Real Estate Investing: To all the landlords that gave away free rent last month... |
- To all the landlords that gave away free rent last month...
- A “no-gimmes” analysis of my 8 turnkey properties in 3 cities
- US jobless claims now tops 30 million over the last 6 weeks - Worst in US History - Does this affect Housing Prices?
- buying and renting out for passive income
- What to do with 1 year lease renewal next month?
- Long term, more complete, rental analysis spreadsheet
- [Sketchy RE PE firm] Fresh College Graduate Seeking Help n Input
- What are your common pain points when it comes to cyber chores like keeping track of properties?
- 16 year old who wants to get into real estate NOW.
- Anyone and everyone, what helped you the most to understanding how to invest in real estate?
- Considering investing in Dallas, TX: Thoughts on TX Rental Properties
- List of all tax advantages RE has over stocks?
- Questions To Ask Real Estate Agent
- Who do you follow (social media)
- Occupant Vs. Tenant (Ontario, Canada)
- How can I find people behind on housing payments?
- Should I refi this investment condo?
- My goal is to lower my DTI for a new application, how should I file taxes?
- Which is the better buy
- what are my options?
| To all the landlords that gave away free rent last month... Posted: 30 Apr 2020 03:14 PM PDT How are you doing now? I was strongly opinionated that if you could afford to do that, while well intentioned, you were shooting yourself in the foot. Which I was downvoted to oblivion for I believe that if you could afford it, you should have waited until April or May bc most people still worked in March and that you may have permanently taught your tenants that rent is always negotiable. I owned many businesses and it's the customers that I gave an inch to that 9 times out of 10 returned to take a mile. So I am honestly wondering how are things looking now as we approach month two? Do you think your strategy of free rent last month was a good one? Would you have have done anything differently? Genuinely curious. Wish everyone the best thought this. Edit: I collected over 90% of nearly 200 units last month. Anyone who was affected and couldn't pay we created plans for. We'll do the same this month but we aren't advertising it. If they don't pay in time, we reach out if they haven't. We request proof that they are affected by this then we work out a plan. [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A “no-gimmes” analysis of my 8 turnkey properties in 3 cities Posted: 30 Apr 2020 09:48 AM PDT Hi Gang...I figured some folks in this sub would be interested in this. I recently did a study of my Turnkey Real Estate holdings (past and present), to create some reliable percentages of expenses, for analyzing future investments. It was 8 properties in 3 markets, which I feel provides a pretty good variety of data sources. I also calculated the total IRR for each investment, and generated a CAGR so I could compare that to the S&P for the same period. I then continued on and did an "investment size & time weighted" total average return. You will see that the overall cash flow on these has been TERRIBLE...but the IRRs have been pretty decent. This is why I wanted to get these averages, and see if Turnkey investments (that you can't manage yourself) are worth it. It's kind of a toss up I feel like. Ultimately,I am comparing most of them to a slice of the S&P that is unusually high...meaning from the bottom of the 2008 crisis to (pre covid-19) new highs. In 10 year the S& P quadrupled, but then again Real Estate had a bull market as well. I feel like I did pretty ok on these overall, but mostly due to appreciation and then choosing to sell. I moved from Los Angeles to Tampa over a year ago, and prior decided to slowly sell my out-of-state properties and transfer the equity to properties I can mange here in Florida. But if you live in super expensive markets, the main way to invest in (personally owned) RE is via managed investments in other states. So I am trying to figure out if its worth doing or not! Here are the results...... AVERAGE PERCENTAGES OF EXPNSESES ACROSS ALL PROPERTIES COMBINED (note that these were being paid on a 15yr amms, so cash flow is skewed.)
CAGR DERIVED FROM TOTAL IRR FOR EACH PROPERTY (note that if I still own the property, the IRR is based on a valuation from Dec2019)
I have more of the details, on a per property and per market basis, in this spreadsheet. Check it out if you want. (note there are many tabs) Also, If you wanted to know more about my process, here are some extra notes...
I hope someone finds it helpful. Happy to answer any questions if you like. -Joe [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2020 06:18 AM PDT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| buying and renting out for passive income Posted: 30 Apr 2020 09:57 PM PDT Hello, I would like some advice on potentially buying a property and renting it out for passive income. I have anywhere from 10,000$-15,000$ to spend. How can I or should I proceed? Any advice? [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| What to do with 1 year lease renewal next month? Posted: 30 Apr 2020 05:27 PM PDT I have one rental property. This is my first full year having a rental property. My tenants one year lease is up June 1st. It goes month to month after that but I am planning on renewing another one year contract. I am currently renting for $1995 a month which is under market rent for my area and I was planning on raising rent to $2050 but I am hesitant to because of covid19. My tenant is still working and hasn't had any issues paying rent so I'm not sure the best way to approach this. Looking for advice and opinions thanks! [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long term, more complete, rental analysis spreadsheet Posted: 30 Apr 2020 02:37 PM PDT I've been fairly frustrated with a lot of the very hand wavy discussions on-line of real-estate costs, leverage, tax benefits, comparison with stocks, etc. So I decided to make a spreadsheet, with everything modeled as accurately as I know how. See https://docs.google.com/spreadsheets/d/1MDteBYxKPxfhWVYQKCz5UaZyxUZJPYQ1EH8D1rmz_CA/edit?usp=sharing Comments and criticisms welcome. You are welcome to make edits on a copy. Go to File -> Make a Copy. Do not request edit access. Sheets Conditions The conditions sheet has all of the free parameters, that will need to be changed to match your location and situation. Of course, I don't model everything, and the conditions sheet also has a list of items I haven't done. Note especially that this model is only for one property, that is never sold or refinanced. Rental Analysis The sheet with the actual numbers over time. There are no hand-tuned numbers on this page, so unless you change the way the analysis is structured, you won't need to edit this sheet. Amortization A standard amortization table. Editing "Conditions" will update it. Typical appreciation Measurements (courtesy of Bob Shiller) of housing and stock appreciation, and inflation. Some interesting items that the spreadsheet helps explore The interaction of leverage and return and cash flow High leverage really ramps up return, but kills cash flow. Using an interest-only loan helps, but does not solve this conflict. Doing your own property management and/or maintenance can also help (but I left the items in, because your time is valuable). Maintaining high return requires refinancing to pull equity out of the property. But of course, refinancing pushes cash flow down, which increases risk. Inflation kills debt In the current environment, debt often costs less than inflation. When they say free money, they aren't lying. Just wait, and the loan disappears. Housing vs stocks is about taste or diversification, not return This I've believed for a while, but it is nice to have some confirmation. Depending on exact choices, such as degree of leverage and market, housing and stocks can have very similar returns. [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [Sketchy RE PE firm] Fresh College Graduate Seeking Help n Input Posted: 30 Apr 2020 10:18 PM PDT Hi Y'all! I just graduated from college last December and am seeking opportunities in commercial real estate ( in a market like this smh). I recently got an offer from a real estate private equity and am currently doing some digging on this company to make sure it's Bona fide. So I haven't been able to find too much helpful info about this company. This company claimed that it's been around since 2009, but I couldn't find any deals closed by them, or any portfolio listed on their website. Maybe they are keeping a low profile idk. The only information I could find is an award awarded to them by 'wealth and finance' magazine (https://www.wealthandfinance-news.com/), a magazine published by a UK B2B publisher called AI Global Media. Is it a legit award/ magazine? They only got 2k followers on Twitter, anyone heard of it? Another information is that the two principals are frequent speakers for IMN (information management network, https://mobile.imn.org/) event. Is it a legit/ recognized organization in real estate? I def need to find out more about this firm, but don't know how. Can someone be so kind to shed some light on how I can do a background check on this company with the resources at hand? I really appreciate your input and help! This will be my first full time position out of college so it means so much to me. [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| What are your common pain points when it comes to cyber chores like keeping track of properties? Posted: 30 Apr 2020 11:04 AM PDT Hey guys, I'm a Software Engineer and I'm trying to understand the pain points of those in this space. For example, how do you monitor multiple properties? Do you have multiple websites that keep track of your properties that you spend time checking every x amount of days? What are your pain points that are repetitive yet need to be done to keep the business running? Note to mods: I'm not promoting myself or my services so I'm hoping this post is within the boundaries of this sub. [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 16 year old who wants to get into real estate NOW. Posted: 30 Apr 2020 05:39 PM PDT Hey everyone, I'm 16 years old I love listening to Robert Kiyosaki, and Ben Mallah on their finance and real estate advice however I have not been able to put any of it into action. I currently design websites for small and large businesses and do a little dropshipping here and there as well for income. I want to be able to own rental properties etc however I don't know how I could possibly even begin to start looking without being 18 and having a real estate license. I just want to know the options I have to invest into real estate as a 16 year old. Thanks for those that read this post! [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Anyone and everyone, what helped you the most to understanding how to invest in real estate? Posted: 30 Apr 2020 05:32 PM PDT As the title states, what did you do that helped you the most to understanding real estate investing? Could be from books to research to Zillow to podcasts to networking. If it's more than one, please be specific! I want this to be a discussion in which everyone can learn even if it's just one thing! [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Considering investing in Dallas, TX: Thoughts on TX Rental Properties Posted: 30 Apr 2020 05:27 PM PDT I am looking to move to Texas soon if the oil market doesn't continue to plummet. I don't have the specific immediate intention, but I could see using the place as a rental property way down the line. Is anyone else here an investor in Dallas? It doesn't seem like it would be the greatest place to invest in the rental market. It doesn't seem like the property taxes are completely passed down to tenants in their rental payments either. I don't have any properties, so I may be entirely wrong, but it seems like rent estimates are lower than what I'd pay for my mortgage/insurance/property tax payments. However, in most states, usually the tenant payment covers all these expenses. Maybe the Zillow type websites are completely inaccurate in their estimates? I feel like I'm missing something. If it were not logical to invest in Texas, then there would not be all these developers. Does anyone have any insight on why or why not a place like Dallas makes sense to have a rental property? I'm curious person by nature, and am just very curious of the Reddit's Community's thoughts and responses. [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| List of all tax advantages RE has over stocks? Posted: 30 Apr 2020 04:11 PM PDT Hi there, some quick context: I'm a long time stock owner and recently paid off my primary house. Been interested in RE for a long time but haven't made the jump. Looking to move soon and since I have a paid off home I plan on just owning it and putting renters in it as my first introduction to RE investing. I know a lot about the tax code when it comes to stocks, but almost nothing specifically about RE. Can we put together a list of all the top bullet points that make RE advantaged over other investment types? The first two that i've heard before but don't fully understand are depreciation tax write offs, and 1031 exchanges. What else? [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Questions To Ask Real Estate Agent Posted: 30 Apr 2020 03:34 PM PDT Hello everyone, I am a lurker and I find this sub tremendously helpful. I am ready to buy my first buy and hold property, but I want to make sure I come across professional to a RE agent. I am using an agent instead of doing it myself because I am not experienced enough yet to do deals on my own. Here is the breakdown: -Looking for condo or 2/1 SFH priced below 200k in New Jersey. Specifically by the shore or up to 10 miles in is OK too. -Airbnb if by shore, or annual rentals if inland. -Will have approximately $50k to use as downpayment and closing costs after June. Me and my wife purchased a condo last December, so we're not totally clueless about the buying process, but I have mixed feelings about our agent. She was professional and on top of things, but she always seemed in a rush, and I don't know if she has any properties of her own. She was referred to me by a friend who used her to buy three flips that he did. I am willing to give her a chance again, but I also found two other agents in my county who advertise as being "investor-friendly." To properly vet them, I want to ask the right questions, but not come across as too demanding. These are my questions for them: -Can you help me find off market deals with direct mail campaigns? -Do you know how to set up seller financing contracts? -Can you give me access to rental comps? -Can you help me find tenants (for an additional fee after we close)? -What is your investment experience/and your personal investments? -What is the market standard vacancy/cap rates/cash on cash returns/property management fees? -What criteria do you personally look for in an investment property? Will I scare them away, or are there other questions you guys would ask? How would you guys go about finding a good investor agent if you had to start over? I found the others on biggerpockets. Thanks a lot ahead of time to everyone, especially LordAshon and GringoGrande for their insights. I will try to respond tomorrow around this time because I am a construction worker and I can't be on my phone or computer during working hours. [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Who do you follow (social media) Posted: 30 Apr 2020 03:02 PM PDT I'm trying to expand my horizons and follow some new channels on YouTube, follow some inspiring Instagram and read some new blogs. Let me know who or what you follow. [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupant Vs. Tenant (Ontario, Canada) Posted: 30 Apr 2020 02:32 PM PDT What are the differences between a license to occupy vs a lease? [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| How can I find people behind on housing payments? Posted: 30 Apr 2020 12:28 PM PDT Basically the title. I was talking with a friend and his aunt lost her house due to a few thousand dollar in back taxes. How can I find people who are behind on either mortgages or property tax to see if they would be interested in selling? [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Should I refi this investment condo? Posted: 30 Apr 2020 10:29 AM PDT I have a condo in Seattle that used to be my primary residence in a location close to Amazon HQ. I've moved to the 'burbs and have been renting it out for the last 10 years. Here are the key stats: $550k Zestimate (appraised at $600k last Aug for Heloc) $232k remaining mortgage 4.625% interest rate 30 year mortgage, maturing in 2041 (21 years left) $1,815 monthly payment: $565 principal, $900 interest, $350 escrow $2,600 monthly rent collected $600 HOA $229k Heloc on the property at 4.75% (unutilized and applied for as cushion or if want to buy another property) Aimloan, who the primary mortgage is through also, currently lists a 3.5% (3.617% APR) on a 15yr fixed rate refi of $232k for a $1,658 monthly payment and a 3.875% (3.955% APR) on a 20 yr fix rate refi for $1,390 monthly payment, both with ~$1k closing costs. The current plan is to keep the condo as an investment property. Should I refi? [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My goal is to lower my DTI for a new application, how should I file taxes? Posted: 30 Apr 2020 10:28 AM PDT My lender said I just barely didn't meet their DTI requirements on a refinance because I had a few properties that showed a loss on the previous year's tax return. I don't mind paying more taxes this year if cutting deductions helps me qualify on a good rate, so what's the best way to do that? All my properties have positive cash flow and only have a loss after deductions like utilities, depreciation, etc. He said he couldn't give me any tax advice but mentioned my accountant did a great job (I did it myself), and this was common (showing a loss) for most investors. Initially my plan was to leave out depreciation, but based on initial research it seems depreciation is re-added to income by lenders, so maybe I have to omit other deductions. Any advice? [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2020 06:02 AM PDT I'm looking to buy one of the 3 but not %100 sure which is the best value. $117,500 | 2 bd • 2 ba $99,900 | 3 bd • 3 ba $119,900 | 4 bd • 2 ba [link] [comments] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2020 09:19 AM PDT hello, this may be a bit lengthy but here we go. i've just taken over my grandmothers property, it's a double wide mobile home that was built in 1993. it is some need of light renovation, at best $15k including putting it on a floating foundation. the primary issues are that the carpet is original and we want it out, and there are a few weak spots in the floor near water furnishings as to be expected. as it stands, we need to get the property out of my grandmother's name so she can receive aid from the government, it's considered an asset and she doesn't qualify for any more government assistance until she has gotten rid of it. she's in an assisted living facility but ultimately will be moved into a nursing home for her around the clock medical care. my wife and i are trying to find the financial option that makes the most sense. does anyone know of any kind of loan that would cover a manufactured home and renovations or really any financing options that would work for us? in its current state, it will not qualify for nearly any mortgage until it's considered real estate, hence the floating foundation. any guidance on how we should move forward would be greatly appreciated! at the end of it we know that if we get the work done on the home and finance at the end, will work, it's just we're on somewhat of a time crunch to get my grandmother the assistance she needs as well as having this house more or less done before our baby is born. also, who would i need to talk to that would be able to actually help us with this? like just any financial advisor, a loan officer or a realtor? [link] [comments] |
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