All Forum Posts by: Scott Po

 why?

I'm assuming a VA loan on a $407,500 property. The original mortgage was for 340k. I have 77k in cash that I can use to bridge the gap. The mortgage would be at 2.7%.

The property is a brick 2200 sq ft 5bed/2 bath from the 1950s. 

My question is would it be better to leverage the 67500, retaining as much cash as possible (bringing my bill per month to approximately 2600)? This would include the mortgage, second loan, and expenses. Or would it be better to pay it outright, depleting my savings, but getting a property that actually cash flows in todays market? If I paid outright I would be looking at 1700 monthly expense.

All of these figures are worst case scenario (no tenants, I'm the only one living there). The plan is to have tenants but I'm planning worse case scenario. 

Thank you very much for your opinions. 

I've come to realize this to be very true. I'm putting a couple offers in on a couple different properties tomorrow. I'm happy to get either one. I'll be able to nearly break even on my house hack because of the area. Wish me luck 

Your thoughts on that topic would be appreciated. Thanks

Unfortunately simply saying you would "wee wee" yourself laughing at the thought of prices coming down doesn't really address the concerns I had. My concerns are with inflation and the effect that would have on the RE market. 

A- it would be around 2500 for the 2/2 and 2000 to rent a 1/1

B- I could rent it out for 1200-1500 

D- Yes, I read through and did a lot of those analyses already. The one thing I didn't do was the 1% difference in interest rates. 

Before it was cool haha. Why is there an inventory issue? I noticed that while looking around. There's like zero multi families around here. Is it zoning laws or something?

I'm no economist Jay, but I'm pretty sure raising interest rates and cutting down the velocity of cash is the only way to reduce inflation. It's the only way that's worked historically at the very least. 

I wanted to see housing prices for back in '07 to present

 I will be based in the area for the foreseeable future. So this would be a long term investment. I'm not sure how long you've been in the area, but do you know how the dmv held up during the economic slumps? From what I've heard, the market is very resilient given all of the federal jobs. I asked my realtor to get me historic market data and she couldn't find any. I couldn't find any either.