Vinny From Brooklyn

[Vinnyfrombrooklyn]

Hi my name is Vinny I am from Brooklyn 40 years old and I want to retire early. Have a full time job that makes me 50k own my own house and have very little credit card debt.

I am currently looking into buying a second house in Las vegas to retire in and sell the first house.

Looking forward to reading up on the forum.

 

[dumpster56]

Do you know Georgie from Flushing?

 

[haha]

Hi my name is Vinny I am from Brooklyn

Hi Vinny!

I am currently looking into buying a second house in Las vegas to retire in and sell the first house.

You couldn't have picked a better time. You should get a great price for your place in NY, and steal the place in Las Vegas. What part of town would you like to live in?

Ha

 

[chinaco]

Welcome Vinny.

 

[Vinnyfrombrooklyn]

I actually been out to las vegas and went on a foreclousure tour. I bid and lost on 2 seperate houses. both houses were built in 2004 and sold for 700 and 740k each. I bid 150k and just got outbid on each one.

I took a robert allen real estate course a few weeks back and he got me thinking now is the time to buy. I am looking south/west of vegas over by summerlin.

I looked north north vegas and didnt like the neighborhood. I could get a fixer upper foreclousre there for 10k but the upside didnt look good so I backed out.

 

[Milton]

Vinny,

It sounds like (?) you are at least a few years away from retirement (and being able to move to Las Vegas). Discounted prices notwithstanding, I'd suggest being cautious about buying a second property at this time. Owning and looking after two houses is not an inexpensive or headache-free endeavour; especially when one is so far away from where you live.

I bid and lost on 2 seperate houses. both houses were built in 2004 and sold for 700 and 740k each. I bid 150k and just got outbid on each one.

That's a big drop! But it doesn't necessarily imply an excellent buying opportunity ... it could just mean that the earlier bubble was huge.

 

[ChrisC]

Vinny,

It sounds like (?) you are at least a few years away from retirement (and being able to move to Las Vegas).

Not if Vinny owns a brownstone in B'kyn and is thus sitting on a pile of money. He says he wants to sell his Brooklyn home and move into a Vegas house. I'm originally from Red Hook-Cobble Hill in Brooklyn, and the Brooklyn real estate market has been crazy the last 4-5 years and hasn't noticeably dropped that far with the latest down turn. Vinny could be sitting on $2-3million in equity for his Brooklyn house if he were in my old neighborhood.

 

[Milton]

Yes, you're quite right. I made an assumption that might well be incorrect.

I inferred from Vinny's age and his reference to "buying a second house in Las vegas to retire in and sell the first house" (rather than "selling my house in Brooklyn and moving to Las Vegas") that his contemplated ER was still a few years away; but I don't really know what he has in mind. His post doesn't really say much about his circumstances (e.g., equity in the house, annual living expenses, etc.).

 

[Vinnyfrombrooklyn]

Ok I have no immediate plans on moving to vegas. The second house will be rented out with a little cashflow on the side. I already have two people that want to rent it until I am ready to move which is probably 8-10 years away.

My house I bought 5 years ago off a family member and it is work 349k or so. I paid 225k, house is free and clear as I had a nice savings and an old 401k that I emptied. Sorry I wasn't so clear.

 

[haha]

I am looking south/west of vegas over by summerlin.

Nice spots; big change from NYC though.

Ha

 

[ChrisC]

Ok I have no immediate plans on moving to vegas. The second house will be rented out with a little cashflow on the side. I already have two people that want to rent it until I am ready to move which is probably 8-10 years away.

My house I bought 5 years ago off a family member and it is work 349k or so. I paid 225k, house is free and clear as I had a nice savings and an old 401k that I emptied. Sorry I wasn't so clear.

In that case, Milton provided you with pretty good advice; if you're financing the purchase of the second house in Vegas through a mortgage/loan, you should proceed with caution here as lenders are becoming very strict on loans for investor-residential properties. As an investor, you might be faced with stringent loan to value ratios and might have to place a hefty equity downpayment, in addition to having very good credit (FICO) scores. In this down-market, I wouldn't touch any investor residential property, unless it can cash-flow positive in a short time.

Good luck.

 

[Vinnyfrombrooklyn]

I am already approved for financing at 6.5% I have fico score of 760.

 

[ChrisC]

Hey, Gumba, ya touching all bases.

 

[Vinnyfrombrooklyn]

I am trying I know house prices out there are gonna fall but I don't care since its not a flip its a long term deal.

 

[Milton]

Well, by all means make your own decisions. But personally I think value is always important, even for longterm purchases.