Guys, as some of the members already know me here, i bought a tri-level attached condo in Portola springs (winter 2016) and i am under negative cash flow of around 5-6 k/year despite renting it out. :-[ :-[
Now, i am all the way on east-coast in Manhattan area and have been looking to invest to buy another condo or townhouse property - solely for rental purposes. >
1. As this will be a 2nd home purchase, the lowest investor interest rate i have heard so far is 4% on traditional 30 yr fixed mortgage?
1a) I just have a single income <100k , would bank consider giving me loan of 336K since i already have a 400k pending loan on 1st home - which has been rented out, but i still loose around 5-6k/year on it?
1b) Will bank consider equity built in existing condo? I think its around 30-40k (zip code 92618).
1c) Will bank consider that the property is rented out and is generating rent every month?
1d) I live in a rental myself and through some independent arrangements, someone else pays my $2575 monthly rent. A private lender might be a better bet for me to get another loan?
1e) MY FICO = 820 and going up more ;D ;D
1f) I remember bank looking at Debt-to-Equity Ratio: which is basically that a person can afford 3 times the monthly income? I forgot the exact word, but for example if someone makes 90k, they can qualify up-to 270k loan?
1g) I have all W2's and everything to prove that i have always been working.
2. As my max budget is 420k, with 20% down = 84K, i am looking at around $1600/mo (P&I) + $300 (HOA) and depending on the state/city i buy in = will have taxes calculated = so overall it can range from 1900+ CA Tax ($6300/year) or 1900+ NJ Tax ($10,500/year) or TX or CO Tax or AZ Tax depending on where i buy? Is this a smart decision to buy? Market is on a crazy bull run since 2013 now with no sights of tanking.
3. Considering my scenario, what would you guys suggest? My eventual 2-3 year goal is to move back to So CA for good, so buying locally within So CA or AZ or Nevada might be better? I understand that i have to worry about property management costs which can run upto $2500/year if i buy property out-of-state. Other worries can be bad tenants/evacuation procedures. That's why i am avoiding to buy anything in college towns and only want to rent it out to educated-stable families.
4. Again Just like Irvine, i am trying to buy either a brand-new built or 5-7 year old built property in excellent school district - such as Nutley, NJ or Edison, NJ or Chandler, AZ or it can be me hunting for something in OC - Lake Forest? Or i don't know what i can buy in 420k budget where i can get a break-even by renting it out?
I don't want to have dollars stinking into bank accounts and stocks/bonds/gold isn't my forte. So i need to invest.
Experts - please share your insights and advise, as always really appreciate all your help from all the amazing members on this forum.
Now, i am all the way on east-coast in Manhattan area and have been looking to invest to buy another condo or townhouse property - solely for rental purposes. >
1. As this will be a 2nd home purchase, the lowest investor interest rate i have heard so far is 4% on traditional 30 yr fixed mortgage?
1a) I just have a single income <100k , would bank consider giving me loan of 336K since i already have a 400k pending loan on 1st home - which has been rented out, but i still loose around 5-6k/year on it?
1b) Will bank consider equity built in existing condo? I think its around 30-40k (zip code 92618).
1c) Will bank consider that the property is rented out and is generating rent every month?
1d) I live in a rental myself and through some independent arrangements, someone else pays my $2575 monthly rent. A private lender might be a better bet for me to get another loan?
1e) MY FICO = 820 and going up more ;D ;D
1f) I remember bank looking at Debt-to-Equity Ratio: which is basically that a person can afford 3 times the monthly income? I forgot the exact word, but for example if someone makes 90k, they can qualify up-to 270k loan?
1g) I have all W2's and everything to prove that i have always been working.
2. As my max budget is 420k, with 20% down = 84K, i am looking at around $1600/mo (P&I) + $300 (HOA) and depending on the state/city i buy in = will have taxes calculated = so overall it can range from 1900+ CA Tax ($6300/year) or 1900+ NJ Tax ($10,500/year) or TX or CO Tax or AZ Tax depending on where i buy? Is this a smart decision to buy? Market is on a crazy bull run since 2013 now with no sights of tanking.
3. Considering my scenario, what would you guys suggest? My eventual 2-3 year goal is to move back to So CA for good, so buying locally within So CA or AZ or Nevada might be better? I understand that i have to worry about property management costs which can run upto $2500/year if i buy property out-of-state. Other worries can be bad tenants/evacuation procedures. That's why i am avoiding to buy anything in college towns and only want to rent it out to educated-stable families.
4. Again Just like Irvine, i am trying to buy either a brand-new built or 5-7 year old built property in excellent school district - such as Nutley, NJ or Edison, NJ or Chandler, AZ or it can be me hunting for something in OC - Lake Forest? Or i don't know what i can buy in 420k budget where i can get a break-even by renting it out?
I don't want to have dollars stinking into bank accounts and stocks/bonds/gold isn't my forte. So i need to invest.
Experts - please share your insights and advise, as always really appreciate all your help from all the amazing members on this forum.