OT: House Buying

[dsbigred1]

How do I handle managing it? @MtnHusker

Do I go through a separate agency for renting it out or do I manage it by myself?

I have a company manage mine. 10% goes to them, but they handle evictions (which you really don’t want to have to do on your own), they keep it rented and handle maintenance, although there are additional costs with that, but not for labor in most cases.

 

[Jay Bilzerian]

Just hit one year since I closed on my house. According to online estimates, the value of my house has dropped a bit since I bought it. I think it'll be heading back up soon enough, though. It's 5 minutes from a big new highway that's supposed to open next year, and I think there's gonna be a lot of development around here in the next ten years.

As others have said, don't go house poor. I ended up buying a place that was only about 70% of the maximum loan amount I was approved for. It was a 'light' fixer-upper - basically it needed a lot of little things that I felt OK taking on myself, but the big things were solid.

For me, the biggest thing that I got from my realtor was that she was able to point out things about houses that I probably would've missed myself. Like they might not be certified home inspectors themselves, but a good, experienced realtor has seen enough shit that they can spot a lot of red flags. But I can say from experience that they're not all like that! If a realtor is just kinda letting you check things out on your own, or is only talking about the nice things, you might wanna find a new one.

And by the way, this is why you don't sign a long-term exclusivity contract with an agent - you don't wanna be stuck with them if they suck. Same goes if there's anything in the contract about them possibly acting as double agents, where the same person acts as the realtor for both buyer and seller - how are they supposed to represent the best interests of both sides? Big red flag.

But yeah, I think having a realtor can be nice just for sanity checking things, and maybe providing some reality checks too.

In hindsight, I could have saved some money by signing a 6-month lease at my old place, but I just went month to month instead. Ask the place you're renting from what your options for renewal are, and ask what the month-to-month rental rate is too.

Don't count on a fed rate cut anytime soon. We're probably still in for at least one more rate hike, with cuts not coming until next year at the earliest. And if we do end up in a 'soft landing' scenario, rates might not come down much at all.

Shop like crazy for rates! Hit up every comparison site and local agents. I ended up with a local broker that I think is just a one man business, but he got me a great rate (relative to when I purchased, which was after rates had started going up). When you apply to get qualified, check and make sure they're just going to do a 'soft pull' on your credit, which won't impact your credit score or anything.



Gonna have to disagree with you on that one. Realtors have a vested interest in getting you to close successfully and as quickly as possible. Because of that, it's in the realtor's best interest that the inspector not find any issues! Definitely find your own inspector, don't use the one your realtor suggests.

Couldn’t agree more with your last paragraph

I work for REMAX Lake of the Ozarks. I've been in real estate for over 20 years (Realtor, Mortgage Broker, Property Management) and our REMAX is hands down the most impressive real estate company I have ever worked for, and it is not even close. Our owners are all over this and do a great job keeping us educated on trends, predictions, issues, rates...... Our REMAX office has not only been the #1 Small Market REMAX Franchise for Transactions & Volume in the USA but also for the world, and we have won that honor for the last 4 years with odds on we win it next year too. No Small Market REMAX sells more than us anywhere in the world. Even though we represent only 11% of the agents on our MLS we sell over 40% of the Lake of the Ozarks and did over $750,000,000 in business last year. Our owners are buying themselves right now. Smart honest guys that I trust 100%.


If you have concerns about buying now watch that video. There is so much that goes into interest rates and home prices. Don't focus on the Here & Now, as it will change. We think rates will be around 6% or lower at the end of the year and maybe getting down into the 4's in 12-24 months. You are renting the rate right now.

As for applying for a Loan there are so many options out there. There are USDA & VA Programs where you can put Zero Money Down. FHA Loan Programs that you can put down only 3.5%. But you do pay Mortgage Insurance on most of these programs until your home reaches 20% equity owned by you. Conventional Loans you typically put down 20% which if you can swing that gives you some of the best rates and lowest monthly payments. Also currently Average Rental Rates are increasing at a much higher rate than home prices. It's a great time to be a home owner or landlord due to our nationwide housing shortage so don't let the current interest rates scare you.

Off topic, but do you ever get to play the remax golf course? We’re headed out there next month.

 

[Jim14510]

If you’re looking for a turnkey property in Gretna, Millard, Papillon, or Bennington; Good fucking luck and prepare to pay 40k over asking.

I think it's slowed down some since then.

 

[HCFord1]

I think it's slowed down some since then.

It must have, there’s plenty of inventory available out west. Next to nothing in Dundee and Midtown.

 

[Pipe Line]

I'm kind of the in the same boat. Been doing some research here and there today and it seems a lot of the major banks are about 6.25%. Anyone know anywhere cheaper? I got a pretty good interest rate for my truck, IMO, back in November through Omaha Federal Credit Union so I'm kind of focused there, but their website makes you call in for the rate so I'll probably do that on the way home from work.

 

[HCFord1]

I'm kind of the in the same boat. Been doing some research here and there today and it seems a lot of the major banks are about 6.25%. Anyone know anywhere cheaper? I got a pretty good interest rate for my truck, IMO, back in November through Omaha Federal Credit Union so I'm kind of focused there, but their website makes you call in for the rate so I'll probably do that on the way home from work.

Just use one of the online sites like nerd wallet or something to get quotes from National lenders, then take the best one and see if any local places can match it.

We ended up getting a rate 1% lower than any local shop could give us.

 

[Juro]

Can you afford to keep your current house, rent it out and buy the other one? Building a second stream of income, or passive income will pay off huge in the future. You might be able to include the rental income or part of it for your new income when trying to buy a new house. A good mortgage broker can do wonders. With prices going up you should be able to rent it out for far more than your mortgage. When we are looking at investment properties with a 30 yr mortgage we use what we call a 1% Multiplier. So if we are buying the house and it will cost us $200,000 will it generate 1% or $2,000/month in rental income. If it brings in that or more then we know if we buy it that we can put the profits or the extra rental income towards paying off the principal sooner that we can typically have that property paid off in 8-10 years. I have a bunch of friends, relatives & clients that are doing this as their Retirement Plan. I mentioned above that if I won $2,000,000 in the lottery today I would put that all into buying rental properties, and basically retire. Down here with that I could generate a yearly income of over $180,000/yr after paying a rental management company to run the properties. I'm not fancy like Applebees so could easily live off of $180.000/yr.

If you bought in 2019 your property may have gone up more than that. You bought at a great time, right before the spike in demand and prices. Our market has gone up over 100% since Jan 2020. I'd see if you can carry both mortgages. Invest for you & your families future. You might have that paid off in 10 years and think about how nice it would be to get an extra $2-$3,000/month in passive rental income

So we found a great home today in a very good neighborhood in Omaha at 4,200 sq ft.

Got pre-approved and all, but at a rate of 7.625% and the increase in property taxes, we can’t afford it without giving up a lot.

Fuck these rates.

 

[ChocaEgg]

So we found a great home today in a very good neighborhood in Omaha at 4,200 sq ft.

Got pre-approved and all, but at a rate of 7.625% and the increase in property taxes, we can’t afford it without giving up a lot.

Fuck these rates.

How many kids you got? 4200 can fit a lot of rugrats

 

[Juro]

How many kids you got? 4200 can fit a lot of rugrats

None currently. But at these rates, I’m going to stick them beneath the staircase and name them Herbie Potter to hopefully get some NIL funds to afford the monthly escrow.

 

[ChocaEgg]

None currently. But at these rates, I’m going to stick them beneath the staircase and name them Herbie Potter to hopefully get some NIL funds to afford the monthly escrow.

~3k is more than enough to have to try and maintain with kids. Hopefully you can afford maid service to help with the 4200'^2 (w or w/out kids)

 

[MtnHusker]

So we found a great home today in a very good neighborhood in Omaha at 4,200 sq ft.

Got pre-approved and all, but at a rate of 7.625% and the increase in property taxes, we can’t afford it without giving up a lot.

Fuck these rates.

or put in an offer with a 2-1 Buy Down. Basically seller pays for an interest rate reduction for 2 years. Then when rates are lower you refinance. There are so many creative ways to get around problems.

 

[Juro]

I got my house on the market yesterday and viewings lined up all day today and some tomorrow so far.

Looking to buy a home between 400-430k here in West O. Wish me luck, guys!

 

[Baron Winnebago]

I got my house on the market yesterday and viewings lined up all day today and some tomorrow so far.

Looking to buy a home between 400-430k here in West O. Wish me luck, guys!

If you'll go halfsies on murdering Jim, I think I can get you one in short order

 

[jickey moseph]

I got my house on the market yesterday and viewings lined up all day today and some tomorrow so far.

Looking to buy a home between 400-430k here in West O. Wish me luck, guys!

Good luck! I hope the equity you have in your house will help you immensely!

We're putting the house hunting to the side for now since the rates don't seem to be falling and the market is buns for our price range.

 

[Jim14510]

If you'll go halfsies on murdering Jim, I think I can get you one in short order

Under his price range.

 

[Baron Winnebago]

Under his price range.

Oh he's paying top of his price range for location/my silence

 

[Jim14510]

Oh he's paying top of his price range for location/my silence

Tricked you. It's really over his price range and now you have to pay the difference.

 

[Baron Winnebago]

Tricked you. It's really over his price range and now you have to pay the difference.

 

[Jim14510]

 

[HuskerDocCo]

livin in the omaha you sumbitch