All Forum Posts by: Meghanath Reddy

Hello BP, I’m buying 750k house in Lynnwood, Seattle and I am looking to put 10% down. So applying for 675000 as the loan amount.

My realtor is going to give me 2% which is 15k as rebate. The builder is going to give me $15000 toward closing costs If I choose their lender.

My initial loan details: 675k loan, 3.25% interest. PITI: 3796 including PMI of 128.

Lender came back suggesting buying down PMI and interest rate with discount points and offered an improved loan after buying out PMI and 1.25 discount points: Used 15k builder credit + 8500 of agent rebate. Still 6500 left over.

New loan details: 675k loan, 2.85% interest. PITI: 3531. PMI bought out completely. Looks like I'll still be leaving money on the table still.

1. What can the buyers agent rebate be used for?

2. Can I not get it as just cash, if so are they any tax expenses for agent and me?

3. If I buy points, is there a limit as to how many points I can buy down?

4. Please advise if any other negotiating points I could use or talk about with my lender?

I’m worried that I’ll not be able to make proper use of the $30000 since I may not be able to utilize it all for closing. Any help/advice would be greatly appreciated. Any advice what to do?

Hello BP, I’m buying 750k house in Lynnwood, Seattle and I am looking to put 10% down. So applying for 675000 as the loan amount.

My realtor is going to give me 2% which is 15k as rebate. The builder is going to give me $15000 toward closing costs If I choose their lender.

My initial loan details: 675k loan, 3.25% interest. PITI: 3796 including PMI of 128.

Lender came back suggesting buying down PMI and interest rate with discount points and offered an improved loan after buying out PMI and 1.25 discount points: Used 15k builder credit + 8500 of agent rebate. Still 6500 left over.

New loan details: 675k loan, 2.85% interest. PITI: 3531. PMI bought out completely. Looks like I'll still be leaving money on the table still.

1. What can the buyers agent rebate be used for?

2. Can I not get it as just cash, if so are they any tax expenses for agent and me?

3. If I buy points, is there a limit as to how many points I can buy down?

4. Please advise if any other negotiating points I could use or talk about with my lender?

I’m worried that I’ll not be able to make proper use of the $30000 since I may not be able to utilize it all for closing. Any help/advice would be greatly appreciated. Any advice what to do?

Hello BP, I’m buying 750k house in Lynnwood, Seattle and I am looking to put 10% down. So applying for 675000 as the loan amount. 

My realtor is going to give me 2% which is 15k as rebate. The builder is going to give me $15000 toward closing costs If I choose their lender. 

My initial loan details: 675k loan, 3.25% interest. PITI: 3796 including PMI of 128. 

Lender came back suggesting buying down PMI and interest rate with discount points and offered an improved loan after buying out PMI and 1.25 discount points: Used 15k builder credit + 8500 of agent rebate. Still 6500 left over.

New loan details: 675k loan, 2.85% interest. PITI: 3531. PMI bought out completely.  Looks like I'll still be leaving money on the table still. 

1. What can the buyers agent rebate be used for? 

2. Can I not get it as just cash, if so are they any tax expenses for agent and me? 

3. If I buy points, is there a limit as to how many points I can buy down? 

4. Please advise if any other negotiating points I could use or talk about with my lender? 

I’m worried that I’ll not be able to make proper use of the $30000 since I may not be able to utilize it all for closing. Any help/advice would be greatly appreciated. Any advice what to do? 

Hello BP,

Context: I and a couple of friends are trying to invest in a rental property in Austin. I was wondering what's the best way to hold the title and own this rental property? From my research, tenants in common and LLC seems to be the two common strategies to do this. We are all on H1B status in the US and will be applying for mortgage as well. We will be hiring a property management firm for an LLC and working for it as we aren't allowed on the work status. One of us is from Seattle and 2 others are from Austin.

1. What are some obvious flags to consider apart? From your experience, have you done this before or had friends do this that faced difficulties or experience we can benefit from? 

2. Are there any other factors or strategies to consider apart from these in a partnership? 

3. Would there be any specific issues on financing w.r.t to TIC vs LLC for folks on H1B?

Thanks

Hello experts,

I and a couple are looking to invest in a rental property in Austin.

As we are first time investors, I was hoping if the community would help and advise us with the questions below:

1. Is this the right time to invest in any rental investment in the US? We believe time in the market > timing the market, hence would like to go ahead and chose Austin due to a number of reasons from property appreciation, city growth, remote work force push from companies e.t.c.

2. We are targeting a single family home for now? Is that the right investment vs a condo or a multi family home? We'd like to get some positive cash flow also getting good appreciation on the investment in the next 5-10 years.

3. Are there any good resources for co-buying or agents in Austin you'd refer for the same?

4. Which areas would you suggest in Austin providing a good cash flow and growth over the next years? We heard a new Apple campus being built and there might be a Tesla regional head quarters in Austin as well(speculative for now).

5. Any further suggestions to keep on mind for co-buying or rental property investments with partners from your experience?

Really appreciate your time reading and answering this post.

Hello experts, 

I and a couple are looking to invest in a rental property in Austin. 

As we are first time investors, I was hoping if the community would help and advise us with the questions below: 

1. Is this the right time to invest in any rental investment in the US? We believe time in the market > timing the market, hence would like to go ahead and chose Austin due to a number of reasons from property appreciation, city growth, remote work force push from companies e.t.c. 

2. We are targeting a single family home for now? Is that the right investment vs a condo or a multi family home? We'd like to get some positive cash flow also getting good appreciation on the investment in the next 5-10 years. 

3. Are there any good resources for co-buying or agents in Austin you'd refer for the same? 

4. Which areas would you suggest in Austin providing a good cash flow and growth over the next years? We heard a new Apple campus being built and there might be a Tesla regional head quarters in Austin as well(speculative for now).   

5. Any further suggestions to keep on mind for co-buying or rental property investments with partners from your experience? 

Really appreciate your time reading and answering this post.