Real Estate Investing: What's the best first rental property you should buy? |
- What's the best first rental property you should buy?
- Mobile home investing has been great. Covid aside, what are some things that could cause me to lose?
- First Duplex
- Am I crazy to be thinking of buying right now?
- Anyone invest in individual parking spaces?
- How do you identify an appreciating neighborhood?
- New streamlined application for EIDL loan + grant
- Market predictions
- Refinancing
- Education Materials - Andrew Tate
- Questions on purchasing first rental property
- Residential quad deal in a HCOL area
- Looking for info on solar panels on a flip
- Why is nobody here talking about the SBA EIDL program?
- Why do some people say it’s important to keep to your day job while you invest in real estate?
- Does it make sense to do owner financing on a sale?
- As a new investor living in the Bay Area (California), is it better to buy locally or out of state?
- Will collecting temporary unemployment effect mortgage application
- Why do some people view property as a risk-free investment?
- Anyone know how to enter 1031 exchange into H&R Block software? I fear it can’t be done.
- 2020: My Entry into the World of Real Estate Investing
- Should I lowball very hard for a one year old REO (MTGLQ) listing?
- Help with Condo Association (did work without my authorization)
- Question: What happens to the property if both parents are on the title and one died and has a large medical debt?
| What's the best first rental property you should buy? Posted: 04 Apr 2020 04:17 PM PDT I'm 25/yrs old dude, I got like 45k in the bank and I make around 95k and in 4 years I'll be at 140k a year. I need some suggestions because I'm just now really studying real estate and the mechanics. I grew up with a dad who was a RE investor. I'm looking to start a rental property side hustle and eventually go full time. What's the best first rental property to get? I was thinking of house hacking a duplex/triplex to get my feet wet [link] [comments] |
| Mobile home investing has been great. Covid aside, what are some things that could cause me to lose? Posted: 05 Apr 2020 01:16 AM PDT I've been buying mobile homes (the homes not the property), rehabbing them and flipping and/or renting them on VRBO and Airbnb. I've been doing it for over a year and even my "biggest mistake" resulted in 6k of profit in less than 30 days. I seriously haven't lost yet. Today I just purchased 2 more units at 1/4th the value of recent comps in the parks. I plan to rehab and flip fast. My broker hasn't shown an signs of slowing down - but even if it does slow down, I'm in on these units for so low that I'd at least break even on them. Covid aside, why is it that I keep on winning? I'm entirely new to this. I actually purchased a house back in 2014 and our contractor ran away with our money, so I contracted it myself. That led me into purchasing mobile homes and taking what I've learned from my own rehab and applying it to said homes and selling or renting for a profit. The profit margin on these places is insane. I ask because, every single time I purchase a home I have buyers remorse for a few days. I really want to get passed this hurdle as I'm planning on moving onto actual apartments/condos/homes/etc. Losing something like 5-15k on a mobile home isn't a burden, however, buying an apartment at 100k and losing 50-60k on it scares the living hell out of me. After all, that's what apartments went for in SWFL 5 years ago - now they go for 100k+. Still a good investment as I know a few guys who own a 3-4 apartments or homes and airbnb them almost all year. That being said, Covid has caused virtually of their reservations to cancel. So I plan on buying, renting and eventually listing when vacationing is whole again. If all else fails, I own a few online companies where housing is included in my manager's salary - I could always put them in my own property versus renting and save roughly $700 a month - so still, it's a win even at 100k. Anyways, when answering try to imagine a world, which was less than 2 months ago, where Covid didn't exist. I bought a unit for 1.5k and booked 27k on rentals on VRBO alone after spending 2k on fixing it up. Lot rent is a mere $537 a month. I've done the same with other mobile homes I've purchased plus/minus a few thousand. As I said before, my biggest loser still resulted in a 6k profit. It was a 14k buy sold for 20k. I spent a few hundred on "lipstick", I basically just painted it light grey versus ugly yellow and replaced the counter top with an Ikea $67 counter top. I had booked over 30k in rentals on it only to find out that the park manager played favorites and let some people rent via VRBO, meanwhile others, like myself, weren't allowed to. They played favorites - I know to look out for this moving forward. Since I spent the $2k to make it look "modern" I was able to flip it in less than a week for a 6k profit. All of that being said, I'm an extremely conservative "investor". I'm a software developer turned ecommerce startup owner who has sold multiple businesses to investment groups. A massive part of those deals is entirely related to analytics, which is why I am as successful as I am. My numbers are always extremely conservative and I always exceed expectations by roughly 4%. That margin being as low as it is has instilled a level of confidence in me that I know what I'm doing, but that's just for online sales. I have no damned idea what I'm doing in terms of real estate. I really don't want to continue down this road if it'll eventually blow up in my face. All bullshit aside, I read the posts on here, and I really seems like investing in mobile homes (not the property itself) is a big no-no. I think about this sub every time I buy and/or sell a unit. What are some things that could blow up in my face? How could I lose my ass on these deals? It seems like I'm in the business of buying complete junk and selling it as a "beautiful affordable property" that has "all of the amenities or a real home" - which I am, after I fix up the property. To put it into perspective, I've turned $20k into $77k in less than 3 months, and I'm still extremely conservative. Seriously, I haven't identified a single risk. Any thoughts? [link] [comments] |
| Posted: 04 Apr 2020 07:00 PM PDT I've had 6 SFH rentals. My first duplex. Simple numbers: two 2/1s asking for $95k will get it a little cheaper. Looking at $40k rehab. Will rent $800 each side. Anything I need to know that's atypical in duplex vs SFH? Thanks [link] [comments] |
| Am I crazy to be thinking of buying right now? Posted: 04 Apr 2020 07:23 AM PDT Am I crazy to try to buy something right now? I'm working on the following deal:
My partner and I are going in on the deal 50/50 for down payment and I have a great property management firm that does all my properties. I personally have $80k in the bank so this would only bring it down to $60k, my wife and I also have multiple sources of income to pay our personal mortgage, expenses, etc. We've always reinvested our REI profits back into the buildings or to buy more buildings (Currently at 23 Units all multifamily) I typically do off market deals but my real estate agent who has done my personal home and helped with some contracts has been following up on this one place I've had my eye on since December. It went under contract but has been pending for almost 3 months. The selling agent came back and said the deal is falling through, bank pulled out due to the buyers financials. It's being sold by a hard money guy who the original owner defaulted on the loan last year, and then now in turn the hard money guy has given it to his bank who was his source of capital for his hard money loans. $150k left on the loan but the bank want this gone, especially with whats going on. If this was pre-covid and all done we'd be looking at a $400-$500k Valuation. Even at the bottom of the market in 2010 it sold for $343k. Im just worried about putting $20k of my capital out there during this time, but I know once rehabbed (1-2 Month time frame) it will be a cash cow. Plus trades are starting to be cheap already so nows the time to renovate. I already have people requoting me for 60% of what they were going to charge me 2 months ago for the same project just to get the work. [link] [comments] |
| Anyone invest in individual parking spaces? Posted: 04 Apr 2020 03:52 PM PDT I'm talking about any kind of single parking space, not a complex. Just curious what you all are into outside of dwellings. [link] [comments] |
| How do you identify an appreciating neighborhood? Posted: 04 Apr 2020 09:06 PM PDT |
| New streamlined application for EIDL loan + grant Posted: 04 Apr 2020 02:07 PM PDT https://covid19relief.sba.gov/#/ Seems like this online application is much shorter than the PDF that had to be filled out earlier. It says that it takes ~2 hours to fill out, but in reality it takes about 2 minutes. [link] [comments] |
| Posted: 04 Apr 2020 03:12 PM PDT 7 million jobless claims and rising. I'm expecting lots of foreclosures in the very near future. What are your projections for the housing market in the near term? Seems like it's going to take a dip, possibly a very deep dip. [link] [comments] |
| Posted: 04 Apr 2020 03:53 PM PDT What do people use to check everyday refinancing rates? I didn't keep a tab on rates and now my refinance is costing me ~$50,000 more. Is there a method or tool people use to track rates and pull trigger when it makes sense? Thanks 🙏 [link] [comments] |
| Education Materials - Andrew Tate Posted: 05 Apr 2020 12:11 AM PDT Hello guys, I offfer for a trade Andrew Tate's courses (4 time World Champion kickboxer, marketer, businessman, multi-millionaire). The courses I have are: Hustlers University - The best no-nonsence business course EVER, includin starting and running a business, getting the idea, marketing, sales, and EVERYTHING you need to know (8 hours of content) How to be a G - Program about lifestyle, how to be assertive, dominant and cool in social situations PhD Course - Hands down the best course about picking up girls in the social media day and age. The guys has extensive experience with girls, not like those "wannabe" pick-up artists. Iron Mind - Toughen up! 6 weeks program to challenge yourself and become a better version of you mentally. Webcam Business Course - Making money with webcam girls. Body Language Course - Another social situations improvement program. Get the confiden verbal and non-verbal body language. Network Brilliance - How to connect and make network of friends with influential people. I can exchange the courses for other courses, or sell them. Bundle offers included. 100% satisfaction, proofs for anyone interested. Drop me DM or start a chat if you want them. [link] [comments] |
| Questions on purchasing first rental property Posted: 04 Apr 2020 01:57 PM PDT I'm looking to buy my first property. I've been heavily considering a 3 family home (which in the areas I've looked ranges from 300-450k). I'm 23, I have 30k savings and I make 80k/year. I'd like to purchase a house sooner rather than later but I have a few questions. I'd like to use a conventional loan, however unless I wait 6 months - 1 year I'll only be able to afford to put 10% down instead of 20% which seems to be recommended. Would I be better off looking into using an FHA loan, waiting and saving up 20%, or is it worth just putting 10% down and starting asap? The pandemic is definitely slowing down the process and I've heard this will also affect the housing market, so I've been thinking it may be best to wait until this is finished before I begin heavily looking. Also, are they any resources that would help me find ideal places to rent and how much units rent for the given area? One of my biggest fears in doing this is purchasing a house and not being able to find tenants. It also might be worth noting I don't intend to live at this property. Any help or recommendations would be greatly appreciated. [link] [comments] |
| Residential quad deal in a HCOL area Posted: 04 Apr 2020 12:58 PM PDT Background: I already own several properties and units (both commercial and residential). Closed on a residential quad in a HCOL area. The good? Purchased for $1.1M. Rents are ~9,300 with some in Section 8. These deals are usually pretty rare with these ratios so I jumped on this one. Expect to increase rents over the next few years as well as 2 units have room to increase or switch to Section 8 if vacant. The bad? Unfortunately, it appraised for ~800K and so had to put up more cash (about 50% down). Will look to do a cash-out refi in 6 months and purchase additional property at that time. This will add cost but will allow me to do additional purchases with what I see are impending decrease in the market. The unfortunate? In light of COVID-19, 2 tenants have already notified that they cannot pay/will only pay a reduced amount. The Section 8 will pay and that's a relief. [link] [comments] |
| Looking for info on solar panels on a flip Posted: 04 Apr 2020 11:22 PM PDT I'm currently rehabbing a flip house that I purchased a few months ago. The house had solar panels installed in 2017. I know very little about solar panels, but was kinda hoping that they might be a nice selling point to a potential buyer as I assumed they would make the electric bill considerably cheaper. However, the electric bill has been almost $200 for the last couple of months. The house is vacant, and the power is only being used to run tools and such while I'm there working during the day. The bill is as much as my own residence where my family of 4 is constantly using electricity. Does anyone know how I might go about checking to make sure the solar panels are working properly? I didn't see any sort of shut-off that may prevent them from working. Am I missing something? The house was a foreclosure. Any chance the power company would have done something to disconnect the solar? [link] [comments] |
| Why is nobody here talking about the SBA EIDL program? Posted: 04 Apr 2020 02:25 PM PDT After reading the bill: It looks like it says '(ii) INCLUSION OF SOLE PROPRIETORS, INDEPENDENT CONTRACTORS, AND 3 ELIGIBLE SELF-EMPLOYED INDIVIDUALS.—" '(I) IN GENERAL.—During the covered period, individuals who operarate under a sole proprietorship or as an independent contractor and eligible self-employed individuals shall be eligible to receive a covered loan. This means that not only do landlord qualify, but so do gig economy workers such as uber drivers, ebay sellers, etc...So why is nobody here talking about this program and the $10K cash advance available? [link] [comments] |
| Why do some people say it’s important to keep to your day job while you invest in real estate? Posted: 04 Apr 2020 09:07 PM PDT I also hear that to be serious about real estate, you have to quit your day job. So which is it? [link] [comments] |
| Does it make sense to do owner financing on a sale? Posted: 04 Apr 2020 11:44 AM PDT I've had a mixed-use property in Hudson, OH Bought for $640,000 in 2008 First 10 years brought in $7,000 + $1000 (NNN) But one retail space vacant last 2+ years. When I refinanced 4 years ago appraisal came in $480-540K. A month ago got an offer for $700,000 from the best possible client in town. Asked for May settlement. But with trouble now is requesting October settlement. With this situation and if it gets worse appraisal is probably not going to come in at $700K. Any ideas? The Barber shop is closed but has kept paying at least for now. Right now $3450+650 monthly [link] [comments] |
| As a new investor living in the Bay Area (California), is it better to buy locally or out of state? Posted: 04 Apr 2020 10:20 AM PDT Let me start off by saying that my goal is to be cash flow positive. So here's the deal — I'm in my early to mid 20's living in the Bay Area right now who want's to get into real estate. In an ideal world, I would like to buy a property that is out of date, add some value by fixing it up somewhat which would up the rent + house value, and be cash flow positive. Obviously, living properties in the Bay Area are not that friendly towards investors looking for cash flow. The issue is that I hear that when you're starting out to ALWAYS buy in an area you know well. On the other hand, all the research I've done online says that if you're looking to be cash flow positive then to buy outside of California. Based on the rough numbers I've looked up that seems to be the case. So these are 2 conflicting statements. I want to get a gauge from experienced investors on what's the best method. There are three options that I can think of:
Honestly, I don't understand practically how I would be able to buy out of state. Would I have to fly constantly to check out new deals? How would I check up on contractors to make sure they're doing good work. Does anyone have good advice for a situation like this? [link] [comments] |
| Will collecting temporary unemployment effect mortgage application Posted: 04 Apr 2020 03:12 PM PDT Hi all. My wife is a dog trainer, and while she can do some sessions remotely....obviously her regular income will be effected by the various social-distancing measures, since she can't go to clients houses for training sessions. She has an LLC and works as a sub-contractor for a larger training company in the area that provides her with clients (so she doesn't have to worry about marketing, etc.). They have suggested all their contractors now file for unemployment benefits to make up for the temporary lack of work. Normally I wouldn't say no to free money but I'm worried if this might effect our real estate investments in the near future as we apply for mortgages. Does anyone have any insight on if lenders actually check unemployment records to see if someone is collecting, and would that be a red flag for approving the loan? [link] [comments] |
| Why do some people view property as a risk-free investment? Posted: 04 Apr 2020 10:31 PM PDT I've had some relatively normal landlords in the past, and I'm very happy to say I don't currently have a landlord. What I am noticing, however, is that a lot of property owners (particularly those who own more than one property) have this absurd sense of entitlement that I haven't seen in any other type of investment, other than maybe multi level marketing. Why is this? Genuinely interested in a serious answer, so many of the same people who've told me "you have to make a risk to make profit!" are now whining about not getting government handouts because their risk went bad. It may not be every single one of you, but I'm interested in why this occurs at all. Thanks very much, I will use some of your responses in the major academic project I'm currently research assistant for. [link] [comments] |
| Anyone know how to enter 1031 exchange into H&R Block software? I fear it can’t be done. Posted: 04 Apr 2020 05:39 PM PDT H&R software has been good to me for a decade. It handles multiple properties, multiple states, and free to me (military). But I fear it can't handle 1031 exchanges. Any experience out there? [link] [comments] |
| 2020: My Entry into the World of Real Estate Investing Posted: 04 Apr 2020 04:39 PM PDT I wanted to make this to kind of document my startup into the real estate world. Maybe some will find it an interesting read and insight into rural real estate investing. Maybe it will inspire others to take the leap. I graduated from law school in May of 2018, passed the bar exam, and moved back to my small town of 8k in a county of 18k. This is not a post about how successful my law practice is, but bottom line is I made 72k last year + landed a 50k a year part time deputy prosecuting attorney gig. This year I have made 50k from my law practice in the first 3 months of 2020.. so it should be even better. My wife is a teacher and makes 42k but is likely to leave that job as we just had our first child and she wants to be a real estate agent to help out with the real estate side of things. We generally live on $3k a month, so we obviously save a crap ton of money. We have about 85k invested in the stock market (was 115k before the crash). In January 2020 right before we had our first child, we moved out of our 1200 square foot home we bought right after I passed the bar exam and into a 1926 3,000 sq foot home that we bought for $152k. We decided to keep the other house and rent it out as we got it for literally zero down. We even had the sellers at the time pay our closing costs. The house was $130k. The numbers work out like this: Downpayment + closing costs = ZERO. Rent: $1,000 Mortgage: $640 Property Taxes: $85 Insurance: $100 Maintenance and Vacancy (10%): $100 month *Only 10% here because the property is in extremely good shape, has a 2 year lease with tenants who are extremely qualified, and we plan to sell in 5 years or so. Cash flow: $75 month Equity Build (debt payoff): $175 per month. Not great numbers, but hell of a ROI considering we have zero dollars in it. We don't like the long term numbers on the property, so plan to sell in 5-6 years when we can get some cash out of the sale. Our next house we closed on in February was a $33.5k purchase with 15% down ($5025), $649 closing costs, and 5.5% interest rate on a 15 year term. Here are the numbers: Downpayment + closing costs = $5,674 Rent: $575 Mortgage: $240 Property Taxes: $25 Insurance: $60 (flood zone) Maintenance and Vacancy (20%): $106 month Cash flow: $135 month Equity Build (debt payoff): $105 per month. Our next house we closed on in March was a $30.5k purchase with 15% down ($4,575), $1,022 closing costs, and 5% interest rate on a 15 year term. Here are the numbers: Downpayment + closing costs = $5,597 Rent: $500 Mortgage: $205 Property Taxes: $25 Insurance: $25 Maintenance and Vacancy (20%): $100 month Cash flow: $145 month Equity Build (debt payoff): $100 per month. Our next house we closed on in April was a $35k purchase with 15% down ($5,250), $910 closing costs, and 4.75% interest rate on a 15 year term. Here are the numbers: Downpayment + closing costs = $6,160 Rent: $575 Mortgage: $235 Property Taxes: $25 Insurance: $60 (flood zone) Maintenance and Vacancy (20%): $106 month Cash flow: $140 month Equity Build (debt payoff): $111 per month. Our next house we also closed on in April was a $30k purchase with 15% down ($4,500), $908 closing costs, and 4.75% interest rate on a 15 year term. Here are the numbers: Downpayment + closing costs = $5,408 Rent: $500 Mortgage: $200 Property Taxes: $25 Insurance: $60 (flood zone) Maintenance and Vacancy (20%): $100 month Cash flow: $115 month Equity Build (debt payoff): $95 per month. Not counting the infinite returns on the house that was my primary residence, I am getting around 17-18% after tax cash on cash ROI and 20-22% equity ROI on these properties, which I consider knocking it out of the park. Long term plans are to start buying some multi families in a bigger city 45 minutes away once I run out of these little goldmine properties. Thanks for the read. [link] [comments] |
| Should I lowball very hard for a one year old REO (MTGLQ) listing? Posted: 04 Apr 2020 03:33 PM PDT Hello folks, I am currently looking at a REO on the market.
Here is the question: It is currently listed for 244K. Considering the COVID 19 factor, the limited market for higher end property, low market demand, and additional work needed, I do not believe 244K will have any takers. I am in a strong financial position to hold this property for a few years if the market go sour. I want to make an offer like 120K (or even lower?), but the listing agent repeatedly ask me to raise the offer to a "fair" range and telling me she is not willing to submit the offer for me at this low. Do you believe MTGLQ's asset manager will take lowball offers like 120K to get this one of the books or they will ride it through COVID 19? [link] [comments] |
| Help with Condo Association (did work without my authorization) Posted: 04 Apr 2020 02:20 PM PDT Condo association hired a contractor to perform work to the unit downstairs from mine. They claim that a slow leak originated from my unit and caused damage to the downstairs unit. Now they sent me two bills (March 31) one for $450 and a second for $250. I did not authorize this work. What recourse do I have? [link] [comments] |
| Posted: 04 Apr 2020 01:25 PM PDT Read articles and many say that the medical debt would have to paid by the estate, but what happens when the property is under both parents and the survivor is living in the home? [link] [comments] |
| You are subscribed to email updates from Real Estate Investing. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment