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Lol holy poo poo at any of that ever happening on my street. We are far too preoccupied with folks stealing our packages and mail to bitch at each other about trash cans.
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Jun 2, 2018 03:35
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Motronic posted:I just put in an offer on a house. Waived inspection! In fact, I’ve never even walked through it. (Because the value is almost entirely in the land).
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Jun 2, 2018 14:56
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Here's hoping it's not full of asbestos-coated rats that sustain themselves by eating lead paint.
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Jun 2, 2018 16:40
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Hello everyone. My wife and I are debating our situation. I have read the first few pages and suggested links. Background Age: 30 Veteran: Yes, will be using the VA Home Loan Income: 65,000 Savings: 10,000 Money Down: Zero. VA Home Loan Debts: Zero Location: Columbus, OH Current Living Situation: Wife's family house, paying $350 a month. This will go up to about $750 if we decide to stay. -So I landed my first job in corporate America. Salary is 65k. My wife and I are debating about buying a house. Given the markets here in Columbus, OH, we set our max budget around 150K. I've been working with a loan officer, and real estate agent. -Based on my monthly take home, factoring in mortgage, and all expenses (utilities, living, food), we will have roughly $1,000 a month to save/spend as we wish. If we decide to stay at my wife's family house, we will have around $2500+ a month to save/spend. -However, I hate my job, and will not be working there longer than two years. In two years, I will be pursuing my career in: military, government, or law (law school). We will be moving in two years. My wife's big argument to buying a home is: -Building equity -Columbus, OH market has been heating up -Should have no problem renting, or selling once I am ready to leave -Could be a rental property we own for the rest of time My counter arguments: -Cash is king. We'll have much more cash on hand to save, and invest if we don't buy a home. -If I am fired, or my government applications comes through, we can just up and leave no problem. -I see my time in my current job as limited. I hate my job, and do not want to work there longer than two years. -Cash strapped. If we buy a house around $160K, we will be much more cash strapped. I don't like having only $900 a month to save/invest with. Between me and my wife, I am the only one with income. Personally, I would rather be able to save $2500+ from my monthly pay check with zero debt obligations, compared to saving $900 a month with a 30 year mortgage. With owning a home, there will be unexpected expenses popping up. I don't want to live pay check to check, cash strapped. Not to mention my wife will want to do some improvements on any property we buy... What is everyone's thoughts? Is my line of thinking rational and the best decision? Obviously the situation is different depending on the final price of the house, but $150K is entry price for a decent, move in ready house. TL:DR -Buy house? Yes or no -With house, $900 left from paycheck -Without house, $2500+ left from paycheck -Hate job and area. Will leave in two or less years. mad_Thick fucked around with this message at 18:14 on Jun 2, 2018 |
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Jun 2, 2018 18:02
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Don't buy. Your reasons are good hers are bad
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Jun 2, 2018 18:16
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gvibes posted:I’m under contract on a second/vacation home. ... I have some bad news about Leilani estates.
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Jun 2, 2018 18:25
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Yeah your wife's reasons aren't good reasons. "Building equity" - If you mean, "increasing your net worth" there are a million other ways to do this that are more liquid. Building equity should never be an argument for the value of buying a home. "Columbus, OH housing market heating up" - Maybe it is. Maybe it isn't. It all relates back to bullet point 1: there are other ways to increase your net worth that leave you with more choices. "Should have no problem renting, or selling once I am ready to leave" - except if the market tanks, then you'll have a really hard time selling and renting will not be any easier. "Could be a rental property we own for the rest of time" - Read bullet point 1 again. You guys are still establishing yourselves. That means the thing you care most about is flexibility and options. A house is the opposite of flexibility and options. Don't do it. 2 years isn't even that long of a time. If you're buying a house you want to be staying there for 5 years minimum.
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Jun 2, 2018 18:42
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If you’re only in the area for two years there is really no reason to buy other than quality of life reasons (like if you have a dog that needs a big yard or something).
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Jun 2, 2018 18:52
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Thanks for the replies gang. I needed to make sure why reasoning was sound. Cheers!
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Jun 2, 2018 19:02
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I would err towards the housing market in the entire US being near the top rather than "heating up", but I don't know anything about your local market. The fact that you're only going to be there two years is the most obvious "don't buy" you could ever imagine. Still, this is your wife. I wouldn't tell her you consulted a bunch of goons and they said no. I would start by using a mortgage amortization sheet to show her how much equity you would have after the 2nd year or the 5th year. Estimate a modest 5% appreciation per year on the home and subtract from that the 7% transaction costs and show her how much cash you could pull out - it's going to be almost nothing. Also, if you have any plans to buy a house wherever you end up in 2 years that $10k is going to be way more useful to put towards that. It's going to take you a while to save up a reasonable down payment, you can't just go spending your cash when you've got house buying plans.
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Jun 2, 2018 19:20
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Jose Valasquez posted:Don't buy. Your reasons are good hers are bad This is very correct but showing her this thread won't help and you're going to end up buying.
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Jun 2, 2018 19:25
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The only option is 
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Jun 2, 2018 19:32
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Andy Dufresne posted:I would err towards the housing market in the entire US being near the top rather than "heating up", but I don't know anything about your local market. The fact that you're only going to be there two years is the most obvious "don't buy" you could ever imagine. Oh I agree. By "heating up", I really should have said overpriced. It is still a sellers market after all. Yes, my wife and I just had an argument with her stating, "How are you going to take the advice of strangers over me." I'll go through a mortgage amortization sheet, and show her the numbers. Her continued argument is, "We're never going to own property other wise", and "We can always rent it once we decide to move on." She has a bunch of issues related to her own experiences in real estate and investing, yada yada yada. She also says if we find the right place with an extra room, we can rent it... Yeah, right...We'll see how long that lasts.
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Jun 2, 2018 22:10
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Dude I don't mean to be a dick or go all E/N on you but you need some marriage counseling stat, unless you want to skip right to a lawyer. There are two things I have seen, over and over and over in my life, couples who deep deep down inside know their relationship is doomed do before they finally divorce/break up: buy a house together, and have kids. I won't get into the having kids part but the buying a house part almost invariably turns out to be a catastrophic mistake. (protip, don't mention this particular post in your ongoing argument with her)
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Jun 2, 2018 22:14
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 Yeah couples counseling and perhaps a compromise of renting for a year to make sure this shiny new job sticks. Look at it as saving a down payment.
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Jun 2, 2018 22:22
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mad_Thick posted:Yes, my wife and I just had an argument with her stating, "How are you going to take the advice of strangers over me." This is such a ridiculous statement it doesn't even make sense to me. Is your wife some kind of all knowing deity of all human knowledge or something? Does it work the opposite way where SHE has to listen to YOU and no one else about everything? So if you both try to use your god like powers of knowing all things at the same time at eachother do you have to fight to the death to see which one of your perfect opinions is the one true answer? In general I'm as big a fan of home ownership as anyone on these forums and I think a lot of the renting is better crowd don't really understand how to analyze the long term rent vs buy numbers, but there is no way I would buy a house if I was planning to leave the region in the next two years.
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Jun 2, 2018 22:23
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Motronic posted:I just put in an offer on a house. "Here's our counter offer ($5k off asking) also we would need to close august 1st and rent back for 30 days." Why the gently caress did you list your house if you are ready to GTFO? I countered back and told them if they can't close and be OUT by Aug 1 they can piss off.
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Jun 2, 2018 23:59
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60 days is more than reasonable. I personally would have countered with $10,000 a month rent. (Assuming that is unreasonable).
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Jun 3, 2018 00:15
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Motronic posted:"Here's our counter offer ($5k off asking) also we would need to close august 1st and rent back for 30 days." Seriously. Anything worth buying in this area is sold in a week or less. Why would you list it that early?
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Jun 3, 2018 00:20
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Elephanthead posted:60 days is more than reasonable. I personally would have countered with $10,000 a month rent. (Assuming that is unreasonable). That is about 3x what Zillow thinks rent should be. But the real issue here is that I don't want to be an "accidental landlord". Think about what rent back means: if they damage anything I have to deal with it as a landlord out of their deposit. If they simply refuse to leave I have to legally evict them. gently caress. That. poo poo. I'm trying to make this an easy move....I'm not even selling my current house until....well, until I drat well feel like it. I've refied it and the payments are hilariously low and I'd like to do some work to it before I list. Dealing with pain in the rear end sellers who are being really picky about what "appliances" come with the house isn't part of my plan. I'm getting things in the counter like "we're keeping the commercial ice maker and THE POT RACK but we'll leave the kegerator, washer, dryer and fridge" I don't give a gently caress about any of those things - all I do give a gently caress about is that they take the loving pool table that is in the middle of the living room with them. (yes, this place is set up as a party house right now - there are two bars because walking upstairs to freshen up your drink is too hard)
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Jun 3, 2018 00:26
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mad_Thick posted:Oh I agree. By "heating up", I really should have said overpriced. It is still a sellers market after all. In 2 years at 0% down you're going to have maybe $6000 in equity. If you sell it for the same price just the real estate agent fees are going to put you ~$3000 in the hole, even being incredibly optimistic and saying you buy at $160k and sell at $180k (this won't happen) you'd only come out with ~$13k after closing costs, maybe less. Even if you decide to rent it out you'll have no liquid money on hand for a downpayment and the terms for a second mortgage probably aren't going to be as generous as the first assuming you can even get approved for a second mortgage. On the other hand if you save the extra $1600 towards a downpayment you'll have $38,400 to put down in two years when you move, you could afford around a $200,000 home with 20% down and be in a much better spot financially.
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Jun 3, 2018 00:47
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Don't buy. Also don't go to law school, visit here for more info: https://forums.somethingawful.com/showthread.php?threadid=3301274&userid=0&perpage=40&pagenumber=1497 I'm getting that same $900 mortgage but we are leaving $1300 in separate apartments behind. Giving up a $350 a month house is insane. What part of town is it in? Harold Fjord fucked around with this message at 06:38 on Jun 3, 2018 |
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Jun 3, 2018 06:35
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"You're taking the advice of strangers on the internet over me?" is literally such a bonfire of a red flag that I wonder how it is you came to be married to this person in the first place.
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Jun 3, 2018 14:50
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wife dumb, so what
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Jun 3, 2018 15:11
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This is not E/N so I'm limiting myself to just observing, on topic for this thread and forum, that buying a house would be a very very bad idea under the enumerated circumstances.
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Jun 3, 2018 15:17
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Like so many things I read in BFC, it makes me immeasurably grateful for my life.
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Jun 3, 2018 15:18
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EAT FASTER!!!!!! posted:Like so many things I read in BFC, it makes me immeasurably grateful for my life. 
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Jun 3, 2018 16:27
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Have any of you used Roofstock?? Got thoughts for/against it?
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Jun 3, 2018 17:26
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With 0% down you basically won't have any equity built up after two years. You would almost definitely have lost money overall vs not buying at all and just keeping that cash under a mattress. The only way to make money in that situation is for house prices to suddenly go nuts
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Jun 4, 2018 00:27
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Doctor Dogballs posted:Have any of you used Roofstock?? Got thoughts for/against it? There's a separate real estate investing thread. "So you wanna be a landlord."
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Jun 4, 2018 00:50
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20% down is the minimum to avoid PMI correct? If you went with a federal first time buyer program with smaller down payment, can you get out of paying pmi in the future after a certain point?
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Jun 4, 2018 00:53
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A MIRACLE posted:20% down is the minimum to avoid PMI correct? If you went with a federal first time buyer program with smaller down payment, can you get out of paying pmi in the future after a certain point? There are a couple different schemes to avoid PMI but you'll get PMI if you refinance or something.
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Jun 4, 2018 00:57
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A MIRACLE posted:20% down is the minimum to avoid PMI correct? If you went with a federal first time buyer program with smaller down payment, can you get out of paying pmi in the future after a certain point? It depends on what type of loan and the company. Most allow removing it once you have 22% equity compared to the original loan value. Some will allow removing it sooner with an appraisal. FHA pmi stays until you refinance. There are some low downpayment options with prepaid pmi that can make more sense.
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Jun 4, 2018 02:51
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And don't fall for the "We can just rent it when we move!" line. That depends on so many things and is incredibly risky. If you're not in the area anymore, what will you do when your tenant requests something be repaired or inspected? You hire a contractor. What will you do when they heavily damage the property and all you have is their security deposit, which is way to little? Sue them for the difference? Are you willing to wait for the case? How will you afford to fix the property in the meantime? If you can't rent it out because of the damage you're going to lose a lot of money with the mortgage, even without paying for repairs. That's to say you could even find a tenant willing to pay what your mortgage payment would be with 0% down and the PMI. Just from my personal experience, one of my landlords had a pair of tenants remove a load bearing wall to move a couch in easier. Also, my parents tried renting their beach condo and in the second week of renting a guy drunkly went through a window. They're not trying to rent it anymore. Don't assume any renters will treat your property well.
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Jun 4, 2018 02:59
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Yeah don't try to be an out-of-town landlord... just don't
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Jun 4, 2018 04:26
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QuarkJets posted:Yeah don't try to be an out-of-town landlord... just don't There are companies you can hire to manage your leased out properties, though obviously they will take a portion of your earnings.
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Jun 4, 2018 06:58
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Nitrousoxide posted:There are companies you can hire to manage your leased out properties, though obviously they will take a portion of your earnings. The one my parents tried to use was horrible, but they were doing more of an AirBnB type renting, not year long leases. The companies cleaning staff introduced bedbugs into a bunch of homes that included my parents. They also refused to pay through their insurance for the window that the guy broke, and then refused to go after him for damages. That was what got them fired. The company has no competitors in the area so my parents just have the place vacant most of the year. Its cheaper than having to pay for all the repairs and bug control 
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Jun 4, 2018 07:19
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Nitrousoxide posted:There are companies you can hire to manage your leased out properties, though obviously they will take a portion of your earnings. I've known various people who've had a mix of good and bad results with those kinds of companies. Some are on the ball and can do the poo poo that needs to be done for an absentee landlord, others seem to just be rent-leeching middlemen and will not do anything like coordinating maintenance or repair work, e.g. the actual hard part of being a landlord
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Jun 4, 2018 09:06
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Finding a competent property manager that is going to care about any landlord with less than 100 units is practically impossible. If you do find yourself in this situation make sure you properly vet and approve any tenant yourself. They will fill the unit with the spawn of Satan.
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Jun 4, 2018 11:56
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Elephanthead posted:Finding a competent property manager that is going to care about any landlord with less than 100 units is practically impossible. If you do find yourself in this situation make sure you properly vet and approve any tenant yourself. They will fill the unit with the spawn of Satan. What? No it's not. Both times I've rented properties I went with local real estate companies. The fees were 8-10% of the rent, they did a better job vetting tenants than I would have been able to, and everything was fine. Any repairs were handled through them and either came out of the rent or I got a call if it was over a certain amount. Could I have gotten lucky? Sure. Or, maybe it's not anything like you claim.
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Jun 4, 2018 12:57
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