All Forum Posts by: Eric P.

Anyone know if 80/10/10 piggyback mortgages are doable for rental property?  I'll likely already have an 80/10/10 this year for my primary residence.  Its not easy coming up with a Down payment for your primary place in NJ and have enough in the bank for emergencies and trying to come up with another down payment.  

What about corporate housing short term

I'm all for saving money for passive income and building a better life for one's self.  But at the same time I'd like to enjoy some of my money now as well, not always looking toward tomorrow.  Now if the bank approved me for $600k I'm not going to run out and look for a $599k home, but I'm not going to run out looking for a $200k home either.  Every dollar you make, above what you need, is what you make of it.  Would I like to be making $25,000 a month passive income?  OF COURSE!.. but I bet I'd be just as happy if not more so, if I had $15,000 a month passive income and actually enjoyed some of my money throughout my life instead of always putting it toward making more of it.  

I totally agree with this but in NJ $300k to $400k is the standard starting price for a nice 3+ bedroom home in a safe area.  Like I said we've been comfortable with $2,400 but according to "Home affordability calculator" we could handle a home over $550k which is just insane to us.  The only debts we currently have are $400 worth of cars with 2% interest and $29K in student loans with 5.9% interest.  I've been investing in the stockmarket for years, I'm 30 now and would like to have 5-10 rental properties by 40, this should allow that.  

I know these towns well, I grew up in one (high taxes) and the other town is right next to it.  I'd of course double check on these things, but just according to Zillow showing all tax data it looks right.  Even if this was all hypothetical wouldn't the higher priced home be better.  

My wife and I are mainly looking at 2 towns for our first primary home purchase.  We're used to renting in North Jersey at $2,400 a month comfortably so that's our budget.   In town #1 we could buy a house for $300k but taxes are about $10k.. in town #2 we could buy a house for $400k and taxes are about $5k.   We much prefer the house in town #2.  The monthly budget comes in about the same around $2,400 for either home.  

I'm always reading about "home affordability" and the $400k number scares me a little (gross about $155k w/ very low debt), but if the $400k place and the $300k place are costing me the same each month, wouldn't I be better off purchasing the $400k place as more money would actually be going into equity?  I just want to make sure I'm not overlooking something stupid.

Oh I completely agree.  Its a nice large home so guests would have plenty of room in the main house.  And using it as an inlaw suite for the parents is probably a good 15 years away.  So I'm just looking for ideas on the short term if we were to go this route.  exchange student actually sounds like a really good idea.  

Also the more I think about it I'd really only be comfortable renting to like a little old woman or something as its attached to the house and you don't want a crazy loud tenant or anything.  So maybe one of the other ideas would be best?  This is far from a set in stone deal, just trying to get educated.

My wife and I are finally ready for a first home purchase.  One home we saw is 4,000sq/ft beautiful Victorian style on a few acres with a 900sq/ft in-law suit with all new appliances, hardwood and private entrance.  A similar apartment in this area would rent for about $1,100

So I'm wondering if this can be rented out?  I'm pretty sure in NJ there are laws against renting an in-law suite.  Could this be made into a duplex, maybe rent as a hair studio or something, lease it out for storage, get a "roommate", turn it into a home office for tax deduction, or just rent it to a friend or family member for a cash deal?

We could afford the home without renting, just wouldn't want to waste the space.

I also worked since 14, but I moved out on my own pretty early, wish I stayed at home and banked more money.  Add on a wedding and some debt pay down the last 2 years its amazing I even have that much in the bank.  Sometimes it feels like I'll never get ahead, but thats why we're getting into this realestate biz right?  I've got ton of information off this site already, I think you'll find all the answers you need.  

I know a guy that bought a place for about $200k right after college.  He got two roommates and hasn't had to pay a dime in living expenses as a result.  They just keep paying down his mortgage, now if it wasn't for all his trips to Vegas He'd prob have a ton of $.  I think your first step is to see what you qualify for, I think with $25k to put down at 21 years old you might surprise yourself.  Maybe you can get a dump in a nice area you can rehab while you live there and turn a bigger profit once you decide to move out.