Am I crazy to take the leap into purchasing out first investment property during this wild market (crazy rate increases, wild house prices, etc.)? Looking for a good deal on a fixer-upper to buy and rent out for the long haul. Plan is to leverage equity from our primary residence for a down payment via Home Equity Loan.

like
Posting as :
works at
You are currently posting as works at

Yes. If values go down which they will, you’re screwed. Rents will folllow the home value. You’ll have a super high mortgage payment and falling rents. I’d wait.

like

I don’t think we are in a typical market right now as we are in unprecedented times. Can’t exactly rely on history.

smart

I’m doing the exact same but banking on rental market staying high due to everyone continuing to be priced out of the buyer market. Could take 2-3 years to come back down, but that’s a few years or cash flow and equity built up to cash out and so it again.

like

It’s only crazy if you are betting on appreciation. Find a property that cashflows (even if you need to do a little value add first), lock in a good rate, and ride it out.

There are still good deals out there if you search hard enough. I just picked up a property in November under list price because it needed some work. Got the work done in 4 weeks and now it’s working for me. Even if the market drops 10% or 20% (either from a market value perspective or from a rent perspective), I’m still in the black.

like

I think it's pretty dumb to buy right now, but hey maybe you found a great deal that matches well with your circumstances.

I am planning on buying for the long term, 15-30 years. I am definitely looking for a good deal, something that needs some TLC or a complete remodel (I would be doing most of the work, with some help), which is definitely tough to find in today's market, but opportunities still come up.

Do it. The home value itself doesn’t really matter as long as it’s rented

Related Posts

How old are you and how much do you have in Savings? I’m 25 and I’m pretty broke

like

So here's Tax question: we've all been working at home for 3 months and probably another 2.

Can I claim a home office deduction for 2020?

funny

What is your companies retirement benefits package? (i.e. 401(k) match or the like)

like

Planning to get the Chase Sapphire Reserve credit card for rewards & benefits. Is it worth the annual fee? Anyone has it & share experience. Thanks!

like

Hi,
The brokerage receipt I will be getting have only RERA no. No GST IN no.
Can I claim the brokerage or anyone has claimed before using RERA no.
Broker told me he only has RERA no

like

Getting very difficult to hold off on investing right now. I know it's going to go down further in the next week, but damn, it's tempting.

like

Anyone recently got a mortgage here? Where did you get the best interest rate? TIA

like

Where do first year associates / business analysts typically live in NYC? What’s a realistic rent budget?

like

A tax saving ameture here

KPMG KGS I received 170k as a bonus for this year and 30 percent tax will be deducted from it. Any idea on how to save that money? Will I get the tax return for the same?

like

Electing my incentives today at Spotify. Can take RSU, cash, or options. Cash is king right now, but Spot is at historically low price with solid rev and growth. What say you fishes?

likehelpful

I’m early 30s and making slightly over 200k base and feel like I’ve got no shot to enter the housing market around here. How are others reconciling cost of living with non tech incomes? What are you long term housing plans?

like

Tax peeps: odd and morbid question but if you die young/before retirement age, what happens to your retirement accounts (401k, IRA, HSA, etc)? Do your beneficiaries get taxed like it is an early withdrawal? Or is it not taxed on withdrawal but rather as regular income for beneficiaries?

likehelpful

With upcoming increases in interest rates, is there any possibility of rents falling in the next few months? Has it ever fallen before?

likefunny

Does anyone know the down payment requirements for a Jumbo loan?

like

What are the different tax reduction options for someone new to the US?

like

Who all feel left out because you’re not wealthy enough for big tax cuts but make just enough not to qualify for stimulus or loan forgiveness?

likefunnyuplifting

Lease a bmw or buy a used bmw and sell it 3 years later?

like

Curious to know how much your student loans were when you graduated from your program, how much you’ve paid off so far, and your age. If you have any varying factors too, like kids, income range, etc. Just trying to see if I’m on track or slacking in life. I am 34 yo, i graduated with 95k in student loans, i currently have 85k left and i make 85k in come. I’m also a single mom with two kids. Just praying for 100% student loans forgiveness. Wishful thinking???

like

Homeowner🐟

What 30 year interest rates have you all been seeing lately?

like

Anyone from deloitte got details on the MD pension plan? (Not partner)

like

More Posts

On my way to my third session with my new therapist. I think after this one is when I’ll decide if I’m going to move forward with her.

Anyone else have trouble finding the right fit?

like

Hi Everyone , I am in hiring procedure for Front end React js developer for Sapient , I have cleared my first round , the 2nd round is purely on react js cna someone suggest me some topics which I can prepare to get through. Any help would be appreciated. thanks

Why is the employer not giving a complete pf amount?

For ex- Employee is contributing 3900 but employer is contributing only 2650 .
Why are they deducting 1250 ?

like

Hi folks ,

could you please help me to understand ctc .
monthly in hand ??

Post Photo
like

Ok, so I messed up. I thought I had pressed hold when I turned to a coworker and said the customer was “one of the rude ones.” …turns out she wasn’t on hold, and heard me. How do I apologize to my boss?

like

Hi Fishes, I have salary discussion round with McKinsey tomorrow for senior software engineer role. My current CTC is 21 LPA and YOE is 7 years. What is the reasonable salary to ask? TIA

like

Grant Thornton employees: I lost my 2019 W-2 and left the firm. Anyone know the best number to call to get a copy or a portal I can access to pull it down?
TIA!!

like

Anyone in Nagarro from TechMill?
Did you guys receive revised compensastion post Nagarro acquisition?

like

Are there any serious Funds still running with a long thesis on Tesla at the moment? Valuation looks absolutely stratospheric from where we’re sitting.

like

Hi Fishes,
If i order Headset from capgemini service central portal, will be charged for the headset.
Please let me whether it will be charged or not so i that i can cancel the order at the earliest.

like

Thinking to start SIP.
Should I invest through any app or directly from MF amc website?

Does ET MONEY app charge any monthly or yearly commissions??Also while withdrawing?

Or any other app?
Please suggest

like

What is the max salary that a Senior Manager with 15years of experience can expect from Adidas Germany? The role will be that of a senior Scrum Master.
They have asked me for a salary expectation and I have got no clue.
Thanks in advance.

Trying to move from manager to director of a team that I’ve grown over the last 14 years. It’s a very small team, but impacts almost every deal the company makes.

I’m concerned they’ll say the salary bump I want (25%) is too high, however I see comparable roles with other companies for $175 - 200k.

I’m at $120k, asking for $150k.

Any suggestions to help make my argument, or does this salary even make sense???

How do I get the biggest increase WITHOUT jumping to another company?

likehelpfulsmart

How accurate are the ratings on Glassdoor, specifically for Huge. Bonus if you can speak to the Toronto office.

like

PwC announced they will still have raises and bonuses. Raises only for promotees, bonuses are smaller. No layoffs

like

First time, pay rate for CMA

like

I’ve been listening to “millionaires unveiled” (highly recommend for FIRE content) and it seems like every other guest ends up doing real estate investing. If you do it, what books or online courses would you recommend to get started? If you have experience in real estate investing, would you ultimately recommend it?

like

Guysss!!! I have my final exam June 3rd for AUD. It’s only 25 days away so I definitely don’t have time to cover everything but is there anything I should hit most on?? I just want this exam over with.

like

Anyone know what it's like at Lucky Generals NY office? I only know the work the London office is producing.

like

Additional Posts in The Real Estate Bowl

Think I could convert this into a 3B2B? Would that increase the value/rent potential or would it not really matter since it would be smaller bedrooms/small living space?

Post Photo
like

Anyone pay more than the mortgage? We are thinking of paying extra few hundred to help pay off mortgage faster... good idea?

What are some of the hardest lessons you learned investing in real estate?

like

Those living in 1960s & 1970s homes, how do you overcome the fear of asbestos in home materials even though the home has been updated. Any tips overcome the worry? Not yet tested for asbestos

like

I have locked interest rates of 5% with rocket through a broker, closing is in July .. heard from few influencers rocket doesn’t close on time.. any feedback on rocket 🚀

like

Found a townhome that’s right on Lake Lanier and a new construction. It comes under the Buford High School so ticks all the boxes. I am unsure if it will be difficult for me to rent it out due to the location. This will be a rental property. New to Atlanta and suburbs so would appreciate opinion from folks who are local. Thanks!

like

The amount of interest I’m gonna pay over the life of my home mortgage is disgusting.

like

Planning to refinance for 30 year at 3% with a 1500 refinancing cost. Is it a good rate? Currently at 3.35% - 5/1 arm.

like

From a financial standpoint in this market, which would be a better approach in Austin -

1. Buy a ~8-850k house that meets most of our ideal criteria (size, schools, interiors etc) to stay long term

2. Buy a ~5-550k house that’s not ideal with the plan of moving into an ideal home in 4-5 years when kid is ready for school.

How easy is it to get a mortgage for the second home?

Household income - 300k

Happy to add more details as needed

Thanks

Rental property in Austin or SF Bay Area?
I could get 2 in Austin with cash in hand or 1 in SF Bay Area

like

I want to buy more property to get better cash flow. I have a condo in Chicago that I rent and now live in FL. It has great cash flow but thinking about selling and buying closer to where I live. What advice do you have for someone starting out?

likehelpful

While shopping around for mortage, will my credit history be impacted every time I get quotes? If not are there any restrictions on with number of lenders you can get quotes from without impacting credit history

like

House built in 1935. It was recently totally flipped (we are making an offer on the most recent done unit). My realtor is suggesting to forgo the inspection and says “I haven’t had a single inspection all year”. It makes me feel squeamish though given the age of the house, even though it all looks brand new. Any experience here that could shed some light please whether good or bad

like

Took personal loan of 30k a year ago and have 20k left to be paid. My savings are 50k which I saved to invest in real estate. Should I use them to clear the loan or use them for investment?

Potential first time home owner just getting started. Current net worth is 130k+, mostly invested in stocks. Looking to diversify, so my current plan is to buy a multi-family unit and rent it out for supplemental income. Any tips for figuring out an initial budget?

like