- Do you really save that much by buying a property to live in for 2 years and then turning it into a rental vs living in your own separate house and buying a property strictly for investment?
- Home equity loan on home 1 as down payment on home 2?
- Won’t be investing til 1-2 years. What should I be doing to prepare?
- Sell Oakland, CA condo or rent it out?
- Any of you guys know how to get access to triangle area MLS?
- Rental data
- Upgrades for Rental Properties
- Thinking of getting the book Loopholes of Real Estate. How much of it would be applicable for Canada?
- Seeking advice/insight relocation to Raleigh NC area.
- 1031 exchange clarification and any possibility to delay?
- Any of you guys know how easy it is for foreign buyers to transfer a property to an llc?
- Covid and Multi-Family homes
- New investor with LLC question
- How to structure own-use mortgaged property and rental mortgage property
- Manufactured housing + concrete foundation = arbitrage opportunity?
- Starting up in real estate
- The House Next Door / Pocket Listing Advice Request!
- Property management for owner occupied house
- Multiple Mortgages
| Posted: 24 May 2020 10:48 AM PDT For I while I have been living in my properties for 2 years and then moving and renting them out. That is great while I am younger (because I am buying lower cost properties like townhouses). But now I am to the point where I would like to live in an actual house and have a yard long term instead of constantly moving around. Also when I am married I will no longer be able to keep moving because I have to consider stability for my wife also. Do you really save that much money on things like a loan, taxes etc. by doing what I am doing? [link] [comments] |
| Home equity loan on home 1 as down payment on home 2? Posted: 24 May 2020 08:22 PM PDT Some financial background: we bought our home 6 years ago. At that time, we were able to put down around 35% to get a monthly payment we were happy with. Purchase price was $810K, it's worth around $1M now and our mortgage balance is $490K. We qualified on my husband's income alone as I am self employed and my salary is just bonus income. My husband has since completed law school and his income is about $75K higher now than when we purchased the home, and he will continue to get regular salary increases as an attorney (and pretty solid job security even in this economy - we are extremely fortunate, I know). We also have no loans other than the mortgage, max out our 401Ks, contribute to our child's 529, and have savings to cover about a year of expenses if needed. So financially we are quite comfortable. We're debating doing upgrades to our home vs buying something newer. I am wondering if it makes sense to keep our current house as a rental. However, I don't want to use our savings as a down payment on a new home, so I'm wondering if we can use some of the equity in our current home as down payment on a new home. I feel confident we could rent out our current home to cover all current expenses (mortgage and property tax is about $4K/mo, homes our size rent for around $4.5K/mo), but would only cover part of the home equity loan. New home would probably be around $1.3M, would like to put at least 20% down. I haven't run any numbers on what we'd be qualified for and what our payments would be, just wondering if this idea is a total disaster or something to consider. ETA - another option would be to refinance with a cash out, not sure if that's smarter? [link] [comments] |
| Won’t be investing til 1-2 years. What should I be doing to prepare? Posted: 24 May 2020 10:45 PM PDT Like the title says, I am on a timeline to begin my real estate adventure in the next 1 - 2 years. Obviously the main thing I need to do is to save for a down payment & unforeseen costs, but what stuff could I be doing as far as learning what a good house looks like in my area or how to spot a good price/opportunity? I appreciate any advice given, it all helps! [link] [comments] |
| Sell Oakland, CA condo or rent it out? Posted: 24 May 2020 05:38 PM PDT Thinking about renting out my condo in Oakland, ca instead of selling it and hoping to get some advice on my options. Option 1. Sell the condo and use the money to buy a new primary residence. I owe $320k and it's worth approx $750k. HOA is $700 and prop tax is about $520 a month, mort payment is around $1500 or so a month. Option 2. Keep the condo and rent it out for around $3500 a month. Take my saved up cash and buy a new primary residence for around $650-700k far out of the Bay Area, possibly in Sacramento or similar. I can now work remote So that's great. I'm in a pretty high tax bracket and I keep hearing that I need a side business for write offs and one should never sell Bay Area real estate. I also keep hearing that being a landlord in Oakland is challenging. I really want to own a house and quite sick of living in 800sf so it's time to make a move. I'd love to own a couple rental properties in the future, not sure of I should start with one in the Bay Area. [link] [comments] |
| Any of you guys know how to get access to triangle area MLS? Posted: 25 May 2020 01:35 AM PDT I have an agent there but he hasn't given me access to MLS directly. I have a vegas agent (can't buy there rn) who did give me access. [link] [comments] |
| Posted: 24 May 2020 09:54 AM PDT Hello, Looking to purchase my second SFH (Buy and Hold). I am looking to get some rental/lease data for certain areas. How do you research this? I tried a site "rentometer.com" and it doesn't seem accurate when I compare it to zillow listings. When researching an area what tools do you use to get this type of info? [link] [comments] |
| Upgrades for Rental Properties Posted: 24 May 2020 09:41 PM PDT I am compiling a list to use as our template when acquiring new properties or turning old ones. I have started adding vent fans in all bathrooms and a moisture sensor to cut down on mold. Smoke detectors with 10-year batteries. Decent quality faucets with metal hose connectors. Whenever floors need replaced, I use waterproof scratch resistant LVP flooring. Vanities in bathrooms, not wall mounted sinks. Shower curtain rods that screw into the walls. Solid core doors. Steel entry doors with a peephole. Wooden toilet seats with metal hinges. Repaint walls with the same semi-gloss paint in every unit. Front door locks from landlordlocks.com . I'm looking to make properties durable and comfortable. What are some of your favorite improvements to save yourself work in the future? [link] [comments] |
| Posted: 24 May 2020 09:26 PM PDT Thinking of getting the book Loopholes of Real Estate. How much of it would be applicable for Canada? [link] [comments] |
| Seeking advice/insight relocation to Raleigh NC area. Posted: 24 May 2020 10:19 AM PDT I'm looking to relocate with my family from Northern NJ to (likely) Raleigh, NC area. I am thinking to sell off my portfolio here and exchange to the Raleigh area. Ideally I would like to buy about $10mm of property spread in a handful of multi family or mixed use properties. Is it particularly difficult to find reasonable deals, say 10-40 units? I'm just beginning my research. Are there a lot of this size properties in the area or are they mostly bigger complexes and smaller SFR, duplexes, etc? The time constraints of a 1031 always gives me some stress because I don't want to be pressured into making a deal I'm not "very happy" about. Any insight would be appreciated. Also, any recommendations for brokers who are in this "middle market" size space would be great. Thank you. [link] [comments] |
| 1031 exchange clarification and any possibility to delay? Posted: 24 May 2020 04:56 PM PDT My husband and I own a home in the mountains. We live, rent free through his work and use the mountain house for vacation rentals. We sometimes use it ourselves, but our 9 yo daughter has a rare congenital issue that makes sleeping at 10,600 ft dangerous for her. We'd planned on selling it and buying land at lower elevation to build a rental that would eventually become our retirement home in 20 years or so. It's finally under contract and closing is July 6. All would be fine but now we're considering moving jobs (we're teachers and it wouldn't be until a year from now). We want this new home/land to be near us so we can use it on wknds, but 1- we don't know where we'll be (teaching jobs start to open up in late fall) and 2- I believe we only have 180 days to do a 1031. This is all coming about because of covid (making us realize living 18 hours from family isn't ideal/want to get closer) and I'm wondering if there's a way to buy more time with a 1031 or if the pandemic there are extensions in place...? Thanks all! [link] [comments] |
| Any of you guys know how easy it is for foreign buyers to transfer a property to an llc? Posted: 24 May 2020 04:41 PM PDT Was going to make an llc first, but an opportunity popped up. [link] [comments] |
| Posted: 24 May 2020 04:10 PM PDT I'd appreciate advice from seasoned real estate investors on how you speculate prices of Multi-family (multiplex, apartments etc) homes going into 2021 and beyond. Covid is surely going to cause price fluctuations in SFH due to high unemployment, people relocating etc. However, I foresee people losing homes, some will relocate, there may also be a credit crunch etc etc which will lead to more folks renting. On the flip side, Covid has also caused many landlords to lose faith in in rental properties due to tenants not paying rents and prolonged eviction process. Which may lead them to seek other investment vehicles besides real estate. Please correct me if I am wrong in any of my assumptions. Please comment on how you see the multi-family market playing out. Thank you in advance, really looking forward to some replies :) [link] [comments] |
| New investor with LLC question Posted: 24 May 2020 07:24 AM PDT Hi all, loving this sub! I've been doing a lot of research lately and looking to invest in rental properties outside of my state of residence (NY). My question focuses on the LLC aspect - I understand the LLC operates as a pass through for tax purposes so now I'm looking at the pros and cons of actually registering the LLC and in what state. Is the LLC responsible for any taxes in its state of registration when the owner and properties associated with the LLC are in a different state? For example, I register an LLC in Arizona, purchase a property in Oklahoma, pay the income tax in New York. Obviously the property tax goes to Oklahoma, so how/where does Arizona get their cut of the pie so to speak? For those who own rental properties in other states under an LLC, what criteria have you used to decide the LLC's registration state? Some context: 30yo from NY, current renter, would be first time buying, looking at roofstock properties for my first investment (looking for that "handholding" experience for the first time/learning). Let me know your thoughts! [link] [comments] |
| How to structure own-use mortgaged property and rental mortgage property Posted: 24 May 2020 05:42 AM PDT Before you read: I'm in Tokyo, Japan. I understand there will be a lot of US-based folk here and therefore a lot of US-based information but please only make reference to things in the USA where you think it's relevant (e.g. crime is really not an issue at all here and a 25sqm studio apartment is what we would aim for in terms of the rental property). My partner and I are planning to move from renting in the next 2 years and we are exploring a few different strategies. One we are keen to dive deeper into is the idea of buying our own home (around $340,000) to live in but also buying a smaller (e.g. 1 bedroom apartment for around $180,000) property to rent out simultaneously. We've done some preliminary number crunching and we've worked out that with our combined disposable incomes we could pay off the smaller property completely in about 6 years if we aggressively pumped our disposable income into that property and just made minimum mortgage payments on the larger property. The idea is to pay off the smaller property as soon as possible (almost like debt snowball method but with massive amounts at play) and then use that freed up cash flow to: (1) start paying off our own home faster (within another 6 or 7 years if we factor in that we'll have been paying it for 6 years already by the time we pay off the smaller rental property. or (2) re-mortgage the rental property and use the collateral to buy one or more additional properties to generate more revenue. Question: are we approaching this in the right way or are we way off the mark? (I've just started reading 'The Book on Rental Property Investing' by that chap who made BiggerPockets and I'm loving it so far.) [link] [comments] |
| Manufactured housing + concrete foundation = arbitrage opportunity? Posted: 24 May 2020 01:03 PM PDT Before people start parroting "manufactured homes lose value, traditional homes appreciate" hear me out. 1.) Modular homes are becoming more and more popular. These are "manufactured" if you will. However as of now they do not "depreciate". 2.) Economies of scale and automation will make construction of modular homes/manufactured homes/housing construction costs less expensive in the future. This has happened in literally every other industry in the entire world. 3.) Really we should be talking about "construction quality" in general rather than caring about whether the house is built in a factory by robots in Mexico, on site by highly paid American tradesmen. All that matters is the final quality and cost. Period. 4.) All buildings should depreciate over time, other than perhaps keeping up with inflation and rising labor costs. If I buy a modular home for 200k and install it on a piece of land. There is no way that in 10 years the house will be worth 200k + appreciation of 7% a year when I can go out and buy the exact same modular home for 200k myself in 10 years. The land appreciates but the structures should not. Right now in 2020 we live in a bizarro world where the structure DOES appreciate. 5.) Traditional homes appreciate because the buyers are always buying with crazy leverage using the bank/govts money (0 down FHA etc). When someone has to pay cash for something (a car, manufactured house, boat, etc.) the value goes down with usage aside from antiques and collectibles. But because of the way our real estate industry has been setup current homeowners HAVE to sell for more than they paid because they are leveraged out the gills, the agents and escrow etc take 8% of the price, and so if they sell for a loss it's basically insta-bankruptcy for your average homeowner. Now with that out of the way my question is this: "Manufactured homes" can be built to pretty high standards. Given that the depreciate when the buyer has to pay cash, while they appreciate when the buyer uses a mortgage, can I basically arbitrage this opportunity by: 1.) Buy a vacant piece of property, build a foundation on it. 2.) Buy a manufactured home, but one that is not eligible for traditional mortgage financing because it is on footers or trailer or whatever. 3.) Take the home to my property, place it on the foundation. Sell it as a "normal house" that qualifies for traditional financing to someone who subscribes to philosophy of (sure put 0% down it's a normal house it will only go up in value who cares about the price!). Thoughts? [link] [comments] |
| Posted: 24 May 2020 11:16 AM PDT Hi, I'm a 20 year old male looking to invest in property within the channel islands, Jersey specifically, but have no money to do so. The only potential opportunity I have found is that my fiancees grandmother has a one bed underground flat attached to her house, which she has used for storage. It's in a state of disrepair, and just sitting there. I have considered proposing fixing it up and doing a lease-to-let agreement. Or possibly, fixing it up for her and selling it for a commission. But whatever is done, it has to benefit both parties, my soon to be grandmother in law and I are on neutral terms and she has no reason to do me or her granddaughter any favours, and she knows it. So I just wanted to know what kind of deal structure might be beneficial to both parties. [link] [comments] |
| The House Next Door / Pocket Listing Advice Request! Posted: 24 May 2020 09:35 AM PDT Hello Great Minds of Reddit! I've been inspired by the success here and want to give it a go; I would sincerely appreciate perspectives on whether this is a good idea: I am a homeowner, and rent out bedrooms in my house, which has 5 bedrooms and 3 bathrooms. This covers the mortgage and repairs, but just barely, which is very luck. The house next door is coming up for sale, and I have a chance to buy it before it is repaired. The seller's estimate on the rehab is $30k. The house is being offered for $270k (negotiated rate; houses sell for $330k). The mortgage is 3.5% for 30 years; $1700 per month with taxes. I can rent the house for $2750. With repairs, this falls just below the 1% rule and is far more expensive than my house, which makes me nervous. Primary concern: How stable is the rental market moving forward? Will it be flooded by other people doing this same thing? Second concern: if I wait, will I be able to buy this house for less once it has been rehabbed, assuming the market tanks, or will someone else buy it because inventory is low? TLDR: Should I buy the house next door in an uncertain market? What else should I consider? EDIT: Added more information. [link] [comments] |
| Property management for owner occupied house Posted: 24 May 2020 09:34 AM PDT I'm wondering if anyone has hired a property manager for a property they plan on living in. I've been looking at a few tri and quad plexes to buy and live in, but I'm new to real estate investing and figured that having a professional property manager may help. I know I'd lose about 10% off the top to the manager but I'm thinking it may be worth it. Would love to hear everyone's thoughts / experience with this. [link] [comments] |
| Posted: 24 May 2020 07:05 AM PDT I'm 25(m) have about 300 to my name , 610 credit score (didn't start building credit until now) and currently work at Dairy Queen. Yea that sounds pretty bad but hear me out. I actually just finish dental school but can't get licensed until late August/ early September because of co vid. So my goal is to obtain at least two mortgages by February. I plan on renting both of them out but I want some advice on how to increase my chances of qualifying for these mortgages and getting a low interest rate. Obviously my credit score is low so I'm building that up. ( got a credit card and put myself as an authorized user on my dads account which has an 800+, super long credit history) When I start working I'm expecting to make roughly 150k pre tax and I have no student loans because my dad paid for my education. The type of mortgage I want is a 7 adjustment rate mortgage (reason I picked this is because I still want the amortization to be 30yrs) because I anticipate paying it off in 5 yrs and I'll get a lower rate. The type of real estate I'm trying to buy are single family homes for roughly 150k each. Anyway what do you think of my plan? Do you anticipate any issues given the information provided in this post. Will lenders that see my first mortgage not be willing to lend to me? Is there a better type of mortgage for my situation? [link] [comments] |
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