Silicon Valley Real Estate Financing
Grew up in SV, been in RE financing for 16 years. Ask me anything related to it and I'll give u transparent answer.
Sunnyvale doesn't have rent control afaik, am I wrong?
Most of Sunny V doesnt, but for multifamily owners dont like whats going on in other neighbouring cities which can hurt investing in multifamily units in the long run.
And is it true mortgages qualified with rsu get a higher rate?
This has a few answers; Borrowing under the country loan limit(SC county is 670) may limit a borrower from using restricted stock to qualify for the loan. Loan amounts over the county loan limits are considered jumbos, jumbo have lender based restrictions. Meaning, yes a certain Lender may hit u with some sort of addition to the rate for using restricted stock to qualify. This varies; this is done because of the risk behind the higher end loans. Facts is that thw higher end loans are less appetizing to secondary markets, which make lenders have to hold on to those loans on their books longer. On that same note; there are some lender who will not hit u negatively on the rate.
I have 300k to invest. Is rental property in the Bay Area a good idea, versus Austin or Seattle?
If you are looking to buy and hold for positive monthly cashflow; then the cashflow will speak to you. I recomend u get rent surveys from those 3 areas, see which will bring u the most postive cashflow. Measure that against your full monthly liability of the home. Consider tax implications with the new tax reform also. If u have good cashflow consider a management company so u dont have to deal with tenant BS. If u are looking to buy and sell for a huge profit, i dont think Seattle and the Bay are the best. We are tapped out in the seattle and SV...
Where does one get rent surveys?
If I were to take a reverse mortgage to draw equity of my current home, what rate can I expect compared relative to conventional interest rate? How much higher? Is it wise to buy a 2nd property by drawing equity from the first?
I have the same question
Rates on reverse mortgage range above 4.0, however u cant compare the rate of a reverse mortgage to a conventional rate. In a conventional loan u make payments to the mortgage bank or servicer. In a reverse mortgage you take monthly payments from your mortgage, it wouldnt be wise to compare both. They are 2 programs completey different programs and rates all around. Conventional loans /rates are driven by income, fico, along with other qualifications. Reverse mtgs are driven by individuals of retirement age and equity of the home. A true 2nd home? As in a home where u will live at for 6 mo. Of yhe year...? I would say if u can afford it... why not. If u are asking for another home as a rental, then yes i would revomend it if; 1. U leave enough equity in your primary 2. Your rental makes u a postive cashflow Due to The new tax reform you MAY have more advatage to refi cashout to buy rather than a Home equity line of credit. I would say that
Is buying in Richmond good idea for investment and renting? Prices are low and commute to Bay Area is possible
Yes, but i would revomend u put a down large ebough for 2 things; 1. To have good postive cashflow. 2. This will allow u to move rents with martket conditions. dm me if u need more info
I have 1.3m in cash and got pre-approval for 1.2m mortgage. Where should I buy a home?
Ground zero, Palo Alto
Well that is a loaded Q, but for that i have more Q: Whats important to you? How long do you plan to that in this home?
Is it advisable to buy a fixer upper in Bay Area and then construct it from scratch brand new? Hoping the total expense including the fixer upper and construction would be $2 M in the Bay Area. Housing is crazy here 😪
If u are going to occupy it....no. Too much risk, and the market falls, you will be in bad shape.
I bought a home a year ago and the property risen 400k in value. How can I utilize the increased value to a finance remodeling project? Does that even work?
Yes, a cashout refi is what i recomend. dm me if u need more info.
Why not a HELOC? Refinance rates could be higher than their original loan?
Lucky! Where did you buy?
Should i be buying rentsl properties In san jose these days?
Depends... single family residence yes, with a down payment high enough that can keep your payments low. This will allow you to have a positive cash flow. For units that are 5 units and up; multifamily... i would say maybe... there are pockets in area that are heavily hit with tenants housing rent controls which can cause u to NOT have a good cashflow through time. My fiance is a comercial real estate broker, savvy investors are choosing to sell and buy elsewhere. For example some areas in Sunnyvale are making owners toll back their rent to 2013 rent rolls. Single family residence are not subject to this...
Why would you want to buy rental property in SV? In many parts of the country you can get 15-20% annual return: e.g. buy $80k duplex and rent at $1500/month minus taxes yields $15k/yr.