First Time Home Buyer advice?

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Also I say don't worry about the mortgage insurance. Put as little down as possible. My first 4plex I added a carport, did some landscaping and added a deck and sliding glass doors to two units. Was able to increase rents, had the place reappraised then refinanced all in 6mos and then dumped the mortgage insurance.
 
So I could be wrong, but I've heard most lenders are very weary of lending for a condo, and typically want a very large percentage down. One of my buddies owns a condo unit and he said it's a pain in the ass for him to sell them because of this.

As for other advice, I'd say be prepared to take on all the new bills. Not sure what you currently pay for, but if it's just electricity, all of sudden you'll get water/sewer, garbage, and perhaps natural gas slapped on. Probably equates to $80-120ish for most people so its not a huge amount, but it is something to keep in mind. Also, be ready for unexpected expenses. No more calling the landlord if your refrigerator breaks, heater stops working, etc.

Lastly, and this is just my opinion...but if you find the perfect house for you but can't afford the 20% down, don't be afraid of the PMI costs. Yes, paying for PMI sucks, but if you end up skipping that house and end up settling on a less attractive one, that will always eat at you. Besides, it's not THAT expensive...most people get 20% equity within 4-5 years, if not sooner.
 
TehChad said:
So I could be wrong, but I've heard most lenders are very weary of lending for a condo, and typically want a very large percentage down. One of my buddies owns a condo unit and he said it's a pain in the ass for him to sell them because of this.

As for other advice, I'd say be prepared to take on all the new bills. Not sure what you currently pay for, but if it's just electricity, all of sudden you'll get water/sewer, garbage, and perhaps natural gas slapped on. Probably equates to $80-120ish for most people so its not a huge amount, but it is something to keep in mind. Also, be ready for unexpected expenses. No more calling the landlord if your refrigerator breaks, heater stops working, etc.

Lastly, and this is just my opinion...but if you find the perfect house for you but can't afford the 20% down, don't be afraid of the PMI costs. Yes, paying for PMI sucks, but if you end up skipping that house and end up settling on a less attractive one, that will always eat at you. Besides, it's not THAT expensive...most people get 20% equity within 4-5 years, if not sooner.
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In the condo situation, banks are considering the status of other units in the complex, as well as the solvency of the homeowners association.
 
For most Americans, there are 2 choices.

Rent a house, and have nothing to retire on and leave to your heirs.

Buy a home, and have a comfortable retirement and leaving your heirs a home.
 
MARIS61 said:
For most Americans, there are 2 choices.

Rent a house, and have nothing to retire on and leave to your heirs.

Buy a home, and have a comfortable retirement and leaving your heirs a home.
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... filled with ceramic cats, stacks of newspapers and Time magazines.

barfo
 
The USDA Rural Development loans ARE available in Hood River and I highly recommend them. A great way to start home ownership without a huge initial investment.

For a primary residence, I believe a home is a better investment than a condo or townhouse.

Land is the primary driver of Real Estate value. It will increase even as the home on it eventually wears out. Condo owners do not own land other than in a community sense. Condos are harder to finance and are a niche market making resale tedious. Lastly, look behind the curtain and realize a condo is just an apartment that you buy. Don't expect to feel "homeowners pride" once you move in.

I've done some looking in Hood River for a client who wants a home with a few acres. Mostly old homes needing major fixing, roofs, foundations...not much new stuff for sale. Cheaper across the river but slim pickings also. Windsurfers have made that market crazy high.
Whatever you buy HAVE IT INSPECTED. The couple hundred you spend could save you tens of thousands later, or give you a way to get the selling price lowered.
 
Location is what it's all about. You don't want to have the nicest house in a bad area.

Get that sewer checked out.

Remember that you aren't going to get that dream house on your first try.


Sent from my baller ass iPhone 5 FAMS!
 
I own over 20 properties, so my advice is to keep renting! I gotta eat son! Just kidding
 
Eastoff said:
So i started a new thread the other day about the subject, but basically my work is going to give me an ultimatum and I don't want to move. I've thought about going back to school as an option. I have a BS in Physics, and I've always been good at math. I considered trying to be a CPA or something that uses a lot of math and makes good money. As it stands I don't think I would mind an extremely boring job if it required a good amount of thinking. Do you two have some suggestions on the subject of career choices perhaps similar to yours? Perhaps a required education necessary?
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Where is your work making you move to?

Accounting isn't boring - it's about finding the right job for you. I enjoyed my life in public accounting until I realized what a toxic environment my office had. Most of the employees were motivated by fear of being chastised by a couple of the partners. I mostly had a free pass, but watching everyone else terrified wasn't so cool. That, and I ran the office and had to deal with cleaning up everyone else's messes in their work. I'm not afraid to work long hours, but I'm not sacrificing my time to work in such a crappy environment, so I left to work for my client. I now make more money, less hours, and enjoy work, and enjoy my life more. When you hate your job, it spills over into the rest of your life.

So, if accounting interests you, I'd advise you to find an accounting firm that you like and fits your beliefs. As long as you can enjoy it, stay. But if you decide public accounting isn't for you after a couple of years at a firm, there will be opportunities to leave and work for clients, or similar opportunities out there. Companies are always looking for people with experience in public accounting.
 
MARIS61 said:
The USDA Rural Development loans ARE available in Hood River and I highly recommend them. A great way to start home ownership without a huge initial investment.

For a primary residence, I believe a home is a better investment than a condo or townhouse.

Land is the primary driver of Real Estate value. It will increase even as the home on it eventually wears out. Condo owners do not own land other than in a community sense. Condos are harder to finance and are a niche market making resale tedious. Lastly, look behind the curtain and realize a condo is just an apartment that you buy. Don't expect to feel "homeowners pride" once you move in.

I've done some looking in Hood River for a client who wants a home with a few acres. Mostly old homes needing major fixing, roofs, foundations...not much new stuff for sale. Cheaper across the river but slim pickings also. Windsurfers have made that market crazy high.
Whatever you buy HAVE IT INSPECTED. The couple hundred you spend could save you tens of thousands later, or give you a way to get the selling price lowered.
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zomg I repped Maris!!! :MARIS61: :)

Agreed on what windsurfers have done here... F those guys!
 
BLAZINGGIANTS said:
Where is your work making you move to?

Accounting isn't boring - it's about finding the right job for you. I enjoyed my life in public accounting until I realized what a toxic environment my office had. Most of the employees were motivated by fear of being chastised by a couple of the partners. I mostly had a free pass, but watching everyone else terrified wasn't so cool. That, and I ran the office and had to deal with cleaning up everyone else's messes in their work. I'm not afraid to work long hours, but I'm not sacrificing my time to work in such a crappy environment, so I left to work for my client. I now make more money, less hours, and enjoy work, and enjoy my life more. When you hate your job, it spills over into the rest of your life.

So, if accounting interests you, I'd advise you to find an accounting firm that you like and fits your beliefs. As long as you can enjoy it, stay. But if you decide public accounting isn't for you after a couple of years at a firm, there will be opportunities to leave and work for clients, or similar opportunities out there. Companies are always looking for people with experience in public accounting.
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Pittsburgh,
Second point, I currently do not work in anything financial. I'm considering going back to school to change to that field. I forgot that accountants often work ridiculous hours. =\
 
SlyPokerDog said:
My advice is to buy a duplex, triplex our 4plex. You can use your FHA first time buyers to purchase it but they will only debt load you for your part of the mortgage. Meaning if you buy a 4 plex they will only debt load you for 1/4 of the mortgage because you have 3 other units to get rent from.

You may say, "but I don't want to live in a plex!" But after a couple of years the bank we look at this as investment property. Your rents will cover your mortgage so you are a good to get a regular home mortgage for a home you want to live in. Then you'll end up with investment property and a home.
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Be careful with this. It isn't as great as it theoretically sounds.

Currently, the banks are requiring 30% down on multi-family units and they are adding points to the interest rates. So it starts to cut into how good the investment looks. Additionally, you have multiple tenants to deal with. Also, the multi-family units tend to attract a lower income family which typically means more hassle for collecting rents, more problems with employment, etc, etc.

I also personally feel that multi-family units won't appreciate as well as single family homes. So you really need to look at the full cash-flow + appreciation estimates when analyzing this type of investment.
 
Eastoff said:
Pittsburgh,
Second point, I currently do not work in anything financial. I'm considering going back to school to change to that field. I forgot that accountants often work ridiculous hours. =\
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Seriously, don't be scared by the hours. The field has long had such a high turnover rate, as people get burnt out by the hours, there are a lot of firms willing to cap hours during tax season. I worked at a place that capped the hours at 60 (for everyone except the partners and myself). For most of the rest of the year, everyone worked 40-45 hours per week, except as needed around some deadlines (the partners and I were closer to 48-54 hours/week). But man, I loved being able to cash out comp time. Especially after tax season. I'd cash out $10K (pre-taxes).

I know plenty of places require you to take at least one day off per week (many firms only allow a few days off during tax season, that includes Sundays). So, do your research. There are a lot of great local firms you could work with (Perkins and Company has a great reputation). I'd say, with friends that have recently entered the field, about half have decided they love it, half did their time for 2-4 years, then went and took solid accounting jobs at cool companies.

As for Pittsburgh......... no thanks!
 
Look at it this way, youll always be employed if you become an accountant.
 
MARIS61 said:
Seems that would be the first job that computers could do better than man. Just math, right?:dunno:
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Go job shadow and accountant for a day. Not math. Honestly I don't even use math as much as you'd think. A lot of interpretation and understanding of theory, law etc.

And building personal relationships too
 
JFizzleRaider said:
Go job shadow and accountant for a day. Not math. Honestly I don't even use math as much as you'd think. A lot of interpretation and understanding of theory, law etc.

And building personal relationships too
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oh really... perhaps accounting isn't for me then HMmmm
 
Eastoff said:
oh really... perhaps accounting isn't for me then HMmmm
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Well it really depends on which career path you take for accounting.

An accounting degree opens a lot of doors for you, especially if you work for a public accounting firm for two years.
 
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