bflathers
New Member
Cash: $ 1.20
Posts: 5
Joined: 02 Dec 2004
Location: San Francisco
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I'm originally from the Boston area and have rented/lived in San Francisco for the past 5 years. I'm thinking of buying a single family house north of Boston, renting it out for 3 years and moving there for at least two years before I sell it to avoid tax on gains (my wife and I will continue to live in that area but will want to upgrade).
I'm looking for advice on what type of loan I should get. Fixed vs. ARM. I believe that we will be able to make significant payments while it is rented. We will be putting 150 down and borrowing about 300. This will leave us with 20k in cash if we run into trouble.
If anyone has thoughts about this strategy input is welcome.
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Thu Dec 02, 2004 12:59 am |
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xboxundone
Senior Member
Cash: $ 67.83
Posts: 796
Joined: 19 Sep 2004
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since it sounds like you are not wanting to hold onto the house for more than 7 years. Lock it in for a 7 year ARM that way you have a year or two flex from your current plan.
I wish you the best of luck as it sounds like you have a good plan moving forward. Just make sure you will have someone local in Boston that can help with repairs etc.. while you are accross country. Maybe even hire a mangement firm.
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Thu Dec 02, 2004 1:27 am |
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bflathers
New Member
Cash: $ 1.20
Posts: 5
Joined: 02 Dec 2004
Location: San Francisco
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thanks xbox, I'm also curious if anyone knows a good way to guage the rent potential for a specific area.
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Thu Dec 02, 2004 1:35 am |
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Andrew
Admin
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Location: Texas
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Just search your local paper or ad magazine for rentals in the neighborhoods that you are looking at. Study the features and prices, so you can get a rough idea of a fair rate for a potential property.
Then visit the neighborhoods and talk to local real estate agents to gauge if it appears to be on the upswing in improvements, new construction and other factors that tend to raise the value of an area.
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Thu Dec 02, 2004 2:35 am |
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xboxundone
Senior Member
Cash: $ 67.83
Posts: 796
Joined: 19 Sep 2004
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easy way is to look at apartment rentals in your area and do an analysis of the sq. footage / amenities and do an evaluation like. Are you going to include major appliances or will the renters supply them... what about yard work etc... Do you want to ahve the renters take care of it if so rent should be less etc..
Also gauge is any homes are for lease in you surrounding area and compare.
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Thu Dec 02, 2004 3:10 am |
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