All Forum Posts by: David Wong

@Patrick Shawn Faherty Kinda crazy to hear that people are driving from Richmond and Virginia Beach! However, I feel like the DMV is a strange area with people commuting in and out. Looking at Woodbridge at the moment.

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Thank you @Cesar Rebolledo I've been looking pretty hard in Woodbridge and may have found one in Dale City. 4 beds and would probably house hack it to make it work out. Running numbers and from what I see, it looks right so I want to try my options. Reston is in my search as well. Looking pretty hard right now and by the way, were you a corpsman?

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Thanks for the heads up!

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@Brent Coombs Thank you!

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Yeah, I just had to ask. Thank you @Albert Bui. I do not intend to do anything like that, but had to ask. Still green behind the ears.

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Hi Everyone!

I've been doing my research and it seems like I am looking in all the wrong areas. I am looking to see where members tend to live at that are stationed in Ft. Belvoir and Quantico Marine Corps base. I have noticed Stafford comes up, but is there a mid way point for both military bases here in Virginia?

Thanks everyone!

David W.

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Originally posted by @Albert Bui:

Originally posted by @Tom Cotter:

Hello All,

I'm in the process in buying a second home for the purpose of renting out. I plan on going with a conventional loan at 20% down, the loan officer I'm working with has me pre-qualified and has the interest rate at 5.375% (not locked in). I was told by him the only way to get the interest rate down would be to put down a bigger down payment.

Is 5.375% normal interest rate for an investment property?

Would there be any other way to bring it down, besides a bigger down payment?

I'm located in Virginia and my credit score averaged at 790.

Any help would be much appreciated!

Thanks!

Tom

It could be because you just said some contradictory stuff above " a second home for the purpose of renting out."

In the mortgage world a second home is similar to a primary home except that it is only used by the borrower for part of the year, like a used for vacation like a home in big bear mountain or aspen to going skiing.

A home to rent out is a non owner occupied property or investment property and as such its priced about .250 - .50% higher than a primary or second home. There is also a premium of an additional .375 to .50% in rate for 20% down versus 25% down so consider that in your calculations for your investment returns. This means that a 4.125% primary home with 20% down is around 5.125% for an investment property with 20% down on average.

Second and primary homes typically are priced the same in rate but second homes have higher down payment requirements (AKA your Loan to value or LTV goes up or your down payment has to increase).

When the lender says 90% LTV that means you're bringing in 10% down or the difference.

In this case its 80% LTV with 20 down payment.

Your rate is about right since you're doing 20% down and investment property. If you increase your down payment I bet your rate would go to 5.00 or 5.125%, just a guess.

Let us know how it goes, hope that helps.

If I am understanding this correctly, If I am looking to purchase a house with the intent to rent out. Do not tell the bank that I am going to rent this house out because it will bring your interest rate up?

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Wow.. I never thought America was that broke. I always wondered, but I guess I'm doing alright. Thanks everyone for the info! That being said, reading books like rich dad poor dad definitely opened my mind. Pay yourself first is definitely true in this lifestyle!

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@Pat L. I once knew a guy that would not wear gloves or masks during a sanding process. He said that his hands and lungs need to man up. Glad his BBQ was on point!

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Hi Everyone,

This might sound like a noob question, but I can't seem to understand when I calculate my results and my ROI is INDEF%. What does that mean and is there a certain reason why its populating answers like that?

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All Forum Posts by: David Wong

David Wong has started 16 posts and replied 60 times.

Post: Where do the military members live at in Virginia?

Post: Where do the military members live at in Virginia?

Post: Rip Off Report: Nick Bravo

Post: BRRR Calculator Question

Post: 5.375% Interest for Conventional loan on Investment Property??

Post: Where do the military members live at in Virginia?

Post: 5.375% Interest for Conventional loan on Investment Property??

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Post: BRRR Calculator Question