Buying a second home in the current market
I have been living in my current home since 2021, I have thought about potentially buying a second home and rent out my current one where I am living, what's sort of stopping me is the fact that interest rates are really high and there has been a lot of layoffs in my industry, is anyone else in a similar situation as me?
Quote from @Erik Lopez:
I have been living in my current home since 2021, I have thought about potentially buying a second home and rent out my current one where I am living, what's sort of stopping me is the fact that interest rates are really high and there has been a lot of layoffs in my industry, is anyone else in a similar situation as me?
Better to buy while you still have a W2 if you think you have a chance of getting laid off. Buying a 2-4 unit owner occupant for 3-5% down is a great investment. You can go FHA, VA, Home Possible, Portfolio loans from some banks offer 5% down no PMI.
Use the market uncertainty to your negotiating efforts.
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Real Estate Agent Ohio (#2020001277)
- 614-363-2787
- https://marc.reafcorealestate.com/
- [email protected]
Buy a place if the numbers work. If you can buy a place where all of the expenses are covered by the tenants (or if that works for your current home), then go ahead. Even if the market goes down a bit, you are in it for the long term (ie not flipping) and simply don't sell when the market is down.
Quote from @Marc Rice:
Quote from @Erik Lopez:
I have been living in my current home since 2021, I have thought about potentially buying a second home and rent out my current one where I am living, what's sort of stopping me is the fact that interest rates are really high and there has been a lot of layoffs in my industry, is anyone else in a similar situation as me?
Better to buy while you still have a W2 if you think you have a chance of getting laid off. Buying a 2-4 unit owner occupant for 3-5% down is a great investment. You can go FHA, VA, Home Possible, Portfolio loans from some banks offer 5% down no PMI.
Use the market uncertainty to your negotiating efforts.
Unfortunately 2-4 units tend to sell very fast in my area, so a single family home is the next best thing for me
Quote from @Theresa Harris:
Buy a place if the numbers work. If you can buy a place where all of the expenses are covered by the tenants (or if that works for your current home), then go ahead. Even if the market goes down a bit, you are in it for the long term (ie not flipping) and simply don't sell when the market is down.
I think if I were to put my current home for rent let’s call this home 1, that there’s a good chance that the rent would cover the mortgage payment, if I were to move to a 2nd home, any rent money left from house 1 would be going to the mortgage of house 2.
the ideal scenario for me would be to have some money left after making the payments for the 2 mortgages, but let’s say that if potential tenants cover basically the mortgage for house 1 and then some for house 2 , would you say that this scenario is good even if I am not positively cash flowing? I would still need to put some of my own towards house 2
The high interests are making it hard to come across a home where the numbers work that’s a good distance from my work.
Quote from @Erik Lopez:
Quote from @Theresa Harris:
Buy a place if the numbers work. If you can buy a place where all of the expenses are covered by the tenants (or if that works for your current home), then go ahead. Even if the market goes down a bit, you are in it for the long term (ie not flipping) and simply don't sell when the market is down.
I think if I were to put my current home for rent let’s call this home 1, that there’s a good chance that the rent would cover the mortgage payment, if I were to move to a 2nd home, any rent money left from house 1 would be going to the mortgage of house 2.
the ideal scenario for me would be to have some money left after making the payments for the 2 mortgages, but let’s say that if potential tenants cover basically the mortgage for house 1 and then some for house 2 , would you say that this scenario is good even if I am not positively cash flowing? I would still need to put some of my own towards house 2
The high interests are making it hard to come across a home where the numbers work that’s a good distance from my work.
If you could rent out house 1 and buy house 2 and have the rent from house 1 cover both set of expenses, that would be amazing. Most of the time you are only going to find a place where the rent from house 1 covers all of the expenses for house 1 with a bit left over after budgeting for repairs and maintenance.
Quote from @Erik Lopez:
Quote from @Marc Rice:
Quote from @Erik Lopez:
I have been living in my current home since 2021, I have thought about potentially buying a second home and rent out my current one where I am living, what's sort of stopping me is the fact that interest rates are really high and there has been a lot of layoffs in my industry, is anyone else in a similar situation as me?
Better to buy while you still have a W2 if you think you have a chance of getting laid off. Buying a 2-4 unit owner occupant for 3-5% down is a great investment. You can go FHA, VA, Home Possible, Portfolio loans from some banks offer 5% down no PMI.
Use the market uncertainty to your negotiating efforts.Unfortunately 2-4 units tend to sell very fast in my area, so a single family home is the next best thing for me
If you try hard enough you can find one - you should be networking with brokers/agents, wholesalers, and checking FB marketplace in your local area daily to find one. Go on Fiverr and pull a skip traced list of all 2-4 units in the zip codes you want and cold call them.
There's always a way!
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Real Estate Agent Ohio (#2020001277)
- 614-363-2787
- https://marc.reafcorealestate.com/
- [email protected]
Hey @Erik Lopez,
Because of interest rates skyrocketing, I have been immersing myself in creative financing, so maybe you could get your second property "subject to" or "owner financing" with a very low-interest rate.
Good luck!