell, you may be paying alot of taxes that take away from that 100k equity. Once you factor that in and real estate fees, it might not even be worth it
Great video! Was having a hard time deciding if I should sell my house for a bigger house. Just going to refinance keep some cash and wait. Thanks for the great video bro!
Only took cash to pay off every credit card with high interest rate now I'm debt free. Like you say on your other video it will be taxed right off on the mortgage new loan for consolidating all the debt
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
What are your thoughts on buying a new house from a builder company? They are a little higher than resale homes 🏡, and you saved the extra costs of having to pay for maintenance, repairs, etc, at least for the first 2 years, and a with a 10 year warranty on the foundation. (This is the info taken from the current builder I am considering) I am asking because I know how A/C maintenance, foundation repair, or some other repairs that need to be done on a resale home can add up and be quite expensive. For example, fence replacement can be US$ 5,000 or A/C repair can go up to US$ 10,000. Thanks for your info!
You would basically be upside down when you move in. Just like a new car. The only way you won’t be is if home prices values have gone up by the time they are finished. If it’s a really nice neighborhood, that could drive values up also. So if that’s the case, I wouldn’t mind the hit. Also consider schools and future development that may drive up the price! Some of the older homes will have problems but an inspection can help save you money on that in negotiating home price.
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
The market was competitive before the virus but now were seeing it pick back up to the same competitive market but for a different reason. Great explanation!
@@MillennialFinance101 Well I'd love to help him anyway I can! If he has questions or lender recommendation I'm here. What particular city did he move to?
We shall see in a year or two when government rent and mortgage protections are over with. I'd rather buy a home at a cheaper price with higher interest rates, than an expensive house with low interest rates. You can always refinance in the future to get a better rate, but you can't get rid of the price of your home.
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
Selling and buying isn’t too bad since it’s kind of a wash but I forgot to mention in my video that the property taxes are worse when values are high also!
@@lillysmalls51 This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
Sometime buying a HOME you can't just consider the money side. The lower price tag of a house might not as nice and pretty as the higher price tag house. Or it might not be at a nice area. Buying a house is so much more complicated and really can't just only consider the price and interest rate.
Great info, I agree that interest is variable, you can always refinance later on. We live in San Diego and prices are way above the 2006 prices. We are going to sell to take the gains, rent for a year until market cools down, then buy more houses. Hopefully 10% correction is accurate, then we’ll be ahead. Otherwise, we lose. Goodluck. Let me know if you guys end up selling or keeping the house. I would love to see the comparison.
Yea, the same is true for cars too! But The RE market will take a bit longer than a year to correct. I suspect at least 1.5-2 years for things to settle down and people start to forget about the virus. Good luck!
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
I imagine there will be at least a 10% correction coming in RE regardless of a crash or not. Wait until the interest rates go up and you will see this :).
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
I forgot to mention that low interest/higher priced homes also means higher property taxes!!
great video you broke it down ... i always tell people buying a home with low interest rate is for suckers .they say i am stupid .. you explained it perfect ..... new sub
need to make another video about that also
Great video!!!
Thanks!
I'm refinancing my house just now. My payment is going to drop 1k.
Dam 1k that us going to help.
Check out my refinance videos but it might scare you if you’re already in progress. $1k is significant!!!
How do you start investing in rental properties when you already have a mortgage? I see you have rental properties and your own residential home. How do lenders keep giving loans to someone with many mortgages. Is a rental property treated differently when it comes to DTI? Maybe you can make a video on steps for owining rental property? Cool topic! Thanks!
Sure, I'll add it to my list. But essentially, a 2nd home is much harder to buy than the 1st. you need a lot of reserves (cash or assets) to cover/satisfy the lender. They asked me for 6 months of reserves to cover BOTH mortgages and they allowed me to use cash/401k/retirement accounts so it's important to have that. If you want to straight buy an investment, be prepared to have 20%-25% percent down and a lot of reserves and potentially experience. The reserves amount can be less if you have real estate experience (usually at least 1 year). We didn't have any (even though my wife works for a property management company managing apartments).
For us, what I did was buy a "rental" property to live in first (e.g. cheap starter home that could be rented later) then converted it to a rental (still paying primary home rates) then moved out after 5 years into my current home. Since I made mistakes and was still in an FHA, i had to refinance out of it into an investment conventional loan. If i were to buy another rental today, I'd need 20-25% down and I already have the experience required so my reserves will most likely be low since I have over 5 years of rental income/history/experience.
Are you going to sell now considering the inflated value and equity gains today? Running the same possibility on my own home. Sufferance is it’s my primary and I would likely then buy in the same market. Thoughts please.
I am not selling. I just thought there’s no way I’ll ever find another investment or rental that cheap so I’m holding
@@MillennialFinance101 that makes sense, I see positive cash flow as a rental also BUT over $100k in equity today is probably worth more than $300-$400 month over the next 20yrs. My eyes are starting to cross 😫
Lol that equity may always be there. We don’t know how much it will drop in correction. If you got a better place for it, then maybe it might be a good idea. Or do a 1031 exchange. If you sell, you may be paying alot of taxes that take away from that 100k equity. Once you factor that in and real estate fees, it might not even be worth it
Great video! Was having a hard time deciding if I should sell my house for a bigger house. Just going to refinance keep some cash and wait.
Thanks for the great video bro!
Refinance but don’t pull cash out
Only took cash to pay off every credit card with high interest rate now I'm debt free. Like you say on your other video it will be taxed right off on the mortgage new loan for consolidating all the debt
Very nice man!
Very helpful video🙌
thanks for watching.
Great informative video bro
Thanks
I am looking for a home now because I am hoping to find a house I can afford. In my area the prices are average so no inflation here.
That’s good! The rates are low so snag them while it’s low! Lock it in and never worry about refinancing again.
Thank you very much 🙏🏻
You are very welcome
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
Soooo much to think about! LOL. I’m definitely not ready to buy a home, so much responsibility when it comes to repairs and maintenance!
Yup!!! That can definitely break the bank if not prepared! Get an inspection for sure to avoid some of that
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
What are your thoughts on buying a new house from a builder company? They are a little higher than resale homes 🏡, and you saved the extra costs of having to pay for maintenance, repairs, etc, at least for the first 2 years, and a with a 10 year warranty on the foundation. (This is the info taken from the current builder I am considering) I am asking because I know how A/C maintenance, foundation repair, or some other repairs that need to be done on a resale home can add up and be quite expensive. For example, fence replacement can be US$ 5,000 or A/C repair can go up to US$ 10,000. Thanks for your info!
You would basically be upside down when you move in. Just like a new car. The only way you won’t be is if home prices values have gone up by the time they are finished. If it’s a really nice neighborhood, that could drive values up also. So if that’s the case, I wouldn’t mind the hit. Also consider schools and future development that may drive up the price!
Some of the older homes will have problems but an inspection can help save you money on that in negotiating home price.
Millennial Finance 101 Awesome! Thanks for the advice!
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
The market was competitive before the virus but now were seeing it pick back up to the same competitive market but for a different reason. Great explanation!
The markets are insane right now in central california. Homes are selling for TOP dollar and selling within 1-3 days of listing.
@@MillennialFinance101 yes I'm in Seattle area and we are experiencing the same occurrence. It's an incredible time to sell because inventory is low.
My brother might need a real estate agent ;) he just moved there
@@MillennialFinance101 Well I'd love to help him anyway I can! If he has questions or lender recommendation I'm here. What particular city did he move to?
I’ll ask and let him know about you!
We shall see in a year or two when government rent and mortgage protections are over with. I'd rather buy a home at a cheaper price with higher interest rates, than an expensive house with low interest rates. You can always refinance in the future to get a better rate, but you can't get rid of the price of your home.
Agreed!! Lower property tax too!
Yes you can underwater mortgage
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
I just subscribed to your channel.... Very good information. I’m a seller and buyer, it’s definitely a headache! I needed to hear this.. 👍🏼
Selling and buying isn’t too bad since it’s kind of a wash but I forgot to mention in my video that the property taxes are worse when values are high also!
Millennial Finance 101 Definitely agree and I have seen this many times.. Thanks again 👍🏼
@@lillysmalls51 This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
Great suggestions
Thanks nurse!!
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
Sometime buying a HOME you can't just consider the money side. The lower price tag of a house might not as nice and pretty as the higher price tag house. Or it might not be at a nice area. Buying a house is so much more complicated and really can't just only consider the price and interest rate.
I can appreciate that.
Great info, I agree that interest is variable, you can always refinance later on. We live in San Diego and prices are way above the 2006 prices. We are going to sell to take the gains, rent for a year until market cools down, then buy more houses. Hopefully 10% correction is accurate, then we’ll be ahead. Otherwise, we lose. Goodluck. Let me know if you guys end up selling or keeping the house. I would love to see the comparison.
Yea, the same is true for cars too! But The RE market will take a bit longer than a year to correct. I suspect at least 1.5-2 years for things to settle down and people start to forget about the virus. Good luck!
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
I don't have enough money for a car or a house.:'(
One day when you save enough you will :)
Wait until the housing market crashes. The FED will lower rates even more. Then buy.
A less expensive house at a lower interest rate. Win-win.
I’ll be ready!!
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
Will there be a housing market crash in southern California and by how much?
I imagine there will be at least a 10% correction coming in RE regardless of a crash or not. Wait until the interest rates go up and you will see this :).
This great guy is the man of the moment. I keep seeing everyone commenting about his good work when i have some negatives items on my report that keep putting me backward. I decided to go on faith to use him. I get to him finally, Although he always take his time to read and understand my emails. He helped me get everything done and increased my credit score to 801 excellent and my life is better. HE's the best jon@creditpatchup.com
I agree about the price being the only non-variable. What kind of homeowner goes for 30-Year fixed and doesn't pay it off early?
sadly, many. So many americans live month to month.
Makes a lot of sense!
Interest rates gonna stay low at least till 2023. Feds announced it
Maybe!
Link? To this please
Cool