Condominium sub-lease or lease-option - Posted by Lyle


#1

Posted by Lyle on November 16, 1998 at 21:46:06:

In your opinion, what type of real estate investing is the best way to financial independence?


#2

Condominium sub-lease or lease-option - Posted by Lyle

Posted by Lyle on November 14, 1998 at 17:09:22:

Greetings. I own a new condominium that I purchased for $100,000.00 in March of this year. Now it is worth from $125,000 to $130,000. I was considering sub-leasing it and purchasing another new condominium. I was also thinking about selling it on a lease option and then purchasing another new condominium. I have a few questions that I need answered before I can proceed.

  1. Can a person have a FHA and a VA loan at the same time for different properties?

  2. If I sell my present condominium on a lease-option, will that work against me when I apply for a new mortgage?

  3. If I sub-lease my present condominium, will that work against me when I apply for a new mortgage?

Thanks.

Lyle


#3

Re: Condominium sub-lease or lease-option - Posted by Bud Branstetter

Posted by Bud Branstetter on November 16, 1998 at 12:38:50:

Using conventional financing the payment on the first condo mortgage count as part of your debt ratio. The income from a lease is only counted 75% toward your income. Most lenders only allow 4 conforming mortgages.

Finally, Using this approach is not the best way to financial independence. The value of condos has been known to fluctuate more easily with the economy than a SFR.


#4

Re: Condominium sub-lease or lease-option - Posted by Mr Donald

Posted by Mr Donald on November 14, 1998 at 18:24:39:

  1. Yes. I have both - each on different properties.

  2. If it’s a L/O, you really haven’t sold it, now have you?

  3. If you own your current condo, how can you sub-lease it? (Think about it).


#5

Re: Condominium sub-lease or lease-option - Posted by Bob

Posted by Bob on November 17, 1998 at 02:30:14:

>>Finally, Using this approach is not the best way to financial independence. The value of condos has been known to fluctuate more easily with the economy than a SFR.<<

This may be true. But if you live in SoCal where the average SFR is well upwards of $150K (and none under 125K) and rents don’t support 100% financing, it may be the only way to get started, and is quite probably the only way to get in with little or no money down.

I’m new at this, but from where I sit, it looks like condos or multi units only.

I hope I’m wrong.

Bob