Financial Goals 2017: Budget Harder

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Financial Goals 2017: Budget Harder

Rocks: Dec 30, 2011

i don't know if this is the thread for it, but my wife and i are buying a house this year. saved up $150k and it's going in on a down payment for a $750k fixer upper. hope to turn it around for $1M in 2-3 years. god bless.

# ¿ Feb 9, 2017 23:01

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# ¿ May 4, 2024 23:13

Rocks: Dec 30, 2011

Devian666 posted:

Congratulations on purchasing your future money pit. Even if you bought new it would consume a lot of money. On the upside there is a level of satisfaction with owning your own house.

Thanks!

# ¿ Feb 10, 2017 04:57

Rocks: Dec 30, 2011

C-Euro posted:

My student loans are currently split across two accounts- one at ~$1500 with a 5.6% interest rate (subsidized), and one at ~$4k with a 6.8% rate (not subsidized). I'm paying more than the minimum each month and have the option to allocate the excess payment into these accounts in any ratio I define. Would it be better to get rid of the smaller loan ASAP or should I whittle down the larger loan sooner due to the higher interest?

Higher interest

# ¿ Feb 11, 2017 07:47

Rocks: Dec 30, 2011

TouchyMcFeely posted:

As a word of note to anyone looking to do this type of purchase, make sure you look into doing a 203k loan.

It's an FHA program designed for people purchasing or refinancing a home with the intention of remodelling it.

You get the same low down payment as a regular FHA loan but it is designed around repairing a home in poor condition.

Bank owned properties are particularly good targets for these types of loans and can be a good choice for people looking to get into real estate investing.

Wow thanks thats great. We were going to do a conventional mortgage plus HELOC but this looks good too. Cheers

# ¿ Feb 12, 2017 19:39

Rocks: Dec 30, 2011

TouchyMcFeely posted:

PMI works the same way with FHA loans as it does with non-FHA loans. Once you break 80(ish)% and 5 years it gets removed.

https://www.fha.com/fha_requirements_mortgage_insurance

If you want to go the real estate investor route, you can use the 203k to purchase a run down duplex, fix it up, and rent out half. Live in one side for a year, refinance into a regular mortgage, and go do it again.

Or you can take the single family home route and buy some burned out shithole, fix it up, refinance it, rent it out and go find another property to do it again.

When you go to refinance the 203k, the value of the property should be higher than what you borrowed to buy and fix it so the PMI goes away.

Looked into the 203k, you need to pay PMI on the loan, so yeah what will probably work for us is to just stick with conventional mortgage to keep the monthly payments down and then a HELOC of $50k or so. Our monthly cash flow is pretty good so we'll be OK I think.

Thanks for the suggestion though! When we find a house trust me I'll post lots of <lovely> pics of it.

# ¿ Feb 15, 2017 08:40

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# ¿ May 4, 2024 23:13

Rocks: Dec 30, 2011

i don't really know where else to post this, but my wife and I have been using YNAB for a couple years now and it's changed our lives for the better... just such a game changer. Was able to put away almost $4k/mo while all our friends blew their wad on drinking and going out, while we just bought a baller house!

It was a really tough go for the last little while (making money while not being able to spend it), but looking out at my super sweet ocean view right now i think we made the right choices. cheers goons :3:

edit: oh and here's a snippet from a check i wrote, one i'll definitely never forget

Rocks fucked around with this message at 07:01 on Jul 7, 2017

# ¿ Jul 7, 2017 06:55

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Financial Goals 2017: Budget Harder