Real Estate Investing: Are you still charging rent for April and beyond? |
- Are you still charging rent for April and beyond?
- Commercial tenants asking for rent relief
- Is California a bad state to own investment properties?
- Should I invest in this Deal?
- Paying rent this month and beyond
- When rents let you walk away
- Many Cities Placing Moratoriums on Evictions - Commercial and Residential
- What is the best way to evaluate refinancing options for an investment property?
- Anybody pausing on filling vacancies?
- How should we think about a real estate investing in a very low inflation environment?
- Advice for 17yr old
- Close my business and turn the building into rentals? Looking for feedback. Thanks!
- Shift from renters to homeowners
- Seller states they have no information on property that’s why it’s listed so cheap?
- Is is foolish to invest in US RE at the moment?
- My parents traveled as tourists in florida,USA. And they planned or bought an house then want me to help them as i will be take care of it in the future.
- Question about negotiating
- I owe $115k and the ARV is ~$150k but the house needs $35-45k worth of rehab. Am I doomed or is there another way to approach this?
- Help me decide between two hypothetical decisions as we enter this recession/deal with renting during the pandemic.
- Looking to hire subcontractors in Baltimore/DC metro area for renos
- What if a property generates a small loss?
- Refinancing deals for rental real estate
- Coronavirus game plan
- Just sold condo! What's next?
| Are you still charging rent for April and beyond? Posted: 19 Mar 2020 09:58 AM PDT My property manager and I discussed this issue at length yesterday and I wanted to see how you guys are handling this. What we came up with: Rent is due on the 1st, if they ask for assistance we will accommodate. If they can't work I don't expect them to pay and I will not pursue an eviction. I spoke with my bank (private bank) regarding my commercial loans, they'd consider mortgage deferment if I can show severe loss of rents related to the pandemic. For those renters that can't pay April or even May, I don't know what recourse I can expect. I think I'm going to just have to eat it, it's not like they'll be getting back pay. Thoughts? [link] [comments] |
| Commercial tenants asking for rent relief Posted: 19 Mar 2020 02:26 PM PDT I want to help. They've been very good tenants for a very long time but I'm wondering what options are out there - for both of us.
Any suggestions are certainly welcomed [link] [comments] |
| Is California a bad state to own investment properties? Posted: 19 Mar 2020 07:02 PM PDT Is California a state to avoid for investment properties because there are limits for how much you can raise rent? Is nyc the same way? [link] [comments] |
| Posted: 19 Mar 2020 05:30 PM PDT Hello All, I have been working on putting in an offer on a possible house hacking property. I make around 55K per year and am trying to use FHA financing on a property. The total mortgage would be 115K if they accept my offer and I am looking at conservatively using a 4.5% interest rate on the loan. The total cost to buy the property with realtor fees and everything would be approximately $7,275 at closing. The gross rental income would be approximately $1300 per month. I would pay half of the rent in one unit and so would pay $275 towards overhead on my property as well as approximately $75 in utilites. That would be a total cash savings for me on a monthly basis of $615 based on my current rent. My Mortgage payment would be approximately $562.29, my Taxes would be $182 per month, PMI would be $76 per month and my Utilites would be around $150/2 = $75 per month. I am allowing for 10% Capex, 10% vacancy, and 5% for maintenance. In total my monthly cashflow would be about $79.55 per month. With money saved I would have a net income increase per month of $694.55. Cash on Cash ROI based only on rental income is 24%, but including saved money it is 192%. Cap rate only on rental income is 0.83% but based on money saved it is 10.17%. Do you think this is a good investment? Thanks, [link] [comments] |
| Paying rent this month and beyond Posted: 19 Mar 2020 03:23 PM PDT Hello to all you beautiful people of RE community, Just wanted your advice regarding what's going on currently. I am paying rent monthly, staying here for 1 year. Will extend the lease for 1 more year in May. Due to coronavirus both me and my wife are laid off, staying home. Unable to work from home since we both are in medical/Health industry. We work for private medical office (different places) and due to low patient volume and quarantine, I have been laid off for 8 weeks as well as my wife (for 8 weeks at her physicians office). Due to absolutely no income coming in we will at hardship to pay for rent for the month of March & April. I want to ask you guys for an advice as to how should I ask my landlord to give us a break/forego at least 1 month's rent. Should I contact him directly? We got the apartment via a Real estate office/agent. If I write to them what are some of the things I should include which would help me. I can also provide proof from of currently being unemployed due to coronavirus. Please help Thank you 🙏🏼 -AJ [link] [comments] |
| Posted: 19 Mar 2020 04:09 PM PDT Anyone have experience leaving your job because of your rental income? I've thought about what number I would need and wonder about expenses unforeseen after I leave. I have thought that 20k a month coming in would sustain me for the next 20 years or so. I'm at a pint where that could be doable soon. Saving 5k a month off that 20k to buy the next property over time. What about health insurance? This is really my biggest fear with young kids. Is Obama care any good? Could I get a group policy for a small realest business with two employees; my wife and I? [link] [comments] |
| Many Cities Placing Moratoriums on Evictions - Commercial and Residential Posted: 19 Mar 2020 07:53 PM PDT While I agree that this is an important move to protect the most vulnerable economically, this could start a cascading effect.
This becomes complicated quickly. Each link in the chain can blame the one above or below for a) not having enough reserves for a rainy day or b) being a heartless money grabber. The only way I see this resolving well is for step 4 to be a low/no interest loan to the banks for at least an intermediate term (like TLGP). Allowing the bounce to be absorbed by the government, providing liquidity for the banks, solvency for the landlords, and relief to the tenants. As the economy comes back, hopefully the money flows back through the chain, repaying the government loans... And we are back to business as usual. I've been a small business owner, a landlord, a bank regulator, and a city official. These are my thoughts. What do you think? [link] [comments] |
| What is the best way to evaluate refinancing options for an investment property? Posted: 19 Mar 2020 10:44 AM PDT I know mortgage rates are really high right now because demand went through the roof from refis, but I am curious what you are trying to optimize for when doing a refi on an investment property. I have one friend who advises you ideally want to have only 20% equity in a property, get lowest rate you can, use the extra cash to go find a second investment deal. Another friend believes that putting extra cash into current property, say giving you 50% loan to value ratio, and grab a 15 year loan to have tenants pay it off faster. I have a feeling both of these friends are right, and the answer is "it depends on what you want" but I am curious if there are set calculations and tax considerations that can be useful to evaluate. [link] [comments] |
| Anybody pausing on filling vacancies? Posted: 19 Mar 2020 09:30 AM PDT I have a couple vacant units. I'm trying to figure out if I should try to find tenants or just wait til things settle down a bit. I dont really want to put someone in who may not be able to pay pretty much right off the bat. I'm not in an area with scarce housing so i dont feel like I'm hurting anyone by leaving these units out of the market for a while. These are 1bdrm apartments in multifamily buildings so the properties still cash flow with these units vacant. The local university was looking for temporary apartments (for free) for displaced international and low income students and I offered these up but they said they already had what they needed. What are you all doing? Filling units like normal or taking a time out? [link] [comments] |
| How should we think about a real estate investing in a very low inflation environment? Posted: 19 Mar 2020 08:43 AM PDT Most of the discussion here tend to focus on "micro" considerations, but recent events as well as the earlier financial crisis really highlights that the world is (1) in a low inflation environment and (2) real interest rates have steadily fallen across the world over the past few decades (or longer). How do the experienced investors here think about the prospects of a low inflation / low real rate environment for real estate investing as an asset class? For comparison, many of us had grandparents who bought houses in say the 1960s who benefitted hugely from the inflation in the 1970/80s they held fixed rate mortgages. Looking forward, the prospects for such dynamics looks much lower. As for real interest rates (fallen by about 300 bp in the past 30 years), that's bad for equity and fixed income investors, but the impact to me seems less clear for levered real estate investors since they can borrow cheaper. Have the big picture attractiveness of real estate changed? [link] [comments] |
| Posted: 19 Mar 2020 09:25 PM PDT Hello. I am from Canada and been studying REI heavily for the past 7-8 months. I'm looking to invest in my first deal within the next year. What are the main things I should focus learning and mastering before getting into my first deal? [link] [comments] |
| Close my business and turn the building into rentals? Looking for feedback. Thanks! Posted: 19 Mar 2020 11:32 AM PDT I run an artistic business and after this epidemic and the hit to the economy I really dont think its possible to keep it going. At the best of times it was an incredible amount of work with moderate pay and at the worst of times, it was an unbelievably hard business to keep afloat. So I have a chance right now to change my life and I am hoping the amazing people of r/realestateinvesting can help me. My incorporation owns the large building, it has multiple zones, they are: Residential for the apartment upstairs, which gets me 1100$ a month. Commercial for the gallery/ shop down stairs. Industrial for the factory area in the back. Its a big building! The idea is to change the gallery into a residential rental apartment, which can probably be a 2 bedroom and cost about 15k$ to reno to be rented. After thats done I can probably get 1500-1750$ a month depending on how the economy bounces back. The basement which is currently a shipping area could be changed into a bachelor rental at a cost of probably 12k$ and be rented for 850-1000$ depending. Then there is the factory area, I have thought about making it into a large open space apartment type thing, or just renting it as storage or a factory space for someone else. Either that or find someone who wants to rent the factory and also the shipping area. This would be preferred as to reno the factory into livable space it would cost $$$$$$ and also it would need to be re zoned. So upstairs apartment 1100$ a month Gallery space lets say 1600$ a month Basement lets say 900$ a month Factory space just for ease maybe 1000$ a month Thats 4600$ a month and around 55,200$ a year. I have around 120,000$ on the mortgage and after this whole shitaroo of an epidemic probably -50,000$ on a credit line with a limit of 100,000$ limit. I would sell off all our equipment and stock and probably be left with very little owing on the credit line. The building is worth about 450,000$ so I could re mortgage to 360,000$ and get 240,000$ cash to do the renos and then use the rest to buy another property to BRRR. Property taxes are 6000$ a year Upkeep around 3-5000$ a year Mortgage around 15,000$ a year What do you think? Do you think this will work? Am I missing something? It has been my dream for a while to own more properties, we are currently house hacking a duplex and so I also get 12,000$ a year from that so that helps. Long term goal is to move out of here and then rent out our side for 19,200$ a year putting my grand total at 87,600$ income a year in rent. Thanks so much for taking the time to read this, this is a big step for me so I really appreciate all the help! I am currently on lock down so Ill be answering all day! :) THanks! [link] [comments] |
| Shift from renters to homeowners Posted: 19 Mar 2020 04:42 AM PDT Do you think we will see a shift of renters to homeowners due to the low interest rates or do you think the economy will put a strain on homebuyers? [link] [comments] |
| Seller states they have no information on property that’s why it’s listed so cheap? Posted: 19 Mar 2020 08:38 PM PDT We've been looking for a small patch of commercial land in Florida recently and stumbled across what seems like a great deal. When I contacted the listing agent/owner they stated it's cheap because they don't have any other information besides the legal description. No surveys no clue of where the property lines are. They said there would be no issue getting title insurance. Should I even consider this property? When I look up the parcel the county has clear markings online. And shows that the property is over an acre. [link] [comments] |
| Is is foolish to invest in US RE at the moment? Posted: 19 Mar 2020 09:59 AM PDT Was about to invest in home for first time with idea of renting it out [link] [comments] |
| Posted: 19 Mar 2020 08:35 AM PDT We are from Venezuela, as everybody knows how economic crisis, communits, bad government, etc etc, made each Venezuelan take options at hand in other to sustain and help families and trying to survive this. I don't have idea about loans, mortgage, how borrower credits works and whatsoever. I am just listening and pay attention what they are doing about buying that house in Florida as intended to use as investment (rented house), but i am not sure, but they don't have credit card from USA, they got help and counselling from a worker who has connection from a company 'Security National Mortgage', but right now needs to have a credit card from USA to use to pay the monthly Pardon for my English mistakes. [link] [comments] |
| Posted: 19 Mar 2020 03:22 PM PDT If The seller is not willing to do repairs, but willing to pay 3k closing and a sales price of 235,000, but then the home appraises for 228,000, is it unfair of me to still want my 3k in closing at the 228,000 buying price? Any input would be appreciated, thanks. [link] [comments] |
| Posted: 19 Mar 2020 06:37 PM PDT The house is a quad plex in an area that's currently being gentrified. The value has shot up from $100k to $130k where I picked it up for $118k. Two years later and it's now worth $150k-$165k. The market here is expected to continue growing but it's impossible to know how far or if we've reached the top. I'll admit I knew almost nothing about REI when I bought it. I was eager to sink my baby teeth into something and my eyes glossed right over some glaring and expensive issues. The Hvac needs to be updated and separated, the electrical needs to be updated and reorganized, two of the units need new kitchens, one bathroom needs to be gutted, and landscaping could be touched up. Doing the BRRR method, it makes no sense to continue because the costs exceed my potential profits. But I've been using the property as both long term and short term. If I fixed it up, I could definitely increase rents by several hundred and once the Coronavirus passes then the bookings will continue. As an Airbnb it makes roughly 2x the rent and I could potentially add another unit to the market. With these things in mind, am I in the wrong by considering the rehab as a cash flow investment? Or should I only be looking at equity gains? I more than likely won't be able to get that money back from a Cash out refi but I would still have a relatively quick ROI. What are your guys thoughts? [link] [comments] |
| Posted: 19 Mar 2020 01:36 PM PDT I am in a real estate group with other members and we are currently on our way to closing on a 6-unit building. The building as it stands will barely break even, we are essentially only building principal on it. Our initial plan was to take every effort to increase the rents so we could build more positive cashflow but we need to put that on an immediate hold due to COVID (at first govt wasn't allowing increases and evictions, now tenants can delay rent payments). As such, we will be stuck with a property that breaks even and builds I would say ~18k in principal per year. Some quick numbers, building around 650k, 25% down payment, 75% loan. We secured our loan at a rate of ~3.9% which personally I think is quite high as we did it before both BoC cuts to the interest rate. The way I see it we are headed into a recession with a building that barely breaks even, locked into an interest rate that is higher than it should be. I and a few partners want to walk away. I would much rather keep that buying capacity for a few months from now when I feel plenty of houses will go on the market due to a) people not being able to afford them and b) people not putting houses on market during COVID and thus all those people will flood the market afterwards. I am okay with sitting on our hands for a short period of time. A few members of our group feel that breaking this deal will sever a connection with the selling realtor who is considered extremely vital as he is very active, further, they feel it may hurt our borrowing capacity as we would be walking away from the bank that is giving us our 75% loan. What would you guys do in this situation? [link] [comments] |
| Looking to hire subcontractors in Baltimore/DC metro area for renos Posted: 19 Mar 2020 09:59 AM PDT Does anyone have recommendations for subcontractors in the Baltimore/DC area that they've used or are familiar with? Looking to hire for consistent reno work in the area, thanks in advance for any contacts you can supply. [link] [comments] |
| What if a property generates a small loss? Posted: 19 Mar 2020 09:58 AM PDT I'm looking to invest in a property in Southern California that I can hold for a long time. Real estate here is competitive and expensive. Some of the units I've looked at would require me to take a monthly loss of ~$200 and I would breakeven when rents go up in a few years. Is this normal in such markets, or should I completely pass and look for properties where I can at least breakeven? [link] [comments] |
| Refinancing deals for rental real estate Posted: 19 Mar 2020 09:48 AM PDT What kind of refinancing deals are people looking at right now? I have the following right now for a property in Phoenix, AZ: Current Loan Amount: 280K. Current %: 4.25 Current Payment with Prop tax and insurance: $2050 I would like to bring the payment down. But the quotes I am getting are much higher than this. Is this normal? [link] [comments] |
| Posted: 19 Mar 2020 07:30 PM PDT |
| Posted: 19 Mar 2020 09:43 AM PDT Hey all, I'm a bit new to this. A few years ago I bought a condo, lived in it for a few years, then bought another house and rented out my condo for a year. I just sold it and walked away with 70k. I want to continue down the real estate road and get a couple rentals. What would you do with 70k? [link] [comments] |
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