Profile picture for jaguarxk8

Looking to buy a 2nd home

Here's our situation that am looking for some feedbacks

1st home
Currently owe $90k. Approx. value $ 270k per zillow. Home will be paid off by Oct 2013, right at 10 year anniversary as had planned.

Looking to buy a larger 2nd home but wondering if I should rent or sell. If I rent can I purchase a 2nd home with less than 20% down ? I suppose looking to avoid PMI

 





  • July 01 2012 - Ann Arbor
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Answers (6)

You can buy a new owner occ without issues due to the equity in your current home  Consult a reputable lender and also check with your tax person.  Having a another home benfit you more then you realize.  THere is no better investment then real estate.  Hold on to as many as you can!
  • July 03 2012
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Understand your query. From personal experience, we've had several rentals and not one of them worked out to our benefit. Most disfigured the home, punched in walls, drilled holes in hardwood flooring, ruined new carpets with pets that weren't allowed, and most would not pay on time. We grew tired of complaining in court where we were awarded several judgements and over 15 years have collected a minimum from one. Have heard wonderful stories of Good renters, but were were not that lucky.
Cost us more to repair than the rents we collected. That being said, think paying the 20% down to avoid PMI is less costly. Either way...Congratulations on your Great Plan to pay off in the 10 years you projected!!!
  • July 03 2012
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Congratulations in having the discipline to pay off your home so quickly.

You can buy a new home to make it your resident for 3.5 % and closing cost.

Trump and many big financiers said in recent times that the best thing to do today is to invest in home purchases.

Being that you are so disicpline and is such a good market and interest are so low, is a great opportunity to buy a new home to be your primary home and keep the other one as an investment.

You do not have to put down 20% but this is the only way of avoiding the PMI.  If necessary, I  will delay  paying off your current home to make sure you have the 20% to save the PMI on your next home.

Remember that your currrrent home will become a business and all expenses  will be tax deductible.

You are the kind of buyer I wish there were more off.
  • July 02 2012
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You can always refi the first home and rent it pay it off a few years later but maintain 2 homes instead of one. Real estate is a great investment in the long run so as long as you have a long term plan you should be fine
  • July 02 2012
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First ... congratulations on being financially wise!  That is great to see.

There are a LOT of variables that play into this before you determine the best fit for you and your situation.  I recommend doing some research and speaking with a couple real estate experts in your area who know the market, can determine answers around your house and that which you would purchase, etc. 
  • July 02 2012
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Profile picture for Ofe Polack
Have a word with at least two lenders and see which one offers you the best package.  If you have a financial consultant you may want to bounce it at him/her for tax consequences mainly.  The best of luck!
  • July 02 2012
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