Real Estate Investing: Those who always hated on section 8. How do you feel during the crisis? |
- Those who always hated on section 8. How do you feel during the crisis?
- Genuinely trying to understand
- The trolls on this sub are conflating investors here who, let’s face it, are beginners and don’t own much with PE, REITs, and the Trumps of the world
- Can we not lock posts after just four hours?
- What percentage of landlords will be in real trouble if tenants can’t pay rent for 2-3 months straight?
- Ontario has halted evictions and is not compensating landlords for this decision.
- Vacation rental pitfalls?
- Why should landlords have special treatment?
- New deal breakdown for Roosevelt Ave
- Real Estate Stocks
- Getting Started in a HCOL Area
- New tenants and leaving tenants as it relates to COVID-19.
- Question: backing out of contract in North Carolina
- So basically, the Army of Socialist shills who subverted r/libertarian, r/capitalism etc., are finally here now? haha This is epic.
- Buy a duplex or invest $50k + rent?
- About to close on my first ever deal! Let me know how I did.
- Pre-fab homes for multi-family units
- If you could go back and not invest in real estate, would you?
- What is the best way for someone under 18 in the United States to start investing in real estate?
- Stimulus checks - does rental income count towards the gross income they are using to calculate who receives a check?
- Trying to finance a duplex
- Can we take this sub private for a bit?
- Me and my father now collectively own 13 houses...
- Wanted to share good news about my first ever flip!
| Those who always hated on section 8. How do you feel during the crisis? Posted: 26 Mar 2020 12:26 PM PDT I have 60% section 8 tenants. Section 8 is paying rent through this crisis. About half of my non-section 8 tenants have contact us to work out a payment deferral agreement with me. We are able to retain 80% of our income during this crisis. Where otherwise we could've lost half. [link] [comments] |
| Genuinely trying to understand Posted: 26 Mar 2020 07:35 AM PDT Please don't downvote me. I am simply trying to understand. Do any of you not for guilty for attempting to charge people for shelter during a global pandemic in which everyone is told to stay home? I understand the simpleton arguments like "how can someone not afford one months rent without income" and "you shouldn't have signed the lease if you can't afford it". But, in my eyes those arguments don't hold any validity during the unprecedented times we live in. The average American family couldn't afford a $400 emergency before this even happened, so how can they be expected to handle an entire months rent, groceries, utilities, and all other payments when so many peoples jobs have closed? How can you genuinely believe it is morally justified to charge people for the one place that provides them safety in a time like this? EDIT: I'd like to thank all of you that took the time to attempt to have a constructive conversation about this. Ive learned a lot from posting this and I'm hoping other have as well. My biggest takeaways are that landlords shouldn't be demonized during this time bc many of you are struggling as well (which is something I hadn't really thought about before), and our (renters and landlords) issues are not with each other, but are instead with banks, mortgage companies, utility companies, and any other agency that is forcing people (renters and landlords) to pay during a global pandemic. I'm hoping this post allows for us to empathize with one another more as well as use our collective frustration to make systemic changes happen that benefit all people rather than corporations. Once again, thank you to all that helped make this post productive. Stay safe y'all. Solidarity. [link] [comments] |
| Posted: 26 Mar 2020 11:48 PM PDT Title Just don't see why the trolls are choosing to hate on this subreddit, it's just regular people. The majority here work regular jobs, probably with a skew towards software, in their 20-30s, male, in the US, with some doctors thrown in. Most probably bought their first property within the last 5 years. I think it's another case of the .1% successfully keeping everyone fighting amongst themselves I own and I rent myself. My landlady isn't stealing from me. I get a place to live, utilities, maintenance, and everything done for me with 0 stress. I can leave for months at a time without worry. I don't want to live in this city forever so I don't have to worry about buying, paying a lawyer, appraiser etc. on the buy side and a realtor etc. on the sell side as well as taking on the risk of prices falling. It's mutually beneficial. [link] [comments] |
| Can we not lock posts after just four hours? Posted: 26 Mar 2020 12:43 PM PDT Seems like discourse is being limited. Edit 1: I was banned. I was the most civil person in the post. Edit 2: Would appreciate an explanation as to what why I received a ban, yet my post remains. [link] [comments] |
| Posted: 26 Mar 2020 01:49 PM PDT I'm talking about small time landlords that own 3-10 properties and self manage etc. [link] [comments] |
| Ontario has halted evictions and is not compensating landlords for this decision. Posted: 26 Mar 2020 01:32 PM PDT https://www.blogto.com/city/2020/03/doug-ford-halting-all-evictions-ontario-until-further-notice/ You can currently not evict a tenant in Ontario, including for non-payment, and there is no end in sight for this policy. Here is some additional reading if you're a masochist and enjoy ploughing through hoards of ignorant comments: http://np.reddit.com/r/PersonalFinanceCanada/comments/fosd9p/no_bailout_for_landlords/ [link] [comments] |
| Posted: 26 Mar 2020 03:34 PM PDT Hi! As title alludes, I'm planning to buy an investment property somewhere out "west" (i.e. CO, WY, ID) for vacation renting, and potentially my residence 10 years down the road. Has anyone here run into any significant pitfalls that made them rethink a similar idea? I'm sure there are state-by-state nuances that may make some location preferable to others. Thanks in advance for any feedback [link] [comments] |
| Why should landlords have special treatment? Posted: 26 Mar 2020 05:19 PM PDT I'm not trying to start a huge debate, I want to genuinely understand and I won't argue with the answers you give. Every other business is having their income affected in some way. But landlord are chugging along like nothings changed and still demand full rent from business and residential tenants. These businesses have just as much expenses as you, it's their investment and most of the time, main source of income. They are making it work with very little revenue to zero revenue coming in. Residents lose their jobs and have no other income either. Obviously, people's incomes are being affected but when it comes to landlords having to give up revenue, you guys come out talking about all your expenses and financing costs as if no other business is dealing with that. What makes you deserving of special treatment? Do you feel superior to your tenants and small businesses? [link] [comments] |
| New deal breakdown for Roosevelt Ave Posted: 26 Mar 2020 04:58 PM PDT This is another deal with one of our out of state investors (please do not ask, we are not looking for new investors). As with all of our deals with out of state investors, we are targeting a minimum of a 2% monthly return on our all in costs. The is in a nice area of town that was mostly built up in the 40s and 50s, and sits on the edge of the "tornado zone" of lots of new houses and shopping that was built after the 2011 F5 came through town. https://www.zillow.com/homedetails/1438-Roosevelt-Ave-Joplin-MO-64801/74913431_zpid/? The house belongs to an estate of a recently deceased person, and they had a one week "best and final" bid process. The original list price was $27K. This was well under value for this section of town, so we were aggressive and offered $28K. We originally lost the bid. Don't know the full details, but we know the winning bidder was in the 30s. That deal fell through for some reason on the funding side, and since ours was a cash offer, they came back to us. We eventually ended up negotiating the final deal for the original list price of $27K after asking for a discount in the inspection phase. Numbers are a little tighter on this than our usual houses, but we feel the better than average ARV will make the deal worthwhile even with a slightly smaller cash flow from rent than usual. We plan to spend about $3k in renovations. That will include clearing and cleaning the house of everything left, repairing or replacing the current stove, repair the siding, replace bathroom plumbing fixtures, replace light fixtures, paint the walls, refinish the floors, and upgrade the electrical box. As always, there will be several small odds and ends to fix and replace also. We will be getting a rent of $650 per month. We already have a current tenant ready to move from their one bedroom to this when work is complete. Everything is final, but because this house must clear probate before we can do the final closing, it might be a month or two before work can begin. [link] [comments] |
| Posted: 26 Mar 2020 08:43 PM PDT How can I get started in learning about investing in Real Estate stocks? What helped you find success in it? Things to stay away from? Anything is greatly appreciated, wash your hands! [link] [comments] |
| Getting Started in a HCOL Area Posted: 26 Mar 2020 08:30 PM PDT I've recently become highly interested in the concept of real estate investing, and have been digesting as much material as possible on the topic while I build up a down payment. The problem I'm encountering is so many of the books/forums/educational videos all discuss these seemingly mythical sub $200k multi family homes, or $100k single family homes, whereas in my area these types of properties more than $1m or $500k for single family. It doesn't seem feasible for me to tackle a property that expensive. So my questions are, people that get started while living in a HCOL area:
Any advice is highly appreciated, thanks! [link] [comments] |
| New tenants and leaving tenants as it relates to COVID-19. Posted: 26 Mar 2020 12:06 PM PDT I know people have talked extensively about what they're doing with their current tenants, whether they're deferring rent or what their situation is. I have a situation where I have a tenant moving in on april 1st, and a tenant leaving may 1st. For the first months rent I assume I would give no leeway and require the rent. Would it be the same for the last months rent on the tenant leaving? I feel like even though they could be affected the same way that a current tenant would be, would it still make sense to say they're required to pay the full rent, no deferring, as it's their last month and more of a safety precaution? [link] [comments] |
| Question: backing out of contract in North Carolina Posted: 26 Mar 2020 05:22 PM PDT I am the buyer in this transaction. Both parties have signed the offer to purchase agreement now (me and the seller). I have NOT sent my due diligence check to them yet. Can I back out now, before sending my due diligence check? [link] [comments] |
| Posted: 27 Mar 2020 12:43 AM PDT |
| Buy a duplex or invest $50k + rent? Posted: 26 Mar 2020 04:25 PM PDT I am a 29M in a city where a mortgage would cost less than rent. No debt or obligations. I'm looking for a long term investment and at places where I could cover a full mortgage for 60% of my monthly take home. From your experience, is rental income + equity typically beat renting + 7% compound interest? Version 1: $400k average duplex value in New Orleans, LA. $360k 30yr mortgage at 3.4% interest (10% down) Monthly cost = $2881 (mortgage + insurance + 1.5% home value upkeep; 74% of monthly take home) Rental Income = +$1700 Total cost to me per month = $1100 Version 2: Average rent in good neighborhood = $1500 6% compound interest on invested $40k after 25 years = $171,674 [link] [comments] |
| About to close on my first ever deal! Let me know how I did. Posted: 26 Mar 2020 03:43 PM PDT I'm relatively new to all of this still so bear with me and correct me if possible. Deal is in North East Ohio, a B class property got for 125,000 at 3.625 and 3,000 credits from selling to go toward closing costs.(new home owner loan from big bank and my agent negotiated the deal) Like I said I got it for 125,000 it appraised at 135,000 before closing (closing on Friday, 27th) Built in 1981, 1600 sq ft, 4 bd 2 ba, Going to fix it up my self while living in it. Repairs are about 20k. ARV should be about 170-180k. Bank loan to fund the deal. Saved cash for repairs plus extra savings I have. PITI Is 1063 a month. I've estimated that it's going to take me about a year to complete the repairs considering it needs flooring paint bathrooms redone kitchen redone. And I've never done any of this myself but I have lots of help since my main job is construction-ish so I have a pretty good on grasp on what it takes to get the job done. Kind of rough timing considering the corona virus covid-19 situation but I put the offer in on feb 13th so I mean who woulda guessed. But what My hopes is that corona situation blows over by next year in time for buying season and everyone who didn't buy this year will go out and buy next year and hopefully housing prices shoot up even more (around 180-190k+). But if I'm unable to sell writhing a year and a half, then maybe I can rent it out until I have that eligibility. Should rent out for 1600(conservative estimate) If someone can give me some advice on this that would be great. But I'm confident in my ability to make this a pleasurable experience. I am out of work right now. I'm thinking I will get paid to be out of work. I'm not now but soon I think I will due to the fact that since I am a contractor for the government. But worse case scenario: I don't get paid, my vacation and PTO plus my savings on the side I will have enough money to pay mortgage and utilities until December. But if I still have no money coming by then, which if it even gets close I'll get another job. But absolute worst case I can't pay mortgage on the house pay off what I owe by selling the house. I lose all my money, keep my job and just stay at home and save up for another year. Although it's not good to think like that I'm just saying it's a possibility. TLDR: Bought at 125k, Repairs are 20k. ARV is 170k-180k. Piti is 1062 rent is 1600 will year about a year to be rent ready. Doing the work myself. [link] [comments] |
| Pre-fab homes for multi-family units Posted: 26 Mar 2020 02:32 PM PDT I have a few SFH that I bought turnkey. I'm now looking at an area that is rapidly appreciating, where most investors are opting for full teardowns of properties that are distressed and much smaller than desirable. I don't have any experience managing bigger construction projects like that and have been playing with the idea of a prefab multi-family unit (2-4 units). I like the security of having a set price without complications, and being able to cut 6-12 months off my timeline. Looking for feedback from those with experience to see whether this is a crazy idea. [link] [comments] |
| If you could go back and not invest in real estate, would you? Posted: 26 Mar 2020 11:12 AM PDT Let me preface this with this: I don't want to make this political. We all have our political opinions. Let's keep them to ourselves. Growing up, my parents were landlords-- they owned a few small single-family homes that (before I was born) they worked 3 jobs each to save enough for the down payments on. The homes were well maintained but basic and small; nothing like the home we lived in, which was much larger with nicer finishings and in a better area. I asked my dad why he owned houses like this and his response was "these small houses pay the mortgage for our house so we don't have to". I never forgot that. My goal has always been to become a landlord like my dad. The idea of owning something that generated income seemed amazing. I'm now almost to the point financially where I could look at taking on the risk of a rental. I'm 30 years old, own my own place, have a good emergency savings/ retirement and earn a good salary as a software developer. However, having grown up in Michigan and now living in Los Angeles I've noticed something that's a bit troubling. It seems like most people hate anyone who isn't poor. When I tell my friends my goal a lot of them roll their eyes, call me "privileged" and say I shouldn't be allowed to profit off of the poor. When did being called a "capitalist" become an insult? It's actually scaring me to the point that I'm starting to rethink this. Have any of you experienced this? How do you deal with these attitudes? Especially in the midst of the COVID19 disaster, I'm seeing more and more Facebook posts suggesting that landlords are the scum of the Earth because they expect people to honor the contracts they signed. Is that what being a landlord is like? I realize this sounds like I'm trying to start a class war or something, but it's a serious decision I need to make and just want to hear from people who have been there. I already feel like I should be embarrassed for even having my finances at the point where I could consider something like this. What has your experience been? Do you hide the fact that you're a landlord, and more importantly, how has the anti-capitalist political climate affected your property investments? If you could go back and not invest in real estate, would you? Thanks for any input you can provide. [link] [comments] |
| What is the best way for someone under 18 in the United States to start investing in real estate? Posted: 26 Mar 2020 07:28 PM PDT |
| Posted: 26 Mar 2020 09:39 AM PDT For example, if my salary is $50,000, and I receive $10,000 in rents (does not include deductions like repairs, taxes, interest, etc), does that mean the government will consider my gross income to be $60,000 when deciding if I qualify for the stimulus checks? I think gross income of $75,000 or less for single filers qualifies for the full amount [link] [comments] |
| Posted: 26 Mar 2020 09:35 AM PDT So initially when I was looking at this duplex I was approved for 3.0 without paying anything and 2.9 for $650 but that was about three weeks ago and wasn't able to lock in. Earlier this week was about to lock in a rate of 3.125 for $650 with Quickenloans but now they aren't letting you lock in rates till cleared which is fine but what if rates go up? Then lastly I can lock in at 3.25 for $2.2k, 2.375 for $1274, 3.49 for $315 or 3.5 for $5 This is my first home so just wanted some other thoughts on what I should do. Thinking just 3.5 because even for 3.25 my monthly is only $34 cheaper [link] [comments] |
| Can we take this sub private for a bit? Posted: 26 Mar 2020 01:28 PM PDT Listen, I'm here to learn about and share my ideas on real estate investing. I'm not here to change some disgruntled tenant's mind that is not even my own tenant. From what I've seen posted here in the prior weeks before all the hate started, 99% percent of us seemed to have a realistic, compassionate plan for our renters that come into financial issues. I believe that issue has been resolved. Is it really our obligation here to convince renters online that we shouldn't let them live in our investments rent-free? It seems like a silly argument in the first place. I really can't imagine anyone being that dumb in real life- I think a lot of this is trolling or very self-entitled individuals. Look, we are (arguably) about to enter a time that happens about once a decade. Some people will lose their rentals, some will lose their homes. I think the discussion here should be about this golden opportunity we are potentially facing and how to get ready for it- or about how to protect yourself if you are over-leveraged. We need this sub more than ever to exchange ideas, not to feed trolls. Just my 2 cents. [link] [comments] |
| Me and my father now collectively own 13 houses... Posted: 26 Mar 2020 12:57 PM PDT Should we finally form an LLC? Would this help us be organized as well and help us w forming a BRAND? What do you think? [link] [comments] |
| Wanted to share good news about my first ever flip! Posted: 26 Mar 2020 11:14 AM PDT |
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