All Forum Posts by: Pablo Weber

Hi everyone,

I am looking to buy my first property, in the San Diego area (PB if you are familiar with the area). The average home here in Pacific Beach is over $1M and the market is very competitive. My plan is to live in the home for at least a year to qualify for a conventional loan, and then turn it into a rental and move into something else. 

I am quite conflicted on what to do given my current financial situation. Talking with lenders, it looks like a rough estimate for what I will be approved for is $1.1M-$1.2M with %20 down. I can probably get into a fairly nice condo or smaller house (~1.2-1.8k sq ft) at that amount. I am trying to figure out if I should just put more down (additional ~$200k) to get into a bigger/nicer house, and wondering if this would have a positive impact on my cash flow later down the road when I turn the place into a rental. I realize that a more expensive house comes with a more expensive tax bill, but I’m assuming the appreciation will be higher? I am just very confused and all over the place so would love to hear all of your thoughts.

Edit: I’m also in a weird situation where my cash ($1.5M) is much much larger than my salary, I am trying to leverage this to get a larger loan but unsure how to. Any thoughts would be appreciated.