All Forum Posts by: John Smith

edits above

I plan on buying a new primary residence , around 600k, does it make sense to put 20% down to prevent PMI? Or would you rather put 10% to get more cash for other investments?

20% down = 120k. 10% down = 60k

20% down , 3% APR, Monthly Mortgage with intest/tax = $2,582

10% down, 3% APR, Monthly Mortgage with intest/tax = $3,060. after 60 months of PMI, new monthly is $2,835

thoughts? 

I want to buy another Primary resident this year in 2020.  Which Scenario would you pick if you had ~125k Cash? Potentially I would live in the primary resident for at least 3-5 years. 

A)  Buy $500k house, 15% down payment $75,000, PMI for 37 months $177/month

Mortgage with taxes and insurance: $2,600/Month

Potential Rent in the Area: $2,600/Month

Use the $50,000 remaining to down payment on another investment property ($250k) ~Nov 2020 

B) Buy $500k house, 20% down payment ($100,000) 

Mortgage with taxes and insurance: $2,300/Month

Potential Rent in the Area: $2,600/Month

Save $25k this year and $25k next year, down payment on another Investment Property (250k) ~Nov 2021

C) ? 

I purchased an investment property in October 2019, got tenant in for November 2019. ~$1800/month. 

I can report a loss ~($3500) or more on my 2019 taxes due to deductions/interest/depreciation, etc.  Will this hurt my Debt to income Ratio and lower my chances of getting another investment mortgage in 2020? Will the Underwriter disqualify the income from my investment property and say I can't use the rental income to help my DIT Ratio? 

Current:

Monthly Income: $6,600

Debt: Primary House Mortgage/ins/taxes: $1400

Debt: 1st Investment Property Mortgage/ins/taxes: $1400    

DTI: 42%