Real Estate Investing: Those of you who used the BRRR method to buy property, how will this downturn affect you? |
- Those of you who used the BRRR method to buy property, how will this downturn affect you?
- Rent or Sell
- Opportunity to buy a bundle of low income units via owner financing
- Those who Airbnb or short term rent your property, how are you being affected?
- Use HELOC to scoop up properties?
- During a rehab, what is the most common thing that needs fixing that an investor would hire out to a contractor?
- What traits are necessary for success?
- Best deal you can think of to get rid of HOA fee
- Posted this to the Real Estate group and wanted to also share here for Loss to Lease calculations
- x-post - Leveraging property to buy a new property, bad credit, opportunist.
- Home equity loan vs cash out refinance to expand portfolio?
- Multi-family House Hack Numbers
- Feeling cautious on flips right now?
- Thoughts on this?
- REIT Value Arbitrage in the Short Term
- What is your position against "real estate investing does not provide any value or service to the community" and that "landlords are greedy parasites"
- To all the landlords that gave away free rent.
- In escrow on second home, should I bail or not?
- Second home loans- primary is VA
| Those of you who used the BRRR method to buy property, how will this downturn affect you? Posted: 17 Mar 2020 05:53 PM PDT Considering the BRRR method tends to encourage large debt loads via multiple mortgages, how do you think this market hiccup will affect you? [link] [comments] |
| Posted: 17 Mar 2020 11:08 AM PDT Bought a house for $75,000 to rent or sell. We spent about $6,000 remodeling it + some time (I'll est 20 hours). I have an offer to buy it for $115,000 or rent it for $1200 right now. $115,000 - 3% commission - Doc Stamps = $110,745 then we have short term gains of I'm guessing 24%. I'm guessing we'll net around $22,500. Or I rent. $1200 * 12 = $14,400. Deduct $250 for HOA but it includes Lawn Maintenance. $1700 for taxes per year. The unit is built in 2005 and I just remodeled a lot so it shouldn't have much maintenance. Say $12,000 profit per year before taxes. I don't exactly need the $115,000 back at the moment. Don't even know where it would go except if I found another flip. I'm thinking at least rent for a year to see how it goes and get to the long term capital gains bracket on it. [link] [comments] |
| Opportunity to buy a bundle of low income units via owner financing Posted: 17 Mar 2020 01:54 PM PDT So the short story is i just turned 30 and work as qn inspector in many low income homes in my area. Ive been looking for an opportunity to acquire some investment properties since i am familiar with the business but i am pretty nervous about making a potential purchase this large. An old man ive done inspections for is looking to sell his properties and is willing to finance with 10% down and may go as many as 10 years with around a 6% interest rate. There are a few nicer ones that i would probably flip when the time was right but most are low income, even section 8 type units. 4 buildings of duplexes. 1 triplex. And the rest single family units. 28 total that would be drawing a rent revenue. I have looked at the county website and gotten as much information as possible and have estimated that the average rent for these units would be close to $525 per month. I just dont really know how much I should offer him and how i should decide how high to go. I know he was offered a year ago 300k for everything and he turned it down. He has since sold 3 duplexes for 90k and 3 sf homes for 60k. Im thinking my initial offer at the moment is around 375k and maybe go as high as 550? Ive stressed over this alot the last few days so any help would be greatly appreciated. [link] [comments] |
| Those who Airbnb or short term rent your property, how are you being affected? Posted: 17 Mar 2020 06:46 AM PDT Curious to hear from the community on this. I am concerned that there are people doing Airbnb arbitrage (rent long term then rent on Airbnb) and investors in short term rentals that are feeling serious pain. How long can you all last with no rental income and what are you planning next? [link] [comments] |
| Use HELOC to scoop up properties? Posted: 17 Mar 2020 10:57 AM PDT Coronavirus closed my business and I can't really spend what money I have in my bank account at the moment. However, I own all my rentals in cash and my buddy recommended I open a HELOC on the units so I can get the bank to write a check when a good opportunity comes around so I can scoop up some extra properties - then 6 months later refinance and pay back the HELOC. Wondering if anyone has any insight into this strategy and what kind of risk I'm opening myself up to especially moving into the months ahead. Thanks UPDATE: I was quoted 5.5% interest with 15 yr amortization. I likely would use 40% cash and 60% HELOC to buy a rental and refinance for 60% of the home value to pay back HELOC in 6 months timeframe. Holding the line of credit longterm seems like a not so good idea [link] [comments] |
| Posted: 17 Mar 2020 01:03 PM PDT Im looking to get a job/apprenticeship in any of the fields that have to do with home renovation/rehabilitation. As a 21 year old, the end goal is always to own real estate, but I have no money or skills, so my plan is to start from the bottom and learn the skills needed to start my own business rehabbing and renovating for others, and eventually working on my own investment properties at the same time. What im asking is, investors who do alot of rehabbing, what is that one job that you consistently have to hire a contractor to do for almost every property? I have a feeling that its not as common to hire someone to redo plumbing or electrical work as it is to hire someone to either remove or add bedrooms, do new floors, bathrooms, etc. Im not picky about what jobs I could start learning. I want to specialize in one area and become great at it. [link] [comments] |
| What traits are necessary for success? Posted: 18 Mar 2020 01:34 AM PDT relentlessness? consistency? effectiveness? accurate(strategy)? creativity? Are these traits an absolute mandatory to get anywhere in real estate? [link] [comments] |
| Best deal you can think of to get rid of HOA fee Posted: 18 Mar 2020 12:16 AM PDT |
| Posted this to the Real Estate group and wanted to also share here for Loss to Lease calculations Posted: 17 Mar 2020 11:02 PM PDT |
| x-post - Leveraging property to buy a new property, bad credit, opportunist. Posted: 17 Mar 2020 01:00 PM PDT hey there. I live in an area where real estate is fairly inflated with a lot of foreign investors. I'm anticipating a decline in value in the next few months (around 6 months or so) and I would like to be in an opportunistic position if this does happen. my credit is shit, sub 600. I had a lot of debt, but I paid it all off late last year and am now debt-free. but m credit score hasn't improved yet. as I've spent the past 3-years on a 100% cash basis. I have cash flow, as I have my own business. I also have a property in another state that is 100% paid off. things I'm considering and open to...
any advice suggestions, input, thoughts, concerns, would be greatly appreciated on this. Edit: this would be an investment property, for me to rent out. [link] [comments] |
| Home equity loan vs cash out refinance to expand portfolio? Posted: 17 Mar 2020 10:03 PM PDT I hear people cash out refinancing to use the equity extracted as a down payment for a second property. My question is why would anyone do this over taking out a home equity loan? With cash out refinance, you replace an existing loan with a new one, and increase the loan balance by the amount of equity extracted. With a home equity loan you take out a second loan with the equity extracted and use the property as collateral. Cash out refinance you are paying interest on the additional equity extracted; however with home equity loan you do not pay interest on the equity extracted. Do I have this wrong? [link] [comments] |
| Multi-family House Hack Numbers Posted: 17 Mar 2020 09:33 PM PDT Please only experienced multi family investors respond. We own a condo. My wife and I are moving out and will live with my parents in order to save about 2k/2.5k a month for a year or so while renting out the condo to make about $110 a month. Plan on buying a multifamily after a year and living in it after saving the down payment. Question is, is it good to plan for a PM when running numbers for rentals? Does anyone not use a PM and if not is that still possible if u live out of state? When I run numbers to make an offer on a rental I'm calculating expenses of property and mortgage before determining if there's any cash flow left. Mortgage includes tax, insurance and P&I. Though how do you go about finding the tax and insurance for every given property. I know you can look on county data for annual tax but is that accurate? In expenses I give 4% for vacancy, 5% for repairs, 5% capital expenditures and 7 to 10% for property management. But don't really know the difference from cap ex and repairs.... Also should I be giving these categories for expenses higher percentages and am I leaving out any categories? Also I use rentometer for estimating rent and try to use the average to be conservative. Is this the best way to find a rent for a property? How do you personally estimate rent for a property and how do you increase rent? [link] [comments] |
| Feeling cautious on flips right now? Posted: 17 Mar 2020 08:38 PM PDT I'm trying to determine just how cautious I should be on flips right now. I have 2 in the process of purchase for a total of 320k with about 180k in renovations + carrying costs (current arv totalling 725k). That said, if we do see a substantial market downturn it would likely wipe out much or most of my profits. How are you guys feeling on market temp over the next 6-9 months? Admittedly, this is the only thing I'm a bit anxious about right now. [link] [comments] |
| Posted: 17 Mar 2020 02:54 PM PDT |
| REIT Value Arbitrage in the Short Term Posted: 17 Mar 2020 11:43 AM PDT Is anyone seeing any interesting REITs where there could be some value correction coming? Per the new GSA report there could be value in REITs as institutional investors shun the public market due to high volatility. There has been a 34% decrease in REIT share values the past three weeks which implies, after adjusting for leverage, a 24% decline in real estate values. [link] [comments] |
| Posted: 17 Mar 2020 09:55 AM PDT |
| To all the landlords that gave away free rent. Posted: 17 Mar 2020 08:07 PM PDT In a knee jerk, emotional, reaction we saw a slew of landlords that quickly offered up FREE rent or highly discounted rent to their tenants. Well now it looks like the tenants will get bailed out. Will the tenants in return voluntarily pay their rent? Doubt it. Everyone was so quick to commend these landlords. But let's be honest. While their heart was certainly in the right place, it was bad business. It was the opposite of stay calm. It was emotional. It was reactionary. It may have even been for the "likes". Landlords are business owners. Most have debt to service. Banks weren't jumping to give us a break. Next time, unless the likes are worth it for you, stay calm and don't act emotionally. Good luck to all during this hard time. EDIT: This sub is trash for real investors. Bunch of non real estate investors in here. It's clear most are renters or small time landlords. No real discussion for real estate investors at scale. Most in here are probably a profesional like a doctor or dentist with a rental on the side. I hope no one take real business advice from this sub. [link] [comments] |
| In escrow on second home, should I bail or not? Posted: 17 Mar 2020 12:07 PM PDT I'm 47 and in escrow on a second home in California but still within my financing contingency period (for our own use, not a rental property). Pulled a lot of funny money I made from a tech IPO out of the stock market because of the volatility and would much rather put it into real estate and something I can get utility from. The home is a higher-end vacation home near Tahoe with great location (borders on a state park and within a 60 year old HOA with no further development). Only mortgaging 50% of the house since I had the cash for a large down payment. Not looking to sell the house anytime within 10 years so the family and kids can enjoy it, but likely will sell it or downgrade to a smaller place in 10 years or so when I retire. After the purchase, will still have $280k in savings (investments); combined our income is $410k/year. Curious on thoughts as to whether I should proceed or bail or if there's something I'm not considering. [link] [comments] |
| Second home loans- primary is VA Posted: 17 Mar 2020 08:05 AM PDT I'm considering purchasing a second home, my primary home is a VA loan. I looked at FHA loans and it says you can't use them if it's not your primary residence when you already have another FHA loan- I'm basically putting out the feelers to see if it's feasible for me to get a second home if I can find a loan that doesn't require the 20%+ down payment. Anyone have any experience with this? [link] [comments] |
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