Los Angeles, CA · Member since 2016 · 4 posts · 0 votes
Hello,
Brand new to the forum...what a great resource!
I'm from southern CA and just got transferred to Houston, TX. I don't want to sell our primary residence; we would like to keep it as a rental and buy a home in TX to use as our new primary residence.
We bought for $410K (it should appraise for $500K) and owe $250K so we have some equity and very good credit.
We're looking to spend about $250K on the new home and have $25K cash.
Here is what I'm thinking:
Take out a HELOC to come up with the other $25K for the 20% down payment and take out a conventional loan to finance the rest. Is this feasible?
We're going to be hiring a management company to handle our rental property in CA.
Am I missing anything in your opinion?
Thank you in advance for all of your help!
Temple, TX · Member since 2016 · 43 posts · 11 votes
10y
I was in a similar situation and the job transfer allowed my lender to consider it a work-related move. The loan requirements subsequently went down to 5%. If you'd like to put 20% down regardless, I'm not going to discourage you. If you need a lender recommendation, please PM me. I have an excellent lender that I'm happy to refer.
Houston, TX · Member since 2015 · 512 posts · 338 votes
10y
We sold a nice SFH property recently to a buyer with 10% down and went through very quickly. With interest rates where they are I would take advantage of that if you're comfortable you have a long term job that is not subject to market fluctuations (e.g. deep water drilling or onshore fracking).
My only other question is this: are you sq ft rent rates / investment in California significantly higher than Houston that would prevent you from selling the CA property? I buy properties about an hour outside of town and flip them, rent them, owner finance them at rates that I consider extremely attractive. I would never invest in California just because I don't understand the ridiculous valuations. Same for Florida. Not to say people won't make money there it's comparable to gambling IMHO unless your horizon is 20+ years.