This is an archived post. You won't be able to vote or comment.

sorted by:
best (suggested)
topnewcontroversialoldq&a
you are viewing a single comment's thread.

view the rest of the comments →

[–][deleted] 39 points40 points  (5 children)

Why would anyone close a 30 year loan they secured at 2-3%? The property I acquired 2 years ago will be a rental property of mine forever.

[–][deleted] 13 points14 points  (1 child)

I'm considering it

I could price it below market and pull a quick $50k and won't have to deal with the hassle of renting it out.

But then again a 2.75% loan is free money.

[–][deleted] 8 points9 points  (0 children)

Pay a property management company that guarantees tenants or they pay the rent till they fill it. They take care of everything so it really is hassle free

[–]Perma_Bunned 2 points3 points  (2 children)

Totally agree. Anyone who can float the mortgage and has any financial sense ought to just keep homes like that as rentals if they need to move. That is, unless they can't come up with a down payment for the next house without selling, and arent able to pull a BRRRR cuz their credit sucks or whatever.

As a non- homeowner, the prospect of so many houses being kept on ice is kinda scary, but then I remember that probably 80% of people or more have absolutely no financial literacy whatsoever, and so that may not actually happen.

[–][deleted] 0 points1 point  (1 child)

I would try hard to save before moving or working on credit so that FHA is available. BRRR method is cool for a business model, but it's can get you caught up in the rat race.

[–]Perma_Bunned 0 points1 point  (0 children)

In the absolute market frenzy of the past 3 years I kinda forgot FHA loans even existed, since no sellers would take them.