Related Posts
Hello! Is anyone working at Spotify or HubSpot within product/project management that would be willing to connect for a virtual coffee chat?
I’m a recent grad and currently working in tech/product development. I have been interested in growing my career at either of these companies and would be grateful to gain insight on day-to-day and steps you took to successfully break in.
I know this might be a big ask here, but it’s been difficult trying to land one on LinkedIn. Thanks in advance
Since Covid-19 who else has lost big accounts?
How is dbs project for bigdata?
More Posts
Can someone rejoin TCS
Anyone here “overemployed”?
Additional Posts in Personal Investment Chatter
Any thoughts on ARKK and MGK ?
Best investment book recommendations?
New to Fishbowl?
unlock all discussions on Fishbowl.
Option 2 is not advisable based on those numbers
Then really not advisable
Dont forget the cost to maintain a house per year. If you buy a $1m house rule of that thumb is 4% in annual maintenance costs although probably lower nowadays but still comes out to $3k per month. Also - you’re not putting IKEA furniture throughout a million dollar home.
Maybe I should specify but the other part of the home would be rented out. So furniture does not have to be expensive, if provided at all even.
Pro
Have you talked to a lender? You will likely need more than $150k to successfully buy a $1m property.
How much would the second side rent for? What would your cash reserves be for the second side?
Have you considered buying your $600k house and spending less money on a second property in another state instead of the duplex?
Pro
You should talk to a lender or broker to get the numbers and details. Will depend on a number of factors. Keep in mind that a $1m property is a jumbo loan, which has slightly different requirements…
My HHI is $500k, no debt, and I would not buy a house for $1m.
This is to rent out units within the multi family, not just a personal home so I’m expecting rents to cover a good portion of the mortgage.
Are you renting out part of the multi family for income?
Yea that’s the plan .. should have specified.
Is the increase of $35k/yr in HHI the net income you’re projecting from rental income on the multi family? If so, then that is financially the better move. As long as you’re factoring in all expenses, including the increase in property taxes from a $600k property to a $1MM property, it’s a 8.75% cap rate if you look at from the lease of additional $35,000 income on an extra $400k tax investment.
There are other factors to consider though— are you ok living in a multi family home compared to a single family? I could see pros and cons with being close in proximity to tenants…. Also, how many units is the property? Make sure you can do a home mortgage on it. Many lenders require business loans for properties with more than 4 units. This means shorter terms, amortization schedules, and higher rates.
Good luck!
I would start with a mortgage officer at your bank and go from there.
Option 1 in 2 years.
Gotcha, but that’s all, I’m sure you’re doing your homework on this!