If you’re landlord, leaving some serious money on the table and might not adequately be budgeting for capex expenses. If you’re the tenant, got lucky with the landlord 
Our average rents are up ~50% between 2019 and 2022 in the 4 markets we own/operate in. We don’t increase to full market rent on renewals (Max rent increase for renewals we personally do in 1 year is 10%). But our capex costs more or less doubled in that time frame.
The current rates are killing deals for cashflow, but getting a lot more luck getting houses seriously under value (just closed on a house for $495k, appraised $100k higher). I see more and more potential flips as retail buyers start to have more choices and stop paying top dollar for homes in flip condition.
Target Corp. TGT -1.37%▼ warned Tuesday that its profit would drop because it needs to cancel orders with vendors or offer discounts to clear out unwanted goods.
The announcement was the latest sign that many big retailers are struggling to match supply with demand, as inflation squeezes shoppers and more discretionary spending shifts to travel and entertainmen
Question for the group that may be is a real indictment on my stupidity (already apologizing to the wife:
My wife and I just got our pre-approval letter from SoFi for a new house a few days ago. My middle mortgage score of 752 was used to get it. One potential issue has arisin that I’d like some guidance on. I opened a new CC account over a month ago but it apparently didn’t report on my credit report until just today. There’s no balance on it at all, but I didn’t realize that it wasn’t already reporting.
I’ve reached out to my LO about the issue this morning but haven’t heard back. I understand that wasn’t the best move, but I’m wondering if that would derail the pre-approval. I wouldn’t think so since it’s not actually new debt, but I’m new to this so not sure.
I have the MyFico memebership that updates my scores. No update from that new account yet, but I don’t see my mortgage score dropping under 740 becuase of it (but who knows). Having a bit of a mini-freakout right now.
You may have to provide a written explanation of what it is, why you opened it, and why it won’t be a problem. Don’t panic.
Should be nonissues unless you charged like $10k to the card already.
$0 balance on the statement. Continues to have $0 balance. I fell for the marketing of that stupid X1 card with no annual fee.
I don’t mind providing a written explanation.
The FICO scores used in mortgage underwriting are a lot less forgiving for new accounts than other flavors of FICO (like FICO 8).
How much of an impact you will see when the new card reports will depend largely on what the rest of your profile looks like (age of your oldest account, number of trade lines reporting, etc., how many revolving accounts are reporting balances, etc.).
What is the minimum FICO score threshold to get the terms you want?
Note that with two applicants they’ll use the lower of your or your wife’s middle score, so as long as that score lies within the range required for the terms you want, you’ll be fine.
It’s not like every single FICO point difference adds/subtracts 0.XX% to your rate.
I just closed on a $100k HELOC this past Monday. My question is I’ve heard that even if I don’t tap the HELOC for any money, it could potentially negatively affect my credit score? Like creditors see the unused balance as a potential “risk”? Would I be better off tapping it for a small amount ($5k or something to finance a small home project) or is leaving it alone unless needed best practice?
Right now, according to MyFico, I have 23 total accounts (mix of old closed and new), 11 current revolving accounts with an average age of 7 years 4 months and oldest account of 13 years 10 months.
My revolving account balance across the 11 accounts (12 with the new one) is $0 and has been $0 for the last two monthly 3 bureau reports (was roughly at 7% CLI before that). This new account adds a limit of $30,500 to my total available balance, putting it at a total of roughly $125k available.
That’s a solid profile, so I wouldn’t expect much blunt trauma.
Note that it’s better to have one card reporting a balance than no cards reporting a balance (although you want the balance to be as small as possible).
FICO can’t tell how you’re handling your revolving accounts if it doesn’t think you’re using them, so it kicks you in the shins out of frustration.
I’m purely guessing, but I’d anticipate a drop of 15-20 points when the new account reports, but if that’s the outcome you’re still in the 730s.
The loan would probably price out the same (another educated guess). And you can probably game some/much of the point drop back by letting a small balance report on one card. (If that’s even necessary).
Thanks! Have been reading more about the AZEO method and will probably charge a few hundred dollars in upcoming dinners on one of my Amex cards (CL of $33k). Statement cuts in a few days so that should hopefully counteract some of the new account trauma.
Appreciate the advice!
Sent over my statement and got confirmation from SoFi that it doesn’t impact me at all. Should be the end of all the proverbial skeletons in the closet!
Nice to hear. For the record what are your mortgage rates? In the 5s??
Yep, 5.5 with SoFi. Chase was the same
Update: after 4 whole days in the housing market, our offer was accepted. A bit shocked that our first offer was accepted, and we didn’t need to get into a bidding war or trigger our escalation clause.
Thanks for the advice everyone! July 14 closing!
Are those the dominoes that I hear falling…
Hi Guys,
I did not have anyone to discuss these things with so I thought I’ll pick some LHers brains and would appreciate some opinions.
I would have to move to another state soon from Midwest (Kansas City, MO). Currently, the most likely destination seems to be San Diego. 2nd most likely San Jose, and then there are options to go to Seattle, Austin, and maybe even New York with a pay cut. I would have to make a decision in the next two weeks and have been thinking hard about where to relocate to.
I am a single guy and the goal was to own property soon. However, looking at house prices in San Diego was a bit depressing (through Zillow estimates). Maybe people in California are used to paying this much or it is normalized there. But for me paying a $5k mortgage for an okay looking 2/3 bedroom house doesn’t seem like a good way to spend my income. Unless I rent out the spare room which would in my mind decrease the quality of life further.
So the questions and decisions I have to make. Is it really worth it to move to California or should I move elsewhere with a pay cut? How do people in California justify paying these mortgage rates? Am I overlooking something like looking at it as an investment growth rather than a home since I would have to pay the rent anyway?
Currently, I am leaning towards moving to San Diego cause the pay and the career growth look nice. I feel like housing prices keep getting out of hand so I wanted to buy a house as soon as possible.