All Forum Posts by: Yi Lin

I wouldn't take the acceleration clause (we are taking about due on sale clause?) risk unless I can afford to have that happen.  To me, it is just unnecessary risk to take.  I know it is unlikely to happen but let me suggest sometime that makes financial sense for the bank/ lender to do so.  Right now the interest rate is low, so say 4.5 percent for investment properties, what if 3-5 years down the road and rate increase to say 7 percent, what bank/lender in their right mind wouldn't want to call your 4.5 percent loan so they can deploy the capital for higher interest rate?  I agree with Andrew Kerr's approach.  

I wouldn't take the acceleration clause (we are taking about due on sale clause?) risk unless I can afford to have that happen.  To me, it is just unnecessary risk to take.  I know it is unlikely to happen but let me suggest sometime that makes financial sense for the bank/ lender to do so.  Right now the interest rate is low, so say 4.5 percent for investment properties, what if 3-5 years down the road and rate increase to say 7 percent, what bank/lender in their right mind wouldn't want to call your 4.5 percent loan so they can deploy the capital for higher interest rate?  I agree with Andrew Kerr's approach.  

if it really was a good deal then why would he need to pressure you into buying it?  You did the right thing by running your own number and decided to not buy it base on other people's number.

This is great!  I can definitely relate to this!  I'm trying to expand my friend circle with more like minded people, it is so much fun!  I must say, I'm glad my wife is on the same page.

I wouldn't because as soon as you do, more will come.  They are kind of like kids, they will test what they will get away with.  If you do end up replacing the carpet down the road, I would recommend to replace it with laminate flooring.  Laminate flooring just last longer than carpet and is much better suited for rental.  I no longer replace carpet in rentals.

I would walk away.  Have you look into areas outside your that might be better for investing?  For small investors, one should always invest for both cash flow and appreciation.  It is more important to buy correctly than to just settle for less.  I know this first hand and wish I discovered BiggerPocket earlier!