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solarUS said:   
rufflesinc said:   
tehlorax said:   I'm sure it can be done, but if you're lying about it - its probably not legal.
You don't need to lie if you are actually living in the house for a year, buy another one , move in that one and rent the old one out. That's what these guys do. Not that efficient, but the mcmansion I'm buying with some equity in it, i get 40% ROI (cashflow plus appreciation of 1% plus paydown)

you factor in appreciation and mortgage paydown into your ROI? that's, ahem, "rich".

I should be been more clear.

The usual houses I buy , I look at cash on cash return and I get around 30% , with 20-25% down., but ROI of around 40%

looking at these mcmansions, with 5% down, I only get cash on cash of 6% but the same ROI of around 40%.

now ROI that includes appreciation (mine is fairly low at 1%, below inflation, dont you think) and principle pay down (cmon, you don't factor in a paid off property? what do you think you have after 10,20,30 years?) is very very common among investors.

the excel sheet I found online includes both these calculations. the fact that i get 40% ROI for both but widely different cash and cash means that ROI and cash on cash are both useful

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blueiedgod said:   tehlorax said:   Yes, if you're living there of course it isn't a lie. I don't think that's what the post a couple back from yours was about tho.


Here is a rhetorical question. You bought a house, and then your employer sends you on a 1 year assignment elsewhere. You continue paying the mortgage and taxes, the property is taken care of. Are you legally "living" at the house you bought?

I think you know the answer. Same logic applies. It may not be ethical, but not illegal.


The original post was clearly asking about mortgages on rental properties. There was no ambiguity.

All OOC mortgages will ask you to sign indicating that you intend to make the home your primary residence. If something happens after that, then yes you can obviously move....but you are venturing very close to mortgage fraud in how you've discussed this topic so far.

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rascott said:   
blueiedgod said:   
tehlorax said:   Yes, if you're living there of course it isn't a lie. I don't think that's what the post a couple back from yours was about tho.


Here is a rhetorical question. You bought a house, and then your employer sends you on a 1 year assignment elsewhere. You continue paying the mortgage and taxes, the property is taken care of. Are you legally "living" at the house you bought?

I think you know the answer. Same logic applies. It may not be ethical, but not illegal.


The original post was clearly asking about mortgages on rental properties. There was no ambiguity.

All OOC mortgages will ask you to sign indicating that you intend to make the home your primary residence. If something happens after that, then yes you can obviously move....but you are venturing very close to mortgage fraud in how you've discussed this topic so far.

Right up to the line but not over it. Isn't that how people make a buttload of money?

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blueiedgod said:   
tehlorax said:   Yes, if you're living there of course it isn't a lie. I don't think that's what the post a couple back from yours was about tho.


Here is a rhetorical question. You bought a house, and then your employer sends you on a 1 year assignment elsewhere. You continue paying the mortgage and taxes, the property is taken care of. Are you legally "living" at the house you bought?

I think you know the answer. Same logic applies. It may not be ethical, but not illegal.


If you're intentionally lying about owner occupancy status and intention then yes thats actually mortgage fraud and in fact it is illegal.

Go read your closing documents.


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