#31
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Re: Question For Matt Flynn
[ QUOTE ]
4. It is relatively uncommon for people to live in the same home for over 7 years. Therefore, if there's more than a half-point spread between 30-year fixed and a 5-year ARM mortgage (which holds one interest rate for 5 years then jumps to match the market, and usually still works on an imaginary 30-year amortization), you should choose the 5-year ARM as long as it does not trigger private mortgage insurance that you would otherwise not have to pay. [/ QUOTE ] another thing to consider, both on an investment property and your own home, is going with an interest only loan. the rates are generally lower and with the investment you can cash-flow the amount that would have gone to principle. the problem is that you're then counting on actual appreciation to be able to cash-out refi at some point..but if the primary income from the property is going to be rent, interest only is a good option to consider. on your own home, the interest only will actually allow you to pay LESS interest over the life of the loan than either the standard 30-year-fixed or an ARM. both of those standard loan types are front-loaded with interest, but the interest only loan accumulates interest like a credit card. so if you make a full payment and bring down the balance, then the interest on the following month is lower. i have the countrywide interest only FlexSaver HELOC on two of my houses, if anyone wants to look into it. it's good stuff. i have 3 rentals currently. i'm hoping to add 2 per year...and i figure between passive income and cash-out refinancing (and poker), i'll be able to retire in about 5 years. |
#32
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Re: Question For Matt Flynn
a non 2+2er I know who plays in it occasionally told me he thought 100k is enough for taking a serious shot or if you're going to buyin short, but not enough for full scale assault.
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#33
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Re: Question For Matt Flynn
if you are only putting down 5%, arent you subject to PMI?
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#34
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Re: Question For Matt Flynn
Not to sound like a complete idiot, but what is the prefered way to learn about real estate investing? Book, classes, or from someone who is in the industry?
thanks for all the posts in this thread, and for any responses to this |
#35
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Re: Question For Matt Flynn
elmo there may be some good books out there but i haven't read them. just talking and learning by doing. if anyone has book suggestions let me know.
essentially you are making a simple math estimate of return on investment. why that is so difficult for agents to do is beyond me. matt |
#36
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Re: Question For Matt Flynn
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if you are only putting down 5%, arent you subject to PMI? [/ QUOTE ] only if you have a fannie mae conforming loan. there are a lot of non-conforming lenders and products out there that will let you finance more without MI. i have 1 property that was financed for 95% with no MI...this was a program specifically geared towards investment properties. talk to a big broker...they deal with a lot of different banks and lenders and can generally find a product that gives you what you're looking for. |
#37
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Re: Question For Matt Flynn
I disagree... in the sense that it can be very hard... The reason I disagree is the original intimidation factor. Not knowing what you're doing and risking a sizable portion of your life's earnings in unfamiliar waters is so daunting that for the uninformed individual sees a mountain that they cannot pass.
The hardest part is becoming educated enough to make smart choices in the market... And being willing to try. |
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