We did this for the first time this year. Biggest adjustment was having to repair old house, purchase new house, quick repair new house and float the first 1-2 months or two mortgages,
@@Love4puppies it was stressful especially over the holidays and having a baby but now it feels like things are regulating. You can do it, just take all the precautions you can.
@@derricklopez2054Thank you! I really appreciate it! That reassurance always helps. Sometimes it's hard because of people saying why are you buying when you have a great rate and low mortgage and going to have higher expenses. But if taking on more expensive temporarily for the health of your family makes sense, then I think it is worth it. Nevertheless, it is nice to know that others have felt the same way, and it all worked out. Congratulations to you and your family and thanks for the support and encouragement:)
@@HeyJaredHowYaDoin we are doing well now. To me, well means that the rent from the first house is paying for the mortgage of the second house and we are stable now. This is more of a long term play for us and we aren't looking to make a large profit in the first few years, just for assets to appreciate and cover each other. One of my biggest tips would be don't assume you will get top dollar or a plethora of applicants for your property. Get with a professional in the area, or do your own research, of what comps are for rents in your area and how long they are vacant. We got lucky with our recent renewal, but it would have been just as financially burdensome if we had a 1-2 month vacancy. Any capital improvement projects, make sure you are doing things that are neutral and not too niche where you really limit your pool of interested applicants. Also, make your move serve another need if possible. For us, we moved closer to family in order to offset daycare costs and that further justified the decision. If you can save time or money day to day by relocating to a more advantageous location, that helps but isn't necessary.
along the lines of tenant proofing... might I strongly suggest making bathroom exhaust fans turn on automatically with the lights. Speaking from experience!
You didn't mention the loss of the homestead tax cut. If I rent out the main house and live in the back, what are those tax implications, both homestead and depreciation wise? You have to choose one?🤔
David ended the show by talking about buying a primary residence with a low down payment loan, requiring less money for the deal. Only question I have is if the interest rate is a little high, and you want to refinance in the future, would it be a better idea to have more down to cover if the house doesn’t appraise as high during these high home prices we are still having. For example, my house goes down in value 10,000 in the next year and I try to refinance with my little equity since I put a low down payment down, and I need cash to close the deal. Suggest waiting out the interest rate refinance until there’s more in the home?
Great video, thank you! I’m planning to rent out my primary house of last 2yrs in next couple of months, do you recommend renting it furnished or non furnished for long term? Please advice your opinion 🙏🏻
I really appreciate the straightforward presentation and usefulness of this information. You guys have a great show. I was considering renting my primary home and moving around a bit (wife and I are recently retired) but our primary has a pool. After watching this show and getting real about my own risk tolerance I've decided against it.
We paid off our home last year in June. So we have about 400k in equity in the house. The plan is to hack a 4plex this year. My question is will a Hloc affect my DTI and the amount of 4plex I can qualify for?
My understanding is yes it will but heloc are split up into the draw period and repayment period. A typical example is a 5 year draw 15 year repayment. During the draw period your monthly debt obligation is only the interest on the amount rather than during the repayment period both the interest and the principal affect your DTI. So if you were to get the HELOC, then use it as the down payment on the 4-plex, the loan you get for the 4-plex would only consider the interest on your heloc for your DTI. Double check this with the lenders you use for your HELOC and your 4-plex mortgage but this is my understanding
Would you be open to doing a live stream together sometime. I come from decades of working at the large, national and statewide Property Management organizations. I recently started a side consulting business where I train the small landlords all the tips and business practices that we teach our leasing agents on over at that side of the industry. Topics include leasing safety protocol, business practices to minimize fair housing issues, marketing and advertising dos and donts, techniques and tips on application processing, creating properly worded screening criteria, etc.
2:30 how are they legally allowed to tell you what you can do with YOUR PROPERTY?? I understand external modifications but internal? that cant be legal
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
We did this for the first time this year. Biggest adjustment was having to repair old house, purchase new house, quick repair new house and float the first 1-2 months or two mortgages,
That is what we are planning but will be moving out of state.
And it is a bit overwhelming
@@Love4puppies it was stressful especially over the holidays and having a baby but now it feels like things are regulating. You can do it, just take all the precautions you can.
@@derricklopez2054Thank you! I really appreciate it! That reassurance always helps. Sometimes it's hard because of people saying why are you buying when you have a great rate and low mortgage and going to have higher expenses. But if taking on more expensive temporarily for the health of your family makes sense, then I think it is worth it. Nevertheless, it is nice to know that others have felt the same way, and it all worked out. Congratulations to you and your family and thanks for the support and encouragement:)
@@derricklopez2054 I want to do this with my first home in probably 3-5 years, just curious how it is going for you and if you have any tips?
@@HeyJaredHowYaDoin we are doing well now. To me, well means that the rent from the first house is paying for the mortgage of the second house and we are stable now. This is more of a long term play for us and we aren't looking to make a large profit in the first few years, just for assets to appreciate and cover each other.
One of my biggest tips would be don't assume you will get top dollar or a plethora of applicants for your property. Get with a professional in the area, or do your own research, of what comps are for rents in your area and how long they are vacant. We got lucky with our recent renewal, but it would have been just as financially burdensome if we had a 1-2 month vacancy.
Any capital improvement projects, make sure you are doing things that are neutral and not too niche where you really limit your pool of interested applicants.
Also, make your move serve another need if possible. For us, we moved closer to family in order to offset daycare costs and that further justified the decision. If you can save time or money day to day by relocating to a more advantageous location, that helps but isn't necessary.
along the lines of tenant proofing... might I strongly suggest making bathroom exhaust fans turn on automatically with the lights. Speaking from experience!
You didn't mention the loss of the homestead tax cut. If I rent out the main house and live in the back, what are those tax implications, both homestead and depreciation wise? You have to choose one?🤔
This was an amazing video very helpful and insightful. I only wish they maybe would of touched on some advise for structuring a solid lease agreement
I'm starting the process of renting my primary home and this was extremely helpful. I've taken lots of notes I didn't think about before this video!
I can’t get over how many times Rob has referred to flour as a spice 🤣
David ended the show by talking about buying a primary residence with a low down payment loan, requiring less money for the deal. Only question I have is if the interest rate is a little high, and you want to refinance in the future, would it be a better idea to have more down to cover if the house doesn’t appraise as high during these high home prices we are still having. For example, my house goes down in value 10,000 in the next year and I try to refinance with my little equity since I put a low down payment down, and I need cash to close the deal. Suggest waiting out the interest rate refinance until there’s more in the home?
Love the Chick-fil-A reference
Great timing! I am considering doing just this!
Great video, thank you! I’m planning to rent out my primary house of last 2yrs in next couple of months, do you recommend renting it furnished or non furnished for long term? Please advice your opinion 🙏🏻
I really appreciate the straightforward presentation and usefulness of this information. You guys have a great show. I was considering renting my primary home and moving around a bit (wife and I are recently retired) but our primary has a pool. After watching this show and getting real about my own risk tolerance I've decided against it.
If an area doesn't allow you to rent out your property long or short term, maybe you should sue and get it overturned. It is your property.
Thank you for this helpful video!
#1 podcast
We paid off our home last year in June. So we have about 400k in equity in the house. The plan is to hack a 4plex this year. My question is will a Hloc affect my DTI and the amount of 4plex I can qualify for?
My understanding is yes it will but heloc are split up into the draw period and repayment period. A typical example is a 5 year draw 15 year repayment. During the draw period your monthly debt obligation is only the interest on the amount rather than during the repayment period both the interest and the principal affect your DTI. So if you were to get the HELOC, then use it as the down payment on the 4-plex, the loan you get for the 4-plex would only consider the interest on your heloc for your DTI. Double check this with the lenders you use for your HELOC and your 4-plex mortgage but this is my understanding
Can't you go conventional and add the rents to your income ?
@@legacyopp9318this is the way - much better interest rate.
Would you be open to doing a live stream together sometime. I come from decades of working at the large, national and statewide Property Management organizations. I recently started a side consulting business where I train the small landlords all the tips and business practices that we teach our leasing agents on over at that side of the industry. Topics include leasing safety protocol, business practices to minimize fair housing issues, marketing and advertising dos and donts, techniques and tips on application processing, creating properly worded screening criteria, etc.
Thanks for sharing
Thank you great video
how many people actually put the correct reference of a prior landlord ?
Which city
Henry sounds a lot like Giancarlo Esposito. Is like having Gus Fring from Breaking bad or Stan Edgar from The Boyz talking real estate.
Minimum credit score 700, NO FELONIES PERIOD! 2.5 times rent MINIMUM, Employer and ex landlords called. ANYBODY ELSE OK.
I totally agree. The 600 credit score will bite you
@@legacyopp9318 The 700 will not. Never has or will.
What metric do you use for credit score?
There is equfax, TransUnion,experian.
I noticed that kredit karma shows a 740 FICO as a 680.
2:30 how are they legally allowed to tell you what you can do with YOUR PROPERTY?? I understand external modifications but internal? that cant be legal
regarding renting it out*** POA/HOA can infringe upon that?
Henry? Your kids are going to BOND with that house.
Is this the same as house hacking?
Blessings 💐💐💐💐💐💐💐
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
I hope to find someone who will rent my house for a year for $2,400. It is a small house and the roof can see the Nile
🙌🏾🙌🏾🙌🏾
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Wooden decks are desperately overrated.
WE DONT LOVE THEM HOMES lmao
Can't trust an inspector from the realtor. Get a good handyman for a second opinion that has eyes you don't.
If they didnt budget for their medical bills they wont budget for their rent. Minimum credit score always.