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MrRumpus

Advice

  • (6 Contributions,
  • 0 Best Answers,
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Young couple buying first home / Looking to develop rental properties...

Hello, I am 24, recently married to my gf of 5 years. We both rent and are looking to purchase a home and start building equity. With our careers we may or may not stay in the area over the next decade, but certainly for the next 5 years or so. Together we have $30,000 saved for the purchase, good credit (750), and we make 50k and 40k respectivley. We currently live in Tampa, FL where there are a plethora of empty homes for sale. I have had members of my family own rental properties as a side business which has been great for them financially over the years. We would like to do the same. We intend on purchasing a home to live in with the goal of eventually moving on and making it a rental property in the future. I am seeking feedback as to the best way to go about this and things to consider. I figure we have paid about $1000/mo in rent over the last few years. If we put $30,000 down on a house and maintain our current payments of $1000/mo for a range of 3-5 years, that puts us in the $60k to $80k price range. Somthing like: http://www.zillow.com/homedetails/3028-Pinon-Dr-Holiday-FL-34691/46478053_zpid/ OR http://www.zillow.com/homedetails/11240-Corey-Pavin-Ln-San-Antonio-FL-33576/46353043_zpid/ Its a business decision. We don't need a "dream home" right off the bat, but we do want a halfway decent place. 3-5 years later, we move, rent out the place, generate income. Thoughts? Advice?

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Helping Parents Buying A Second Home Out Of State

Hello,My parents currently live in NY and wish to purchase a home in Tampa, FL in the $50,000 price range. They will spend winters here in a few years after they retire. I live in FL and intend to do the footwork for them as I will rent the home in the interim. The long term plan is that the house will eventually be signed over to me someday.My questions are:Must we deal with a lender in NY or FL?What problems should I be prepared for considering my situation?Thanks!

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Qualifying for financing a home with parents.

Hello, I am 24 and am in the position to purchase a home in the $50k price range in Tampa, FL. I am able to pay for the house myself if I can qualify for a mortgage. My parents are willing to help me qualify by co signing Etc. I need help in coming up with a concise plan of attack to qualify for a home. Facts: I have 15k for a down payment. I am self employed. I have a credit score of 720 My parents have excellent credit, and have paid off their home. What is the type of loan/mortgage I should be looking for? Where do I start?

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24 Y.o. With burning desire to purchase a home.

Answer

Suzie Thank You for the advice! Let me clarify on the roommate situation. I view the roommates as a means of expediting the payment of the property only. Their presence only sweetens the deal from my perspective and is not relied on to pay for the property. With my down payment (up to 15k) I would assume that mortgage payments would be affordable for me. For the last two years we have paid the low-low price of $400 x 3 a mo. In the past I have paid up to $600 a month, comfortably, when I lived on my own. Am I wrong in assuming I would not be able to afford mortgage + insurance + taxes? I do agree with the rent vs own sentiment that I would feel and they wouldnt. I.e. breaking things, stain the carpets etc... I also agree with the possibility of them resenting the fact that they are essentially building equity in a home for me. This is an excellent insight on your part. It is certainly a possibility. I would mention though that I have been very up front with the roomies these past two years in that I have a rental house and all bills in my name to build MY credit and they are more than welcome to stay with me and enjoy little responsibility other than $400 + bills at the first of the month. Their overall sentiment is that this is weight off their backs and they can focus on their own situations. Trust me I have talked their ears off about purchasing a home of my own. Also, i have proposed the scenario of combining our cash and purchasing a home outright to which they haven't the slightest interest... I do agree though, when things change, things can change... Thank You for your post. You have brought up several excellent ideas for me to consider. P.S. Love Dave Ramsey!

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24 Y.o. With burning desire to purchase a home.

Answer

Thanks for the input thus far! I don't expect the roommates to be considered when applying for a loan. I mentioned this just to highlight the fact that I have had money coming from them the last two years, just going through me to the landlord instead of building equity for me... Being self employed will defiantly complicate things...I had the opportunity to enter into my own business through my last "w-2" job. We are doing great even in this economy but as of filing last year we were only 6 mos. old. I have 8 years of W-2's prior to that though. Also, as a last resort, my parents have their home paid off and are willing to sign for the home fully in their name. Is it possible to still have my name on the house in some way? With my family as the primary signer? I have read horror stories about involving family into these things but I feel that with a concise plan this can be avoided... I will certainly get a home inspection when the time comes. I don't want any lemons... Thanks again for the input guys, your posts here and elsewhere throughout this forum are extremely valuable to me in my quest!

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24 Y.o. With burning desire to purchase a home.

Hello, I am 24. Over the last 5 years my various roomates and I have paid over $60,000 in rent. I am very interested in buying a home. I am seeking advise on the plan I have developed thus far. I am looking to purchase a 3/2 home in the $50,000 price range. I live in Tampa, FL I have $15,000 cash on hand. I currently make 30k a year. I have a credit score of 710 My parents are willing to co sign I have two roommates willing to sign a 2 year lease at $400. (They have sublet to me on these terms for the last two years) This is equal to about 19k over two years. I own my own business if this has any tax benefits...? I am interested in building equity in a house now and retaining the property as rental income later in life. The way I see it, I'm going to have roommates anyway... Why not use my current living situation to build a future? I see houses that meet my standards in the 40s and 50s. Is purchasing a home in the realm of possibility for me? Advice?

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