All Forum Posts by: Jerry Santiago

Hello Sasha, thank you very much for your reply. This really helped out a lot. It’s a really great way of thinking it that way. I am honestly, not thinking on selling the property before the recoup period. I’m also thinking on using part of the property as a short rental which could cut that period in half. I also don’t think the interest rates are going to go down next year. After your point of view. I don’t think it will be a bad idea to buy down a few points just to get a little cash flow in the long run. Thank you again 🙏.

Hello, my name is Jerry Santiago and I am active duty Air Force. I am a real estate investor in Rapid City, South Dakota. I am in the process of house hacking a new property (single family home) that it’s currently in foreclosure. The property needs about $10k in renovations to bring it back to standards. The property is $259k (3 bed, 2 bath) and the approximate monthly payment will be around $2400. With the interest rates increasing to almost 8%, is it worth buying down points to bring my monthly payments down to $2000? I would have to buy almost 2 points which is about $6500. I’m sure that after the renovations the property will most likely be $310k, compared to the property around. Thank you.