TJT
Mr. Poopybutthole
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So in a few years this will climax? Or do you think its faster approaching than we realize?
Home buying thread
- Thread starter Pasteton
- Start date
Blazin
Creative Title
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Sanrith Descartes
Veteran of a thousand threadban wars
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Sanrith Descartes
Veteran of a thousand threadban wars
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Blazin
Creative Title
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Sludig
Silver Baronet of the Realm
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Trying to spook me into selling now. Wanted to get 3 years rent, but a 50k price drop on 500k would erase all your earnings. I suspect I'm already going to be sad when i see how much i get taxed in rental income.
Would like to rent at least 6mos to a year to ensure we don't need to come back if new state doesn't work out. That and probably need some time to get it ready for sale more than just renting it would take.
Though only having it a year might get me destructive tenants
Would like to rent at least 6mos to a year to ensure we don't need to come back if new state doesn't work out. That and probably need some time to get it ready for sale more than just renting it would take.
Though only having it a year might get me destructive tenants
LiquidDeath
Magnus Deadlift the Fucktiger
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For the life of me, I can't understand people with smaller (3/2, 3/1, 2/2) homes selling them even if they expect some kind of crash soon.
These are the most affordable houses in existence. No one is building anything other than 3/2 new and those are not being built at prices that the lower part of the market can afford. Those older, smaller houses just become more and more valuable as rentals, especially in red states seeing a huge influx of new residents, and any short term loss in value will more than be made up in the long term through rent and eventual appreciation.
Everyone keeps comparing the current situation to the 2008 crash, but the underlying facts are completely different. The famous example from Big Short was the stripper owning 3 properties because they just gave away bad mortgages to even worse applicants. The current market is nothing like that.
These are the most affordable houses in existence. No one is building anything other than 3/2 new and those are not being built at prices that the lower part of the market can afford. Those older, smaller houses just become more and more valuable as rentals, especially in red states seeing a huge influx of new residents, and any short term loss in value will more than be made up in the long term through rent and eventual appreciation.
Everyone keeps comparing the current situation to the 2008 crash, but the underlying facts are completely different. The famous example from Big Short was the stripper owning 3 properties because they just gave away bad mortgages to even worse applicants. The current market is nothing like that.
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OU Ariakas
Diet Dr. Pepper Enjoyer
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Destructive tenants almost do not exist once you get into middle class renters. If they value their jobs or credit scores a huge unpaid damages bill that either goes to small claims court or put on their credit report is akin to financial suicide. If you are really scared then only rent to a military family and make sure they give you the active duty person's superior officer because if they get any complaints off base then they can be forced to live on base for years. I've been told that is a fate worse than death.
Jysin
Ahn'Qiraj Raider
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Yep, this is landlord 101. I had an old colleague who thought having a bunch of budget apartments would balance each other out with multiple rental incomes. What he found was just shitty tenants who missed payments, trashed the places, and had all kinds of other issues. He sold the apartment blocks and stuck with solidly middle-income families and those problems rarely ever happen now. Quality over quantity all day long.
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Khane
Got something right about marriage
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It took me almost a year to fill my apartment last time I had a vacancy because I was searching for GOOD tenants. Good thing I did because less than 4 months later COVID hit and they didn't miss a single payment even with all the shit that was going on. I almost rented to some lesser quality tenants when I started to lose my patience with only getting really, really bad applicants (like 490 credit score applicants... how can a credit score even get that low?). Lost a bit of money in the short term not filling it sooner but ended up likely getting way more money with way less hassle as a result since they are still here and show no signs of leaving any time soon.
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Lanx
<Prior Amod>
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Khane
Got something right about marriage
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People contact me with interest, I ask them a few questions and make sure they know this is a higher end apartment and what the rent price is and then I notify them I can't accept rental assistance programs because the apartment is priced out of HUD's "fair market value" range. Most of them lie to me about being able to afford it and schedule an appointment to walk through it. I walk through it with them and then let them know about the application process and fee they have to pay which includes a credit and background check, and these fools go through with it anyway despite me warning them I do care about the results of those reports.
The 490 credit report was just a list of delinquent everything. The person in question didn't care about anything, just racked up a bunch of debt in the form of credit cards and vehicle loans and never paid a dime on any of it. All at once. I *almost* rented to a couple with a ~660 credit score because that was the highest score I saw in like 4 months of applications. The couple I ended up renting to had a credit score of 750.
The 490 credit report was just a list of delinquent everything. The person in question didn't care about anything, just racked up a bunch of debt in the form of credit cards and vehicle loans and never paid a dime on any of it. All at once. I *almost* rented to a couple with a ~660 credit score because that was the highest score I saw in like 4 months of applications. The couple I ended up renting to had a credit score of 750.
Sanrith Descartes
Veteran of a thousand threadban wars
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Not renting to people with credit scores sub-500 is racist. The black people says so.
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Honestly we should just let the blacks stay for free bc reparations!
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fannie guidelines trying best to lower standards to get shit people in mortgages
Fogel
Mr. Poopybutthole
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The rich liberals who only live in gated communities would also say so.
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OU Ariakas
Diet Dr. Pepper Enjoyer
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This right here is how we get back to a true 2008 housing crisis bubble. I don't care for 2 reasons:
1.) In 2006 and 2007 people were getting banks to finance investment properties at 100% LTV as long as they had a good repayment history.
2.) Even if you don't have the investment P&L's to take advantage of the loan money you can wait for the crash and pick up some sweet foreclosures as long as you have cash to pay a mortgage at 80% LTV.
I was not in either of those positions pre-2008 so did not take advantage; if another one happened today I would be able to double or triple my real estate investing portfolio. So I say BRING IT THE FUCK ON.
OU Ariakas
Diet Dr. Pepper Enjoyer
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It's cute that you think our emergency savings and our investment funds are tied together.