All Forum Posts by: Sam Stabler

Does anyone have an idea what mortgage rates are for an owner occupied Duplex? Most multifamily are invedtmen, but this would be an owner occupied property. Just wondering how close the rate would be when compared to a conventional Single Family owner occupied?

Thanks

So I'm caught in a bad spot..

After 2 years of owning our 2 bedroom, 1 bath SFR home, I finally decided to refinance so I can greatly reduce my rate. Previously, my rate was 4.375% and new lender is offering 2.875%. Im at the final stages of the loan approval with signing due sometime late next week. However, during the past year, me and my wife have been searching for a new home since we need an extra bedroom with new baby. We found a home we absolutely fell in love with which is much larger but I wanted to know if I do end up purchasing the new house, would it be possible to get qualified for a loan on the new purchase??? I keep reading that you have to wait a few months after u refinance in order to purchase a new home and I'm

This should NOT be mutually exclusive. It should NOT be X>Y or Y>X. It comes down to each person's respective preference. You'll obviously get a lot more people favoring RE because your in a RE forum, but both are great.

Me, personally, i do both. I believe in both. And I invest in both. I love RE because it provides me a fixed income. I don't have to worry about how good or bad the market it on a given day, month, year, (assuming of course there is no vacancy or catastrophic event), I'm generally going to collect a passive income of $xxx,000/month. In addition to, I'm also going to get a leveraged asset which is going to appreciate over time while at the same time have my tenants pay down my mortgage, which will allow me to cash-out and utilize that equity for an additional investment. Most of all, unlike stocks/etfs/mutual funds/, i get a more favorable return because taxes favor RE. You can write-off a large part of your gains with depreciation, interest, property taxes, capex, fees etc, and reduce your tax liability. You CANNOT do that with stocks. If you sell a stock for a short-term gain playing the market, your taxed at a marginal rate of 22-24% + state income taxes, where places like CA is another 10% or so. So yes, it really eats up on your net returns.

That being said, I still invest in stocks. I have a portfolio where I strictly play for short term gains on my taxable brokerage account in trying to quick returns, and i have a separate portfolio where I mostly invest in ETFs (QQQ, VOOG, etc) and some of stocks for the long term with my 401k/IRA etc. I don't completely discount stocks because you can very easily get a 20%+ return in a short amount of time, whether its playing into earnings or purchasing high growth companies. The only problem is stocks are NOT leveraged so you'll have to utilize a sizable portfolio of at least $50K to see good results. Your just NOT going to get 20% returns in a span of a week/month in real estate. But, of course, the catch is your NEVER guaranteed those returns because they can turn into a loss.

Bottom line - Invest in both. 
 

@Erickson Sainval Thank you.... I will wait to see what they say and if they continue to say the same thing, I'll provide them my ADU COO permit along with a letter. Hoping it goes ok.

I live in a SFR property which we recently finished construction and received the Certificate of Occupancy for an ADU. The ADU was constructed since we needed an additional bedroom for our baby. I applied for a HELOC but now received a message saying their 3RD Party Appraisal Vendor could not do a drive-by appraisal because the property is considered a multi-unit which has caused an issue on my application.

Anyone care to give me any advice? My house is still considered a SFR. I don't believe the ADU effects the classification of a SFR.

Anyone else who had experience dealing with getting a HELOC from PenFed on a Primary Residence?

My application is nearly 1 month in and thus far I still haven't even been assigned a Loan Processor with no documents being requested from them. I understand it takes time, but this is looking like it's going to take a longer time than if I were to have refinanced my 1ST Deed of Trust which is utterly ridiculous! 

I keep calling them and all I hear back is they are really backed up. 

@Sam Stabler Sorry about my typo. Meant Fannie and Freddie.

News is coming out that Fannke and Fredie will now charge a 0.5% fee to the loan amount on all new refinances.

What are your thoughts on this? Any odds that the lenders will eat up the costs or is this ultimately going to be passed onto the consumer/homeowner?

Link below:

http://www.mortgagenewsdaily.com/consumer_rates/951943.aspx

@Armando Neri

Why do this when Fed Fund Rate is at 0% and not heading up anytime soon, thereby lowering the cost of adjustable rate financing for the foreseeable future on other adjustable rates such as Helocs? Id rather use that financial instrument than take a chance on 0% financing off a credit card for 12 months, only to see it balloon up to 30% on the 13 month if you decide to carry the balance should things not go exactly as planned.

@Jay Hinrichs This is why you can never truly evaluate COC returns when others post their numbers. Its all so subjective and relative to that individual's calculations. Where one person may adjust 40% in operating expenses another will adjust 23%, so you get COC returns all over the place, even in the same geographic area of a subject property.