11-05-2012 01:08 AM - edited 11-05-2012 01:15 AM
closing on a house tomorrow, and it had to be a CASH deal, since people are panicking about primary mortgage paperwork finishes tomorrow. Because of Navy Federal's generous lines of credit I was able to write a check for the additional amount required to close on the house FULL IN CASH =)
30 years old and NO MORTGAGE and a HOME OWNER
although this is an investment property so I probably won't be living in it, I already got tenants lined up as a good friends of mine are getting completely ripped off on their house rental. It's a small house in a clean safe neighborhood =)
With the rental price I should save my friend 30% on his rent, and still be able to get a 100% return on the house in under 10 years no problem (home was built in 2006)
in 2006 the home was purchased for $220,000 not going to say what I'm picking it up for
mortgages not sold off this year will owe a tax on the difference of the house, so if I say $220,000 and lost half it's value and sold for $110,000. If not sold this year next year the home owner who sold will be required to 1099 the difference from purchase/sold and pay income tax. So if you made $50,000 for the year, you'll have to pay a income tax bracket of $160,000 for the year -_-;
I'll be able to pay off Navy completely for the difference (which is a lot) within 3-4 months to build a trusting relationship with Navy Federal =)
Since I made decent pay and have no living expenses. (live with parents, but for Asian families this is quite normal until married, besides my parents are like my bestfriends and they constantly need help running two businesses. I do their book keeping and tons of errands that keeps me very busy.)
Best part about paying CASH and building a good relationship with Navy Federal is that they offer 0% downpayment loans, so with new rental income + my job and a strong relationship when it's paid off, I should have no problems getting a second house with a mortgage with them if another great deal comes along.
Last year I couldn't even get approved for a Gas card -_-;
11-05-2012 03:32 AM
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