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Updated over 5 years ago on . Most recent reply

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28
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9
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Adam Pond
9
Votes |
28
Posts

Interest rate cuts, should I buy bigger?

Adam Pond
Posted

Hi all,

I'm a newer real estate investor in the San Antonio/Seguin area who is looking for my second property. As a newer investor, I've opted to house hack & STR my first property to save up money. My next property I'm currently looking at is only $120,000 and is 4 bedrooms which I plan to house hack & STR as well. I've been getting into these properties with 3.5% owner-occupied with the one year requirement. My question is with new lower rates, should I try to lock in something in a better neighborhood for more? I have a steady income that will more than cover the mortgage. So I've calculated I can go up to around $250,000 without being too over-leveraged. Should I go bigger for better cashflow and possibly appreciation? Thanks in advance for any replies!

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Account Closed
175
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214
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Account Closed
Replied

@Adam Pond

Problem is, rent price is not proportional to house price.

Usually, say a $120k house can rent at $1000 per month, then the $250k May be able to rent at $1400 per month etc.

The bigger house, the worse rent per Sq ft.

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