Let me elaborate a little on Mrs. Vellios' and Mr. Butterfield's answers:
First, when you are buying a 2nd home, you are not buying anything you are going to rent out, so projected rental income from the second home is not part of the equation.
There are two ways rental income is used in underwriting a loan.
First, there is the 25% of income is for maintenance and vacancy convention which is used in automated underwriting. This is figured by taking the total income from the rental and subtracting the total cost of debt, hazard insurance, and tax service on the property. If the answer is a positive number, then that number is multiplied by 75% to get the final estimated profit. That number is then included in the borrower's income. If the net income is negative, is less than zero, 100% of it is SUBTRACTED from the borrower's income. Whatever the final result is will be the number the automated underwriting system will use for determining loan eligibility.
Second, the schedule E is examined by a human underwriter to see if the expenses and income reported appear reasonable. Usually, the human underwriter can adjust the loan amount the borrower is eligible for downward based upon his review, but cannot adjust the loan upward. This is because the automated underwriting criteria are used as the benchmark for when the loan is sold by the originator to the investor who then plans to keep the loan till it is paid off. These transactions are done in bulk, and the underwriting that supports the automated result is used to assure that there is some actual truth to the automated result. The investor has neither time nor inclination to review the human underwriting to see if a higher amount than the automated answer is justified, so it assumes it won't be and rejects any loan that shows a higher than automated result was used to figure loan eligibility.
The exception is those rare cases where the borrower brings enough extra to the table in the form of a profitable relationship, that the originating bank does not sell the loan to an investor but keeps it in its own portfolio. In other words, if you are not the owner of a company that will bring millions of dollars in cash flow to a bank in other business, don't expect a bank to adjust the eligible amount to borrow upward based upon the numbers in the schedule E.
I would be happy to originate your second home loan for you. I work at High Tech Lending as a loan officer. You may call or write me at the contact information below.
If you look at a relatively small city, Palo Alto, there are 292 offices and 593 agents reported by mlslistings.com. There were 621 sales reported on mlslistings.com in 2012.
If you look at a large city, San Jose, there are over 2500 offices reported. The records show 4451 agents having sold at least one home.
Mlslistings.com records shows 8688 agents having sold at least one home in 2012 (primarily Santa Clara County & San Mateo County) . There are surely more licensed agents. 122 of these agents sold at least 25 homes. There are many licensed agents who did not sell anything in 2012.
Although different offices may have the same company name such as Keller Williams, the offices may be independently owned and operated.
Santa Clara real estate statistics at
Top 2 agent nationwide at Keller Williams Realty
Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
Some of the things desperate buyers are doing is trying to work with the listing agent. This is the wrong approach. That listing agent has so many offers that they really can not represent a buyer and a seller fairly. What the professional agent will do is refer those buyers to in house agents. That agent does not have a rapport and trust with the buyer, and is having to hurry up to get to know their financial situation, their background and in short time try to sell that buyer to the Listing Agent.
A buyer really needs to commit to one agent so that that agent can get them approved with a known trusted lender, and the agent can get to know the buyer and connect with that buyer so sell them on their offers. When the buyer begins to trust their agents advice they have a better chance of winning the offer.... more
I don't know which crime map you are looking at so I can only propose some possible explanations.
The Los Gatos Creek Trail runs behind homes on one side of the street. Crimes reported anywhere along the trail may be counted as nearby even though they aren't.
There may be crimes reported which are related to the public land associated with the creek such a vagrancy, unlawful disposal of trash, etc
The Willow Street may simply be the arbitrary dividing line between areas.
Willow Glen San Jose real estate statistics at:
95125 real estate statistics at
Top 2 agent nationwide at Keller Williams Realty
Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
I'm sorry to hear about your situation.
Please review the link above on the law of eviction. It depends on the lease, and reason. If your tenant has a lease and has been paying on time and has not breached the lease, you do not have the right to evict the tenant just because you need a place to stay.
I advise you talk with an attorney before you get yourself into trouble.
Here is one resource for an attorney David Hammerslough 408-261-4252... more
I owned a Summerhill home at the Ravena Development 8 years ago and my opinion is that they are a good builder based on the quality of home they produce. The new development that they are building is on the Matsumoto/Chaboya side of Ruby feeds into the best schools of Evergreen.
The Walmart neighborhood market is surprisingly nice and has brought life back to that shopping center. Shappell supposedly has to develop the rest of the commercial side of that complex even though the spaces are not full.
Tom N. Tran
Realtor/ Loan Officer
The Property Network
Aesthetics aside, one of the reasons that we advise you to put play structures in the back yard and in fenced, gated, private areas is primarily to avoid attendant liability. This is what is often called an "attractive nuisance" because it creates pockets of liability for a homeowner. By putting a play structure in your front yard, you invite the entire neighborhood and the children in the area to use your play structure with and without your knowledge. This is all fine and good until someone gets hurt, and as my insurance agent will tell you, there is no fury like the fury of a mother whose child got hurt at your home.
So unless you can afford a multi-million dollar liability policy, and are planning to purchase equipment that will withstand LOTS of use (commercial grade swings), or can ensure that no one will use the equipment without your knowledge or consent (usually a 6 foot locked fence is what is required for this), it's better to locate the equipment in the rear yard behind a fence where it is understood that entering would be trespassing.
Oh, and yes, putting a swingset in the front yard is also aestheticallly unappealing and may be in violation of your city's building codes, so check with the city before installing equipment in the front yard.
Allison James Estates & Homes... more
It looks like you have narrowed it down to a second home, dare I assume you are thinking of a single family home? As for an investment that is an open ended answer depending on what you are expecting to gain.
Your gain will be determined on several factors. Those who purchased in 2010 have equity gain. Cash flow is another story.
Also, do you live locally or are you from out of the area? Will you be paying a property manager?
So many questions, I know.... more
I was born and raised in Los Gatos, as were both of my parents. One of my grandmothers is from Los Gatos and the other actually from Palo Alto. I can't resist providing some insight here. What you're looking for as far as a rental is pretty much what most people in the area would love to have - but doesn't exist.
Apartment buildings in Los Gatos are few and far between. Many of the natives were priced out during the economic boom in the Silicon Valley. Homes that were owned by older people (often Prop 13 protected) are handed down to their children and grandchildren, who keep them and live in them, or are sold and snapped up by executive types. These are very exclusive areas. You didn't mention if you already have jobs lined up but realistically, you should probably look in a different area and send your kids to private schools if you aren't happy with the neighborhood schools.... more
The bay area is a weird market. Honestly, the supply and demand is driving up the price. (Herd mentality?) But, is there a value? Hell no, in most places.
I was looking to buy a home in the SF bay area, and this is what I have realized: You cannot afford a decent home if:
1. You have kids and want them to attend 900+ API schools.
2. You want a single family home.
3. You are the only earning member in the family. (making around $150k pa).
4. You are not one of those apple/google/IPO lottery winner..
On the flip side, the rents are also high. So, in a couple of years, may be, I'll start looking at other places in california/outside which is more middle class family friendly with good schools.
Ask yourself. The prices are up 15-20% compared to last year. And how much did the salary go up? (2-3%? if at all). Where is the affordability?
I cannot buy a home for $700k and afford sending my kids to private schools. However good the bay area is for different reasons, this place is just not affordable for middle class?... more
Hi Scon and thanks for your post.
First, before we start, a bank cannot, by itself, force a short sale. The bank can foreclose on a property, but a short sale is something that the seller initiates and the bank approves.
Second, a few things don't make sense to me regarding your situation, and hopefully, you can answer back with some pertinent information:
1. It sounds as if you failed to or were unable to pay for the mortgage on the home. Is that correct? How long has the mortgage been unpaid?
2. Since this is a rental unit, was the home still occupied by tenants and were they paying rent? If rent was being paid, what extenuating circumstances prevented you from paying the mortgage money.
I understand that the rental home here in California may have dropped in value from $700,000 to $300,000, but there is no bank or government program of which I'm aware that will adjust the mortgage principal down for you to meet the lower value of the home. Banks will work with most homeowners in trying to adjust mortgage rates (not principal, but the interest rates) for a short period of time to help homeowners who are in distress with their primary residence and want to keep the home. If the homeowner cannot make payments on the mortgage, then the other option is for the seller to work with the bank in a short sale of the home.
Since this was not your primary residence, however, some of the protections afforded to homeowners who have had loans forgiven in short sales may not be available to you for your rental home. Your best plan of action, right now, is to speak with a qualfiied mortgage or credit counselor in Palm Beach for advice and help on what you can do next. You may also wish to speak with a real estate attorney here in California for assistance and to learn if you have any options available to you after the foreclosure. But, hurry, time is of the essence in resolving these types of matters.... more
Thank you for your question:
The house in your link is not for sale. What you have in that link is merely a public record of that property and an estimate of value if it were for sale.
The last time this property was for sale was back in 2010. This property was listed for sale back in 2010 and sold for $255,000. Close of escrow was May 26, 2010.
With respect to whether or not this neighborhood is a safe place to live, we as Real Estate Brokers and REALTORS are not permitted to give an opinion with respect to that issue.
I have found that one of the best ways to get a good answer to that question is to knock on the doors of properties in the neighborhood, and ask the occupants what they think of the neighborhood, what to they like about the neighborhood and what do they not like about the neighborhood.
After you have talked with approximately 5 to 6 people in the neighborhood you will have a good idea whether or not this neighborhood is a neighborhood that you will be happy with.
Right now there are very few homes available for sale in San Jose. There are thousands of people who need a place to live. There is an enormous amount of demand for houses for sale and there are very few homes that are actually available for sale.
Any homes that do come on the market are sold almost immediately, often with multiple offers of 10, 20 and 30 offers or more, with overbids of $50,000 to $100,000 over the most recent comparable sales not uncommon.
I recommend that if you are going to have any chance at all of getting a home for yourself and your family, that you ask a REALTOR to represent your interests for you. That is the only way that you will have any chance at all of being competitive against all of the other offers and overbids that you will be up against for any house that does become available on the market.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com
I have to agree with the others, Allyson and Charles, regarding the steady increase of sales prices in almost all parts of the Santa Clara County--not just San Jose.
And, I also find it interesting that just "now" medial outlets, including national news, have started to notice what we, Realtors, have been seeing since last year that the prices have been creeping up since March, with a real "push" on pricing since May, 2012--almost one year ago.
There is reason to believe that there may be some ease coming soon, as sellers who did not believe us before about the market, are becoming more aware of current market conditions and seriously consider selling their homes. Just in Sunnyvale--my market, for example, available inventory for sale has almost doubled in many areas. While that's still not enough to provide price relief for buyers, it does bode well for the summer that we might see more home for sale soon.
So we are seeing more homes, more sales, and more price increases in the past couple of months. Hopefully, buyers will jump in and get serious before the market exceeds their financial expectations and capabilities.... more
And the winner is...Carl, for fastest fingers. Excellent job, Carl. He's absolutely right regarding the location of the Library Annex (on International) and the Main Library on Branham. This is a great home, so talk with your Realtor about the other amenities in the area.
For school information, check out www.greatschools.com.
For safety and crime information in the area, go to www.crimereports.com
Allison James Estates & Homes
1% Listing and Buyer Rebates up to 1.5% of the Purchase Price... more
The above link will take you to the website for Assistance Programs. There are income requirements/restraints and in some cases area.
You will need to attend one of their workshops and receive a certificate.
When I may be of further assistance drop me a note.
All the best to you.... more
Your lease agreement is between you and the OWNER of the property. The property management company is the administrator of the lease. As suggested you need to:
1) Verify that the letter you received from the County is really from the County and not someone trying to scam you. Go to the County directly and take your lease agreement with you.
2) Contact the Property Manager and show them the letter you received from the County.
Understand laws vary by state. You will need to get IN WRITING any changes to the terms of the lease agreement, this means who now owns the property is the who owns the lease, and who is administering the payments. You still own rent it's just a matter of who you pay it to.... more
There are many single family detached homes in San Jose that are either townhouses or condos because they are a part of PUD ... just as there are many townhouses that are categorized as condos and a ton of single-level units sitting on the ground with no one above them, attached to three other units … that are categorized as townhouses ...
It can be confusing, but without the address we can’t look it up to tell you what it actually is …... more
Craigslist is the largest resource for rentals and for scammers. I think for a single family house in a good elementary school district your rental price is going to be higher than $1700. Unless you can find someone with a cottage.
Check www.RentOMeter.com to compare rates. If the rate offered is lower than average, best guess it's a scam.... more
Almaden Hills estates consist of 137 homes built in 1979 by Shapell Homes. Since it has been over 30 years I would assume that the current finishes is going to vary home by home as many people would remodel over the years.
You can visit www.Crimereports.com to get information on crime in the area. It is a neighborhood where neighbors organize events.... more
Santa Clara 1 bedroom 1 bath apartment just off Newhall.
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