All Forum Posts by: Tim G.

This advice to buy now and refi later is dangerous and based 100% on speculation. The odds are greater that the value drops than the rate drops going into 2023 in any significant direction. 

If someone buys a $500k home for 10% down they will have a loan of $450k if values drop even 10% which has a high likelihood of occurring. When it comes time to refi (which I still don't believe is a viable plan to hope for something out of our control to occur) you now have a home worth $450k when appraised. Now the borrower needs to bring more money to the table to be able to refi at a better rate. $45k additional funds would be needed to secure a new loan.

Please consider the prospect of values going down in the future, this makes refinancing much more difficult than just waiting for next year and changing your rate. 

In San Diego BRRRR seems dead. I have some friends stuck who bought to BRRRR early this year and haven't refi'd out yet. They look to be in a very bad situation and will either have to sell the properties or rent at a loss. I understand with our values being very high this impacts our area much more but anyone who penciled a deal at a rate half of what they can get now, its going to change their numbers.

To be honest I don't know. Most ADU's being built right now were planned for when rates were half what they are today. It wouldn't be a shock to see a large drop in demand but the pipeline is likely a year out from when rates changed. Also, many folks are building these to house family so they aren't seeking a ROI like folks here.

This just looks like realtors telling people the market they work in is the best one. 

Something tells me most of the responses are not answers but pitches to try and have some of your money. 

How do they compare in price to other rentals in the area? As they say, price fixes everything, if they are comparable priced to lower quality rentals I'm sure folks will start to apply. 

Not only has the selling side of the market slowed down, but renters are also over massive rate increases and unless forced are no longer willing to participate in this bubble.

Side note: Are they listed for rent on Zillow? 

 Owner builder, but this was a 3 year old response, it’s going to be closer to $300+ a sq ft these days. 

Hi Lisa! Wow this is some accountability, I am STILL working on it. Some delays on who I chose to work with and on my end. I had a unique situation where the property has two driveways (called non conforming) meaning the city wanted me to terminate one, and widen the other. This was going to add $30-40k to the project cost. So I waited hoping new laws would improve and allow me to keep it and they have. The city can no longer force you to correct a non confirming (and not relevant to the ADU) to issue a new permit.

So, we are in the process of changing the design to allow both driveways to stay. Its a big pain in the butt but it saves a ton of money on construction and adds so much value as I'll have two structures and two separate driveways. 

One other  thing to note, the costs are insane these days. Get ready to pay $$$$$$

I wouldn't be thanking that accountant. That advice is costing you the ability to own a home without jumping through a lot of hoops. 

Stop avoiding paying taxes, in two years you can get a loan. That is the long-term solution that is a good backup plan cause some of the creative options could have issues. If you have a substantial down payment you might be able to do seller financing or take over someone's mortgage. There is a risk when taking over a loan that it gets called due by the lender, this is why you need to be financeable asap. 

These options can all work but they take away leverage you'd have as a normal buyer. Whatever your accountant saved you is likely washed from needing to go this route. 

 I used property radar, just set the state and set owner name as "opendoor property trust"

The California list is especially sad, the cities they own homes will be some of the hardest hit in this downturn (Menifee, Lancaster, Hemet etc...)

Wait, prices are coming down. This is not a good time to buy in El Centro of SD. But especially El Centro.