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    Real Estate Investing: What is the best/safest property for house hacking beginners?

    Real Estate Investing: What is the best/safest property for house hacking beginners?


    What is the best/safest property for house hacking beginners?

    Posted: 26 Apr 2020 05:59 PM PDT

    Hello, I'm 19 years old in Canada and want to buy a property so that I can rent out a part of it and live in the other. I like my privacy so I only feel comfortable in properties that are separate (ex:duplex,etc). My question is what is the best property to buy for beginners, in terms of safety of investment? What I'm looking for is simply to break even on living expenses or needing to pay less than 100$ out of pocket for expenses. PS. I'm not looking to buy soon just looking into it to buy in 1-2 years.

    submitted by /u/TheBestCOD11
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    Rent for 30 years or Sell Now for 100k cash?

    Posted: 26 Apr 2020 11:01 PM PDT

    First time caller, Long time lurker. I have a property I'm currently fixing up and I'm unsure of which fork in the road to take.

    I bought and moved into the home in question 7 years ago (California) and never addressed the cosmetics of the house, just the necessities (New A/C, Water Heater and Roof in the past 3 years) over the course of ownership.

    I purchased another home and moved into it late last year without having a plan for my previous house (Job forced move, didn't need the funds from the house to purchase new house). At that time I was unsure if I wanted to rent it or sell, so I just went with middle of the road quality with some needed cosmetic home improvements (Luxury vinyl Floors, Paint, Trim, Fixtures, etc).

    Now that the work is nearly done, I'm still on the fence of what to do. The house has solid bones with the new roof, A/C and water heater (plumbing will need to be redone in 5-7 years), so I have no potential ball busting big ticket maintenance or upkeep for quite sometime if I rent. If I sell, I'm looking at 85k-100k cash in my pocket.

    Here's the numbers:

    Mortgage/Ins/Taxes: $1140/month Rental market price: $1300-$1550/month

    Currently owe about $155,000 on home loan (3.5% interest/30 year fixed) and have been quoted at a home sale price of $250k-$275k (Pre-Corona so not sure if those numbers are still in the ballpark).

    If I rent, I'll be managing the rental as I'm handy and have a few resources that could help me traverse any potential situations (lawyers, contractors, etc)

    As far as income, this property's income is more in my mindset for retirement, not so much cash to spend today. If I sell, I would probably just put the cash into some index funds and let them ride for 25 years.

    Thoughts?

    Any more information that you need to make a solid input?

    Cheers

    submitted by /u/KelsH0E
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    What are your predictions for the upcoming opportunities in commercial RE?

    Posted: 26 Apr 2020 06:43 PM PDT

    Seems like it seems inevitable that there will be a major shakeup in commercial real estate in the coming months, with all of the impending vacancies due to restaurants/bars/retail stores closing down. I don't expect the commercial RE market to recover for another 12-24+ months.

    What are the opportunities for savvy investors? Any ways to capitalize on the situation if we have cash saved up or significant access to cash?

    submitted by /u/ospreyintokyo
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    To condo or not to condo...

    Posted: 26 Apr 2020 06:54 PM PDT

    So here's my contemplation....

    1. Buy a $100k condo in a MCOL? I can get a 3.25% 30yr fixed. Total cost after 30 years would be $245k (includes HOA, home insurance, property tax, interest, principal). Let's round to $300k assuming some repairs, increase in property tax & HOA.

    Total income from renting for 30 years $284k. This includes a 10% vacancy rate and a fixed rent price (which is unlikely as I imagine price will increase in future years). Playing it safe and conservative here.

    After 30 years and all paid off, I'd be down $16k and have the condo completely paid off. Keep in mind I would possibly pay off condo sooner than 30 years.

    1. Just invest the down payment, $10k, in the total stock market. Assuming it doubles every 10 years. Big assumption, I know, but let's just go with historical data. This would give me $80k after 30 years. I would be taxed at 15% on this when ready to withdraw.

    What is the better option? I'm 32 by the way.

    submitted by /u/ramrod155
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    How Do You Determine Property Value

    Posted: 26 Apr 2020 05:03 PM PDT

    I am a complete newbie (other than buying my own home).

    I have found a property that needs a some work and they are asking $90k but the tax office has a taxable value of $65K. How do I go about determining the asking price?

    submitted by /u/hiddenonion
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    Experienced in the "investing" piece but not in the "financing" piece - please help!

    Posted: 26 Apr 2020 07:57 AM PDT

    Been doing this for a few years and have purchased several lower-cost ($100k-ish) properties but have always done it as cash buys using "self" financing (ie. savings, cash out refi, HELOC on PR, etc.). However, now want to purchase a more expensive residential property - either SFH or multi-family. I've got experience with finding, buying, renovating, landlording, etc. but no experience at all on the financing side!

    Have picked up bits and pieces searching through old threads but would really appreciate the experts on here giving a rundown of best options. I'm planning to have 20-40% down payment but not sure where to start - who lends (big banks? credit unions? etc.) or if I have to get into hard money lending? or even what type of loan this is commonly referred to as (commercial loan even if it's for residential property)? Would greatly appreciate your expertise, thank you!

    submitted by /u/okgodlemmehaveit
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    Vinyl Siding

    Posted: 26 Apr 2020 03:31 PM PDT

    What are your thoughts on residing a property? Do you think the ratio is 1:1 in regards to dollars spent? Lower? Higher?

    Curious in what you guys are using for calculations in regards to exterior work like this.

    submitted by /u/IceDog5
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    Should I Refi? (Numbers inside)

    Posted: 26 Apr 2020 01:13 PM PDT

    The only property I may sell is condo, because it's not my best niche, but it was my primary turned rental. Other two are long-term rentals for foreseeable future.

    Condo. Payment $550 + $200 HOA. - Rented at $1k

    $70k - 5.75%

    3/1.5. Payment is $770. Rented at $1,120

    $116k - IO - 5.125%

    3/1 - Rented at $1,150.

    96k - 5.375%

    UPDATE:

    I called my lender who I recently closed my primary w/ at 3.5% in Nov. He said, "Yes, I told you this. Well, I thought I did." So, he's crunching numbers now and is expecting me to get around 3.75-4 which over the long term will be worth it as all these mortgages have 27-28.5 years left. Thanks for comments, everyone.

    TL;DR. If your rates are above 5 and you have a long time left. Refi.

    submitted by /u/LotsOfQuestions4ever
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    Looking for advice on a good owner occupant situation.

    Posted: 26 Apr 2020 06:25 PM PDT

    I have an associate with excellent credit and income willing to co-sign for a property that I would like to use to live in and rent in the Dallas/Fort Worth area.

    I don't have a particular place in mind, but I am ready to move on something possibly in the 600-800k range. I have a 1-2 year cushion for the mortgage.

    There are plenty of newer half duplexes for sale. A few pretty old full duplexes for sale.

    I'm not opposed to a bit of construction/fixing up, though it's not ideal.

    I'm also not opposed to other creative options there might be.

    This is my first time investing in real estate and am just looking for some good direction.

    All advice is very much appreciated.

    submitted by /u/runningwaterss
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    Paying cash for home?

    Posted: 26 Apr 2020 08:12 AM PDT

    I'm a young adult who spent their early 20's caring for my sick mom (dad died when I was13), Mom passed away about 8 months ago. It's been a wild ride to say the least, but now that the dust has settled I'd like some insight or opinions. I inherited a 401K and other assets and per my mother's wishes a financial advisor oversees the money, but they haven't really given me any advice I don't already know.

    401K and liquid assets are in the $450K range. I'd like to purchase a home in the (250k) ballpark, but the kicker is that I don't make enough to even qualify for a mortgage. My job situation is a bit weird. I am a volunteer with Americorps and will serve until December 2020, so my living stipend is about $1400/month.

    Besides paying off my car, I haven't touched the money. Would cashing out some of the beneficiary 401K and paying for a house in cash be a good idea? My intent is to purchase a home, live in one room and rent out the other rooms for supplemental income/ allow it to be an investment opportunity for me later down the line. I live in a decent sized city where finding renters is fairly easy.

    submitted by /u/bodontknow
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    New York Real Estate

    Posted: 26 Apr 2020 05:53 PM PDT

    Hey Im 19 years old and I love Real estate , I want to connect with people in New york , I currently live in New Rochelle which is in Westchester NY. Finding an Investor that i can help finding deals for them or helping with flips so i can get my feet wet and learn from the experience and their past experiences so i can have more hands on knowledge besides listening to podcast and reading books will be awesome , If any one will like to connect with me and start something , Lets do it ! Im ready to get rolling ! ;)

    submitted by /u/MannyOchoaVC
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    Tips on real estate Investment on multi family units/ house in general.

    Posted: 26 Apr 2020 05:43 PM PDT

    Tips on real estate Investment on multi family units/ house in general.

    Hello Realestateinesting Redditors,

    I am 21 in the Mid NYS area, About 1 hour south of Albany NY. Im interested in getting into real estate because I have, what I think is a decent downpayment (20k) for a home that I would be able to rent out, pref. a multi family unit home because the return could be higher than a single family unit and there are a few in my area. What would be a good range to look for? I see a lot of 80-120k multi family units in my area and some defintley need to be completley redone internally and externally. What should I look for and are there any major things I should know or avoid like foreclosures or etc? Thank you in advance. And I am a total Newbie so I know very little and want to learn ALOT before I do anything.

    submitted by /u/KarmaTrysToLongboard
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    What is the right SIC/NCAIS code for real estate investing for LLC?

    Posted: 26 Apr 2020 02:01 PM PDT

    I'm trying to get my LLC established correctly in order to get business credit. What is the right SIC/NCAIS code to choose and how do you choose it?

    I've read that real estate is high risk industry and lenders automatically disapprove you because of your industry. Is that true?

    submitted by /u/DividendPortfolio
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    Have not hear back from buyer inspection, is this a concern?

    Posted: 26 Apr 2020 06:58 PM PDT

    So I am selling a home. In the contingency inspection period ends today. But, the buyer inspected the home on monday? Is this a concern? Or should I look for another buyer. First time selling a home, looking to see if any landlord, homeowner, or agents can share some light.

    submitted by /u/throwaway1237833
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    Thinking about getting my real estate license

    Posted: 26 Apr 2020 10:41 PM PDT

    Primarily to be my own agent, but perhaps work with select investors as well. There is still some room for decent returns, I believe, if I can scale a SFR portfolio. I would prefer to do my own DD, contract negotiations, and if I can save 3-6% being my own rep, or for my select clients, that is an additional benefit.

    In doing some quick reading it seems to become licensed in a state you need to take a few Prelicensing courses in order to hit the required hours before you can sit for the exam. Is there any way to expedite this process? I will call the state real estate commission tomorrow - if they are open? but thought I would ask here.

    I was inspired to do this by a work acquaintance who is building up a small SFR portfolio. We have already discussed partnering because I have a banking and CRE background. My thought is, if we do partner, I could be the rep for his acquisitions for a flat, nominal, fee, and save him some money as we grow the portfolio. I would request equity stakes in exchange, since I am also building him a financial model to manage his portfolio. Unless there is some conflict that that arrangement might bring? Still need to read up on this more, of course.

    This would just be for a side hustle. I would continue my full time employment.

    Poke holes please! This seems fairly straight forward so I must be missing something.

    submitted by /u/tehcoma
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    Sell or Lease???

    Posted: 26 Apr 2020 10:34 PM PDT

    I have an investment property in north/east Tulsa, OK. Tenants gave notice and I need to decide what to do. I already have a qualified tenant ready to move in, but am thinking of taking this opportunity to liquidate and move on from the Tulsa market. I feel like oil and gas will be down for a while. But I'm hesitating because the market seems strong there and the new renters are offering almost $100 more per month. What would you do?

    submitted by /u/PurePark
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    Can I live in an ADU or basement unit and rent out the main property?

    Posted: 26 Apr 2020 09:20 PM PDT

    This is technically two questions:

    1. I often hear of the landlord living in the main house and renting out a (permitted) ADU. I rarely hear about the other way around. How come?
    2. If I have non-conforming bedrooms in my basement, can I live in the basement and rent out the main floor that has conforming bedrooms? I know I wouldn't be able to rent out the non-conforming basement bedrooms.
    submitted by /u/LordofSilkies
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    Attempting to go boat/rv storage or just go large with self storage building!

    Posted: 26 Apr 2020 09:05 PM PDT

    So thanks for listening to this situation. My father has a piece of raw land that I have been working with him to find the best use and a good return. It sits 2 blocks from a highway and the area is surrounded by apartment building and the area is growing at a steady pace. It is a block away from a 4 lane road that will eventually connect to a port 7 miles to the north. There is about 40,000-45,000 square ft of flat land that will need to have a retaining wall built as part of the project. It is 150' wide by 300' deep. The land extends in the back on the side that the wall will be built another 150' and is 60' or so wide. The other back corner is wetlands. We have half of the delineation completed (thanks covid) which will determine if we lose any width for buffers. There is also a billboard on site that brings enough to pay property taxes. The contract will be revised once we put the land into LLC. My first thought is to lease it for 2 years to get income coming in. A simple construction load yard. That would give us time to design, go through planning and secure funding. The land is paid for! I've read many posts about self storage and this would be the ultimate goal. But doing a boat/rv lot is also intriguing but I know there would be more concern about security and staffing. I have talked with a gate company that can automate the gate using key fobs (added income stream) that will start to open once they enter the geofencing range. I'm sure I have left details out. So I will answer them the best I can. I am a sponge looking for advice and hungry for information.

    submitted by /u/dewster17
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    Den to Bedroom Conversion?

    Posted: 26 Apr 2020 12:16 PM PDT

    https://imgur.com/a/PcconoD

    Attached is an image I quickly drew up to demonstrate the layout/proposed layout.

    This is a 2nd floor/top unit and it stands the rear egress is accessed through the kitchen and the den. The den being the rear most room.

    I've thought of added a demising wall which would create an L shaped room, leaving an area of approx 105" x 107" space with an annex approx 75" x 60" leading to the closet which is a French door set up as it stands now.

    It is in line with the dimensions of the other bedrooms

    1Bd: 116" x 103" 2Bd: 102" x 105"

    submitted by /u/BossBabeLLC
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    3br or 2br

    Posted: 26 Apr 2020 08:34 AM PDT

    I'm in the research phase of investing and I occasionally look at areas where I want to move when I graduate nursing school. But I kept seeing lots of 3br unit duplexes and some triplex with one 3br vacant. Do 3br apartment units just not rent out and is it more favorable to do an all 2 br duplex or fourplex? I figured people want more space and that people have multiple children and I'm confused on why? What are you're experiences with 3br apartments units

    submitted by /u/Raynestorm00
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    How do investors vet who lists their flips?

    Posted: 26 Apr 2020 07:38 PM PDT

    Is it the person who was the listing/buyers agent when the house was distressed, and they get the list back when the project is complete? Or they have one agent they choose? Or it depends on the situation?

    submitted by /u/Then-Company
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    Has anyone found a deal by calling up a place that is being listed for rent??

    Posted: 26 Apr 2020 08:26 AM PDT

    Just wondering if anyone has had any experience with doing this? Having trouble finding my first deal.

    submitted by /u/TheRealEstateNoob
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    Is it unreasonable to ask your real estate agent to include how much a property will rent for for every property they send over?

    Posted: 26 Apr 2020 06:29 PM PDT

    I feel as if my real estate agent isn't understanding what I'm asking and just sending all properties she find in the MLS in my price range. Is it unreasonable to ask them to include the comps for rent in order to find out how much a certain property will rent for or is that not part of their job?

    submitted by /u/freebird348
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    Domestic Vacation Rentals - post COVID-19

    Posted: 26 Apr 2020 09:42 AM PDT

    So after the fall of Covid-19, my thought (and personal feeling of my family) is that we will all want to stay local or at the very least, more domestic when vacationing.

    My particular area of interest is lake properties that provide a large space for family, but also the isolation and recreation that we all need in vacation. Family time will be more important than Disney World so these types of places to build memories will be in demand IMHO.

    So...give the coming real estate downturn, will there be a vacay, second home fire sale as well?? Is so...when do you think??

    submitted by /u/boxlaxman
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