[dreamingat30fps]

So we are considering moving, but not really sure what to do. Backstory...

We have been traveling around in our RV for around a total of 5 months this year. Will probably do the same yearly for the near future. We both work from home, I have my own business my gf works for company, but company may be sold this year so that job may go away, we can live off my income.

Love the current house and the area. Hate the HOA (maybe not hate, but dislike), can't keep rv here per HOA and have no space anyways. Big issue for me is we cannot rent our house or anything like that (airbnb etc). While we like the area we are not particular close to family. Her family is an hour north, my family an hour south. HOA fees go up every year. Community is pretty safe, never had an issue in 7 years, even while we are gone, knock on cyber wood.

We are contemplating purchasing a house near her parents which is further north. Would have no HOA and place to keep RV. Also thinking maybe we could rent it out or airbnb or something while we are gone in the RV. Could even install connections at house so RV could be all setup while we are home and could rent that out or for family or what not.

Main questions come down to $$. I bought my house at the bottom of the market, paid about $200k for it, worth just under $400k per realtors I've spoken to. I've definitely put money into it, new roof, AC, patio, garage floor etc and I owe about $120k on it.

Now it starts getting complicated and what's making me question the whole thing. Since I'm self employed banks will only go off my last 2 tax returns for income. Only been doing this full time for 2 1/2 years. Also I guess my accountant is good because the numbers on those returns suck pretty bad. So basically getting a mortgage will be a pita and definitely wont happen until much later in the year when i can file the 2018 taxes.

However with just the equity in the house I could purchase something else cash and have no mortgage which I like. However while there are ok houses for around $200-$250k (what I can afford with just equity) none of them are our ideal choice and I feel they are all a downgrade from our house.

Sooo... that was a long ass ramble and I'm not sure what my point is. Here are some of my options as I see them... I guess looking for general input.

1. Get "crappier" house with equity, be happy I have no mortgage or HOA and can do what I want.

2. Wait probably a year until I can get a mortgage. Use mortgage for the new house, cash in as much of the equity as I can. Invest that or get rental property or whatever.

3. Stay where I am only owe $123k, deal with HOA and having to pay to store RV at storage place. Not have to deal with any of this moving hassle.

4. Sell house, sell everything we own or put in storage, live in RV until market crash (if it happens) or we find perfect house for amazing deal (fat chance?). Deal with the hassle of finding a spot for the RV in summer in FL.

5. Afraid I would be trading a good buy on my house for a shit buy on the new one given the market has been going pretty crazy that past 7 years.

Fuck me, probably longest post I've ever done.

[Run Silent]

Well, I am a Dave Ramsey fanatic - so of course my answer is going to be "go with number 1". If able to purchase anything without financing, it is the way to go. The debtor is slave to the lender.

If that isn't your cup of tea, note below:

Realistically, you shouldn't have trouble getting a mortgage with the tax returns, pending three points:

1) Use a bank that does 'manual underwriting'. Most local credit unions will do this. So does Churchill Mortgage. A few others do as well. They will be able to review the Schedule-C's and see that you are generating income, just that non-cash items such as depreciation expense, section 179 expenses, etc are eating up the net income on paper.

2) Put a significant amount down - like more than 50%. You said you have $250K or so in cash from previous equity. If you put $150K down on a $300K house, you would be fine.

3) Tell the lender you are willing to put the first year's payments in an escrow account. This will almost guarantee loan approval. You have the cash from the equity to do this, and if the bank is able to verify that you have essentially paid the loan a year in advance, it substantially mitigates their risk. This would only apply to manual underwriting though, hence point number one.

[wrickem]

I'll go with option #1, and if needed take a small home equity loan to fix it up exactly the way you want it.

It's really great and freeing to not have a mortgage.

[nyalpine90]

option 3

1hr trip to visit relatives is not bad. i do that every day for work.
nice house, in nice & safe neighborhood is plus. allows you to travel more without any worries.
only downside is no storage for RV, you been managing it.

[1MOREMOD]

If it's called real estate is there also unreal estate or fake estate?

[nyalpine90]

Originally Posted by 1MOREMOD

If it's called real estate is there also unreal estate or fake estate?

[Run Silent]

Originally Posted by 1MOREMOD

If it's called real estate is there also unreal estate or fake estate?

LOL - We could do this all day.

- Why do they call them apartments if they are all stuck together? Shouldn't they be called astuckments?

[1MOREMOD]

Hey I'm a problem solver.

[dreamingat30fps]

Originally Posted by usshelena725

Well, I am a CPA and a huge Dave Ramsey fanatic - so of course my answer is going to be "go with number 1". If able to purchase anything without financing, it is the way to go. The debtor is slave to the lender.

If that isn't your cup of tea, note below:

Realistically, you shouldn't have trouble getting a mortgage with the tax returns, pending three points:

1) Use a bank that does 'manual underwriting'. Most local credit unions will do this. So does Churchill Mortgage. A few others do as well. They will be able to review the Schedule-C's and see that you are generating income, just that non-cash items such as depreciation expense, section 179 expenses, etc are eating up the net income on paper.

2) Put a significant amount down - like more than 50%. You said you have $250K or so in cash from previous equity. If you put $150K down on a $300K house, you would be fine.

3) Tell the lender you are willing to put the first year's payments in an escrow account. This will almost guarantee loan approval. You have the cash from the equity to do this, and if the bank is able to verify that you have essentially paid the loan a year in advance, it substantially mitigates their risk. This would only apply to manual underwriting though, hence point number one.

Thanks I forgot about Churchill Mortgage, name sounded familiar, when I went to their site I saw the Ramsey stuff and it hit me that's where I remember them from. My local credit union I used before has gone down hill pretty bad, worse than regular banks now.

Originally Posted by wrickem

I'll go with option #1, and if needed take a small home equity loan to fix it up exactly the way you want it.

It's really great and freeing to not have a mortgage.

Yup! Mainly though I just like to plan for worst case scenario. Business is good now, but if anything were to happen my thinking is at least I have no house payment, everything else is paid off so I could wait it out pretty easily. Could also live in the RV and rent out the house if I needed the income badly enough.

Originally Posted by nyalpine90

option 3

1hr trip to visit relatives is not bad. i do that every day for work.
nice house, in nice & safe neighborhood is plus. allows you to travel more without any worries.
only downside is no storage for RV, you been managing it.

The commute really isn't a big deal for me either. It's more really about having the house paid off, not having to pay like $4k/year in HOA fees and having the option to rent out the house if I ever wanted to or needed to.

[lsturbointeg]

lol well this thread got me hungy for a burrito!

[detroitm2]

Originally Posted by lsturbointeg

lol well this thread got me hungy for a burrito!

can confirm. currently eating a burrito.

[dreamingat30fps]

Meh burritos, tacos all the way

[1MOREMOD]

Originally Posted by dreamingat30fps

Meh burritos, tacos all the way

Ban

[UncleWede]

^2nd. No beans in tacos

[dreamingat30fps]

^^ Double ban, beans go on rice

[RickFLM4]

I don't think you mentioned the cost of the preferred new house. If you are swapping $400K houses, rolling your existing equity will go a long way towards getting a mortgage if your credit is reasonably good. How much of a mortgage are you looking at?

Also, if you think your 2018 tax return will assist with income for mortgage why wait until much later in the year to file it? Just get it done.

[2000cs]

If you think of this as an investment, it sounds like you’re better off where you are (better property, appreciation potential?) and you won’t pay commissions on the sale. You could lever up to maximize your returns (and risk).

If you’re really risk averse, get into the property with no mortgage. You may wish you had that equity to invest in your business, but you’ll be glad you don’t have the monthly obligation on a mortgage.

If you think of this as your life and preferences, go where you want and pay the price. Don’t worry about the financial consequences as long as you can afford it now and stomach any risk (job/business loss) down the road.

Maybe it is a blend of those three, in which case only you can do the blending and decide where you come out. Given the content of this thread, I recommend a burrito, margarita and a long think session to decide.

[dreamingat30fps]

Originally Posted by RickFLM4

I don't think you mentioned the cost of the preferred new house. If you are swapping $400K houses, rolling your existing equity will go a long way towards getting a mortgage if your credit is reasonably good. How much of a mortgage are you looking at?

Well that's part of what I havent decided. If new house is >$250k I can buy it cash with equity, if its over $250k I need mortgage. I can find houses that will serve the purpose around $250k, but I don't love any of them. If I go to the $400k-$450k mark there are better options with more land, but then I'm back to having mortgage.

Originally Posted by RickFLM4

Also, if you think your 2018 tax return will assist with income for mortgage why wait until much later in the year to file it? Just get it done.

I'm part owner in another business, but I don't handle the accounting for that and I need the K1 from that business to do mine and they take forever!

[Run Silent]

Originally Posted by dreamingat30fps

Well that's part of what I havent decided. If new house is >$250k I can buy it cash with equity, if its over $250k I need mortgage. I can find houses that will serve the purpose around $250k, but I don't love any of them. If I go to the $400k-$450k mark there are better options with more land, but then I'm back to having mortgage.

Sounds to me like you would probably be better off holding on to what you have. What is your current house worth, and perhaps I missed it, but what location are you in currently and where do you plan to move if you do?

Originally Posted by dreamingat30fps

I'm part owner in another business, but I don't handle the accounting for that and I need the K1 from that business to do mine and they take forever!

I feel your pain. I get a K-1 from the AICPA each year and it takes till March to get to me.

The only thing worse, is that due to my investments, I have to file an FBAR every year, and I don't get interest income statements from those overseas banks until they have their fiscal year end, which is 3/31. So every year I have to have a relative run down to the bank in that country, get the statements, and then scan them to me in a hurry. It's stressful and a pain in the ass, but the damn interest rates on just my 12mo CD's at the national bank are 8.30%, so it's a no brainer to keep the money over there.

[tracer bullet]

Where do you store the RV when not in use, and does it cost anything?

The HOA - even if you don't like it, I am guessing it covers things like mowing the yard, etc. while you are gone. There's a benefit to that. Will you need these things with a new place, will you have them, what will it cost?

Just stuff to think about.

[dreamingat30fps]

Originally Posted by 2000cs

If you think of this as an investment, it sounds like you’re better off where you are (better property, appreciation potential?) and you won’t pay commissions on the sale. You could lever up to maximize your returns (and risk).

If you’re really risk averse, get into the property with no mortgage. You may wish you had that equity to invest in your business, but you’ll be glad you don’t have the monthly obligation on a mortgage.

If you think of this as your life and preferences, go where you want and pay the price. Don’t worry about the financial consequences as long as you can afford it now and stomach any risk (job/business loss) down the road.

Maybe it is a blend of those three, in which case only you can do the blending and decide where you come out. Given the content of this thread, I recommend a burrito, margarita and a long think session to decide.

I'm not looking at this solely as an investment, but rather, I would like to move, however can I do it as wisely as possible. Even if it means staying where I am for now.

[2000cs]

Originally Posted by dreamingat30fps

I'm not looking at this solely as an investment, but rather, I would like to move, however can I do it as wisely as possible. Even if it means staying where I am for now.

Then my advice (worth no more than you paid for it) is follow your heart, within the constraints of your wallet. Not the other way around.