Author Topic: Real Estate Move  (Read 1783 times)

Thoughtful Mule

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Real Estate Move
« on: November 06, 2014, 06:56:03 AM »
Hello fellow smart rational people,

I have a plan that I thought I would run by you to maybe get some piece of advice where I overlooked something.  At my rental house, and former residence, the tenants are packing up and getting ready to move into their own home.

As some of you may know, the housing market took a jump in the right direction (first time in my short experience).  Without getting into too many details, I purchased the house at the market peak when I was just out of college.  The financing is not great at 7% interest, and It has been underwater pretty much since day one.  So now the time has come, where this particular home is finally righting itself, finally.

My plan is to move back into the house in order to take advantage of owner-occupant financing, refinance, fix up a couple things, and move on to a new house.

This will net me about $250 / month when it's all said and done.  My current residence will become a rental. Within 6 months I want to be into the third property. 

The down sides I see really have to do with convenience, so I wont even mention them here.

sammybiker

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Re: Real Estate Move
« Reply #1 on: November 06, 2014, 07:48:04 AM »
It's not really clear what you're asking...?

Thoughtful Mule

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Re: Real Estate Move
« Reply #2 on: November 06, 2014, 03:31:09 PM »
Yeah, I can see that.  I guess I dont really have a question, maybe just looking for others' experience doing something similar. To be honest, I am not looking forward to moving, but, this is strategic, deliberate action in the direction of financial independence.   I will follow up if anything interesting happens.

arebelspy

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Re: Real Estate Move
« Reply #3 on: November 08, 2014, 07:26:48 AM »
Thanks for sharing.  Good luck!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

daKing

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Re: Real Estate Move
« Reply #4 on: November 13, 2014, 09:26:24 PM »
Be aware that many lenders may require you to live in the property for 12 months after the owner-occupied financing closes.

But probably still worth it.

$250/month = $3k per year = equivalent to a $75k stash  = equivalent to earning extra $100k, getting taxed at 25% and saving all of it.  Are you willing to live in the house for a year to "earn" $100k?   Sounds like a good deal to me

SunshineGirl

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Re: Real Estate Move
« Reply #5 on: November 14, 2014, 09:13:12 AM »
Not knowing much about your income, debt, etc., the move back to refinance sounds like a good idea. Do you have enough that you could avoid PMI in your refinance?