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    Tuesday, March 3, 2020

    Real Estate Investing: Motivation Monday - March 2020 Edition

    Real Estate Investing: Motivation Monday - March 2020 Edition


    Motivation Monday - March 2020 Edition

    Posted: 02 Mar 2020 02:21 PM PST

    In the spirit of wanting to see more variety of content on the front page of this sub, comment with your short and/or long term goals for your real estate investing endeavors, and what you plan on doing this month to achieve them. For you veteran investors, feel free to provide useful tips and feedback to other people's goals.

    Questions to get the thoughts flowing:

    1. What are you hoping to accomplish this month?
    2. What method(s) are you using?
    3. How much time are you budgeting to complete these goals?
    4. Have you closed any interesting deals recently?
    5. Anything you have learned and would like to share with others? Saved a few bucks at a local home improvement store on paint, etc?

    Next month we will link this post in the new one and hopefully returning users can provide any updates to their goals. Sort of a fun way to keep tabs on each other.

    Top posts from the last month:

    "UPDATE - Found out tenant was laid off work" - Link

    "My story of 30 doors in 2.5 years on 50K salary. LONG, totally clickbait title" - Link

    "Rental Yields across the US mapped" - Link

    Please share your successes in this thread and if you have a particularly compelling story please consider writing it up as a separate post

    Discord Server Link: https://discord.gg/FDczXNQ

    submitted by /u/Hope-full
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    Weekly Question Thread - Week of March 2nd

    Posted: 02 Mar 2020 02:09 PM PST

    Welcome to the Weekly Question thread at /r/realestateinvesting!

    (Week of March 2nd)

    This is the thread to ask general questions about real estate investing. If you're brand new here, please read the rules in the sidebar before posting.

    • Please use the search engine first - many basic questions have been asked before (make sure you change it to search for comments, not posts). Alternatively, you can simply use the search bar at the top of the webpage within the subreddit.
    • Please also consider scanning (CTRL-F) the last couple of Question threads or other original content posts submitted by other users.

    This Sub is Modded with an IRON FIST when it pertains to spam, attempted SEO, "Guru" Promotion and click bait. Don't do it. Do not begin an AMA without approving it with the moderators first. Do not market deals as a buyer or a seller. This includes lending and syndication. If you catch a comment of somebody attempting to market a deal, service, or product please flag and report the post so a moderator can catch it.

    (MOST GENERAL QUESTIONS SHOULD BELONG IN THE WEEKLY THREAD)

    Examples of questions that can be asked here:

    • "I'm new, how do I begin?"
    • "Book recommendations?"
    • "How did others start their journey?"
    • "Analyze my deal or give me feedback on my situation?"
    • "How do you do X or Y?"

    IF you believe your question deserves its own post, you may post it as an original question. We will begin to create more clear guidelines on what belongs in this thread and what deserves its own post as time goes on.

    In other news, we will begin to create a bi-monthly thread (separate from this one) that has rotating topics. To start, these will include things like: Success Stories, Deal Analysis, Motivation Monday. If you have a suggestion for what might be a good topic to add, please comment below.

    Next Weekly Questions thread: Monday, March 9th, 2020

    Next Monthly topic thread: "Blatant Self Promotion" Monday, March 23rd, 2020

    Discord Server Link: https://discord.gg/n7dxPVd

    Last Weekly Question Thread:

    https://www.reddit.com/r/realestateinvesting/comments/f9d9vg/weekly_question_thread_week_of_feb_24th/

    submitted by /u/Hope-full
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    Does anyone factor in income tax when they do a property analysis? I’m a newbie so I would imagine it’s ~22% of all rental income, which would eat into any cash flow pretty hard. I’m sure you can lower your total income through deductions, but not the whole thing right? Just seeing what y’all do!?

    Posted: 02 Mar 2020 01:13 PM PST

    Why is it so hard for so many tenants to have things in their units repaired. Google reviews for many buildings are full of disgruntled residents complaining about broken: elevators, HVAC systems, plumbing and etc?

    Posted: 02 Mar 2020 11:02 PM PST

    Top 15 American Cities by average housing cost (in dollars) From 2008 to 2020

    Posted: 03 Mar 2020 01:18 AM PST

    Which American cities have the highest housing cost since 2008?

    In this video-timeline, the evolution from 2008 to 2020 of the American cities where the cost of real estate is the highest in the country.
    Interestingly, California cities are now leading in almost all 15 positions, with Palo Alto, Los Altos, Manhattan Beach, Saratoga, Rancho Santa Fe and many other cities.

    ***Important: The figure is calculated as the weighted average of all house prices.***
    Source: Zillow

    https://youtu.be/rC0j5ZBxezo

    submitted by /u/Statisticsanddata
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    Do REI then move, or move then REI?

    Posted: 02 Mar 2020 08:42 PM PST

    I've been 'wanting' to get into RE investing for too long now. I know way too much without having any practical experience.

    At the same time, I want to gtfo the small FL town I'm in because it's mentally killing me, so I haven't been eager to purchase here and get tied to this place.

    So my question is, do I get a new job in a new city (choosing a location with REI in mind) and build up REI on the side, or do I choose a new city based primarily on the REI market, dive in head first, and then find a job later? I have enough cash to live for 6+ months without a job but obviously wouldn't be able to get my cash flow up to living expense level that quickly.

    Or do I just start investing where I'm at and suck it up?

    submitted by /u/stealthdawg
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    FHA 203K -Multi-Family- Experiences?

    Posted: 02 Mar 2020 11:59 AM PST

    Hello all, I've been researching the heck out of REI for years now and looking to make my first purchase a multi-family house using an FHA 203K loan. I wanted to ask folks who have purchased a multi-family with and FHA 203K if you'd be so kind as to share your experiences on things such as, 1) How long did the reno take 2) How many units 3) Were there any surprises or anything you wished you knew before doing it? 4) Would you recommend it?

    I would be so appreciative to anyone who can share your experience, or any advice/pointers/lessons learned! Thank you!

    submitted by /u/JillianCielBleu
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    As a reference point from other foreign investors in the US; what % federal tax do you pay?

    Posted: 02 Mar 2020 03:41 PM PST

    and in what state is your property. And are you always allowed to use IRC §882(d) and not the 30%.

    submitted by /u/Firm_Salamander
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    What’s the outlook on residential real estate in US, particularly the west coast? How will the impact from the economical fall out due to the virus outbreak and the expected monetary policy support in terms of lower borrowing cost affect the housing market? Please share any insight.

    Posted: 02 Mar 2020 05:45 PM PST

    Property Purchase Option

    Posted: 02 Mar 2020 05:23 PM PST

    In a deal where I purchase a property purchase option (to be exercised upon death of the sole owner), can I put a voluntary lien on that property as part of the contract to guarentee repayment in the event of a mortgage or sale? Is there a better way to guarentee repayment in the event of a first-mortgage/reverse-morgage or sale?

    I'm located in Washington State, USA.

    submitted by /u/IceDusk
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    Tricky question on jointed investment with a relative...

    Posted: 02 Mar 2020 08:36 PM PST

    Have an investment opportunity for three rental properties near a major public university in a mid sized state capital city. One duplex and two multiple units houses (9 and 6 units respectively). we have won the bid for 1.6 M. Sister in law from Singapore as investment partner offered invest 350k for down payment, me and wife got approved for loan total 1.3M for three houses. The three houses are adjacent to each other and are walking distance to University and on light rail and bus line. All units are rent out - rental income 11k per month which should cover our loan. The plan is to establish an joint adventure btw us and sister in law to buy and manage the three properties.

    We have been investing rental properties ourself for years but never had an investment partner til now. The question is: with above information , what percentage of share should we hold in the joint adventure? What kind of professional help should we seek and where to find it? Was hoping to find an investment guru to guide us through this. Any advice appreciated!

    submitted by /u/jclizard2001
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    Straight to CRE?

    Posted: 02 Mar 2020 04:37 PM PST

    Im in a unique position where I have about 1M liquid, but I have basically zero real estate experience. The idea of buying a random house and doing all that work to return ten grand seems not worth the effort. Buying a small apartment building on the other hand makes more sense. Im just wondering if jumping straight into that is a bad idea? I'm pretty smart finance guy and good with numbers and Excel so modeling these deals is no problem. I'm just wondering if there will be pitfalls in either managing the property or not recognizing deferred maintenance issues or some other unknown unknown.

    submitted by /u/bluecar223
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    I own a condo. There is a crack in the concrete under the carpet. Who is responsible for fixing? HOA?

    Posted: 02 Mar 2020 12:25 PM PST

    The CC&Rs does not explicitly address this so I'm curious how folks here would approach this problem. No issues with the crack at all, everything seems to be level.

    Would the HOA typically fix something like this? I'm a bit confused bc it's not technically in my unit as this is an issue with the underlying infrastructure of the building/unit.

    submitted by /u/ospreyintokyo
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    Tax Lien Certificate Investing

    Posted: 02 Mar 2020 03:34 PM PST

    Hi, I live in NYC and stumbled on TLC investing. Free event held this Saturday. Wondering if I should go. Anyone has experience with TLC? good economics or a waste of time? How do the opportunity sets in TLC compared to old school buy/rent/flip?

    Thanks,

    submitted by /u/halfstep007
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    Financing advice please

    Posted: 02 Mar 2020 09:28 AM PST

    Hi All, Have my eye on a bank owned property in Wilmington, De. Asking $15,700 in cash. Roof leaked and caused water damage, I should be able to see the extent of it tonight.

    Currently sitting on $7,600 in cash ($9,000 total in 2 weeks if I can wait it out).

    Question is ...am I able to finance the balance of the purchase and reno costs? If so, what are some options? Open to any suggestions.

    Property values are about 90-110K for comps and it can rent for about 1,000/1,100.

    Seems like there is a lot of equity here to work with if I am able to get the financing.

    Thank you all!

    submitted by /u/Socks610
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    What COC ROI are you guys hitting with SFH and small-multifamily?

    Posted: 02 Mar 2020 11:24 AM PST

    Also, what town do you operate in. I'm in Raleigh/Durham so curious to see what numbers others are hitting.

    submitted by /u/nclandlord420
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    [Landlord - NC, USA] Can I refuse to renew tenant’s lease?

    Posted: 02 Mar 2020 11:17 AM PST

    46 Year old getting started late :/

    Posted: 02 Mar 2020 07:21 AM PST

    Good morning everyone :)

    My situation, I have a house with about $100k in equity. I bought the house on a VA loan and in the next 6 months I am looking to move to a new state. I want to start accumulating properties and create residual income that can provide for me when I retire.

    I was considering renting my current house (3 bedroom with partially finished basement) and then buying a condo in downtown SLC. I would live in the the condo for 1 year and then turn that into a rental. Ive also considered buying a ski condo in Park City or Solitude as my work allows me to work remote 95% of the time and the commute to SLC wouldn't be awful for those other days.

    What is currently holding me back is my credit. I got divorced 3 years ago and during the process I was late on some bills...completely my fault and preventable. My credit is recovering but I currently cant get a good rate for a refi so I could use my VA in SLC. With my current mortgage I wouldn't be able to use a management company and still get my money back.

    In 1 year my credit will be fine, should I wait?? Should I sell my current house and buy the condo and start with that??

    submitted by /u/DucatiKirkDenver
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    Best way to find equity partners

    Posted: 02 Mar 2020 06:11 AM PST

    Hello,

    So I have used equity partners in deals before however they were all people I have known for a while. My first flip I actually went to my works Christmas party and fund raised profit sharing shares. I started exclusively doing brrr flips with 2-4 unit properties this last year and got from 0-9 units however I'm at a spot where I can't get any more with out influx of more cash. I have more deals that work come towards me for example a 4 plex buy for 75k 60k rehab and refinance for 140k leaving 15k in but cash flowing 2k a month.

    Just wondering what's the best place to look for an equity partner without looking like a scammer. I'm willing to do all the work obviously (contractors, financing, refinance etc)

    Any input is appreciated

    -cheers

    submitted by /u/emmertjp
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    Does townhouse w/o hoa scream red flag?

    Posted: 02 Mar 2020 09:33 AM PST

    What type of fees is the buyer responsible for?

    Posted: 02 Mar 2020 03:00 PM PST

    Still new to real estate investing and would like to know from someone who has done it what the general costs are associated with the buyer for say a 200k single family home. What are considered closing costs? How much would they generally be on the 200k home? Thanks everyone!

    submitted by /u/HairBones69
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    To find a mentor

    Posted: 02 Mar 2020 01:58 AM PST

    A mentor

    Hi everyone, it is really nice to see that some experienced people share their ideas, businesses, real estate stories etc. I really like it and thanks for that.

    There's something you also hear often and it is 'go find a mentor that can help you, or give information how to take the first steps etc'. It's good advice but I'll tell you what is happening a lot of times. I send a lot of direct messages to experienced people, and they often end their message with 'go find a mentor who can help you'. I totally agree with that, and I appreciate that they take the time to react on my questions.

    The next thing is, it's kinda hard to find a mentor through Reddit or other websites which lives in the same country. The rules in America are different from the rules in my country, the Netherlands.

    I'm kinda scared to reach out to ask people in my local area who are successful in investing, real estate or businesses. I don't even really know how to reach out. So my question is; how do I reach out to those local successful people? In what way you would like to be asked by a 22 y/o student to give him some information?

    Also, any tips to find a mentor through Reddit or other websites? Maybe any people from the Netherlands in this subreddit who 'made' it or are able to be my mentor?

    I wish you guys all the best, and hope you all will be successful in what you like to do.

    submitted by /u/hendrik-p
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    Lock VA 2.875% 30 year (1/8th point) ?

    Posted: 02 Mar 2020 11:45 AM PST

    Should I lock a 2.875 VA today with .125 point ? Or wait a few more days (lender suggestion he still thinks going lower and or points go away)

    submitted by /u/marines42
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    Share your direct mail marketingexperience

    Posted: 02 Mar 2020 07:26 AM PST

    I am a new investor looking to acquire off market deals. I did a very small direct mailing a year ago. Got 100 letters out before finding a good deal on the MLS, putting it all on hold. Got 3 or 4 calls back, one interested seller who eventually ghosted me and I didn't keep following up once I found the other deal. I was encouraged by this hit rate despite nothing coming of it. Currently prepping 450 new letters to mail at the moment and just wanted to hear other stories. Need some encouragement that this will work.

    Strategy, printed letter, hand signed by my wife and I on a No. 10 envelope with hand written addresses. Worked well last time, the people that called said it intrigued them.

    Input, expertise, stories appreciated.

    Edit: This is for buy and hold/BRRRR for myself.

    submitted by /u/Cgree313
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    Buying real estate unequal partnership

    Posted: 02 Mar 2020 09:27 AM PST

    I am looking to buy another property for investment. I have an investment partner that wants to invest with me. Here is where it gets complicated. Our family just grew and the place we own is not big enough anymore. We want to rent out the place we own but also want to buy another house with a partner and rent half of it.

    Does anyone have any experience with this type of situation? I want the deal to benefit both parties equally. However, I would be paying half the mortgage/ insurance while I live there putting more money into the place than the partner.

    Also if someone has resources or this kind of deal that I could read it would be very helpful.

    submitted by /u/young_munk
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