Real Estate Investing: I bought a house with my Mom and now I want out |
- I bought a house with my Mom and now I want out
- How do I know if a foundation issue is “worth it”
- Long term: what regions (US and international) are the winners and losers because of COVID?
- What would a massive incentive for building do to the real estate market?
- How do you think about the future of real estate? (Up? or Down?)
- Who is most famous youtuber in real estate investing?
- My work requires that I move states with every promotion about every 2-3 years. Should I keep the homes as rental properties when I move? Or should I take advantage of them buying the house at fair market value?
- Neighborhood rating
- Have any of you bought a SFR cash in an LLC and taken a cash out refinance on it in your personal name?
- Second Offer on a house now off the market?
- 1031 Like-Kind Exchange
- What lenders have high jumbo loan caps?
- Buy land with hard money loan, install house, refi
- Looking at potential deal. Anyone have knowledge of crawlspace/structural problems?
- Are you waiting for coronavirus to be resolved?
- Appraisal question: how does an under-construction bathroom affect appraisal value for a refinance?
- First rental property under contract. Bank walk backed loan terms which I qualified for a year ago. Scrambling for options.
- How Many Property Taxes Are There?
| I bought a house with my Mom and now I want out Posted: 30 May 2020 03:47 PM PDT So as the title says, I went into a real estate investment with my mother about 6 years ago because I was young and had a bit of money and she had the rest of it and a bit of experience. I fronted about 75% of the downpayment and she covered the rest. It was a long distance investment for me (I'm in the military) and she managed the property and made necessary improvements, which cost a bit more than the down payment itself, almost double. It's been 6 years since we bought the house and shes had tenants in it paying for the entire mortgage and then some the entire time. She has paid for my cell phone bill in return. So now I'm looking to invest in more property, but I want to go in alone so I don't have to worry about a partnership deal, but I need money and I would like to take the money out of the house we bought together since I'm not getting much from that... So my question is, how much money should I be expecting to get out of it. I would think I would get all of my initial downpayment and then interest, but I don't know how much interest I should be looking for, she said it has a lot of equity in it. Please let me know if I can explain anything better. [link] [comments] |
| How do I know if a foundation issue is “worth it” Posted: 30 May 2020 06:16 AM PDT This is Metro Detroit, I am born and raised in Detroit, whenever I make a Detroit post, people are like "you can't just go to Detroit" so that is my disclaimer. House I went to see last year, didn't sell, didn't put an offer in. It's a tiny tiny 2bd in a nicer neighborhood. A year ago it was listed for $50k, foundation is COMPLETELY bowing in. Cinderblock basement bowing in on all 4 sides. (July 2019) My cash was tied up, so I couldn't put an offer in, I thought I would be able to use a mortgage (when looking at pictures) Bc the rest of the house looks good— dated, but in functioning shape. Ended up getting pushed to me a few months later as "investors only" for $42k. (Nov 2019) Well now it just hit the market again (May 2020) and it is back for the $50k price tag but it has the same issues. How do I know when the foundation is just fucked? [link] [comments] |
| Long term: what regions (US and international) are the winners and losers because of COVID? Posted: 30 May 2020 09:16 PM PDT I've been getting more and more concerned that my region (New England) is a loser in this: hard hit economically, hard hit in number of cases, but mostly hard hit lifestyle wise. New England is heavily reliant on public transit-we have the lowest rate of car ownership in the US. Not only that-our driving infrastructure is much worse than the rest of the country-our streets are narrow and can't handle much more traffic. It seems to me that most of Europe is similar. With more people wanting to drive-I worry quality of life is going to seriously descend. All the advantages that the Northeast had to offer-urban density, public transport, etc. are now liabilities. My prediction is, in the US, Texas will again be the winner. Yes they're hurt badly by the lack of oil demand-but that was immediately related to the lockdown. With many companies going remote-the people who were thinking about moving to Texas but didn't like their jobs will no longer have a reason to stay. Texas is also generally reliant on cars-which is no longer an issue since people are now wary of public transit. For the most part-the major cities of Texas have all of the amenities of the Northeast, but without all the things that they are now afraid of (like density). I feel the midwest will be a secondary winner, but it'll still be major urban centers (Indianapolis, Madison, etc). Because even remote workers, while wanting cheaper living and more space, they won't be retreating to the middle of nowhere far away from airports and internet. The west coast I predict to stay the same-a little population loss in CA, a little gain in the Northwest. No clue about international markets. I've been saying for several days that there won't be a fundamental change because of how people generally don't like to move, but I'm getting less and less sure about this. Tell me-is anything wrong with my thesis? What does the jury say? [link] [comments] |
| What would a massive incentive for building do to the real estate market? Posted: 31 May 2020 12:45 AM PDT Hi guys, Australia is potentially going to be releasing a 40-50k grant for building a new home, whether it happens or not will be announced in the coming week we think. This money can be used as a deposit. What will this do to the market over the next few years? I have every intention of getting some of this free money and building a home with my partner. I'm just not sure if this will kill the market by oversupply or stimulate the market enough to drive price up. Note: this grant is ONLY for building and not for established homes. [link] [comments] |
| How do you think about the future of real estate? (Up? or Down?) Posted: 31 May 2020 12:14 AM PDT |
| Who is most famous youtuber in real estate investing? Posted: 31 May 2020 12:11 AM PDT |
| Posted: 30 May 2020 07:09 PM PDT They help with the closing costs of homes. They also buy the homes if they are not able to be sold after the first two months. I currently only have one rental property that is on the other side of the country. But I thought it would be kind of cool if I started having investment properties in different states. And these investment properties are properties that I have lived in for two or three years so I would like to think I have a good understanding of the area know the ins and outs of the home. [link] [comments] |
| Posted: 30 May 2020 09:47 PM PDT Hello - we are new investors exploring the option of investing in a part of town that's a little farther away from us. That was the only place we could find a deal where the numbers made sense. We have scouted the neighborhood, looked at crime stats in trulia etc., and both look fine and put the neighborhood in the A-/B+ range. But my partner is worried that the public schools in that area are very bad because of which we are likely to attract poor quality tenants. Our aim with this property is to buy and hold for as long as possible so quality of the neighborhood is super important to us. What are ways to validate whether it's a good neighborhood? Should we look at something like niche.com for overall quality or just talk to some people who live in the neighborhood? Any help/insight from this group is appreciated! [link] [comments] |
| Posted: 30 May 2020 04:51 PM PDT Buy in LLC cash, take loan on your person for say 65% of that value to buy another one. [link] [comments] |
| Second Offer on a house now off the market? Posted: 30 May 2020 03:43 PM PDT Hey. Looking for guidance. My wife and I saw this great house with some rough edges for sale. The owner had someone renting the house who left a bunch of furniture behind, and the exterior is in eh shape (unpainted repaired shingles, wrap around deck is all rough in need of a good sand, landscaping is non-existent) and the interior is in need of a coat of paint. They were asking $340k. According to the selling agent, most people pull up for a tour, but then leave before touring the property. It had been on the market 4 months. Someone put an offer before us for $300 (which was turned down without a counter). We offered $315, but knowing we would go to 320-325. They countered the 315 offer with... 335 (original 340). We came back at 325 wanting to seal this, they countered AGAIN to 330, so we rejected. A month later the home had sat there, and now today we got the alert they pulled it off the market. The owners live in HI, house is in New England - and they never even lived there. Should I ask my agent to offer 320 again, or would the sellers no doubt reject/counter with 330 or higher in your opinions? [link] [comments] |
| Posted: 30 May 2020 07:20 PM PDT I have an investment property in Maryland that started as a primary residence and has since been leased by a few tenets since 2015. I'm currently renting in Massachusetts with a plan to buy a primary MA residence in 2021. The tax hit would be too dear if I sold the Maryland property to buy the MA primary residence, but in a few years could I take advantage of the 1031 to purchase, say, a beach or lake house in MA? While the new property is meant to be an investment property, how strict is that governed? That is, if I rent the newly purchased lake house on a short-term basis (AirBnB or VRBO or other vacation rental) but also stayed there myself a few weeks a year, would it qualify for the 1031 exemption? Also: would the second MA property require an investment property mortgage, with it's potentially higher rate and capital requirements? [link] [comments] |
| What lenders have high jumbo loan caps? Posted: 30 May 2020 01:00 PM PDT I'm looking to get a VA Jumbo Loan of ~$2.5m for a 4plex. USAA offers these up to $3M but their rates are a bit high (4.1%). Veterans United offers 3.1%, but has a $1.5M loan cap. Quite a few others seem to have the same $1.5M cap. Does anyone have experience or leads for possible lenders offering high caps on owner-occupied jumbo loans on small multifamily? Location is CA Bay Area. [link] [comments] |
| Buy land with hard money loan, install house, refi Posted: 30 May 2020 08:37 AM PDT I'm in a HCOL area. There is affordable land in the hills around. There are a variety of tiny homes / kits I can buy. Clearly I will need to see what it takes in this area to get a tiny home permitted and moved in and connected to utilities. However, I have a question about financing. Land loan lenders a couple years ago generally wanted 50% down. It may be more now. I don't have 50% down. What if I got a hard money loan for the land, then spent 12 months getting a tiny home permitted, bought, and installed including septic and utilities. Then my land has a house on and can qualify for refinance into a traditional loan, right? Q1: Will it be impossible to find a hard money lender that will lend money for a land purchase? Q2: Generally will banks accept a refinance on such a property - ie. 12 months later, perfectly good land with a perfectly good but tiny house on it? [link] [comments] |
| Looking at potential deal. Anyone have knowledge of crawlspace/structural problems? Posted: 30 May 2020 04:44 PM PDT I got a report back from the listing agent showing some potential structural issues. It's a report from a structural engineer and includes pics. Would someone knowledgeable mind taking a look for me, and maybe clarify the level of severity + potential cost to fix. [link] [comments] |
| Are you waiting for coronavirus to be resolved? Posted: 30 May 2020 04:10 PM PDT We bought 2 properties in 2020. The second one we had a chance to back out because we had the new COVID-19 forms signed, but we decided to stay the course. Our situation was good before COVID19, and although things are "tighter" in 2020, we're very happy that we didn't cave in to fear. We know several other people who we always ran into, these are other investors, or competitors really. But the last month or so, I haven't seen too many. We're happy that we have less competition as we go looking for our third investment, but wanted to ask you all for your reasons why you have not been out there trying to score deals. Thank you for your comments. [link] [comments] |
| Appraisal question: how does an under-construction bathroom affect appraisal value for a refinance? Posted: 30 May 2020 12:51 PM PDT I'm looking to refinance a two-unit. I live in one side, it's a 3 bed/2 bath and other unit is a 1/1. I'm currently renovating the unit I live in, mostly myself, and I have one bathroom completely demo'd. Just a tub, toilet, and exposed studs right now. Unfortunately my money have been needed on some other more urgent repairs, so I'm thinking I'll be using the other bathroom for the time being. I'm ok with that (and so is my fiancee luckily!) How would that affect a refi appraisal though? Would they see it as a one bath unit now that the second is non-functional? Would that greatly affect the appraisal value? [link] [comments] |
| Posted: 30 May 2020 11:19 AM PDT Hi All, I'm a longtime researcher, planner, and lurker. First-time poster and homebuyer! Sorry for the long post and thank you to those who make it to the end. After a year of searching for a duplex, half of which I will temporarily occupy, as my first rental property I have hit a major snafu with my bank and am looking for some input. The strategy has always been to use an owner occupied loan to get into the first rental cheaply. After shopping around (a year ago) I found a bank which offered a 3% down conventional loan with no closing costs. The loan officer new that I was looking for a duplex and told me this loan could be used for 1-4 unit properties. Well I got a house under contract last week and when I applied for the loan, the loan officer comes back to me saying she feels horrible and that the underwriters told her that for a multi-family there needs to 10% put down. I am obviously not happy. I've been floating this preapproval all over town making offers for A YEAR and the whole time the preapproval was incorrect. After speaking with the loan officer yesterday, she told me that her manager will be back in the office on Monday and she will see if there is anything they can do. My first question is: Has anyone been in a situation like this where the bank is clearly in the wrong and has done something to make it up to you? What type of levers can I expect them to be able to pull? A lower interest rate would be the first thing that comes to mind. That's great. My real concern though is the extra cash up front. Has anyone negotiated a lower down payment, or, if the maximum LTV is 90%, somehow received some sort of, I don't know, kickback?? To help with upfront costs. This is a mid-size bank which my business banks with, so there is a relationship already in place. Next part of this. I shopped around with a new broker for new loans. First thing we talked about is FHA, but my realtor is concerned that an FHA may kill the deal since the offer was accepted as a conventional loan. There were multiple offers on this property. Next, he found me a 5% down Home Possible conventional loan which he assures me can be used for a multi-family. Since this loan does include closing costs, the upfront cash is still more than I had planned, but the cash on cash return is pretty good, since the interest rate is exactly 1% less than the no closing costs loan I originally qualified for. I am expecting the first bank to come back and say they can lower the interest rate to a level comparable to this Home Possible loan (this is an assumption based on knowing what their employee discount is on their no closing costs loan. My wife is an employee of one of the bank's subsidiaries but for unrelated reasons, we are keeping her off of this mortgage). If this is the case, basic numbers for both scenarios are as follows: Loan #1 No Closing Costs 10% down 3.5% interest rate (assumption) · $15,200 out of pocket · $287 cashflow after expenses, reserves, and I move out of the one unit · 22.61% cash on cash return Loan #2 With Closing Costs 5% down 3.375% interest rate · $13,300 out of pocket · $274 cashflow after expenses, reserves, and I move out of the one unit · 24.72% cash on cash return I plan to be a buy and hold investor. I live in a LCOL area at the height (hopefully) of a seller's market. The cashflow on these scenarios are similar. My second question is: As a buy and hold investor, how much does that extra 5% equity at purchase mean to you? Is it worth the extra upfront money worth it? I realize $2k is the cheapest 5% equity I'll ever be able to purchase, but does it matter if my long term strategy is to focus on cashflow? TL;DR Bank really jerked me around by promising me a 3% down owner-occupied loan on a multi-family and then walking that back once I got a property under contract. Scrambling for options on holding them accountable and keeping this deal intact. Sorry again for the long post. Thank you in advance for any advice! [link] [comments] |
| How Many Property Taxes Are There? Posted: 30 May 2020 10:52 AM PDT Really basic question, but how many property taxes are there? Does the state and county both levy different property taxes on a house, or is it just the county that imposes the property tax? [link] [comments] |
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