All Forum Posts by: Saman Jafari

While I am searching to find a city/zip code where I can buy a property within 200k range I noticed that as I choose B or above areas the cash flow reduces to almost zero and if I go to class C areas I can get good money but need to handle bad tenants and possibly all the cash flow may go to fix as they don’t care about the property. What do you do? I’m a newbie looking for an out of state rental property but concerned about bad tenants.

@Darius Ogloza Thanks for your response Darius. Because of a visa issue I had to stop the search, but I am starting it again now since all is resolved. I am in dilemma that I am trying to decide, would like to know how you think in this situation. So, one option is I look for a property in Bay Area with 5% down payment, or look for a rental property out of state, and try to increase them in quantity over time to get some cash flows. My concern is if I get something in Bay Area I already get close to around 30% with the front-end DTI, and don't know whether I can get approved for a rental property after a year for example.

Hi all, I’m in a dilemma with 2 choices:

Either get a conventional loan w/ 5% down payment and get a residential place or buy a cheaper rental property in another state that flows more cash. 
even though the former choice would have a higher ROI, my question is whether I can get the 2nd mortgage approved to go for the 2nd choice after bought the residential home while front-end dti would already be at around 30% with having the first purchase. Do you think I can apply for the second mortgage after 6month/1year?

Thanks Dan for your quick response. I am not looking for a property in the Sf though in the surroundings such as Sunnyvale, Santa Clara, San Jose, and Campbell. I am planning to get a property and don’t have a plan to rent the rooms as long as I live in there. However, I do the calculation when I move out in a year or two so it does not impose too much monthly debt on me. For example I am seeing condo with about 850k price while the rent would at most 3000 that results in about $1900 negative cash flow. I am a bit confused whether it is even possible to find something better in a reasonable neighborhood where I can live too!

I am a first time home buyer with pre-approved 5% down payment, and I am looking for a property in the SF bay area to live in and potentially rent in a couple of years. However, the dilemma that I face each time is when I run the numbers, there is between $1600 and $1900 difference between the mortgage+HOA and expected rent, before tax right off though. Thus, it has made me hopeless in finding a property with even $1000 negative balance. It somehow makes sense since I am borrowing 95% of the value from a bank. So, I am having a hard time to decide whether I should move on with this much of difference for the first deal as I search in hot areas such as Sunnyvale and Santa Clara, Campbell as I wanna live in these areas? I really need an honest response to tell me if I should wait longer to find something about 500,$600 cheaper per month or it is not a realistic goal ..

For my loan, I received a lender credit for about $4000 and they say this amount will be divided between 50 something month to be paid by me. I am not sure what this is and whether this is something I need to pay?

I am about to place an offer for a condominium however it has 24 months HOA rent restriction. Even though I plan to live in the house, this is a bit concerning as I might have to move out of state by end of the year and will need to rent this out. I am trying to make my mind up and see what is the probability I can't rent this out before 24 hours.

@Daniel Haberkost thanks for your reply. it makes so much sense. I have got to a point that I feel I should start it. I have applied for pre-approval and start working with David Green's team to look for a property in the SF Bay area. However, since you mentioned cash-out refinance, even though I got my pre-approval from Wells Fargo, but when I asked my underwriter about cash-out refinance, she said this option is not available with Wells Fargo. I am wondering is it something I need to take into account now for choosing the lender before closing a deal? or it is something that I need to research at the time when I want to refinance regardless from which lender I have the mortgage?

I've got a pre-approval from WF with 2.786% APR and 2.625% interest rate (with 760+ credit score). However, I was trying to compare this with other lenders' loans, but I am not sure if I need to compare the APRs or interest rates? I think it makes more sense to compare APRs since it gives a more realistic monthly payment amount.

In addition, what other details I need to consider or ask my underwriter to provide me with, just to ensure that they are not filtering out the parts that they don't want me to know.

It would be great to hear from others who have applied for a loan around this time to compare the numbers. 

@Amit Saini @Sandeep S. I am thinking to get an investment property in Hayward too. I was just wondering if you have any recommendations on how I can find the deals? do you work with an agent that you can introduce to me?  The reason I am asking is I am a full-time worker and it seems very hard to catch up with being the first visitors to the properties who come to the market.