All Forum Posts by: Alex Xu

Thank you for all of your comments. I agree that everyone's situation is different, timing the market is challenging; if the number works out and hold for the long term, it will work out. I have a follow-up question regarding lending.

I just spoke to my lender, and he offers me 3.65% with 2points, which means I have to pay 2points on the loan amount to get 3.65% since rental.My loan is around $160K. Is this a reasonable rate?? and is this common for investment properties? Please advise! Thank you all.

Hello guys! I'm looking to purchase my first rental property near Harrisburg, PA, sounds exciting, but I would love some guidance.

The good news are:

• The interest rate is an all-time low; I can get pre-approval between 2.25-2.50% (15/30yrs loan)
• The property I'm looking at being on the market since late June with only 2 offers.
• I ran the number. It makes sense to me.

My concerns are:

• Current laws do not allow eviction or foreclosures until December 31, 2020. But data shows the housing prices might drop 10-20% in Q1 or Q2. Just like the 2008 housing market crash
• The unemployment rate is still at an all-time high.

My questions are:

• I don't know if I should be more patient and wait until next year when the price drops and then buy when the property price drops.

• Or maybe wait until foreclosure houses on the market next year and buy at a discounted price.

• I am aware that every state/area is different, but some opinion and guidance would be beneficial!

Also, what websites do you use for data/facts on house inventory and price treat over the past few years?

Hello guys, I’m in the process of buying my first property for HOUSE HACKING in Baltimore Market! Advice needs it, please!! 

The property selling at $315k in Baltimore with a fully renovated basement, new roof, and sewage line, and basement.

Due to my calculations, total monthly expenses come about $2500 including;

-Mortgage, interest, and tax

-The vacancy rate of 8%

-Repair at 5%

- Cap ex at 9%

- Management fee at 5%

My plan is to live in one of the rooms and rent out the other and I have about $20 positive cash flow every month after all the expenses. Live there for 1-2 years and rent it out and maybe sell it within 5 years 

However, I'm worried about the future recession or house crash that the property will depreciate, according to Zillow the area is expecting to deprecate by 4% within the next year, not sure how accurate the data is but that is something worries me.

What other things should i be consider for house hack, this is my first purchase, very new to the game and hope to gain some insights from you guys! Thank you!