All Forum Posts by: April L.

Thank you Randy for your words of encouragement. My indecision during the past two years is a result of divorce, 2 kids and being laid off during a pandemic having to find a new job. I agree that you can't wait around, but I'm going to try and focus on what I can do today and not kick myself down over what I COULD have done had other factors been in my favor.

So, back to what I can do for today. 

Does anyone have an opinion on buying land and building real estate vs buying an existing structure? Buying land seems like a less competitive option right now. Land is something I can afford to buy. I would just need a construction loan instead of mortgage loan.

I do have a lot I'm trying to achieve. There are two main things:

1) Buy my first rental property as an investment and put 40k to work. 
CON: Must use commercial loan of 220k for 20% down
PRO: I could get a bigger ROI with a tiny home / pre-fab / cabin with a short-term rental in a vacation spot in the mountains

2) Find my parents a house to buy and be a co-signer. 

My mom qualifies for 360k for a first-time home buyer. My parents currently rent a house near me. (They do not have much for a down payment). It makes sense that my parents pay me instead of paying someone else. This option would help everyone by keeping the property as an investment, stabilizing a "rent" payment with a 30-year mortgage, and potentially, if we could find a unicorn property with a basement or in-law suite, off-setting the cost of the mortgage with a short-term rental. Yes, I'd put my parents to work with an Airbnb.

I thought I could do these two things as part of one goal. I'm just trying to help my parents out as they near retirement. But what I'm finding is, I can't afford to help my parents out without blowing my wad on a downpayment in this area. They need to be near me.

CON: Payment for a 300k home would not help either of us since it would be likely higher than their rent payment and I would loose my small capital on a down payment. 

PRO: The only pro I can think of would be if we could find a REAL DEAL -something below market value. Which is not likely in this market. 

This is why I've opted for option 1. Just use my 40k for an investment not tied to location. That's why I'm looking in the mountains at smaller towns in Georgia and North Carolina.

Hi there,

I'm in the Metro Atlanta area. I've been looking to pull the trigger on an investment property for two years. At first, I was going to buy my parents a house near me but it's too expensive and competitive in this "good school district" and it would eat up my entire wad on a down payment so we could basically break even on mortgage payments. 

So I'm switching gears for now and looking to spin my small amount of capital on a vacation rental.

I'm only approved for 220k for a commercial loan via my LLC I started. I'm looking at the Georgia / North Carolina mountains for a vacation rental. It seems impossible to compete with seasoned investors and those with the cash to put down over asking price.

I'm looking at unrestricted land to build something small to start. Does it make sense for a newbie with no rentals yet to buy land as a first investment? Are there  agents who work with land specifically?

Thanks!

Right now, it's capital and inventory. Overwhelming competition with big fish. Analysis paralysis. Being a beginner investor.  Time (Being a single working mom). Risk. 

Other than all that, I'm ready to pull the trigger with the small amount of capital I have if the opportunity makes sense.

As for Option 3:

I've thought about adding on to my current house. But decided that it would be more trouble.

I live in an HOA swim / tennis community. While, I do have a fairly decent backyard, I think they they rules about adding guest suites.

I could add an additional bed / bath and share a kitchen, but I don't think that's a good option for us. My parents are still in good shape and they like their space. 

Thank you

@Scott Mac and @Anna Watkins

@Joseph Firmin You're right about having my preference to have my parents live with me on premise -in a separate suite. As much as I love them, there are a million good reasons to have our own living space. I will definitely need a new house to accomodate this arrangement. It doesn't have to be a McMansion. It simply needs to be a smart design —which seems to be sorely lacking in the market right now. :(

I have not considered using a HELOC to pay off my mortgage. I think my focus is finding the right place. However, I'm definitely open to creative ways to finance a bigger mortgage payment. :)

Thank you!

@Jeremy Wirths I have thought of buying land and building a custom home. I have to admit, I'm not in love with the mass-made matchbox-style of houses currently on the market. Plus, none of them consider the popular multi-generational style living -that is the future. lol

I love the style of modern cement homes like in Merida, Mexico for example and many other parts of the world. It would be great to design a custom home...

But even for a standard local contractor, I believe it will be the more expensive option. Plus, I have a 9 and 10 year old. Finding land in a good school district in suburban Atlanta can be tricky. At least I think considering a school district is still a thing? lol (It;s silly that we let schools dictate where we have to live. Grr.) 

Anyway, I did see land for sale in a popular suburb (Rowell, Ga) but the land alone was the cost of my current home -about $350k.  Add a house, and you're looking at close to a million bucks. I'm open to the idea though... Maybe I can find a contractor who sells the whole package, land and all?

Investors: I really see an opportunity to increase the design/ construction of multi-generational housing. Don't families like each other anymore? Geez. Let's take care of each other. LOL

Thank you!

Fortunately, I actually like my parents. I'd actually enjoy having them live downstairs in the finished basement apartment —if I only had one. 

My parents live 7 minutes from me in a rental house. They're at an age where they need a little more support —mostly financially. Plus, it's silly to see them pay someone else's mortgage, especially now that the landlady is raising rent. How can I turn this situation into a wise investment for both me and my parents?

I'm looking at 2 options:

OPTION A: Purchase a larger home with a full basement "apartment." Ideally, they'd have their own space attached to my home, their own kitchen, etc. 

Pros: 

* They'd pay me rent and we'd share some expenses
* I can count them as dependents for tax purposes
* they'd always be available to babysit/dogsit/housesit when I'm away and I'd always be there for them if they need me-especially as they get older

Con:

* I'd have to buy a larger home and assume a larger mortgage in a good school district. While their rent would help pay the mortgage, what happens if I lose my job or they pass away? (Let's assume they don't have life insurance.) 

OPTION B:

Buy them a modest little ranch house and have them pay me rent. They already live in a rental very close to me. The only difference is they'd be paying ME rent and we could control the cost for what works for us.

Pros:

* They still have the dignity of their own space. 
* We'd be keeping money in the family (as an investment property) instead of them paying someone else. 
* I could take advantage of the Family Opportunity Mortgage authorized by Fannie Mae and Freddie Mac and get lower interest rate and down payment.

Cons:

* It's another house: separate utilities, things that break, liabilities, etc.
* We would have not have the benefit of basically living together (looking out for each other, etc.)

So.. Can anyone with more experience than me in Real Estate Investment offer an opinion:

What's riskier? Taking on a larger mortgage with one multi-generational home or buying a separate house where they can be tenants in an eventual investment home? 

Thanks to all the smart people sharing their experience here. :)