carrying 2 mortgages

Discussion in 'Business, Careers & Education' started by thekunk07, Sep 21, 2010.

  1. edmorel

    edmorel Quality Seller!! Dubiously Honored

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    one thing that I would advise anyone to do in this current economic/job environment, particularly those with children still to go through college, is to load up on as much debt as you can get your hands on. Leverage to the hilt.
     
  2. gdl203

    gdl203 Affiliate Vendor Dubiously Honored Affiliate Vendor

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    East Egg or West Egg?

    kunk - will you throw some swell parties?

    [​IMG]
     
  3. thekunk07

    thekunk07 Senior member

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    you aren't far off..

    East Egg or West Egg?
     
  4. Piobaire

    Piobaire Not left of center?

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    How much equity do you have in the current house? Even a recently minted baller like you might have some problems getting this done unless you have major equity in the first house and are planning on slapping down major equity in the second house. Just before the RE market shitcanned, and my dream house plans got put on ice, I was in financing talks and the under writers were going to ask for a letter saying I was going to sell the current house and not keep it for a rental. As that was my plan, I had no problems giving them that letter.

    And then the bottom dropped out and I no longer had to worry about two mortgages at once.
     
  5. thekunk07

    thekunk07 Senior member

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    ^would be putting 20% down on the new one. I'd currently break even on house 1.
     
  6. HgaleK

    HgaleK Senior member

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    ^ i probably could/can, but have an obnoxious pre-conceived idea that most renters will screw me.
    My family had the same issue with the thought of renting out our old home, so instead found the right people, sold the place, and have a private mortgage set up. It's steady income without the having to fix their mess. To their credit, there haven't been any messes, and they have wonderful to deal with. Could probably get a hell of a deal worked out in this market too.
     
  7. thekunk07

    thekunk07 Senior member

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    ^that is very, very interesting. hadn't heard of that before.
     
  8. EL72

    EL72 Senior member

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    Unless you want to become a landlord (I am and it's working out fine but it's not for everyone), just sell your house. There's no reason it shouldn't sell quickly if you price it fairly.
     
  9. Piobaire

    Piobaire Not left of center?

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    ^would be putting 20% down on the new one. I'd currently break even on house 1.

    Remember, if you're breaking even, you're actually a commission behind (you have to pay the agent).
     
  10. Douglas

    Douglas Stupid ass member

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    About to be in the same boat myself. Not relishing the thought. We'll be fine but not saving nearly as much as desired and will definitely have to trim the lifestyle back several notches.

    Considering renters but will probably not be a pretty picture. Hoping to rent just for a year or two and hopefully the darkest clouds will have dissipated by then.
     
  11. grundletaint

    grundletaint Senior member

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    buy dream house
    burn down current house
    collect monies
    ?
     
  12. Sartorial1

    Sartorial1 Senior member

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    Buy Dream home.
    Rent out first home.

    I'm a landlord.
    My experience: it is difficult to rent a house for sale.
    New renters don't want to move twice,
    and they don't want people constantly walking through.

    Why not just set a realistic selling price.
    Do what it takes to move your current property quickly.
     
  13. Sartorial1

    Sartorial1 Senior member

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    If you do become a landlord,
    hire a managing agent.
    If you don't, make sure you rent someone who is self-sufficient
    and handy with fix-its.
     
  14. Steve Smith

    Steve Smith Senior member

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    The best answer is to sell your house before you buy the next one. Try to get your current home under contract and then put your next house under contract contingent upon the closing of house #1.

    This real estate market may have further to fall. Holding two mortgages would not be pretty.
     
  15. SField

    SField Senior member

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    i don't want to do it but i think i am going to have to. found our dream house and cannot pass it up but i think mine will be sit for a bit. how fucked am i?

    Sell at a low price. It's worth more to you off your back then trying to squeeze out an extra 10%.
     

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