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hey folks, I am going to join Oracle ossi in Hyderabad location. I have never been to Hyderabad, and will be relocating. Please guide on what would be good areas to look for rent. Also, what would be rent like for 2/3 bhk. Ideally my budget for rent would be <25k. Initially I will be going but in future my family will join me once I am settled. Any points to note or any other gotcha to keep in mind ? Please suggest.
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Ask chat gpt. I do that a lot with these type of questions. Rates are still high, I really don’t know.
Mentor
An ARM isn’t a bad idea. I wouldn’t go 15 year unless you think rates aren’t coming down anytime soon.
🤷♂️ recently had to get a mortgage. The Fed is no help. Kalshi still says 2-3 rate cuts this year. There is a formula for if points are worth buying based on the amount of savings, it’s a number of months to break even. I chose 30 year fixed, no points. To save money on points it usually comes out to keeping the loan 40+ months which I’m not planning to do. More like 12-24 months. I didn’t get a good rate either 7.1% with 758 credit. My closing costs were low. The only risk with an ARM is if rates don’t go down like expected, in 5 or 7 years it could adjust and payment goes up. I’m gonna say it’s a low risk but it’s not impossible. Or if your credit gets messed up and you can’t refinance I don’t want to be stuck with an ARM.
I’ll answer a few: if you’re going to rent it out, I don’t love an ARM because if rates fluctuate you can’t really make the property earn more money, especially with a condo. Unless you’re making a ton of money at your W2 it wouldn’t be fun to pay out of pocket every month even if it’s rented. It’s going to be very hard to be cash positive after all expenses on a 15 year, so I’d recommend a 30 unless you are okay with losing money monthly for a few years and the idea of a large debt balance makes you nervous.
Agreed. With 20% down you are lucky to be cashflow positive to begin with…
I own two condos that I lived in the past and rent them out. I never intended to own them as rental when I initially bought. It’s just that I bought at lows of market (relatively speaking) but even then between tax, maintenance, and ever-increasing HOA I’m just breaking even. I even have had to choke up special assessments. Only reason I keep them is for building equity to diversify from only owning stocks or funds.
Get the sense this is your 1st investment purchase, because you're basing rates on 'assumptions.'
Instead, run the numbers in the worst, flat and best case scenarios for a rental. You want cashflow. What is a realistic rate that can cover your expenses?
If you are looking to turn this into a rental see if you are able to get a DSCR type product. Beneficial to have an LLC to house this under as well
Your lender should be able to tell you the return on your investment if you buy your rate down based on the cost of the points. There's no way to determine if it would be worth it without seeing the pricing sheet. 15 year loans typically have better rates.