All Forum Posts by: Andy Yoon
Andy Yoon has started 1 posts and replied 5 times.
Post: Buy second house, rent out first house? Advice needed!
- Reseda, CA
- Posts 5
- Votes 0
Originally posted by Jeff Bridges:
Great point - we have friends who moved into a cheap month-to-month apt for a few months right after they sold their townhome. I imagine we would do that or stay with our parents (if they'll have us) during that 2-3 month period.
Post: Buy second house, rent out first house? Advice needed!
- Reseda, CA
- Posts 5
- Votes 0
Originally posted by Brian Hoyt:
I agree - but making a better return is not our first priority here. We want to be closer to family first.
Also, the condo is unlikely to be sold right now...so renting it out seems to be the best option even if we take on some incremental expense.
Post: Buy second house, rent out first house? Advice needed!
- Reseda, CA
- Posts 5
- Votes 0
Originally posted by Scott W.:
you have a ton of income so that's not an issue with floating the payments. i'm assuming you have a decent amount of reserves.
i rented out my primary last june, though those on BP said the numbers don't work. i have 17 years left on the loan so i had a lot of principal paydown each month. i run slightly into my pocket to pay the repairs/maintenance each month.
the kicker was the new house we bought, our quality of life went thru the roof...less commute, triple the space, new home. and an exact house 5 doors down appaised $20k more than our purchase price 6 months later.
For the condo, only about 25% goes toward principal paydown. Our reserves are ok...to be conservative, we plan to wait on purchasing until we secure a one-year rental agreement for the condo.
Wow, triple the space and it's new? Man, I know our income is good compared to national averages and such, but living in California, you can hardly notice it! =(
Post: Buy second house, rent out first house? Advice needed!
- Reseda, CA
- Posts 5
- Votes 0
Thanks guys - I should probably mention a few things:
Our intention is to eventually sell the condo once the market recovers over the next few years. We looked at refinancing thru HARP, while our mortgage is owned by Freddie/Fannie, we bought a few months after the cutoff date, doh! If we wanted to refi, we would have to cover a difference of around $30k between the likely appraised value vs loan.
With that said, my thought process is that renting out the place while we wait for the market to recover would cost us about $200/mo (essentially insurance + maintenance). Not ideal, but not unbearable...not sure if that warrants a short sale or not. My main issue with a short sale is related to not wanting to damage our credit when we will likely try to buy-up within the next 10 years.
Lastly, we're looking at the SFR ($325k target) as something we would live in for five years before renting out as a long term buy and hold - we think we can secure a good 15 year loan that aligns with rental rates in the area. And by the time we're 50, we would own it free and clear (and before the kid goes off to $$$ college).
Post: Buy second house, rent out first house? Advice needed!
- Reseda, CA
- Posts 5
- Votes 0
Hi all, this is my first post since signing up recently, yay!
So, we're expecting later this year with our first and would like to move closer to our parents.
We currently own a condo ($240k balance on loan) and believe we can rent it out to cover nearly all of PITI + HOA. Unfortunately, selling the unit is not an option as it is underwater.
In turn, we could rent or buy a modest SFR for around $325-350k (with 20% down). Our household income is between $160k - $175k annually and our credit is good. I haven't talked to a mortgage broker yet, but was hoping to get tips or advice on whether this is a good idea before I do. Thanks!