All Forum Posts by: Gordon Cuffe

@Rico Castillo yes, take home subject to all three liens. Hopefully the buyer can afford the total of all three payments and the first mortgage payment has a great rate so it brings down the principle balance nicely.  

@Rico Castillo have buyer put down 50k on a 550k purchase price taking over the existing financing subject to. The 50k can pay realtor fees and pay something to the seller. The buyer can refinance in a couple years. They just have to hope that the home appraises. 

@Max Moncur You can always PM to see about conventional financing options with the same amount of down payment. The problem with offering over asking price is if the home doesn't appraise you will have to bring in the extra cash to close the deal. If you have the extra cash, you might as well do conventional financing. It is true that we have fewer listings compared to last summer so that is making it tough for all  buyers again. 

@Andy Paul There is still a shortage of available rentals throughout the Sacramento and Placer county areas. You mentioned something about building equity quickly. You should not think that building equity quickly is feasible. It takes many years to build equity. In the 500k price range, you can buy in stable areas like Carmichael, 95826, Orangevale, Citrus Heights 95610. Some parts of Folsom. You might consider buying a duplex also so you can live in one side and rent the other side to offset your mortgage payment. If you ever have questions throughout the year, You can send me a PM

@Sau Thao I am a cash buyer in Sacramento looking for my next project. Please PM if you have a good off market deal. 

I am finishing the remodel on a home with a detached little apartment. It has a garage behind the little apartment. I had a property manager say that the front unit should rent for 950 per month and the back unit rent for 650 per month. That gets you 1600 per month in income for a 150k purchase price. That is better than the 1% rule. I tried to upload more pics but couldn't. 

@UV Singh I am a investor in the Sacramento area and mortgage broker. I have also invested out of state in many states. I can tell you that Austin is no longer a cash flow city. You might still be able to get cash flow in Dallas and San Antonio. The key is getting people in the area you invest in that you can trust. I have been ripped off by contractors and property managers out of state. Miami is very expensive so forget that city for cash flow. You might get cash flow in Orlando still. If you want to find out about a hidden gem of a city in Texas that you can still get good cash flow it is in Abilene Texas. People from Dallas and Austin are selling and buying in that small growing city. You can find other cities at 100k in population and growing in other states also. 

Last month I posted about how the supply of homes had dropped for seven months in a row since July 2022. We just saw another drop in homes for sale on mls for February 2023. There were only 1690 homes for sale on MLS in February 2023 compared to 4457 homes for sale in July 2022. The drop in homes for sale in February is surprising to me because we are just starting to get into the spring buying season. Many people predicted that home values would drop throughout all of 2023. That is not going to happen. For the next six months home values will stabilize or even go up a little because of the small supply of homes for sale. Pending sales have gone up every month since December which is more evidence that home prices will not decline this spring.

https://www.gotrendvision.com/...

@Tanner Pettet You can sell it the normal way without a problem. You can have the buyer do a formal assumption of the loan also. Check with your lender on how. A buyer can also buy it subject to the existing financing but the loan stays in your name. People usually sell subject to when they do not have much or any equity and they just want out.  

@Pramod Prasad I am a mortgage broker in CA and I just priced out that loan and at that small of a loan amount 7.625% for zero points is on mark. If you find a property and submit an offer ask the seller to pay 2 points . You can then buy down the rate to around 6.5%. A month ago rates were 1/2% lower so who knows where rates will be in another month. With such a low loan amount , you only drop the payment by $92.0 dollars a month by lowering the rate by 1%.   Good luck in your property search.