All Forum Posts by: Anique Akhtar

Hello,

I am pre-approved for a mortgage on a primary residence (non-FHA). Buying the property and moving in it means we move further away from the job along with other inconveniences.

My question is, what happens if I decide to not move into the new property and instead rent it out. Would I still be allowed to deduct interests from my personal tax returns? Are there any disadvantages in terms of tax advantages? Are there any other issues I could face by using this property as a rental property instead?

I don't intend to sell the property so not worried about the capital gains. If I do sell it, it would most likely be a 1031 exchange.

Thanks.

You won't be able to land a similar property in Jacksonville when you return. Do not sell it! Just rent it out even if it doesn't cashflow. Your equity would grow and you are already sitting on a great mortgage which is a huge asset that you would lose the moment you sell.

If you need money for anything, you can dip into the equity in this property. And equity would keep growing so there's that.

 You make it sound easier. Maybe it is not possible in a HCOL area in California. Distressed properties as well as Subject To are difficult to get.

Hello,

If someone qualifies for the CalHFA mortgage loan. Should they go with the 6.25% and/or 6.625% mortgage rates they have advertised online? I am not sure the difference between the two rates on the program. Or are there better loan programs available for California residents?

Thanks.

Thanks.

In your opinion, wouldn't subto be more difficult to get than seller finance? I can close if the seller is willing to carry 20-30% of the sale price. If only 5 years, that should be enough.

Hello,

I am interested in getting into a house in a particular neighborhood for long term hold. However, the current interest rates with the downpayment makes it not a good deal. I am also seeing houses reducing their prices and being on the market for a longer time. However, this is still a HCOL with a low inventory and difficult to find properties. I was hoping to get into a house with 70-80% conventional mortgage and do the remaining 20-30% as a 5 to 9 years balloon with interest only payments. This method does not save me on monthly payments but it does save me from taking money out of my other investments for a downpayment on a new property which is very important for me. In 5 years, I can easily pay off the balloon payment so that is a no-issue for me.

I have a few questions and I was hoping the more experienced members can help answer these:

1. Does my approach seem realistic or is there a better way to go about it using subto? I feel like subto would be more difficult to find and/or convince the seller to do and for them to get 70% upfront and 30% balloon would be an easier sell?

2. What interest payments should I offer them in the current market? I would be happy with 4% but not sure if that is realistic.

3. How do I convince the seller's real estate agent to at least show or pitch my offer to the seller?

4. Is it possible for anyone to simply show me their "text", "messages", or "email" on what they write in their informal offer? I want to send this informal offer to the realtor through email. I am afraid I might use the wrong terminology and end up confusing the seller. I want to make it as simple as possible for them to understand.

Any help would be appreciated.

@Chris Seveney  and @Dan Thomas 

Thank you for the advice. I totally understand what you guys are suggesting. 

These are the issues I am facing:

1. There are very limited condos in the area I am living in, with only a few listings per month that match my criteria. I would be comfortable getting a good deal at a fair market price at the moment. 

2. I would like to start saving the $3k on rent I pay each month

3. The deal does not make sense with PMI so I would rather have as much downpayment or extra payments as possible and recast/refinance to remove PMI. That is the main goal and hence I want to know which scenario is the most cost-effective. The deal makes sense with 20% downpayment in terms of cash flow and appretiation.

4. I would rather not pay the extra closing cost with refinance and would like as low of a rate as possible since the goal is to hold for a long term and rent the condo out after two years.

@Kristen L Garner Thank you. I have been pre-approved by one lender but I will be shopping around in the coming week to get a better lender. I have struggled to get these answers from my current lender: the APR, the closing cost, the recasting/reamortization cost, the refinance cost, the cost to do permanent rate buydowns, etc.

I would like to do all my maths by myself but I do not know what are all the costs involved with each scenario and my lender has been unhelpful so far. That is why I thought asking in  biggerpockets would be the way to go.

My question is more along the lines of: What are the financial costs involved with each scenario and which of these scenarios is the most cost-efficient?

Hi,

I am new to real estate investing and would like to buy my first-ever home in SoCal. I am struggling to find property since there is too much demand at the moment. I am also having liquidity issues at the moment. However, by December and January, I would have more cash to pay a higher downpayment. I am salaried, earn well, and live in a high-cost-of-living area (HCOL).

Since I am new at this, I am struggling to figure out how to find out my cost for these scenarios and figure out which scenario is best for me. Can the more experienced folks help me figure out which of the following scenario would most likely be the better financial decision?

My current rent is $3k and the property I am targeting is a $600k 2b/2b condo. Assuming the housing prices don't change or I am buying the property for the same target price:

1. Buy a property with a 5% downpayment with as much permanent rate buydown as allowed. After 9 months, pay enough in the principal to make it 20% equity and then recast/re-amortize the mortgage with a new payment without the PMI.

2. Buy a property with a 5% downpayment with a 2-1 rate buydown and then after 1 year, refinance with a 20% downpayment and a permanent rate buydown.

3. Wait 9 months and just buy a property with a 20% downpayment and a permanent rate buydown.

I am also planning to become a licensed real estate agent in California. I will start that process in January 2023. I am not sure if this would play out in buying a property right now but I imagine it should save me a lot of money during closing. 

Just need help on how to get started. I have been becoming more and more impatient and want to jump on real estate investing a bit soon but I am also struggling to justify which decision is better.

Any help and advice would be greatly appreciated.

Thanks,

Anique

I just relocated to San Diego and have been personally looking at something to buy to live by myself or househack. Let me know what you would be interested in in terms of selling and maybe we can discuss it.

Good luck with your move.

This is an interesting problem. I myself have been trying to find a property in that area to house hack since I moved here for a job.

Is there no provision in the lease agreement for land renewal? Can the land renewal be leased again? If you have any ideas, you can ping me. I am willing to do all the legwork for a good deal that suits me.