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After almost 4 month of searching we finally found a house last year. We loved our house but could not move in due to some other family reason. So rented it out and we love it. We just renewed our contract with tenant for another 2 years. We use the entire rent money to pay off mortgage. We love how the mortgage keeps going down on the house without us having to pay a dime and the house value is going up too.
So we thought maybe we should look into adding one more house in our bucket for investment/living. I just started and saw 2 house we like and both houses have been sold/pending before we got to see them. I forgot how difficult buying house is.
My area is averaging 11 days from listing to under contract right now. And for great listings/deals over the summer it was even lower than that. Financially you sound good so go ahead and contact your favorite mortgage officer and get PreQualed for a new investment property. Then when you find the correct property you can pull the trigger quick.
Most markets right now are sellers markets. Low Inventory, with a lot of buyers. Look for homes that have been on the market awhile, they may not have anything wrong with them, but for one reason or another, didn't sell right away. These have less competition because people assume something is wrong with them and do not even look.
After almost 4 month of searching we finally found a house last year. We loved our house but could not move in due to some other family reason. So rented it out and we love it. We just renewed our contract with tenant for another 2 years. We use the entire rent money to pay off mortgage. We love how the mortgage keeps going down on the house without us having to pay a dime and the house value is going up too.
So we thought maybe we should look into adding one more house in our bucket for investment/living. I just started and saw 2 house we like and both houses have been sold/pending before we got to see them. I forgot how difficult buying house is.
Tell me about it. I've been house hunting since May. Very low inventory. It's been a horrible experience (I'm in a rental with almost all belongings in storage out of town...I didn't think it'd take this long). Ugh.
I've found a house I like a couple of times, but they sold before I could make a decision on them...I'm talking just a day or two. They sold within a week of hitting the market.
Tell me about it. I've been house hunting since May. Very low inventory. It's been a horrible experience (I'm in a rental with almost all belongings in storage out of town...I didn't think it'd take this long). Ugh.
I've found a house I like a couple of times, but they sold before I could make a decision on them...I'm talking just a day or two. They sold within a week of hitting the market.
in my experience, the houses you actually want to own will sell almost instantly, regardless of the "market conditions" - the ones that are mis-priced (low), over-improved for the neighborhood (but priced like the comps), super-clean& well maintained.. everybody wants a "done" house for the price of a fixer - a "hot" market means those houses get multiple offers after listing & a "slow" market just means they get their price in the first week. I don't think you'll ever get "a few days to think about" a true "deal". You might have a little longer to think about homes that have "potential" in a hot market, but that can vary.
That doesn't mean the only homes worth buying are the ones that pop on mls today, just that there are always buyers for great houses priced right. If you've got more time & energy than the "average" shopper, you can wait & watch & do the work to get that *one* deal that everyone else in the neighborhood envies. The trick is, balancing expectations with reality & recognizing a deal when you see one. The best "deal" often isnt the "cheapest" - those who have nice things aren't stupid or desperate sellers.
When the house I bought last year went on the market (in May, 2015), I saw the "For Sale" sign being put in place, called my realtor, got the first showing, and had a full price cash offer submitted immediately, within just hours of when the sign was put up. This was long before it ever hit the realtors' MLS. My offer was accepted, thank goodness.
If I had taken a couple of days to think about it, oh my, it would have been gruesome. There were several other buyers swarming about the house while I was waiting outside for that first showing. This is not a usual situation in New Orleans, but these are unusual times.
At the time I felt like I was over-paying but I really wanted the house. But by now, prices have risen in my neighborhood so much that I feel like it was a steal. LOL
I'm curious if you played the system and have an owner occupied interest rate with a smaller down payment on the first house since you said you "could not move" into it, which means you financed it thinking you would move into it.
Now, you want to buy another property, in under a year... don't you think that's going to raise red-flags about your owner occupied house that isn't occupied by the owner? The lender might think there is some fraud going on...
And if you get approved, you do realize you're going to get a higher interest rate and be required to put a minimum of 25% down, right? Some lenders have gone back to 20% down on investment, but most still want 25-30% down.
When the house I bought last year went on the market (in May, 2015), I saw the "For Sale" sign being put in place, called my realtor, got the first showing, and had a full price cash offer submitted immediately, within just hours of when the sign was put up. This was long before it ever hit the realtors' MLS. My offer was accepted, thank goodness.
If I had taken a couple of days to think about it, oh my, it would have been gruesome. There were several other buyers swarming about the house while I was waiting outside for that first showing. This is not a usual situation in New Orleans, but these are unusual times.
At the time I felt like I was over-paying but I really wanted the house. But by now, prices have risen in my neighborhood so much that I feel like it was a steal. LOL
That's how any house that comes close to being affordable goes out here, goes on contract the first day after caravan with one or multiple offers. Fortunately I stumbled upon a good house at auction and got a much better price I would have ever got through conventional real estate listings.
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