If you can’t put down at least 20% down on a home I got some bad news

[ashin1]

An aggressive timeline is ok as long as you don't hang your ass out too far. Even safe investments can go sideways due to factors outside your control. If the national or world economy tanks, you might suddenly have limited access to credit. Your tenants might not be able to pay rent along with a decline in rental rates in your area. You may get stuck with a high vacancy rate due to a failed large employer. Maybe the municipality/provincial/state government passes pro-tenant legislation like rent control (Google Ellis Act in San francisco). A large company may try to put your out of business by flooding the market with new construction and/or below market rates.

Carry more than adequate insurance. Don't lease to a marginal tenant because you can't carry the vacant unit and ultimately cost yourself more money because they cause damage and stop paying.

Although it isn't available in Canada (perhaps you have a similar program), the FHA allows one to get into a property without draining every resource they hold. It is a lot better to have $60,000 in an account with a $1,900 payment than $0 in an account with a $1,500 payment.

In the end, keep your eyes open. Realistic returns in the US rarely exceed 8-10%, and are often lower than that.

absolutely agree hence why i remain competent at my job, investments can fail, my investments, your investments, my neighbors and so on, nothing is guaranteed.

hence why i am going to remain competent in my field after i give up working full time. For organic reasons of course, 1. its safe to say we will never live in a world without hospital services (med tech), and 2. because i enjoy what i do i also happen to be skilled in it.

right now my total debt is ~$70kcdn for all the above mentioned assets, so i'm pushing to make sure im not letting my ass hang out for too much longer

[Bassackwards]

VA Home loan=zero down.... just saying

[ashin1]

lemme guess, ur the kind of person that subsides on rice and beans and wears a coat in your apartment during the winter while driving 95 accord with mismatched panels becausue you have a hard on for personal finance and saving.


20% ok brb saving 50,000 for average 250K house

let me guess, MAKE SURE YOU HAVE AN EMERGECY FUND DURRRRR for 6 months. another 20 grand

let me guess, NEED TO SAVE AT LEAST MINNNNIMMUMMMMMMMM 20% OF YOUR INCOME TO RETIRMEMENT. BRB another grand a month


so basically, delay your home purchase by 15 years in order to save up 70 grand and save up 20% of your income or for retirmenet. brb can finally afford a house when you are 40 years old. WAIT, now the house is 500K. CRAP, need to save another 50K for a downpayment.

guess ill havetowait another 10 years until im 50 to buy a house.


just lol

yeah, and if I had waited 5 more years my interest rate would of gone from 3.375% to 5%, and my home value would of gone from 200 to 250K, equating to a 400 dollar a month difference, or 4800 a year, which cancels out the benefits of no PMI by 80%

pretty defeated mentality, not once did anyone mention finding a more reasonable home that better reflects your true budget.

this is why i said its possible as long as you stay humble.

i disagree

market timing is far more important than whether or not you pay some PMI (temporarily, since it stops when you reach 20%)

for example, i bought my modest house for 160 5 and a half years ago. there's an empty lot a few blocks from my house right now selling for 150. let that sink in. there's also a 650sqft house a few blocks away selling for 320.

market timing is the most important factor. buying when prices are low and the fed has slammed rated to try to mitigate the damage from their previous bubble popping is the GOAT time to buy obv

that all being said, i still put down 20% originally lol

congrats brah, logic won at the end of the day. Das it

put 20%+ down on home crew

spoken like a true Chad Boomer!

lol built my home for around $500k, it was recently appraised @ 1.7m, but based on housing market here, it will hit 2-2.5 within the next year and I will probably sell and just get a nice penthouse in the city

i almost sold a couple years ago because times were tough, the market sucked, i was getting discouraged, for under $500k but then i woke up and just told myself to make more money

and that i did

das it brah, in Canada if you want to build a home you def need 25% down before getting any mortgage.
I actually like the building idea(given you build in a booming area) instead of buying a used house...

trailers are just a means to an end, I am building my first house fo sho!

[Godfrd824]

Nope...i told them to wrap it up B. Closing costs will be....NOPE...you wrap that up too B. But..but appraisal will be...NOPE...you wrap that up too B. I got an 820 credit score that says i ain't bringin schit to the table. That's how i roll son.

This, and you tell them to sweeten the deal by waiving PMI, or else.

[Godfrd824]

Have fun with the reminder of the 97% of 300k lol

So if someone pays 20% upfront, and then owes 80%, that's somehow less than paying 3% upfront and owing 97%? Strong math skills. I'd find it hard to believe you were Asian if it weren't for the way you're slowly committing ritual suicide by ethering yourself in at least 3 threads per day.

[GrimRep_er]

But who was VA loan which requires zero down payment and has low interest rates with no PMI?

That would be me! Feels good.

[ashin1]

So if someone pays 20% upfront, and then owes 80%, that's somehow less than paying 3% upfront and owing 97%? Strong math skills. I'd find it hard to believe you were Asian if it weren't for the way you're slowly committing ritual suicide by ethering yourself in at least 3 threads per day.

are you assuming something about Asian people?
tread careful, i'm telling you for your sake.

srs

namaste

[VegasLifter26]

the best way to do it is to rent super cheap and save up as much cash as u can , and then buy at the right time.

[Godfrd824]

are you assuming something about Asian people?
tread careful, i'm telling you for your sake.

srs

namaste

The stereotype is that they're good at math, you prove that is not always the case. Very progressive.

You forgot compound interest, brah.

How could I forget. Make America Compound Interest

[Fozzy13]

brb 0% down on VA loan
brb fixed 3.5% APR
brb already positive equity thanks to appreciation
mfw

[img]https://i.kym-cdn.com/photos/images/newsfeed/000/855/115/083.jpg[/i mg]

How much is PMI?

[Vhagar]

It’s still funny that a guy is trying to flex on people for putting $8000 of his parents money down on a $40,000 trailer

Fukin lmao

[MillerDecaXC]

Why do you say this Ashlin? how did you come up with this number?

I personally put 5% down on my first 3 homes. I started real estate when I was a 20 year old college student. Paid 5% down on a house in the ghetto, rented it out to roommates, covered mortgage/made some $, a few years later saved up enough to buy another house 2 blocks from my college, I rented out old house and bought the new house with 5% down and rented 3 extra rooms to college kids. Then did the same thing 2 years later, saved up 5% on new house, moved, rented out THAT house and put 5% down on a new house.

Next few I was making enough to easily put 20% down, but just starting out, I wouldnt be anywhere near the success I am today if I waited to put more than 5% down on those houses

[inb4everything]

Why do you say this Ashlin? how did you come up with this number?

I personally put 5% down on my first 3 homes. I started real estate when I was a 20 year old college student. Paid 5% down on a house in the ghetto, rented it out to roommates, covered mortgage/made some $, a few years later saved up enough to buy another house 2 blocks from my college, I rented out old house and bought the new house with 5% down and rented 3 extra rooms to college kids. Then did the same thing 2 years later, saved up 5% on new house, moved, rented out THAT house and put 5% down on a new house.

Next few I was making enough to easily put 20% down, but just starting out, I wouldnt be anywhere near the success I am today if I waited to put more than 5% down on those houses

Interesting. How'd u do 5% on second or third home? Wouldn't that be 15% due to being considered investment property?

[MillerDecaXC]

Interesting. How'd u do 5% on second or third home? Wouldn't that be 15% due to being considered investment property?

minimum down on an investment property is actually 20%. (in the majority of areas, some might only be 15%). Thats the reason I kept moving to new houses and renting out the old, to get around the 20%. Buying a home you will occupy only requires 5% down.


Sure i was paying PMI on them, extra (tax-deductible) $50/month, but the numbers still worked. Thats why OP and people like dave ramesy arent top tier investors. Think outside the box, dont be afraid of debt. If the numbers work, the numbers work... Thats all that matters.

[inb4everything]

minimum down on an investment property is actually 20%. (in the majority of areas, some might only be 15%). Thats the reason I kept moving to new houses and renting out the old, to get around the 20%. Buying a home you will occupy only requires 5% down.


Sure i was paying PMI on them, extra (tax-deductible) $50/month, but the numbers still worked. Thats why OP and people like dave ramesy arent top tier investors. Think outside the box, dont be afraid of debt. If the numbers work, the numbers work... Thats all that matters.

I see. You moved your primary residence. Also I forgot that 5% doesn't necessarily mean FHA. Nice.

And yeah that's how I think too. Cash flow and ROI.

[ashin1]

Why do you say this Ashlin? how did you come up with this number?

I personally put 5% down on my first 3 homes. I started real estate when I was a 20 year old college student. Paid 5% down on a house in the ghetto, rented it out to roommates, covered mortgage/made some $, a few years later saved up enough to buy another house 2 blocks from my college, I rented out old house and bought the new house with 5% down and rented 3 extra rooms to college kids. Then did the same thing 2 years later, saved up 5% on new house, moved, rented out THAT house and put 5% down on a new house.

Next few I was making enough to easily put 20% down, but just starting out, I wouldnt be anywhere near the success I am today if I waited to put more than 5% down on those houses

So by success of today means what?

Are they paid off now?

How much of your revenue are you netting?

I am glad you found a way for you to get into RE with a low down payment. But correct me if I am wrong but isn’t your life work balance pretty hectic?

I made OP as a pretty broad statement, but I do respect when people manage to pull off a hustle in a non conventional(we ain’t that different brah) way so props to you brah.

[bobbydigitaloa]

Did you figure out how to calculate ROI yet?

LOL he's gonna lose it. And here is how you can ensure he still sees your posts...get others to quote you.

[ashin1]

LOL he's gonna lose it. And here is how you can ensure he still sees your posts...get others to quote you.

Huh?

If I’m not mistaken isn’t anachron on my ignore list, yet he is trying so hard to talk to me.

It’s entertaining the hoops he will jump through to get my attention.

Lol @ bobby

Nice effort, but I still sense too much autism to be bothered to even think of what he is trying to tell me

[Adam16121]

My 3 car garage is worth more than your home

[ashin1]

My Autism is worth more than your home

I see

[Nonsense916]

20% on a home in the boonie states sure. Not in Cali boyo

[Globally]

OP is going to read his misc posts in 5-10 years and vomit at how cringe and poverty he was.

That’s if things go well for him.

[usersignup2]

lemme guess, ur the kind of person that subsides on rice and beans and wears a coat in your apartment during the winter while driving 95 accord with mismatched panels becausue you have a hard on for personal finance and saving.


20% ok brb saving 50,000 for average 250K house

let me guess, MAKE SURE YOU HAVE AN EMERGECY FUND DURRRRR for 6 months. another 20 grand

let me guess, NEED TO SAVE AT LEAST MINNNNIMMUMMMMMMMM 20% OF YOUR INCOME TO RETIRMEMENT. BRB another grand a month


so basically, delay your home purchase by 15 years in order to save up 70 grand and save up 20% of your income or for retirmenet. brb can finally afford a house when you are 40 years old. WAIT, now the house is 500K. CRAP, need to save another 50K for a downpayment.

guess ill havetowait another 10 years until im 50 to buy a house.


just lol

I don't know OP but he's smack dab bang on. personally I'd go 25% and then get a LOC for the value of the home and invest that into the market. anyways, if you don't know HOW to get 20% down, then really you should be rethinking WTF you've been doing all your life. srs. dead ****in srs.

it has very little to do with how much you make and more to do with living within your means. buy the cheapest place you can afford. depending on market, say 175K for a 1 bed or bachelor. a ton of markets have 100K 1 beds but way out of town.

buy it. pay as much off as you can. 5 years later you have equity and hopefully you prorperty has increased. sell your one bed, buy a cheap two bed in a cheaper part of town with the equity you've accumulated. rinse and repeat.

I did it in THE MOST EXPENSIVE market in north america. it can be done without too much effort. if you have dual income, it's a fukin cakewalk

[ashin1]

I don't know OP but he's smack dab bang on. personally I'd go 25% and then get a LOC for the value of the home and invest that into the market. anyways, if you don't know HOW to get 20% down, then really you should be rethinking WTF you've been doing all your life. srs. dead ****in srs.

it has very little to do with how much you make and more to do with living within your means. buy the cheapest place you can afford. depending on market, say 175K for a 1 bed or bachelor. a ton of markets have 100K 1 beds but way out of town.

buy it. pay as much off as you can. 5 years later you have equity and hopefully you prorperty has increased. sell your one bed, buy a cheap two bed in a cheaper part of town with the equity you've accumulated. rinse and repeat.

I did it in THE MOST EXPENSIVE market in north america. it can be done without too much effort. if you have dual income, it's a fukin cakewalk

Mirin both hard

[cmc0108]

Lol @ op.

[wave_length]

Payed cash for my first home, put down 65% for my current home and payed back the mortgage within a year. I now rent out my first home along with three additional properties, all payed in cash for.

[bobbydigitaloa]

Huh?

If I’m not mistaken isn’t anachron on my ignore list, yet he is trying so hard to talk to me.

It’s entertaining the hoops he will jump through to get my attention.

Lol @ bobby

Nice effort, but I still sense too much autism to be bothered to even think of what he is trying to tell me

Correct, if he’s on your ignore list you can’t see his post. But if I quote his post then you’ll see what he posted because I’m not on ignore...so it’s our way to force you to read him crushing you

So watch...

Let's do a quick rundown on the bolded part.

25% down - 75% of the principal is now tied down.
Most financial institutions will give a line of credit for up to 80% of total value of the house - in this case there is 5% available principal.
HELOC are normally at a higher interest rate then variable rate mortgages.
This basically tied down 80% of the cash that was used for the downpayment, to get 20% of it back at a higher interest.

In your example it would have worked better to do the 5% down, and invest the rest of the cash you would have used for the downpayment.



Pretty sure you didn't resort to living in a trailer in the Canadian tundra, like OP did.



Yup, definitely not in Nunavut.

Now you read his post...ayyyyyy

[JoeDelts]

Correct, if he’s on your ignore list you can’t see his post. But if I quote his post then you’ll see what he posted because I’m not on ignore...so it’s our way to force you to read him crushing you

Where there's a will, there's a way.

[usersignup2]

In your example it would have worked better to do the 5% down, and invest the rest of the cash you would have used for the downpayment.

I ran multiple scenarios. I was most comfortable at 25% as it hit the sweet spot for mortgage payments and available equity.

[ashin1]

Correct, if he’s on your ignore list you can’t see his post. But if I quote his post then you’ll see what he posted because I’m not on ignore...so it’s our way to force you to read him crushing you

So watch...



Now you read his post...ayyyyyy

Cliffs?

Tldr