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Message
re: Borrowing for Second Home/Vacation Property Downpayment?
Posted on 8/22/22 at 2:57 pm to GEAUXT
Posted on 8/22/22 at 2:57 pm to GEAUXT
quote:
Apparently what you're trying to avoid in this thread is a reality check.
And people wonder why real estate bubbles happen...
I clearly stated in OP I would be in buying mode after the bubble pops, and that I had zero intention of buying anything in today's bubble.
You are only reading what you want to read, then cherry picking single sentences out of context to try and belittle me.
Why?
1
Posted on 8/22/22 at 3:18 pm to deeprig9
Something else I just ran into, perusing condo listings, I see "no conventional financing" at the very end of the description. What's that all about? "Non warrantable condotel" it says.
This post was edited on 8/22/22 at 3:20 pm
Posted on 8/22/22 at 3:22 pm to deeprig9
I'm looking at buying a condo on the beach as well. (maybe in like 2-3 years) I have the 100k in easily accessible investment accounts, but I am curious how well they ACTUALLY cash flow.
I know my moms place it basically just pays the note with the insanely expensive HOA fees now, but hers is not on the gulf in a high rise. I'd love to know what income they are generating at one of the Phoenix's in Orange Beach and just how much of the note it covers.
I know my moms place it basically just pays the note with the insanely expensive HOA fees now, but hers is not on the gulf in a high rise. I'd love to know what income they are generating at one of the Phoenix's in Orange Beach and just how much of the note it covers.
Posted on 8/22/22 at 3:51 pm to Triple Bogey
Can I hit you up for like $30-40 grand? I'm good for it...
Posted on 8/22/22 at 4:22 pm to GEAUXT
quote:
How is your plan going to work out if the economy really crashes and no one is around to rent your WAY over leveraged property?
Do you think there is a lack of renters?
Who cares what the market does. As long as the payment is fine and you like the home it doesnt matter
Put the 10% down and get a nice payment so you can enjoy a beach condo
Posted on 8/22/22 at 4:22 pm to deeprig9
quote:
I'm good for it...
it doesn’t sound like it kidding of course
This post was edited on 8/22/22 at 4:24 pm
Posted on 8/22/22 at 4:45 pm to deeprig9
I'm in a similar situation.
Looking at beach front and river front properties.
I'm still in research mode.
But I'm basically leaning a few directions.
1) buy something smaller than my retirement plan to still lock in land appreciation. Flip to a 3 bedroom later when I actually retire.
2) just invest in the market and make the jump when my primary is paid off (about 10 years). We just started helping my oldest for college and I will have 3 more following suit. Cash flow is more of an issue now than it has been the past 17 years.
3) I do have about $250k to put down (so my situation is different from yours). And it appears that the condo may be best from a property manager perspective. Although I'm still researching properties on rivers in N GA, TN, and NC.
Looking at beach front and river front properties.
I'm still in research mode.
But I'm basically leaning a few directions.
1) buy something smaller than my retirement plan to still lock in land appreciation. Flip to a 3 bedroom later when I actually retire.
2) just invest in the market and make the jump when my primary is paid off (about 10 years). We just started helping my oldest for college and I will have 3 more following suit. Cash flow is more of an issue now than it has been the past 17 years.
3) I do have about $250k to put down (so my situation is different from yours). And it appears that the condo may be best from a property manager perspective. Although I'm still researching properties on rivers in N GA, TN, and NC.
Posted on 8/22/22 at 5:00 pm to meansonny
Yes, and part of my budget takes into account I still have to afford the boat slip, the boat, the fuel, and the golf cart. If I didn't give a shite about boating and fishing, my budget would probably be double for the property itself.
Posted on 8/22/22 at 6:55 pm to deeprig9
Non warrantable means it doesn’t qualify for Fannie or Freddie financing because there are more investment units in the building than true owner occupied units. You’d have to go the commercial financing route which I would strongly suggest anyway.
Posted on 8/22/22 at 8:16 pm to deeprig9
Looks like you’ll be writing a book on how to go broke 101
Posted on 8/22/22 at 8:31 pm to Fox McCloud
Pretty sure we all got trolled with his last post as the punchline. Got me for sure.
with his last post as the punchline. Got me for sure. Posted on 8/22/22 at 8:37 pm to Nephropidae
Maybe lol, there’s absolutely idiots outside there in abundance who over leverage themselves on fancy toys and shite they can’t afford.
Posted on 8/22/22 at 9:57 pm to Fox McCloud
I think deeprigs point is that a lot of people leverage the stock market (finance cars when not needed, finance houses when not needed, etc..). Why pay debt off early if opportunity is seen elsewhere.
It isn't an uncommon theme on the MT.
He is just looking to do so in a 2nd home that is in a resort area.
It isn't an uncommon theme on the MT.
He is just looking to do so in a 2nd home that is in a resort area.
Posted on 8/22/22 at 10:07 pm to deeprig9
Find a distressed property that needs rehab and priced to sell. It might be good to get on a wholesaler's list. Then find a hard money lender that will loan up to 75% of the After Repair Value (ARV). After the property is rehabbed, refi to a conventional loan up to 80% of ARV/appraisal.
I am doing this for a rental property. If I were buying it with 20% down and then doing repairs, I'd be out of pocket 80k. Even with the double loan closing costs, I'm going to be out of pocket around 45k and gain 21k in equity.
I am doing this for a rental property. If I were buying it with 20% down and then doing repairs, I'd be out of pocket 80k. Even with the double loan closing costs, I'm going to be out of pocket around 45k and gain 21k in equity.
Posted on 8/23/22 at 1:52 pm to Fox McCloud
quote:
Maybe lol, there’s absolutely idiots outside there in abundance who over leverage themselves on fancy toys and shite they can’t afford.
I'm just doing the Dave Ramsey thing. "Live like no one else, so that you can live like no one else".
Paid off cars and no boat (just two jonboats), no hunting lease, no hunt camp or SxS, Carry no CC debt. Bunch of nice things we "could" afford but don't. The only splurge is private school. Bought a house 50% less than what we could "afford". Saving saving saving. All to be in a position later to splurge and have nice things.
Maybe I'm too early to be looking at all this stuff for a second/investment property, but I want to be ready when the time is right. I want to have it all figured out ahead of time when the market corrects, so I can strike while the iron is hot.
I appreciate the numerous helpful posts in this thread, and I bet lots of other lurkers appreciate the info too.
Posted on 8/23/22 at 2:02 pm to deeprig9
quote:
I want to have it all figured out ahead of time
Of course the old saying “man makes plans and God smiles” comes to mind. But I totally agree with you that it’s best to run scenarios through your mind and do some risk/reward planning ahead of time. People who are compulsive or spur of the moment on big decisions are usually the ones who get their behinds lit on fire.
Posted on 8/23/22 at 2:04 pm to deeprig9
quote:
Bought a house 50% less than what we could "afford". Saving saving saving.
Only have 30k available in cash.
Posted on 8/23/22 at 2:25 pm to thegreatboudini
quote:
Only have 30k available in cash.
401k's, 529 plan, IRA's, HSA, a random I-bond.... If we stopped contributing to those things, I could get up to $100k cash pretty quickly.
Posted on 8/23/22 at 3:13 pm to deeprig9
quote:
I'm just doing the Dave Ramsey thing. "Live like no one else, so that you can live like no one else".
Remind me which baby step it is that suggests advancing cash on credit cards to buy a second home.
Posted on 8/23/22 at 4:19 pm to FinleyStreet
quote:
Remind me which baby step it is that suggests advancing cash on credit cards to buy a second home.
You're better than this. By the way, Flexdawg's real name is Cody if that helps you finally find his arse pics on reddit.
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