Been considering buying a home. First-time buyer, no down sort of deal. However, excellent credit and solid employment. Apparently, I can get up to $200,000, which is starter home range here.
I've learned to love paying the $650 I pay a month for my side of the duplex. If I were to buy, I'd end up paying $1200 a month. I just can't see it . . .
*sigh*
Posted by imogen (Member # 5485) on :
We pay $1200 a month on our home - and I am so glad we bought.
Mind you, we were paying about the same in rent for an (admittedly nicer, newer and much more well-situated) apartment.
But I love the fact that as house prices increase, our investment grows. And that 6 months on and $5000 paid, we have equity in return for that money. About the equivalent of a brick's worth - but still. Posted by Noemon (Member # 1115) on :
Shan, ever consider buying a duplex or triplex? The rent you'd collect would likely pay for the bulk of your mortgage.
Posted by Shan (Member # 4550) on :
Now there's a good thought, Noemon - thanks!
Posted by Noemon (Member # 1115) on :
Posted by Kwea (Member # 2199) on :
Shan, I sell mortgages as a part time job around here...email me if you have any questions or want to know if you are getting a good deal.
It is possible to buy up to a 3 family house and still get a homebuyers rate rather than a business rate, as long as it will be you primary residence for at least two years.
With no money down, for the most part you will be paying a higher rate, but they can still be reasonable at this point. After 12 payments, providing the payments and you overall general credit stay good, you can refinance to a regular FHA loan for a fixed 30 mortgage; it would be the best 2G you ever spent, getting into that type of rate program, let me tell you.
If you want to know more about it, let me know.
Kwea
Posted by Shan (Member # 4550) on :
thanks, Kwea - I'll zap off a question or two -
Posted by Noemon (Member # 1115) on :
Kwea, when I was in the market a year ago, my mortgage person was able to get me a homebuyer's rate on 4 unit buildings. Is that something that varies by the state?
And Shan, if you have any questions about landlording, there are a couple of us here with some experience at it. Me, Zan, KarlEd I believe, and...hm. I know there are a few others.
Posted by Shan (Member # 4550) on :
Here's one - how much time does it take to "landlord." (If I judged by my current landlord, I'd say "none" - but that's not how I'd want to do things.)
I already work FT plus and have a busy 11 year old - is it a significant time investment? What are the tricks?
Posted by Bokonon (Member # 480) on :
It's easier if you live in the same building...
Generally, if you go the multi-family route, be wary of places that don't have split utilities. Shared utilities is a pain to right into a lease, and if your tenant runs a small web site from their bedroom, or likes AC year-round, it can cause serious problems.
-Bok
Posted by Noemon (Member # 1115) on :
Yeah, that's very true. I live in one of my units, so I'm pretty much always onsite. It's nice being able to respond to things right away. One thing you want to watch out for is being too available. You want to provide good, timely service to your tenants, but at the same time you don't want to be at the tenant's absolute beck and call. Some tenants (and I get this only from reading and talking to other landlords--I'm still on my first pair of tenants, and both of them are really great) can attempt to take over your life, calling you multiple times a day for really trivial things.
Posted by Noemon (Member # 1115) on :
You'll want to arrange with the utility companies so that when the utilities go out of your tenants' names they automatically switch over into your name rather than being shut off.
Posted by Kwea (Member # 2199) on :
Noe, it depends more on the lender than anything else. 4 is more than most lenders are willing to do, although it is allowed by law.
It depends on who you are going through,and who is the Underwriter of the mortgage plan they using, although there are guidlines they all have to follow.
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