Interesting problem - cashflow rich, assets all tied up and needing to move before existing house is sold - what to do? (Dallas: for sale, lease)

[ROckjaw]

Thanks for reading my post - we are a double professional family with 3 and 6 yr olds, grandma and dogs/cats in tow, moving to NE Dallas metro area as my wife has taken an executive position with a large firm in Denton.

We have a nice home in the midwest that has been for sale for 3 weeks now and is getting 3-4 showing/wk. I have about $100k in equity in the house at it's current price range ($499k), but an losing $50k right off the top at that price. Furthermore, given the current climate, I am not able to tap that equity to buy a home in TX, until it sells. Our investments and 401ks / kids college 529s are off limits given they are with ML and therefore not enabled with the typical 401k loan option that a company supported plan would offer. Until the house sells, all I can come up with is about $40k in equities that I can tap.

We are looking for a short commute for Mom - so we are looking at all the usual places noted in this forum - Southlake, FM, Trophy Club, etc.... we are looking for 4+/3+, 4k+sq ft, 1/3 acre+/-, pool, etc and are prepared to spend up to $700k, but prefer to stay around $500-$600k - I know all about conforming and jumbo financing and the pros/cons, as this is our 8th move in 16 yrs.. however with these new market "norms", we are wondering what others in this position are considering....

Now here is the problem:
- we want to relo during the xmas break so that we can get the kids into schools
- so Mom can stop the weekly commute back and forth to the midwest
- so that we can buy grandma her own house/condo near us
- we don't want to have to move twice
- We would rather buy a resale home than a new build, so that we don't have to pay for the pool and landscaping add-ons
- We want to be in a great school district so that if we need to move, we can at least stay in the system

Therefore we are wondering how we can find about:
a)homes to rent/lease that can be "lease-to-own"
b)existing homes that the owner will finance until we sell and then get financing
c)new builds that the builder will lease with a contract to buy outright within 1 yr (bonus if rent paid goes against purchase price)

Our agent is nice but doesn't seem to be able to understand that we are looking to be creative - our funding guy in Dallas understands what we are looking to do but has no idea as to if this is doable these days...

- We can spend about $4-5k/month in rent whilst carrying the other home - We have combined base gross income of $35k/month
- We have assets north of $500k
- We both have FICO scores of 800+

What are people doing in these situations? Thanks to all for your perspectives

John

[TurtleCreek80]

Realistically, you'll need to rent until your other home sells. I don't even know how you're going to buy a $500-700k home if you can only put $40k cash + $50k from home sale down. The downpayment range for a jumbo loan is 20-30% these days.

You are definitely looking in the right areas though for a commute to Denton.

Lease-to-own is near impossible in Texas due to legal complexities.
Owner financing is possible, but I would be shocked if the perfect home for your family would also be the 1 in 10,000 offering owner financing, you know?
The builder thing may be possible, you'd just have to broach it with the various builders in those areas.

[ROckjaw]

Hi Turtle Creek - thanks for the feedback - as noted we should have about $140k when all is done to apply to a new home - plenty enuff, according to my realtor and mortgage person, so as to easily qualify for a home in the $500-$700k range - btw, I have 3 mortgage lenders, all smaller FIs that have well weathered the current storm, located in the midwest and in TX, that have programs for well qualified buyers that require only 5% or 10% down, on a jumbo level loan, or 1st and 2nd combos

[FalconheadWest]

I just don't see how you only have 5-10% down if you're clearing $35,000 a month. Where does your money go?

[5stones]

Also look at Corinth...
We were just up there for a soccer game last weekend and it very pretty, just East of Denton.
Southlake to Denton (even Keller) will be the longest commute.
Trophy club would be a good place to look as well.

[loves2read]

where his money goes is really not our concern--
and that is really a personal question to ask on this forum...

OP--
top school districts-- by perception and ratings
Southlake Carroll ISD
Grapevine Colleyville ISD

in those districts there are homes that will fit your price/objectives
also
Lewisville ISD especially in Flower Mound area
Keller ISD is good district and the north Keller area has some lovely neighborhoods and custom homes that are as nice as Southlake or Colleyville--the same builders built them

Northwest ISD is getting lots of word of mouth but I don't know that the stats really show it is top level district--it is just in new growth area and has new high school in Trophy Club

Coppell ISD is very good district but the commute would be more difficult

Going north on I35 to Denton is a pain but if you got on around Alliance/Motor Speedway you would be traveling the newer part of it--
377 is also less traveled and could be an option--My son used that when he lived at home in Bedford and traveled to Denton to college and when he lived in Denton and came home to visit...older road, more local/farm traffic but not as congested

you might also consider the school districts to the EAST of Denton--
Frisco being one which get lot of positive press and there are others like Allen and Lovejoy
you just have to consider how far out you are willing to travel

Denton ISD is not what I think you are wanting--there are good schools but they are not tier 1--except fo the magnet science school houses at UNT

although the commute along Hwy 380 from east of Denton into Denton would not be that great right now there is tremendous growth in that area EAST of Denton and Denton itself is growing so the road situation will improve in coming years...

there was newer thread here with the National Merit Semifinalists for the DFW districts--you should look at it--excellent schools turn out decent numbers of NMS students and that is a national basis for comparison vs state ranking or special polls...

You did not give a specific commute time which will be a definite factor in where you would like to move

You also don't mention how much you would consider spending for Grandmother's house
There are NO apts in Southlake or Colleyville--Condos in Colleyville and Southlake are EXPENSIVE if they are new..there are some older townhouse/condos in Colleyville that are pretty spartan...
There are also some senior living communities in Colleyville and Keller for active seniors if that would be an option
You might also consider a garden home/villa type property in almost any other town in area between Denton and the Metroplex

I will PM a very good RE/MLS site with info on for-sale homes and for-lease homes that has great maps and school info
I will also give you the name of another website that has homes for sale/lease that may not be in MLS
the realtor.com site lists for lease homes as well

I also know realtor who deals mainly with relo clients in your price range and above who is agent for many of the custom builders in the Southlake/Colleyville/Keller area--for their spec homes--
She has long history with some of the best builders in the area--and if there are any who would consider doing the type of deal you are considering--the lease/buy--she would probably know who that might be--based on their inventory and itchy-ness to move property...
so if you want her name/contact info you can PM me...

[loves2read]

and for what it is worth--you can check out the Fort Worth Forum--for info about Southlake, Colleyville, Trophy Club, Denton--
Fort Worth is the Tarrant county side and that is where Colleyville, Keller, Southlake are located...

[FalconheadWest]

Originally Posted by loves2read

where his money goes is really not our concern--
and that is really a personal question to ask on this forum...

The OP gave all his personal information along with stating he makes $35k a month, so it's not a personal question to ask since he made it public on a public forum. If he makes $35k a month, how does he only have $40k available? It makes no sense. And a "good" mortgage person is also going to question his debt to income if he spends considerably more than he makes/saves.

[TurtleCreek80]

Originally Posted by ROckjaw

Hi Turtle Creek - thanks for the feedback - as noted we should have about $140k when all is done to apply to a new home - plenty enuff, according to my realtor and mortgage person, so as to easily qualify for a home in the $500-$700k range - btw, I have 3 mortgage lenders, all smaller FIs that have well weathered the current storm, located in the midwest and in TX, that have programs for well qualified buyers that require only 5% or 10% down, on a jumbo level loan, or 1st and 2nd combos

Sorry, thought in your first post you said you had $100k home equity but took $50k off the top to get to your list price. That's how I came up with $40k + $50k.

[loves2read]

And a "good" mortgage person is also going to question his debt to income if he spends considerably more than he makes/saves.
That person is someone he will know more about when he applies for the mortgage
than the people on this forum
I'm not here to rework his financial--just give him the info he is asking about