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    Real Estate Investing: Those who have built a rental property instead or buying. What was your experience?

    Real Estate Investing: Those who have built a rental property instead or buying. What was your experience?


    Those who have built a rental property instead or buying. What was your experience?

    Posted: 25 Apr 2020 07:26 PM PDT

    Would you do it again?

    Any advice for someone who is building?

    How does it compare to your other investment properties?

    submitted by /u/CallMeKayleePlease
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    First investment property seems too easy, what am I missing?

    Posted: 25 Apr 2020 09:51 AM PDT

    Hey Guys,

    Wanted to hear your thoughts on my first ever property investment. Australia so money might be different to what you're used to. Buying a 4x2 house for 280K only 10 minutes out from the city (seemingly under market price for the area). Currently tenanted at $380 per week while mortgage costs me $230 a week. Bringing council rates, water rates, landlord+building insurance, property manager costs and interest on the loan into the mix I am still net positive about $6500 per year. I understand the risks around time it could be untenanted, but I feel that $6500 is a healthy buffer. Over time the interest will go down and hopefully rent prices will go up. Location seems good, no reason that I can see for the suburb to underperform at all.

    I work a well paying job so cashflow isnt much of a problem. It seems too good to be true, is there anything I havent accounted for? Our offer has been approved and we are waiting for finance approval to come back. In a few weeks the house will be ours. It all just seems too simple, what am I missing?

    Bonus info: we were there at the very first house viewing and put our offer in the very next day. Current owner needs to sell because he has other investment opportunity that he needs the cash for quickly (allegedly). This house was on the market for only a couple days before we put our offer in.

    submitted by /u/0v3r9k
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    Do you remember your first investment property?

    Posted: 25 Apr 2020 02:50 PM PDT

    I bought my first fixer upper. I paid cash. By the time I am done doing everything I need to do I should have less than 20k in it. When done the property according to comps done by some realtor friends of mine it will be worth 40-48k. I am actually going to live in it to eliminate having a mortgage. And then possibly invest in more properties. My only problem is, and maybe I am being sensitive - Whenever I bring my friends to see it nobody ever has anything good to say. They all say things like "well this needs alot of work." Or "this is going to take you forever." And it actually won't. MOST of the things the house needs are cosmetic and non structural. There are no kitchen cabinets in it right now. And nothing but a tub in the bathroom. It needs alot of drywall put up and new flooring. All things that I think to myself, "man I got a great deal. This is mostly all easy stuff." I know it shouldnt bother me, but it does a little. Do you guys remember your first fixer upper property? Were people supportive when they saw the work needingh done? What did people think when they saw it (or any property that needs rehab you have done) pre renovations? I feel like they can't see the finished product as I can see it and have it planned out in my head.

    submitted by /u/JohnClip
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    Mom has cash but not credit but I have credit and barely any cash

    Posted: 25 Apr 2020 03:03 PM PDT

    Mom has the cash to buy property but not the credit

    Hi all - hope everyone's well.

    My mom's credit score is not adequate to get a mortgage. However, she has enough cash to put a down payment on a condo/townhouse (40K-60K). I myself don't have the cash yet (around 10K saved) but my credit score is high enough (800>) and have a good paying job (75K~) and good credit history.

    My mother is interested in buying property to live/invest and I have always been interested in making a property investment as well, we're both really close and have a good trusting relationship.

    With that being said:

    •Can she just simply transfer me the cash and I make the purchase for her? •How would having the mortgage under my name affect my future possibilities of getting my own mortgage? •Letting her use my credit for her property investment, should I benefit financially from it?

    Looking forward to hear all feedback and opinions, this is a very informative sub.

    submitted by /u/matepara
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    Insight into an investment within a strata?

    Posted: 25 Apr 2020 06:06 PM PDT

    Specifically, I'm talking about a place like a hotel or resort that offers the opportunity of ownership. I see places like for sale around fairly often. I think the benefit for the resort or the hotel is they pay less in taxes because these units are zoned and taxed differently than otherwise. But I've always wondered if they're a risky investment because of all the fees that come with it. You get the benefit of owning a rental property without having to lift a finger to manage, maintain, update, clean etc. but you pay a high price every month in strata fees for it all. I'm curious if anyone has investments like this and if they're cashflow positive? Also if anyone knows of any good articles, I'd appreciate it.

    Thanks

    submitted by /u/ennskelsey
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    Rental market moving forward

    Posted: 25 Apr 2020 07:19 PM PDT

    There's been a ton of requests along the lines of "what's going to happen to MF and SFR? Should I wait to buy?" ETC.

    I'm wondering what the rental landscape will look like. It seems like if we see a lot of people losing homes to forbearance coming due and going into foreclosure, rentals in theory should increase in demand. If the government stops banks from foreclosing, what do you guys think will happen to the rental market? Then there's "rent strikes" which I think will peter out, assuming we start to revive this economy. We're all operating under that assumption--that the economy will reopen relatively soon. We obviously don't really know that. Especially if Georgia proves to be a disaster.

    I just rented three units pretty quickly given there's a pandemic. But I'm signing a lease for a very well priced SFR for my family this week. I will be sitting on cash waiting for a deal, but I might have already found one. I'm looking at breaking the lease after 3-4 months (that I haven't even signed yet) and thinking how long it would take re-rent, so I wouldn't be on the hook.

    So this is relevant to me as a landlord/investor/renter. What do you guys think?

    submitted by /u/doggmapeete
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    As a General Contractor how do I find REI's looking to rehab

    Posted: 25 Apr 2020 01:17 PM PDT

    I could also frame this question is how do REI's find General Contractors. I am a GC that would love to get into the REI game but don't exactly have the cash flow to purchase and fund a flip/rehab but could definitely have the ability to cover the construction portion. Problem is I don't know how to find you people and construction companies seem to be a dime a dozen, at least in the midwest, so its easy to get lost in the sea of companies.

    Located in the Chicagoland area if that helps

    submitted by /u/clansing192
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    Skills to get for flipping homes?

    Posted: 25 Apr 2020 03:49 PM PDT

    I posted earlier about real estate investing straight out of high school, and got some replies saying I should get skills before even trying to flip a house. So I am asking, what skills are essential for house flipping, and where can I get these skills? Trade school, community college, a 4-year? What is the best path to start flipping homes out of high school?

    submitted by /u/sammythebamsquam
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    Private lender asset based financing...

    Posted: 25 Apr 2020 03:36 PM PDT

    How hard is to actually get private lender financing that is based on the property? I've always wanted to get into real estate but dont have the cash.

    submitted by /u/FoxtheDawg
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    Easy HELOC

    Posted: 25 Apr 2020 05:44 PM PDT

    I'm not sure other folks' experiences but I was able to easily close on a refinance. I bought a house for 340k last year and sank 120k into renovations. It appraised for 530k. I am living in it and will do so for at least two years to avoid taxes.

    In the meantime I got a 120k heloc in order to get access to all my renovation capital back for my next project and am up 70k on my house.

    As far as Coronavirus impact goes, I did not run into any major issues. For context in the atlanta SMA.

    submitted by /u/drago_must_break_you
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    Best reads for first property buyers

    Posted: 25 Apr 2020 11:27 AM PDT

    Hi all - been browsing this amazing sub for many hours now. In the future (6-12months) I would like to purchase my first condo, townhouse property as an investment. I have ordered the books mentioned in the "about" section of the Reddit but would still like recommendations as to what books/articles/websites you all recommend I can read so this first transaction is made in the best knowledge in hand. Thank you all.

    submitted by /u/matepara
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    How to buy without a realtor? Should you?

    Posted: 25 Apr 2020 03:28 PM PDT

    Is it just that you need to know what you're looking for when initially inspecting the property and what you're willing to pay?

    I have a hard time believing that most realtors really care about getting you a discount, when it means decreasing the money they'll be getting out of the deal.

    I may be wrong but frankly I feel that the 3% the buyer's realtor would get is quite lucrative money for them, and I wouldn't feel bad at all cutting them out of the deal. I'm assuming we're not in control of paying the seller's realtor, unless we specifically look for properties being sold without one.

    submitted by /u/ElCheapo86
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    Real estate investing in Africa. How can I find investing ideas and knowledge that work in my environment?

    Posted: 25 Apr 2020 07:13 PM PDT

    I have been reading books about real estate investing for almost 3 months and read about 4 books. Every time I go to meet an owner and visit their house, I realize nothing was like what was described in the books and had a real estate agent that kept telling me things are different here in real life. So there is no book or any support that can help understand how real estate investing works where I live. Iive in Ndjamena by te way. Please your help is welcome.

    submitted by /u/dackou77
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    [NC] Active Lenders for Multifamily Deals?

    Posted: 25 Apr 2020 04:52 PM PDT

    I have a 12 unit value add deal in North Carolina that US Bank was going to fund. Due to the coronavirus issues, they backed out. Does anyone either local to Charlotte, or working with a national bank, have a suggest for lenders who are still issuing new mortgages?

    submitted by /u/gator12345
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    What would be the best property to start with (for long-term) ?

    Posted: 25 Apr 2020 08:39 PM PDT

    In a city (Montreal) where a SFH starts at about 400k, condos at 200k-ish, & duplexes at 600k, what would be the best to start as a first time investment ? SFH are expensive to buy and require a higher down-payment, but condos are slowly 🤏🏼 becoming more popular than houses. But then again, it all depends on what tenants want. What are your thoughts on this situation ? Thank you

    submitted by /u/nikita__pono
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    I have a question about developing agricultural land

    Posted: 25 Apr 2020 08:35 PM PDT

    Hello,

    This is out of the norm for this sub, but I figured you all might be able to help me out! I'm a writer working on a story about tensions between members of a farming family. One of the characters has the opportunity to sell their land to a developer for a subdivision. What would this process look like at the very beginning? Can someone walk me through what kinds of communications this character would have with a developer?

    submitted by /u/handmethatdirtylarry
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    What favorable terms can I ask for as a buyer in this type of market environment ?

    Posted: 25 Apr 2020 08:23 PM PDT

    I have been looking to make some offers on some Multi, and some SFHs. Looking at the current environment, I do see prices taking a hit. Apart from that, this could be a good opportunity for buyers to get some favorable terms. What kind of favorable terms I can ask for when making these offers ? Some of the obvious ones would be a longer closing period with some price negotiation. Other than that what would be some of the favorable terms i can request from sellers ?

    Just to add, I am going to be making cash offers, and won't be needing financing.

    submitted by /u/magicbook
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    Using Equity from Duplex to Acquire New Property

    Posted: 25 Apr 2020 06:05 AM PDT

    I currently own a duplex free and clear worth approximately 115k that I bought for a small fraction of that and remodeled myself when i was 19. It produces great cashflow and I am looking to expand. Right now i have my sights set on a 4 bd 2 bath with tenants already in priced at 98k and paying 1k a month in a rough neighborhood (my duplex is also in such a neighborhood).

    I am a little young and have never taken out a loan of any kind. So my questions are: what are some of the best options to finance? what are peoples opinions on taking on debt to acquire another property right now? And all extra costs considered, would this be a good expansion from where i am now?

    I am mainly concerned with how to finance this and what it can do to my chance of being able to get an actual FHA loan later on with my fiancee to build a home on a piece of property i just purchased as well.

    I am in NC, excellent credit score, decent job, and just turned 25 if that information helps.

    Any opinions are greatly appreciated.

    submitted by /u/IcyIcyIceIcy
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    What is an option to sell in two years worth?

    Posted: 25 Apr 2020 05:56 AM PDT

    I just received the strangest offer on a house I have for sale. I do not intend to take the offer but I'd like an idea of how to counteroffer.

    The buyer wants to purchase an option to buy my house in 24 months for $352,000 (small discount from the asking price) for $1,000 payable at closing. Obviously, this is ridiculous as there is no risk on the buyer's part and all the risk on my part. But it begs the question, what is a more appropriate value for such an option? I don't have enough data to do a black shoals calculation in this environment.

    In addition to the option, the buyer wants to rent my house for $1,700 per month and they plan to sublease it.

    I can simply reject the offer outright or counter. What do you suggest? At a minimum, I'd want a higher price for the option and a big non-refundable deposit on the lease.

    submitted by /u/ConsciousTiger4
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    How best to prepare for good deals

    Posted: 25 Apr 2020 10:02 AM PDT

    This is a post seeking some advice and/or insight. Right now we own a 4 plex in Los Angeles. Our loan is $450k and we've got a HELOC for a renovation with about $30k. We bought the fixer-upper right before the neighborhood gentrified 6 years ago and as a result we've got about $500k-$700k in equity (rents and property values more than doubled!!). Our current rents are such that we've got ~$700 in cashflow from 3 units while we're living in the main unit on the property. We've still got some potential upside as one of our tenants is rent controlled at about half the market rent.

    All that being said, my plan is to do a cash out refi, so we can have a "war chest" of about $200k. Our PITI now is $3175 for the main mortgage and $308 on the HELOC. And I figure if we get a new mortgage for $700k our new PITI will be $4016. That'll basically zero out our cash flow, but we'll be ready to pounce if/when we come across a great deal on another multi-family property. The other option is to find our next house to live in and rent out our current unit for somewhere around $2700.

    Anyway, I thought I'd ask you guys if you have any suggestions or advice before we get the refi ball rolling. What would you do if you were in our situation? I've built up some decent remodel skills, so we're hoping to find something we can put more sweat equity into. Thoughts about the market? I know timing the market is difficult, but it seems almost certain that we're headed toward a buyer's market. We're hoping that we'll be ready to scoop up a great deal in the middle of all of this.

    submitted by /u/cogzoid
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    Good hard rules to live by in RE

    Posted: 25 Apr 2020 05:34 PM PDT

    Complete newbie when it comes to real estate, as I've just poured most of my savings in the stock market. I'm eyeing a property, but I'd like to learn some hard rules first.

    For example, this is what I've picked up on:

    1. Monthly rental income should be <1% of property value

    2. Assume at least an 8% vacancy rate

    Any other simple rules that can be a safe assumption?

    submitted by /u/ramrod155
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    Can anyone recommend some real estate investing software that pulls data from zillow and analyses trends and valuations?

    Posted: 25 Apr 2020 08:27 AM PDT

    I would preferably like something that shows rates of appreciate, GRM, etc based on zip code or geographic location. Thanks in advance guys.

    submitted by /u/GentrifyingHipster
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