Real Estate Investing: Bank is not happy about my debt to income ratio. How do I access equity? |
- Bank is not happy about my debt to income ratio. How do I access equity?
- Completed! BRRR/House Hack - Chicago North Side
- How do deal with seller's attorney?
- Self-management to professional property management. How was your experience?
- HELOC vs Cash Out to buy first investment property
- Any property appraisers out there?
- Covid Stock-Account for Cash to Close?
- Credit check on friends parents (kinda)?
- Selling home to an LLC
- Everyone in town is a real estate investor now...
- Biloxi mississippi new investor
- Advice for a college student wanting to invest in property, then gather enough capital for high rise development?
- Best way to leverage my equity.
- Realtor vs Real estate attorney
- Wholesalers, what markets are you working in?
- Looking to house hack; very limited duplex/triplex/4 plex options.
- Closed on first buy and hold rental on Feb 29, just got it rented out starting July 1
- Just bought my first house hack, a duplex. Now what?
- Where to purchase a lot that's used for car dealerships?
- Where can I get the Residential Purchase Agreement and Joint Escrow Instructions for Sacramento, California?
- Buying property in LLC
- Should I form LLC for a rehab project? (CA market, using investor, single family) What would be the difference between using LLC vs not using it?
- Options
- Assignment of Contract. How many times can you do this for the same property?
| Bank is not happy about my debt to income ratio. How do I access equity? Posted: 17 Jun 2020 09:46 PM PDT I'm not sure if this is the right subreddit, but I could use some advice. I bought a home before I got married it is in another state and has had tenants in it for 5 years now. It makes a nice profit that we use to pay my wife's student loans, and put away for a baby fund. I have 12 years worth of equity in it, plus appreciation. In December 2019, my wife went on maternity leave-we used the baby fund; Covid hit in March; and she lost her job end of March. She was able to access all her clients though and decided it was better to start her own company and keep doing her thing. Meanwhile in April, I decided to refinance our primary residence. Because my wife was busy starting her start-up, I just refinanced the property in my name only. An opportunity has presented itself to buy a third rental property and I would like to buy in. When I contacted my bank about a HELOC they stated my debt to income ratio was 70%. They did not count my wife's salary since she only has 2 months worth of time in her new job, and no paycheck December till March. They stated that since both liabilities are in my name only the debt to income ratio was too high. This is in addition to standard liabilities like cars, 37 new windows, and student loans. I asked about a cash out refi on my rental property and they said that was not possible since it is not owner occupied. Are there other suggestions for how to access some of my equity? Is this going to be the story at every bank? Thank you all for your feedback [link] [comments] |
| Completed! BRRR/House Hack - Chicago North Side Posted: 17 Jun 2020 05:39 AM PDT Background: I am experienced realtor in Chicago closed 18 million of 2-4 units last 2 years but this was my first time doing a project solely myself as the principal. Was an awesome experience! Property: Legal 4 unit purchased $412k net (used a 12k credit to cover close costs paid by seller) and 5% down. It came out to closing almost no money down net after pro-rations/credits/commission. Location: North side Chicago on the boarder of Edgewater and Rogers Park. Deal Source: I bought off the MLS. I think other investors passed it by as the units are tiny only 600 sq ft. and because it was leased for very low rents with 9 months remaining on the leases. Rents when bought: $580, $580, $620, vacant. After: $1100 (I signed an old tenant), $1250, $1250 and owner occupant (my unit). The old tenants had been there 7-14 years and were way under market. I kept rehab affordable by doing mainly cosmetics. I left the galvanized piping, old electric, etc. Did not move any walls. Layed vinyl on top of old flooring, repainted the trim and skim coated any really bad areas. I went for the all white look (white quartz, white paint, white backsplash) which is what sells right now. The $1250 units both rented first 2 weeks could probably of gotten even a little higher. Cash out refi: I was able to pay myself back 100% of what I put in. I may flip the property at some point so want to keep exact budget confidential. 30 year fixed at 3.5% on the refi. Before photo: https://ibb.co/Y8C5Vh6 https://ibb.co/jvYh5tF After photo: https://ibb.co/JvFG5Hy https://ibb.co/259FyLV Rehab surprises: When I bought the property, it had a layer of cement that looked OK but over the winter this layer started to crack everywhere. I ended up having to spend $3700 on cement. If any questions please feel free to reach out by PM. House hacking is what I recommend anyone looking to invest with low down. I turned my house hack into a BRRR. It works out to living free now. For management and tenant screening I use Cozy which has been awesome service. [link] [comments] |
| How do deal with seller's attorney? Posted: 18 Jun 2020 02:16 AM PDT Hello folks, I am currently going after a preforeclosure lead. Mortgage pay off is about 125K-130K. ARV is about 200K. It needs some work. I talked with the seller's attorney (seller is incapacitated to handle things). Seller's attorney wants 145K and claim this number is "extremely firm" with typical lawyer ruthless attitutde like "take it or leave it". The 145K number was the number house was up for sale back in 2009. The situation is deteriorated and you cannot get this number. Of course, I am trying to going down as low as I can. I am willing to do payoff + a few thousand, but it looks like seller's attorney is going greedy. The tough part is, seller's attorney is not willing to talk with me over the phone, but use a gatekeeper (paralegal) to deal with me. I told the attorney that if you want to go to sheriff auction route, this property will not go $145K and bank will rack up additional lender's fee to end up with no money to the seller. If you go our route, I can still offer a few thousand. To experienced real estate investors here, how do deal with this kind of lawyers? Thanks. [link] [comments] |
| Self-management to professional property management. How was your experience? Posted: 17 Jun 2020 11:01 PM PDT Hello all - like the title says for those that have gone from self-management to a professional property management company, how was your experience? We just signed on with a company on Monday and I feel like already I am having bad feelings about our interactions. For example, for the past 2-3 years, we have rented out 2 of the properties for $1,500 each. The property manager suggested we rent it out for $1,200 (without even seeing the inside). My feeling is instead of better marketing, she wants to keep it way lower price to rent it quickly. In addition, we had the expectation that they would lead the make ready, but we basically ended up doing everything. I feel like I need a property manager to scale and we are wanting to move from our current location to a larger city to scale and expand into multifamily. Just curious if I need to tone down my expectations, or what your experiences have been liked. We are paying at market value for this management company and we have 10 properties in our portfolio. Thanks! [link] [comments] |
| HELOC vs Cash Out to buy first investment property Posted: 17 Jun 2020 07:41 PM PDT Currently own my condo outright and am looking to use the equity to help with the down payment on a second property. I want to buy a 4-family and move into one of the units so I can take advantage of lower rates/down payment on a primary residence and then rent out my condo. Trying to figure out the best option for borrowing. Would getting a loan on my current residence prevent me getting the loan for the multifamily? Will I have to pay off the HELOC if I move? Would I be better off just selling my condo? I'm having trouble figuring out the best path. Any advice would be greatly appreciated. [link] [comments] |
| Any property appraisers out there? Posted: 17 Jun 2020 01:12 PM PDT So I've been wondering how property appraising really works out. Are granite counters going to make me more money or will quartz do? What about quality of cabinetry? Custom tiling in the shower? Does anyone have some type of spreadsheet, general advice, or statistics on what is worth an upgrade and what isn't? If a granite countertop costs $X I can expect a $X increase? How much does a new roof play into a property appraisal? I have been wondering this for a while but haven't had the time to really figure it out. Are there any good books on this type of thing? [link] [comments] |
| Covid Stock-Account for Cash to Close? Posted: 17 Jun 2020 10:28 PM PDT I'm planning on buying my first home while in our current "covid-era" here in Eastbay, CA. (good idea?) Should I withdraw funds from the Stock Account that has recovered the Most or recovered the Least, in regards to the Feb-March 2020 Covid Market plunge?
Both taxable accounts [link] [comments] |
| Credit check on friends parents (kinda)? Posted: 17 Jun 2020 03:45 PM PDT Bought a rental. Renting out to gf and some of her classmates (doctoral program). Some are paying themselves, others have parents paying. Should I do the normal background and credit check on the tenants and their parents? Part of me says "yes, don't change your method just because you "know" them" and the other part says "no, you can trust them" My lawyer is drawing up the consent documents now but I'm not sure I'll use them. At the end of the day and given the current financial situation, I wouldn't kick the students out even if they/their parents couldn't pay so long as I break even. Part of the reason I bought it is to make sure my gf has good people to live with in a nicer home and doesn't have to deal with a bad landlord/PM. [link] [comments] |
| Posted: 17 Jun 2020 04:31 PM PDT Looking into investment properties once we finish our family mortgage payoff. I had a thought, didn't know if it's smart, dumb, common, or illegal. I'll use round numbers for this example: Can I sell my current home to an LLC I create for $300k, then buy a new home for $500k carrying a $200k mortgage for my new personal home and then payoff the $300k on my (former personal home) now rental property via tenants? [link] [comments] |
| Everyone in town is a real estate investor now... Posted: 17 Jun 2020 02:53 PM PDT I live in a small Midwest town and have had 1 property for almost 2 years and close on my second next week. It's just so odd that like every third person I know is a "real estate investor" now. It just seems like out of no where the market is super saturated with people that have very little knowledge on the topic, not that I'm much better off. Is that a good sign or bad sign is the question? Market is heating up in the area and it's a decent time to invest? Or soon to be excess competition? [link] [comments] |
| Biloxi mississippi new investor Posted: 17 Jun 2020 05:01 PM PDT I'm 23 and bought my first house as an investment on the gulf coast and was told by my realtor I could air BnB it out and use it as a short term rental and long story short this turned out not to be the case because I got a letter to appear in court. Are there any investors in the Biloxi area that can tell me if I would be better off selling my property or renting it out as long term? [link] [comments] |
| Posted: 17 Jun 2020 08:13 PM PDT Bio: Florida College student Major: Finance First few goals: Buy first home or multi family and get paid the rent, then have enough money coming in to live off my tenants rent payments each month Major goal: Build high rises (smaller than 111 W 57th, 432 Park Ave., Central Park Tower) and smaller Hudson Yard type developments [link] [comments] |
| Best way to leverage my equity. Posted: 17 Jun 2020 07:43 PM PDT Currently owe $241,000 on my home just appraised at $365,000. I really would like to leverage my equity and potentially buy some real estate. What are my options? [link] [comments] |
| Realtor vs Real estate attorney Posted: 17 Jun 2020 02:50 PM PDT What are the benefits of a realtor when you can just go directly to an attorney?! Please forgive me if this is a silly question.. I introduced my friend to a realtor who charges a flat fee of 3500. The house he's purchasing is 14k, he's now looking at adding another 7500 to it for realtor and closing costs. He does not see the benefit of the realtor. [link] [comments] |
| Wholesalers, what markets are you working in? Posted: 17 Jun 2020 10:42 AM PDT Hey guys, Just want to network with other people in the business and see what you guys are working on. I'm personally mainly in the Charlotte market. I'm currently also working a larger deal on a few homes across South Carolina. Actually just moved on one just south of Charlotte in Rock Hill. Let me know where you guys are and what you're up to! [link] [comments] |
| Looking to house hack; very limited duplex/triplex/4 plex options. Posted: 17 Jun 2020 05:52 PM PDT Hello all, sorry in advance if this is a common-ish question. As the title states, there aren't many traditional options out there where I live. It's mostly single family homes that are overpriced and townhouses. I'm considering buying a townhouse just to start but I'm finding out that most HOAs don't allow it. In addition to that, it does become costly due to the fees. Is it worth messing around with townhouses or should I look to rent out rooms/convert a SFH into a multi-family? Starting to think that this might just not be a viable way to start getting involved with real estate. Any suggestions? As an aside, auctions could be interesting. Again, apologies if this is a common or general question. Thanks! [link] [comments] |
| Closed on first buy and hold rental on Feb 29, just got it rented out starting July 1 Posted: 17 Jun 2020 10:11 AM PDT Bought it right before COVID hit, did a few little renovations - new HVAC, a couple windows, and a few appliances. Bought it for $90k,all in around $100k with renovations/rental license and inspection/etc and it'll rent for $1150. Ready for the next one! [link] [comments] |
| Just bought my first house hack, a duplex. Now what? Posted: 17 Jun 2020 06:53 AM PDT I've done quite a few flips and wholesales over the years but this will be my first foray into being a landlord. Since I only have the one rental unit, I don't want to hire a property manager just yet. I don't swing a hammer anymore but doing my first couple flips myself made it easier dealing with contractors later on. I need resources about proper accounting, maintenance schedules, rent collection... I will be traveling a lot and the current tenants usually gave the old landlord cash but that won't be possible if I'm out of town. If I'm out of town and there's a maintenance issue, is there a good way to have professionals available with a pre-negotiated maintenance agreement (i.e. if it's under a certain dollar amount, you don't need my go ahead to take care of it). Should I treat myself as a tenant and pay rent to myself? Are there any questions I haven't thought of that I need the answers for? [link] [comments] |
| Where to purchase a lot that's used for car dealerships? Posted: 17 Jun 2020 01:27 PM PDT I'm trying to find information on where to purchase a lot that would be used for a used car dealership. Whenever I search for lots or pieces of land, places in the middle of nowhere that would be used for barns or houses are the only lots that show up. Is there a particular website I can use for retail property or a better way of searching? I'm mainly interested in finding properties such as: empty large lots, retail stores or locations, etc. Any help or direction is greatly appreciated. [link] [comments] |
| Posted: 17 Jun 2020 04:06 PM PDT I've looked everywhere and while I can order a paper copy from this website here https://realtysupplycenter.com/collections/forms/products/form-rpa-ca?variant=3839162613800, they are currently sold out and I prefer a digital just in case. Can anyone can send me a digital copy of the most up to date rpa-cp form (Residential purchase agreement and joint escrow instructions)? I will pay if needed. Thanks in advance. [link] [comments] |
| Posted: 17 Jun 2020 09:44 AM PDT I am interested in buying a investment property with with an LLC and was wondering what the process is. If I am looking to buy a four unit 1 million dollar property, can I fund this all with a business loan/mortgage or would I still have to bring funds such as 25%? I am familiar with the standard homeowner mortgage process and have seemed these options I just wanted to explore the option of buying the house in an llc since I am forming a company with a partner. Thank you! [link] [comments] |
| Posted: 17 Jun 2020 11:54 AM PDT Basically trying to figure out benefits of doing it via LLC (deal structuring, taxation, liabilities). Especially would love to hear from flippers with experience and professionals working in connected industries. Thank you! [link] [comments] |
| Posted: 17 Jun 2020 09:03 AM PDT Just graduated law school. Own an investment property in a lease that pays me 950 a month. House worth about 60k. I own it outright. No liens. Want to buy the properties next door. Finding it hard to cash out refi or get a LOC because I'm studying for the bar and don't have a job yet. Any thoughts options? The two properties I want will pay about 950 each a month and cost for both plus Reno puts me at about 60k. I have another 20k to put down. But lenders are being difficult due to covid/my situation. [link] [comments] |
| Assignment of Contract. How many times can you do this for the same property? Posted: 17 Jun 2020 03:26 AM PDT If I purchase a property through and "assign of contract", could I turn around and do it again? And can the property continue to be resold this way until it doesn't make financial sense? Also, what are the things to consider when buying/ selling through an assignment contract? [link] [comments] |
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