All Forum Posts by: John Bachmann

I heard they really mopped up after the 2008 crash, drove home values back to 'market' price pretty fast.

Thanks for the replies guys. @Chuck B. yeah, a multifamily property is what I'm after, I want to start out with a place to live initially and living next to my tenants would be great. Noise and stuff doesn't really bother me and it'd be a great intro to the business. Hardest part is finding a place that's affordable and isn't on the way to becoming the next Detroit.

@Barbara G. sadly my father refuses to cosign with me because he doesn't want legal responsibility, might work with my mother though. Thankfully they're both in good financial standing. Also embarrassing to admit but even if I reported my under the table wages it still wouldn't be a reliable enough history to convince a loan officer.

So I need to secure a good job and achieve good pay/save more. What I want to know is if these low interest rates will last, call it paranoia but I'm not sure how much longer the $USD will remain dominant; i want to get secured in real assets ASAP (but not bury myself in debt i can't repay, it's a double edged sword). I'm gonna post another thread about that.

Alright, thanks a lot for your input K. Marie! Guess I'm getting a job, except now I've got a realistic goal to work towards. Too many youth are living aimlessly, we are never taught these things and frankly society is such an obvious mess that most are too discouraged to look any further. For now I'll start earning an income and saving more, and see where I can get myself. I might try travelling first to find a place I like, living in a rural area at the moment, everything around me is 200k+. Glad to know this isn't impossible! Thanks guys!

@K. Marie Poe

Yeah, not trying to advocate dodging taxes, jail isn't a nice place to be. My work history is too sporadic though. The only option here is to commit 2+ years to a place, which is totally reasonable of course. I've been a homebum since getting my associates to be honest :) and getting sick of it, hence my posting here trying to figure stuff out. Thanks for the good advice.

I don't intend to take on debt I can't repay, however I would like to get this done sooner than later. The dollar isn't getting any more valuable. One can only guess how long the USD can retain its status, I'd much rather be in debt for a real asset than struggling to climb a slipping ladder. A debt I can manage to repay, of course...

No offense taken Anish, easy housing credit almost collapsed the global financial system back in 2008, although one should argue that the system was already rotted out after a century of awful management and the subprime mortgage scandal was the final tipping point. Although, it really isn't the fault of little people who can't handle financial pressure.. it's the fault of major players gaming the system for their own profit. Of course the real issue overall is unlimited fiat money and an economy operating primarily because of debt-obligation. But I digress.

I don't really want to commit my life to earning piles of wealth, I've just always wanted to secure a home of my own, wondering if it's doable for someone who has to start from the bare minimum. There simply aren't enough paying jobs for the number of people in this country, hence my interest on doing this via minimum wage. It is definitely a stretch.

When I get the time, I'm going to call some places listed here: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

It doesn't look like I can qualify for an FHA loan without 2 years history of constant employment. So my choices now are to find a stable place to work for 2 years, or look into other types of loans. If anyone knows of any other loan types I'd like to hear about them.

Also just to make sure, I am NOT running head first into this! Just researching what's possible and what isn't. I'm really interested in figuring out what options are available for the average person. A majority of the population are in the same situation as me.. just goes to show. What a world.

Thanks for all the advice! I've read up on FHA loans and there seem to be some snags. Taken from here: http://www.zillow.com/mortgage-rates/finding-the-r...

• Must have a steady employment history or worked for the same employer for the past two years

My jobs are currently under-the-table.. so no W2's or any official documentation to report.. this seems like a deal-breaker, but on the same token, if I do move to a place I like and commit 2 years in the local scene I would probably be getting more than min. wage by then.

• Your front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, home insurance) needs to be less than 31 percent of your gross income, typically. You may be able to get approved with as high a percentage as 46.99 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.

Looks like most lenders want your payments to be ~30% of your income, doing this on minimum wage would be more like 50-60%. Can anyone comment on this? Would rental income be an acceptable part of the gross income?

Thanks for the help! I'm really curious if homeownership is a realistic goal for people who can work but are disadvantaged from getting a better job. College is hardly affordable for anyone these days, and student-loan debt can really cripple you. I would probably try for an apprenticeship myself. But the fact is, the job market is getting squeezed and the economy is getting iffy.. just wondering if there are any failsafe plans left for the average person hoping to achieve stability..

@Account Closed, I completely forgot health insurance is mandatory now, although I'm covered by my parents until I'm 26. I'm confused by what you said though, are you saying if I wasn't insured it'd be unlikely to be approved for a loan? I'm in good health but I understand why that'd be the case.

Thanks everyone!

I'm 23 years old and currently living with my parents working odd jobs, have an associates degree (in liberal studies.. yay), 0 debt and perfect credit. I've always wanted to get involved in real estate and would like to try making a living as a landlord. It seems to be a desirable path, especially with long-term loan rates being 3-4%, and with the inflation of the dollar it seems like a good idea to take on fixed, manageable debt..

Anyway, I have about $15k in cash saved and would like to travel and look up different cities that seem to have a healthy pulse to them, currently looking at Indianapolis as an example. What I want to know is, if I move there and get myself an established job history, with a 20% down payment and a proven income of ~$1200/mo, is it likely I could be approved for a 15yr loan?

Keep in mind I don't want to work minimum wage forever, my thinking is if the economy tanks (who knows what's going to happen in the next few decades - the length my loan would be) then I'll be able to cover payments no matter what, because minimum wage jobs are the least scarce jobs out there. If I can do that and establish myself with real estate and start generating cash flow, THEN I'd be comfortable with more traditional methods of leverage, however to start out I really don't want there to be any snags.

I'm looking at a place like this:

http://www.realtor.com/realestateandhomes-detail/6...

Looks like a B average neighborhood?

Assume the location and everything else is ideal, just for example.. if Realtor.com's numbers are accurate then a 15yr loan (they include prop. tax, insurance, and HOA) would be $524 a month. Min wage nets at least $1000 per month, this seems enough to cover the loan as well as utilities and other things. I don't plan on owning a car and already live very frugally/boring. Naturally I'd also be renting the house out, but I'd like to be able to cover all costs myself to keep this plan concrete.

Any thoughts? Am I crazy for wanting to do this? I realize it's a long-term commitment at first and I'm okay with that. I'd also be working at getting a better job (thinking of taking on an apprenticeship), I'm just curious if this min. wage theory can work and would like to establish myself in a town I like first, rather than having my career dictate where I live. Any criticisms would be very appreciated. Thank you!