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UTPhil2006

All Encompassing Mortgage and Real Estate Thread

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Yup. You might also search for a mortgage company that holds their loans rather than sell them. They can’t sell them if you don’t meet the computer program requirements set by Fannie Mae, etc. However if they hold them, they can do their own assessments.

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After 2 months on the market, we got the first submission for rental... 2 guys - coworkers - who want to rent our place with barely 2x net income vs rental price.  Thats a big stretch isnt it?

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6 hours ago, 52-80 said:

After 2 months on the market, we got the first submission for rental... 2 guys - coworkers - who want to rent our place with barely 2x net income vs rental price.  Thats a big stretch isnt it?

2 months and one submission sounds like your price might be a little high. 
 

Have they been at their jobs for a while?  If so, I’d consider them assuming everything checks out. 

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1 hour ago, UT_OB1 said:

2 months and one submission sounds like your price might be a little high. 
 

Have they been at their jobs for a while?  If so, I’d consider them assuming everything checks out. 

1 year and 4 years.  If they were a gay couple, atleast there might be some stability.  I worry 1 might move on and leave the other hanging.

Price is a tad high.  Our agent first thought so, and then he saw enough initial interest that he suggested to keep it that way. 

If I lower it, then it's another month of sitting around for a new tenant? 

 

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10 hours ago, 52-80 said:

After 2 months on the market, we got the first submission for rental... 2 guys - coworkers - who want to rent our place with barely 2x net income vs rental price.  Thats a big stretch isnt it?

50% is tough.  35-40% is probably the highest I would go.

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How are their other debts?   if they aren't carrying a load of other debt, OK.

If they have a big car payment, student loans, etc, then no way. 

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2 hours ago, 52-80 said:

1 year and 4 years.  If they were a gay couple, atleast there might be some stability.  I worry 1 might move on and leave the other hanging.

Price is a tad high.  Our agent first thought so, and then he saw enough initial interest that he suggested to keep it that way. 

If I lower it, then it's another month of sitting around for a new tenant? 

 

The GF knows a guy in NYC that has a 24 hour moving company catering to the gays.  They get in a spat at midnight, and one them says "it's over" and calls the movers.  Then, they call back in a day or two to have their stuff moved back.  He's got an old box truck, and a few puerto-rican guys on call.   He's making a fortune. 

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2 hours ago, Gil Bang said:

The GF knows a guy in NYC that has a 24 hour moving company catering to the gays.  They get in a spat at midnight, and one them says "it's over" and calls the movers.  Then, they call back in a day or two to have their stuff moved back.  He's got an old box truck, and a few puerto-rican guys on call.   He's making a fortune. 

Know your market and serve it. Fucking beautiful.

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6 hours ago, 52-80 said:

1 year and 4 years.  If they were a gay couple, atleast there might be some stability.  I worry 1 might move on and leave the other hanging.

Price is a tad high.  Our agent first thought so, and then he saw enough initial interest that he suggested to keep it that way. 

If I lower it, then it's another month of sitting around for a new tenant? 

 

Lowering it now and having it rented in a month is better than leaving it and not getting it rented.

Im with Gil. If they don’t have a car payment consuming half of their monthly income, don’t have 50k in CC debt, or some other huge loan, go for it unless you’re concerned they are the type to trash the place. If you are concerned about that, then you shouldn’t even be considering them. 
 

Even if they end up not being able to pay after a few months, make ready costs plus eviction costs probably won’t be much more expensive than the 2 months of rent you’ve already lost. 

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It seems magic, that our realtor does not proactively communicate with us much.  But when we ask him something, he comes back with good news.

 

Yesterday a man made an offer on the rental.  He lowered the price just a tad bit.  But his net income is 3x rental.  Very freshly divorced, but im guessing should be lower likelihood of stripper + cocaine party, than the 2 young colleagues.

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35 minutes ago, 52-80 said:

It seems magic, that our realtor does not proactively communicate with us much.  But when we ask him something, he comes back with good news.

 

Yesterday a man made an offer on the rental.  He lowered the price just a tad bit.  But his net income is 3x rental.  Very freshly divorced, but im guessing should be lower likelihood of stripper + cocaine party, than the 2 young colleagues.

Whens his housewarming?  Asking for a friend

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I bought my current house in 2013 at 4.5%. I've been thinking about getting a refi but I'm not sure if it's worth the hassle. I'd like to get my loan from my credit union (I have my car loans there and I like having all my shit together in the same place), their current rate for a 30 yr fixed is 3.75. I'm not sure I'd save enough per month to justify the closing costs. 

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6 hours ago, Sandman said:

I bought my current house in 2013 at 4.5%. I've been thinking about getting a refi but I'm not sure if it's worth the hassle. I'd like to get my loan from my credit union (I have my car loans there and I like having all my shit together in the same place), their current rate for a 30 yr fixed is 3.75. I'm not sure I'd save enough per month to justify the closing costs. 

what's the APR?   How long do you expect to stay in the home?

 

 

Meanwhile, i've seen something interesting recently.  "Appraisal waivers".   I've got a shitty little listing in the barrio, and the buyer got a waiver because he's putting more than 20% down.

 

 

Edited by Gil Bang

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6 hours ago, Dbeasy said:

0f883e3fc5c8e79b044328ca540ae875.jpg

Without seeing how the percentages in each age bucket has changed, not sure what to take away from that. For instance, has the percentage of 25 year olds buying houses stayed the same while 50 year olds are doing better financially than 50 year old 3 decades ago and buying more houses?  Or has the percent of 30 year olds that want to get locked in to a long term loan plummeted?  

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9 hours ago, HRSchenker said:

What's the median age of first time homebuyers?

Exactly.

I have no doubt that Millenials and younger are delaying home purchases, but that graph is essentially mirroring the countries demographics.

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17 hours ago, Gil Bang said:

what's the APR?   How long do you expect to stay in the home?

 

I don't know my APR off-hand and it's not on the mortgage website but after doing some calculations, I'd assume it's around 4.7%. I plan to stay here for good but of course, you never know. So let's pretend I'll never move. 

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On 12/5/2019 at 12:11 PM, Sandman said:

I bought my current house in 2013 at 4.5%. I've been thinking about getting a refi but I'm not sure if it's worth the hassle. I'd like to get my loan from my credit union (I have my car loans there and I like having all my shit together in the same place), their current rate for a 30 yr fixed is 3.75. I'm not sure I'd save enough per month to justify the closing costs. 

.75 is a pretty decent jump down, but like mentioned above it's a matter of how long you're staying in the home.  Also, theres also the option of buying points which again if you're staying in the home a while may be beneficial.  I can certainly run these scenarios for you if you want.  PM/email

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On 12/5/2019 at 1:01 PM, Dbeasy said:

0f883e3fc5c8e79b044328ca540ae875.jpg

 

On 12/6/2019 at 7:54 AM, Incredulity said:

Exactly.

I have no doubt that Millenials and younger are delaying home purchases, but that graph is essentially mirroring the countries demographics.

 

And delaying getting married, having kids, etc. Great for the rental market however! 

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We live on a corner lot in an HOA neighborhood but the land right next to us is owned by the HOA. We put in an offer to buy it and they accepted. They talked about us doing a consolidation land survey and it made me wonder, am I going to lose my homestead exemption? Or will I still get it for a "consolidated" property?

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I am in the process of a refinance and I locked in 3 1/8 on a 15 year fixed with no points.  Actually got a small rebate. 
 

Edited by JOSEYWALES66

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17 hours ago, JOSEYWALES66 said:

I am in the process of a refinance and I locked in 3 1/8 on a 15 year fixed with no points.  Actually got a small rebate. 
 

FHA?

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I’m a couple weeks late, but major +rep to Phil and Thad at Prodigy for working with me on a refinance that fit our situation. We waited and jumped at the opportune time and took our 4.375% down to 3.99% with virtually no costs and kicked in some cash to pay down the principal a little and further lower the monthly payment. A+ customer service with Mrs. Thad emailing from the beach and they sent the notary to my house at a convenient time. Would take their money again. 

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33 minutes ago, Murfdogg21 said:

I’m a couple weeks late, but major +rep to Phil and Thad at Prodigy for working with me on a refinance that fit our situation. We waited and jumped at the opportune time and took our 4.375% down to 3.99% with virtually no costs and kicked in some cash to pay down the principal a little and further lower the monthly payment. A+ customer service with Mrs. Thad emailing from the beach and they sent the notary to my house at a convenient time. Would take their money again. 

Thanks bud!  I need to do everyone's closing from the beach going forward

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Interesting look at what $1,500/mo in rent gets you in various parts of LA these days.  We continue to have people move here in droves, which I don't get.  The job market is really good, but when the cost of living causes gainfully employed people to live paycheck to paycheck, I question the sanity of it.  I haven't rented since just after the turn of the millennium, but my wife and I had a sweet 2 bd apt in a great part of Brentwood- older building, basic unit, but still nice- and paid I think about $1,200/mo.  Now $1,500 gets you a shitty studio at best it seems.

 https://la.curbed.com/2019/12/12/21013181/los-angeles-apartments-for-sale-hollywood

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Can you clarify?  The HOA is not doing the survey, so why are they wanting money?  How big is the lot?  Where are you located?

Edited by Catpfish

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2 hours ago, Catpfish said:

Can you clarify?  The HOA is not doing the survey, so why are they wanting money?  How big is the lot?  Where are you located?

I'm sending the check to the actual surveyor but they work for the HOA who owns the land. It's about 4800 square feet in Kaufman county

By the way this is just flat land. There's no structure of any kind on the land we're purchasing.

Edited by HRSchenker

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That seems awfully high for what amounts to a very small residential lot.  For comparison, that would run you between $450-500 in Travis county.  I would look into hiring your own surveyor and not using the HOA one.  Sounds like there might be something going on behind the scenes.  Typically, if you are paying, you get to choose who/what/where.

Is there any subdividing going on (doesn't sound like it if it is a legal lot)?  It could easily run that much if you are having to get the lot platted and approved by the county

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2 minutes ago, Catpfish said:

That seems awfully high for what amounts to a very small residential lot.  For comparison, that would run you between $450-500 in Travis county.  I would look into hiring your own surveyor and not using the HOA one.  Sounds like there might be something going on behind the scenes.  Typically, if you are paying, you get to choose who/what/where.

Is there any subdividing going on (doesn't sound like it if it is a legal lot)?  It could easily run that much if you are having to get the lot platted and approved by the county

Yeah your average survey should be around or below 500.

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12 minutes ago, Catpfish said:

That seems awfully high for what amounts to a very small residential lot.  For comparison, that would run you between $450-500 in Travis county.  I would look into hiring your own surveyor and not using the HOA one.  Sounds like there might be something going on behind the scenes.  Typically, if you are paying, you get to choose who/what/where.

Is there any subdividing going on (doesn't sound like it if it is a legal lot)?  It could easily run that much if you are having to get the lot platted and approved by the county

All we're wanting to do is purchase the land and combine it with the house as one rather than 2 different entities. What exactly do you think is going on behind the scenes?

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A price that high on a residential survey?  Sweetheart deal for the surveyor, kickback, etc.

Just make a quick phone call and see how much any other surveyor would charge.  Take that number to the HOA surveyor and ask them to explain the difference.  It might be justifiable, but it doesn't pass the smell test to me.

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As a frame of reference, I was involved in a deal that combined 4 parcels including two houses into a roughly 93 acre tract.  The survey included flood plain and crossing a creek.  The total on the survey was about $2600.

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4 minutes ago, Catpfish said:

A price that high on a residential survey?  Sweetheart deal for the surveyor, kickback, etc.

Just make a quick phone call and see how much any other surveyor would charge.  Take that number to the HOA surveyor and ask them to explain the difference.  It might be justifiable, but it doesn't pass the smell test to me.

Sounds good. Really appreciate the input!

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36 minutes ago, Catpfish said:

A price that high on a residential survey?  Sweetheart deal for the surveyor, kickback, etc.

Just make a quick phone call and see how much any other surveyor would charge.  Take that number to the HOA surveyor and ask them to explain the difference.  It might be justifiable, but it doesn't pass the smell test to me.

Lots of stories about HOA using a BiL for maintenance, construction, etc and paying prices that are way too high.  Always get 3 quotes if you're spending money.

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I am guessing that your HOA is wanting you to pay for an Amended Plat or re-subdivision, not just a survey.

The peoples republic of austin is charging almost $7000 for an amended plat.

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On 12/13/2019 at 9:15 AM, Sbbruin said:

Interesting look at what $1,500/mo in rent gets you in various parts of LA these days.  We continue to have people move here in droves, which I don't get.  The job market is really good, but when the cost of living causes gainfully employed people to live paycheck to paycheck, I question the sanity of it.  I haven't rented since just after the turn of the millennium, but my wife and I had a sweet 2 bd apt in a great part of Brentwood- older building, basic unit, but still nice- and paid I think about $1,200/mo.  Now $1,500 gets you a shitty studio at best it seems.

 https://la.curbed.com/2019/12/12/21013181/los-angeles-apartments-for-sale-hollywood

The 3rd one is The Dude’s place.

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On 12/18/2019 at 1:00 PM, Mappable said:

I am guessing that your HOA is wanting you to pay for an Amended Plat or re-subdivision, not just a survey.

The peoples republic of austin is charging almost $7000 for an amended plat.

This is the most likely discrepancy in price.  Survey vs. amended plat.

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Have we talked about owning your primary home and rentals in LLC's?

I'll turn our current primary to a rental next year and I'm at ~30% LTV and will be buying another primary.  I have an LLC already and my wife and I are 51/49 owners.

Given that the standard deduction is more difficult to surpass it seems it might be better to own these is in our LLC, pay rent and be able to write off all the insurance, taxes, maintenance, etc..

 

I have not talked to my CPA about this yet just thinking out loud right now and looking for feedback.  

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I put rentals into llc’s because people today will sue anyone for anything. It provides some level of protection.

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54 minutes ago, Dbeasy said:

I put rentals into llc’s because people today will sue anyone for anything. It provides some level of protection.

I’m not a lawyer so don’t take any of this seriously...

 

Everything I’ve read is that it is a waste of time and money to do an LLC unless you go set it up very particularly AND run your rental business very strictly. In other words don’t ever accidently use your personal CC to pay for an emergency plumber visit. Something about piercing the veil. And even if you do it all correctly, if your name can be found anywhere attached to your rental or the LLC, you’re still going to be sued. 

Edited by UT_OB1

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1 hour ago, T’Boo Ted Marshall said:

The liability portion isn’t really a concern. More of a tax benefit angle than anything.

What tax breaks do you think you’ll get putting it in an LLC that you won’t get leaving it in your name?  
 

Again, not a CPA, but your business expenses from your rental business can’t be used as itemized deductions to try get higher than the standard deduction. Your rental property will fall under passive income. If you’re not shaggy 1%, you’ll be able to get some tax benefit. If you are shaggy 1%, you should already know all this shit and be paying your $1000/h CPA instead of an message board poster currently covered in paint who is ready to burn down the house he’s trying to rehab to tell you that you can only deduct passive losses from other passive income. 
 

So if you’re not shaggy 1%, here is how it works.  You take all your expenses you mentioned (don’t forget depreciation, don’t include principle pay down) and subtract them from the rent you receive. If you’re negative, that is a Passive Active Loss (I think that’s the right term, again, not a cpa). If you make under 100k AGI, you can deduct up to 25k of the losses. For every 2 dollars over 100k AGI, the reduction is reduced by 1$, so at $150k you don’t get to deduct anything. 

Edited by UT_OB1

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