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Discussion Starter #1
hey guys im looking to buy my first house and looking for any tips any of you can give and if i can get a rough estimate of what you think im going to be paying a month for a house/any up front costs i should be aware of minus down payment that would be great help also. its a for sale by owner house im looking at 2 bed 2 bath full finished basement huge wet bar,detached heated 2.5 car garage, going for 150k taxes are 2800 on it. thanks -tony-
 

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We usually get money for 10.00 per 1000.00 per month with a 10yr payout on the rentals that we buy. Or thereabout. 1,500 payment on 150,000. 3yr with balloon will have much less closing cost but danger of changing rates.
 

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I'd wait, the housing market hasn't bottomed yet.
X2 (for sure here in Michigan anyways).

Something I learned today that blew me away and you might want to consider is buying a HUD house. A bud of mine went to put a bid in on one for his brother who is having some financial difficulties and the thing comes with a damned warranty. It's not long..maybe three years or so but that's worth something. The warrantee covered all the big ticket stuff (roof, well, septic, etc.).
 

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Its a gambling period right now. Interest rates as you are aware are damn low. The gamble is...waiting for housing to 'bottom' out while interest rates could take an upturn. The bottom line is finding something that will fit into your income now. You can sit and wait it out and take it in the ass. Its called analysis paralysis. Every nite, you sit down and pencil out scenarios trying to figure out the best situation/scenario while the best fit for you might be in front of you already. I went through that stage when I first started getting into housing. I made up a kick ass Excel spreadsheet to ulimately calculate cash flow on rentals I was considering. I lost out on alot of deals calculating instead of acting.

Don't make rash decisions but don't get caught on the sidelines either watching the game get played out!!! You find a good deal and jump on it if you know you can afford it. Real estate might go a bit lower..yet if something makes sense now, DO IT!!!.

It took me a while to get over the apprehension and the analysis paralysis, the pucker factor was high for me. I got over it though, bought the first house and now I have eight units. At one time I had fourteen. Something to consider, the first house I bought was a duplex. I bought both sides. That deal was the best thing I did. I bought it for around $65k. I rent out one side for $650 and my payment is $750 a month.

Its obviously time to be really smart buying a house, but don't get caught up in too much thinking...its time to act also.
 

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Discussion Starter #7
well the thing is right now im renting out a townhouse from a family member and im thinking i can get this house im talking about for the same amount i am paying now and i wont have to deal with associtaions or nothing and me renting this place from a family member is starting to cause family probs and thats the last thing i ever wanted.
 

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One other thing to talk about is like mentioned earlier, the HUD deal. One of the rentals I bought in Indy was a bankruptcy deal. It was listed for $75k. I put an offer in for $50k. The realtor laughed and said I will try. Three months later the realtor called me and asked if I could close in 30 days. A month later had a house. This was in 2002...way before this real estate mess. Real estate has been a learning process for sure..I have had alot of sleepless nights with some of the lessons I have learned. Its great now, still learning, yet my rentals are paying for my house in full every month!!! I know you aren't looking at rentals yet I just want to get through to you, it is a good deal. Do your homework and then act on something.
 

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Most would never think of this, I didn't. Make sure you are not in a flood zone or corner lot that catches everyone else's water.
 

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Damn good point. Flood insurance is a requirement if you have a mortgage and in a flood zone. The insurance is pretty much a bullshit deal too. Something like the house has to be moved from its foundation to make a claim too!!!
 

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Discussion Starter #11
already looked into that too right across the street theres about a 75-100 foot hill so i dont think id have a prob
 

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Just remember your relator is NOT YOUR FRIEND.
No matter how comfortable they make you feel they are in it to get paid.
Hire your own inspectors and find your own mortgage.

Financial Details
Home price
$150,000.00
Down payment
10.000 %
Total amount financed
$135,000.00
Payment amount
$724.71
Total payments
$260,894.96
Interest rate
5.000 %
Interest compounding
Monthly
Total finance charge
$125,894.96


So your payment would be around 725.00 + Your yearly insurance cost + P.M.I
I would guess around 1000.00 a month total.
 

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Also look into paying bi-weekly if you can handle it.

It does seem to save interest over the long haul.
 

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Your Realtor is definitely your friend, find one that you trust and let them work on your behalf. Their services will be free to you, as the buy side comission is paid out of the sellers proceeds.
Look for an FHA mortgage with 3.5% down. Be aware there is a one time fee that is equivalent to a few years PMI built into the term of the mortgage and may be a couple grand.
Other things you need: ballpark figures
An attorney WHO SPECIALIZES IN REAL ESTATE. You would't hire your kids pediatrician to give the wife a boob job.......hire someone who is current and fluid with real estate. Ballpark $500-$800(may be part of closing costs)
Appraisal fee required for the loan $300-$400, up front fee
Home Inspection, same as Lawyer, get agood one $300-$450 get a termite inspection too
Closing costs will include 5 months tax, 1yr hazard insurance, lawyers fees, origination fee.............ask seller to pay $5000 towards these as part of your deal. FHA will allow this
PM if you have any questions!
Duane
 

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I just closed last month with a 30year fixed at 5.15% I think fixed is the only way to go just for the fact that your locked in and there are no surpises! Always ask for closing or at least a good chunk of it. In our offer we shot in around 10% under asking and asked for 4k closing. We told them if they counter to counter with the closing regardless. It just makes it nice to not have to come out of your pocket as much right off the bat.

good luck
 

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Buy a big bottle of asprin and a lot of beer, you are going to be dealing with a bunch of assholes that are only in it for themselves. Read every bit of paperwork before you sign and try not to strangle anyone. Good luck
 
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