Real Estate Investing: What type of loans at what rates do you guys get for your units? |
- What type of loans at what rates do you guys get for your units?
- When analyzing a rental property, how do you estimate insurance costs?
- What would you do? Seeking advice on "leveling up" our RE Investing
- First rental property
- Purchasing Land, Owner is Married to a Real Estate Agent. Do I need an agent?
- What are some creative ways to invest in HCOL real estate?
- Are my deal analysis estimates roughly correct?
- Concerned I'll need to back out of closing on my first house hacking deal.
- Buying two condos in same building?
- What should I focus on?
- Do you pay tax on rental revenue used to make mortgage payments?
- What are tips need to understand before get in real estate investment?
- Is propertyshark.com a reliable resource for a title search and ownership and encumbrance report?
- Real estate hacking risk vs renting?
- Loan contingency - can I get out of contract?
- Beginning to look for land for sale. Where to start?
- Coronavirus round 2
- Sell or Refinance? Sell seems like the obvious choice to me
- South Multi Fam Ivesting
- What to Do
- Has anyone here done the David Tilney seminars?
- Anyone tried breaking the system? Subletting seasonal rentals to take advantage of tenancy act.
| What type of loans at what rates do you guys get for your units? Posted: 18 Apr 2020 04:08 PM PDT Like say you use your cash to buy a few homes and the want to loan against those. [link] [comments] |
| When analyzing a rental property, how do you estimate insurance costs? Posted: 18 Apr 2020 11:09 AM PDT I've got most of everything else pretty narrow - how do you find monthly insurance prices? [link] [comments] |
| What would you do? Seeking advice on "leveling up" our RE Investing Posted: 18 Apr 2020 10:44 PM PDT Dear r/realestateinvesting, I am writing this to ask for your help and seek the advice of much wiser experts to see what you would do in my situation and really to ask at what point does it make sense to "level up" and make the leap from Single Family Residences (SFRs) to something like a larger multifamily property. The back story, my wife and I started investing in single-family residential homes real estate in 2017 with the premise of, if this doesn't work out, we will just live in it. From 2017 to today, we have now accumulated 10 SFRs, with 30-year, 20% down, fixed-rate, conventional loans. In total, we are cash-flowing $5,500 each month and we have been very happy with RE investing. Our properties are ranging from 3-4 bedrooms, most under $100,000 as we live in a fairly mid-size town (400,000 people). Total portfolio valuation at an 8% cap rate is roughly $1.4M ($110,000~ NOI) and at purchase price, we have paid roughly $887K so we have roughly $690k of equity built up amongst the entire portfolio. I know what you are thinking, surprisingly we did not get hit that hard from COVID-19 and all of our tenants paid rent and still employed! All properties have been very stable, I self-manage the properties with my wife and we still have our day jobs to continue to save money. We drastically live well below our means and roughly save $7,500 a month. In my spare time, I am also a licensed real estate agent and it was one of the best decisions I ever made as it has helped us find so many good deals + create a stream of passive income to help our friends get into real estate investing. Here is where I need your help. We have saved up roughly $130,000 of cash in the bank and we have hit our limit on how many SFRs we can purchase with 30-year conventional loans. I want to figure out what the best strategic next step would look like and just get feedback on what you would do. Option 1: Bundle up all of the properties, market and sell the portfolio and through a 1031 exchange, purchase a large multi-family unit using that cash + the cash we saved. Potential purchase price of a multifamily unit, assuming we put 20% down, would aim for $2.5M - $3M. Option 2: Again bundle up all properties, but do a cash-out refi and purchase a large multifamily unit. We would aim for a $2M-$2.5M acquisition. Option 3: With $130,000 pay off our personal home, continue to minimize expenses and just retire early and become a part-time real estate agent. Slow saving, paying off our existing properties and one day with the goal of one day having enough money for the down payment to purchase a large multifamily unit. Maybe raise money from other investors to accomplish this quicker? Still to be determined as we have never done this before and have just done small deals easy deals that we know that work. Option 4: Sell our entire portfolio, take the cash and just repeat the process of buying 10 more SFRs and sell that portfolio again every 3-4 years (assuming we would have the same luck of finding those level of deals again). Option 5: Because our saving rate is so high, at $7,500 a month or $90,000 a year plus the $130,000 we have already saved, we could be well-positioned in the next 2-3 years to have $300,000+ to purchase our own multifamily property or pay off the rest of our rentals. All 5 options seem really great. Option 1 and 2 seem like the best for growth, but we are fairly conservative with our investing and fear the unknown as we have never worked with a property manager before (we would want one with that many units) nor have we ventured out into multifamily. Hence, I guess my question is, would you take the safe rate of option 3 and just don't try and fix what is already working, or go for options 1 or 2 and go big and continue to grow and scale very rapidly. Option 4 and 5 is perhaps the middle ground between all of it, but we really don't want to pay taxes on all of the growth from the properties, so that is kind of a negative. Option 5 we are happy to wait that long, but would surely not like to keep our jobs and focus on real estate full time or travel or just whatever we want outside of the rat race of a job. If you made it this far, thanks for reading! Sorry for all of the typos ahead of time. I am looking forward to hearing your feedback! Edit #1 - you all have given me some fantastic advice, I really appreciate it! A lot to think about [link] [comments] |
| Posted: 18 Apr 2020 09:50 PM PDT I am looking to buy my first property in a medium size town (40k population) in Ontario, Canada near the Greater Toronto area. I am just going to put in an offer on it. The property has 2 units with rental income 2400$ per month. It's completely upgraded older home - 1500 sq foot with brand new roof, hardwood floors. The electricity is paid by the tenant and has 2 meters. Tenents are already in place with signed leases and a property manager. They have paid the rent so far in the pandemic. Seller is a contractor doing a flip. Monthly positive cash flow after all expenses and property manager is around 425$ per month. Coverage ratio is 1.42 CAP Rate - 5.42% for the 1% rule, I see it as 0.72%. Does this look like a good place for a first investment property? I would be buying in the middle of a pandemic. Does it make sense to buy now or wait for prices to be possibly fall in 6-12 months? [link] [comments] |
| Purchasing Land, Owner is Married to a Real Estate Agent. Do I need an agent? Posted: 19 Apr 2020 01:25 AM PDT Hi. I'm a bit new to real estate. I've been talking with a land owner about a parcel. I'd like to put in an offer, but I'm not sure what next steps should be. Do I need my own realtor, or is it fine to have them draft up the paperwork? I'd like to put 4-5k in escrow on the 68k land with 2 months for due diligence. Any suggestions? [link] [comments] |
| What are some creative ways to invest in HCOL real estate? Posted: 18 Apr 2020 09:33 PM PDT Hello Any creative ideas on how to make a cashflow/profit in a HCOL real estate? [link] [comments] |
| Are my deal analysis estimates roughly correct? Posted: 19 Apr 2020 01:12 AM PDT Property is 350k duplex. If I were to house hack it, I would have 1 tennant in the other unit and SPLIT the rent of our unit with my girlfriend. If I put down 105K (30%) and get a 30 year mortgage at 3.3% (Google showed me some federal credit union rates this low and I have 740+ fico, I guess I could maybe get that?) This comes out to be a $1,393 a month payment. Using the 1% rule, rent per unit would be $1,750. So that's one tennant paying me $1,750 and my gf paying me $875. Total rent collected $2,625. 50% rule (operating expenses) cash collected from tennant is $875 and cash collected from gf $437.5 Cash generated from tennant and gf = $1,312 Mortgage payment: $1,393 do you see any errors in math, assumptions etc? Thanks! If I make 75,000 a year and my gf makes 80,000 a year with my 30% down payment, would you consider this a safe bet? [link] [comments] |
| Concerned I'll need to back out of closing on my first house hacking deal. Posted: 18 Apr 2020 09:29 PM PDT I'm supposed to close with a VA loan on a 6br/5ba SFH this week which I'm planning on house hacking and renting out rooms but two things have me thinking I'll need to back out.
At this point I think rather than risking potential fines or lawsuits and cashflow, I should back out and find a multifamily home to house hack that is outside of this historic district/neighborhood. Has anyone had experience with this? Am I overreacting being concerned about this? I would really appreciate any advice. [link] [comments] |
| Buying two condos in same building? Posted: 18 Apr 2020 09:28 AM PDT Is this a good idea? I own a condo that I'm currently renting out and planning to move into in a few months. I've noticed there's another unit for sale at a reasonable price in that same building, which I really like. I've been considering purchasing it as well, and rent one of them out. The HOA is very well run and has a healthy reserve fund. The building is well maintained and is a quality construction. Would this be a bad idea? Am I putting all my eggs in the same basket? Thanks [link] [comments] |
| Posted: 18 Apr 2020 08:12 PM PDT I'm a young professional working a steady job in finance in the Midwest. I am saving to invest in RE, but not sure what my first investment should be. BRRR a single family? Put in 20% on a multi family? Something else? Getting started is the hardest part! [link] [comments] |
| Do you pay tax on rental revenue used to make mortgage payments? Posted: 18 Apr 2020 10:01 PM PDT |
| What are tips need to understand before get in real estate investment? Posted: 18 Apr 2020 09:01 PM PDT I am looking into real estate like condo or a small home. I want to buy and rent it out to people. Any advice much appreciated. [link] [comments] |
| Is propertyshark.com a reliable resource for a title search and ownership and encumbrance report? Posted: 18 Apr 2020 05:24 AM PDT I'm looking to buy a house at auction - starts this Monday. Title companies are backed up. Is there a quick and reliable online title search and ownership and encumbrance report website? [link] [comments] |
| Real estate hacking risk vs renting? Posted: 19 Apr 2020 12:14 AM PDT If I put down only 3.5% and live in one unit and rent out the other, what additional liability am I taking on that the tennant isn't? (Besides my 3.5% down payment) If the tennant moves out and I lose my job then I won't be able to make mortgage payments and the place will be taken from me, but what will I have lost? I will lose my 3.5% equity and I will lose the additional equity that I amassed while paying off the mortgage. (Is there anything else I'm missing besides my equity stake? Will I have to file bankruptcy or anything else that will adversely effect me?) However won't I be just like any other millennial who pays rent to their landlord if it does go to shit? You are losing 100% of you money when paying rent. Isn't it better to attempt something that doesn't gaurentee 100% loss but will allow you to save more money and gain equity on principal pay down? What am I missing? [link] [comments] |
| Loan contingency - can I get out of contract? Posted: 18 Apr 2020 07:19 PM PDT My bank wants a copy of my 2019 IRS transcript. I filed a paper return, it won't be looked at till IRS workers go back to work. This could be months. I am already two weeks past the original close date. My realtor - who obviously has a vested interest in closing the deal - says that the loan contingency would not help me get my earnest money back in this case. Is this true? Other ideas to break contract ? [link] [comments] |
| Beginning to look for land for sale. Where to start? Posted: 18 Apr 2020 07:17 AM PDT I'm in Western PA, interested in beginning/building a vacation home for my family, either: 1) eastern coast close to beach (so MD, VA, or NC) Or 2) mountain (I would imagine WV would be most cost effective) I look on LandWatch but I get analysis paralysis. Hoping someone could guide me through the best process & what to expect (fees, warnings, etc) I just want to build a legacy for my wife and daughter. [link] [comments] |
| Posted: 18 Apr 2020 07:47 PM PDT What is everyone's take on the whole 12 months of free rent proposal..? [link] [comments] |
| Sell or Refinance? Sell seems like the obvious choice to me Posted: 18 Apr 2020 06:21 PM PDT I have a rental property with $130k equity and my options are to refinance up to $80k at 3.9% or sell and use the $121k(lose $9k to closing costs) to buy more rental properties, why do people seem to always advocate refinance vs sell? With the $121k I can increase my leverage more and avoid the higher interest of a new loan. [link] [comments] |
| Posted: 18 Apr 2020 09:13 AM PDT Long time lurker. Don't post often. I am finally in the position to look into rental prospects. I just moved to the middle TN area and am wondering if there are any articles or places where people in here are going to do research into the best markets. Anything within a 3 hour drive would be ideal. Anything within a 6 - 8 hour drive is in my consideration I know, this may be basic and asked many times over. So please forgive me if so. I have flipped many houses on my own but they have been my primary residence. This will be my first meant for rental. I'd like to find the worst complex that I can restore. I mostly need help to do research into geographical areas. Thank you so much for the advice. [link] [comments] |
| Posted: 18 Apr 2020 08:16 PM PDT You're in your mid 20s, have $50k saved up to deploy. A working knowledge of real estate and analyzing deals. Have been working as unpaid intern for several investors to see how they do business. What is the most effective use of this capital? (Asking for a friend 🤪) Hope you guys are all staying safe and healthy! Thanks for any and all valuable insight Edit: I live in a very expensive market, median home price almost $600k [link] [comments] |
| Has anyone here done the David Tilney seminars? Posted: 18 Apr 2020 09:04 AM PDT Looking for ideas/reviews in his methodology of property management and his master class. [link] [comments] |
| Anyone tried breaking the system? Subletting seasonal rentals to take advantage of tenancy act. Posted: 18 Apr 2020 05:15 AM PDT Thanks in advance for reading and your input. I have been invested in a particular area which has a strong rents market for 6 months of the year, and is almost a ghost town for the rest of the year. I make enough in the 6 peak months to cover everything and make a profit, while it is almost not even worth the effort to rent in the off season. Looking into the tenancy act for my area, I realized that having a fixed term lease is essentially meaningless, and that all tenancies regardless of the original lease term default to month to month following the contract. And the only ways you could ever legally evict a tenant (besides cause or non payment) would be to conduct renovations or have an immediate family member move into the unit. The renovations need to be substantial enough that the unit is unlivable, and the area is not somewhere that many people live full time so it would be unlikely that either scenario would occur. The landlord doesn't even have recourse if the tenant abandons the property, but continues to pay rent. That being said, my (evil and theoretical) idea was to rent the units in the off season for ~1/4 rent, then proceed to hold the rentals through the peak season (or indefinitely) and sublet the units for full rent. Paying full year rent at the reduced rate still results in profits equal to double what your money invested even without renting at all in the off season. Example: (Typical tenancies in this area are furnished 6month rentals with all utilities included) Off season rent $800/month Peak season rent $3200/month Paying 12 months rent at off season rate-$9600 Grossing 6 months rent subletting at peak season rate-$19200 Total profit-$9600 Most landlords are either unaware that their off season leases automatically renew into month to month tenancies and unless the tenant signs a mutual agreement to end tenancy, there is virtually no way to get them out of the unit. This would be an incredibly easy way to take advantage of ridiculous tenant friendly regulations with very little risk and almost no money down. Assuming your initial agreements allow for subletting, this would even be very scalable given the low barrier to entry. The area is very popular and long term rentals are very competitive, so while there is some risk (like another covid) that you would be unable to find sublets, you are on a month to month lease so can terminate with minimal losses. The only other major risk I see would be having an extremely pissed off landlord once they realize that they will be collecting off season rent during peak season, and having almost no legal way out of the situation. The best part is, as the tenant, the sublet agreement (minimal rights as a tenant) is only between tenant and sublet. While the original tenancy agreement is supported by the tenant friendly regulations. So the landlord had no formal relationship with the sublet. But the landlord is still required to complete all repairs etc. I've heard of people renting whole houses and then renting rooms to make a profit, or doing air bnb on a unit that their renting, but this method would eliminate most of the hassle and risk. Has anyone done anything like this? How did it turn out? The reason I could see this breaking the system is that if scaled, I could literally rent dozens of units out for profit at no risk, leaving landlords making pennies on the dollar, all conducted legally by exploiting the system. And besides finding the Subletters, there wouldn't be any other property management as the landlord still does maintenance etc. I have no plans to do this, because as a landlord myself I would be absolutely screwed if this happened. But it is a bit scary how easy it would be to completely fuck a landlord over using the system. [link] [comments] |
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