Real Estate Investing: Bought myself a condo but now I'm considering renting it out – can I with my mortgage |
- Bought myself a condo but now I'm considering renting it out – can I with my mortgage
- House Hacking Failure
- Realtor wants me to buy duplex and turn it into a 6plex .. not sure what I’m doing.
- Using an LLC to buy a house and renting it to myself = Tax Advantages or not?
- Single vs Multi-Family scenario
- Subdividing City Lots
- How do I put a value on a Tax Certificate?
- Does anyone have any cost savings tips for building rent houses yourself? I’m looking to build small rent houses in the county where there are no building codes. I’ll do most all the labor myself.
- What type of investor are you ?
- FHA Loan Questions and Monthly Mortgage
- Inherited Co-Op Property - Sell or Keep?
- Puzzled first-time landlord - One year inspection
- Question about next FHA
- Finally getting started with real estate and ordered some books!
- Do any smaller investors have GOOD experiences with property managers?
- Can't decide where to start investing (long story)
- Mortgage Forbearance. What's the catch?
- Advice on reallocating property to higher end property
- When to get an llc?
| Bought myself a condo but now I'm considering renting it out – can I with my mortgage Posted: 28 Jun 2020 06:45 PM PDT Hi everyone, I bought a condo a month ago and due to covid I never moved in. My company won't be back in the office until next year so there's no reason I would move in there since I'm staying with family. I'm thinking about renting it out for 6–12 months and then moving in. The one thing I'm worried about is when I got my mortgage it's a personal conversational and I know that it's a lower rate vs if I had gotten an investment mortgage. Should I be worried or am I good to rent it out? The building has no rental restrictions so I'm good with that. [link] [comments] |
| Posted: 28 Jun 2020 08:27 PM PDT After a year of following the script and house hacking we are throwing in the towel on house hacking. Why? Well. We hate it! Coming from a HCOL city it made perfect sense. We used our higher salaries in the HCOL area to save for the downpayment on a duplex in a LCOL area. We found the perfect duplex, and set off in relocating. We slashed our expenses, housing, transportation, everything else that comes with moving to a lower cost area. But after a year, we have had it. The lack of boundaries between our private personal lives and business is simply not worth it. We are excited to once again pay a housing payment out of our own pockets. Because you simply cannot put a price on your freedom, time and effort. With a househack, arm's length investing is an impossibility. The expectation that you are always on call is difficult to get around when your home is your business. Providing a service to someone in your own home is exhausting and you can never really relax - there is no out of sight out of mind in a house hack. I'm excited to have a home again soon. A business is not a home, a home is not a business. I feel like so much conventional guidance is pro house hacking to get ahead and all the benefits you reap from it. This house hacking failure's guidance? You cannot put a price tag on living without constraints in your own home. [link] [comments] |
| Realtor wants me to buy duplex and turn it into a 6plex .. not sure what I’m doing. Posted: 28 Jun 2020 08:12 PM PDT My realtor has sold me on a few different multi family homes before but I'm a little out of my depth on this new opportunity he pitched me and need some advice. He recently closed a deal in a superb neighborhood for 10 duplexes (tenant occupied) he put into his name. He says that each lot in the deal is approved by the township to be transformed into either a 4plex or 6plex and he also has architectural approval for everything. In short, as one of his customers he'd like to sell me a lot, hire the contractors to turn the duplex into a larger property, and flip it or I would add it to my collection of rentals. I guess what is really bothering me is not knowing the right questions to ask. Do I ask for proof of the town approval and architectural approval? Aside from putting up the money is it a challenge to add extensions to a property? What red flags do I look for? I have never been burned by this person in the past and have invested significantly with them but this would likely turn into the largest undertaking at this point in my real estate career. [link] [comments] |
| Using an LLC to buy a house and renting it to myself = Tax Advantages or not? Posted: 28 Jun 2020 08:38 AM PDT I've been tossing this idea around and can't quite figure out how it would work, if at all. I've been reading up, and most seem to say it can't be done but didn't really explain why. Is my below analysis correct? Normally, a person buys a house, then all they get to deduct are the interest payments. HOA fees, payment towards principle, property taxes, etc can't be deducted from taxes.
Or if you buy the house as an LLC (it would be a disregarded entity / pass through), then rent it to yourself. The LLC would make all the payments (let's say $X / year), so the person pays $X to the LLC. The LLC would show $0 net income therefore pass through nothing, and since the person already paid taxes on their income they're using to pay the 'rent', it makes no difference right?
But my situation is a bit different. I already own a business which is an LLC taxed as S-corp, and my money comes in through that. So if I used the company to buy a house, and make all the payments from the company, all the payments treated as expenses would reduce my taxable income from the beginning. Then I'd pay my company rent for the house. It's pretty convoluted and circular, so am I missing something, would this not work? One could also argue that even if it did work, having the company own the house (in this specific scenario) would not be worth the liability risk, because it's a huge asset that could be taken, and defeats the purpose of having an LLC in terms of protection. [link] [comments] |
| Single vs Multi-Family scenario Posted: 28 Jun 2020 06:44 PM PDT I'm getting ready to buy my first rental property, but all of the multi family properties I'm finding (duplexes and 4 unit small apartment buildings) don't meet the 1% rule. I have a good friend who has 15 single family homes he rents out, many of them are on the same block or just a few miles from each other. In my area, I'm finding it much easier to find single family properties that meet or exceed the 1% rule, I have yet to find a single multi family that hits the 1% rule. The market is way up over here, maybe I just need to wait for better timing? Otherwise I could just get a few singles. Would love to hear any feedback/advice on which route to take. [link] [comments] |
| Posted: 28 Jun 2020 05:41 PM PDT I'm exploring options on how to "think outside the box" on properties. In my city town's downtown there are a lot of big lots and the city is generally on board with subdividing because they want to increase the density downtown. I have a 1/2 acre lot that is technically 3 city lots. One big house covers 2 and one little house covers 1. I got the property for 250k a few years ago- probably worth 310k or so as is. I guess I'm wondering if I subdivide, is the big house worth based on the lot or the home? I know the little one would probably sell easily for 120-130k. What about the big one? could it still command 250-300k? i assume you'll tell me it depends on the comps. I guess I'm more interested in figuring out if this will be a repeatable strategy. Buy the house on .4 acres for lets say 250k, subdivide, sell the lot for 50-60k (the going rate) and then keep the home to rent or resell at the same 250k amount? I'd hate to give up the land, but if this could be a way to "pay retail" on properties and then make a 100ish % return on my cash- and bump up values on the other properties I own in the downtown- I think I'd be interested. I'm here on reddit to ask you to poke holes and give me your thoughts. TIA [link] [comments] |
| How do I put a value on a Tax Certificate? Posted: 28 Jun 2020 02:19 PM PDT I bought a tax lien property 3 years ago for 18k in Alabama. It has a 4k water lien. The original owners are comprised of a trust which include 5 doctors. Some might be deceased. Quieting the title will be messy. The property is a 5 unit apartment building that needs lots of repairs. How do I come up with a value on the tax certificate as it stands today? I am going through a divorce and my husbands attorney believes the value is what the tax records state which is 200k. I disagree that this is the value of the tax certificate due to the right of redemption and cloudy title with the owners being a trust of people that can easily come redeem the property. I appreciate any help in advance. My husband wants to give me the tax certificate and him take all other assets. If I took the deal, I could easily be left with next to nothing due to the previous owners right to redeem. EDIT: I do not want to sell the property. I want to keep it. [link] [comments] |
| Posted: 28 Jun 2020 08:10 PM PDT |
| What type of investor are you ? Posted: 28 Jun 2020 11:15 PM PDT What type of investor are you and what would work better for you? Question: are you the type of investor that sells or rents? as real estate investors, what are the two biggest issues your facing when renovating? have you ever thought of converting warehouses or abandoned commercial buildings into apartments? regarding real estate investor what are 2 things you wish for more than anything else? [link] [comments] |
| FHA Loan Questions and Monthly Mortgage Posted: 28 Jun 2020 01:45 PM PDT I'm a new investor and I have some questions: when getting pre-approved for a loan, FHA or VA, will I have a general idea of how much my monthly mortgage will be? Are you approved for a certain amount then find a house that fits your numbers? How would I be able to forecast my monthly mortgage cost? I'm trying to run the numbers for buying a house as my first investment property to houses hack with. Thanks for reading my newbie questions! [link] [comments] |
| Inherited Co-Op Property - Sell or Keep? Posted: 28 Jun 2020 03:03 PM PDT I'm listed as one of the beneficiaries on an apartment inside a co-op after a relative passed away, and it's going through the probate process. This co-op building mandates that it needs to be occupied for three years before it can be sublet. The relative have occupied it for over ten years, but I can't live there as I'm the primary caretaker of my parent. In the meantime, I'm paying for utilities, maintenance fee, and mortgage. My question is, once I inherit the property, do I still have to occupy it for three years in order to sublet/rent it out? If that's the case, is it better to sell? What are the tax implications of either/both actions? I heard it is more difficult to rent out a co-op apartment than it is to sell, plus I live far from the property. But if I do rent it out, that building already has a superintendent. If I sell, I hope to forward that money to an investment property or two as down payment to rent out. [link] [comments] |
| Puzzled first-time landlord - One year inspection Posted: 28 Jun 2020 09:07 AM PDT Hi folks, We have really good hardwood flooring and I was surprised to a miserable looking flooring in the inspection report. The report mentions that there was so possible water damage. Since I am a first time landlord I do not know who should be responsible for this?
----- Side Note - .... The property management brand is good, but my particular property manager has been pretty bad and was unresponsive/barely-responsible to my calls. For finding renters, he was so casual and I was already loosing out a month's mortgage despite having quoted slightly below market. He used the builder's description as is for marketing. I had to manually change description and make it neat and post in various avenues such as facebook, craigslist, friends' work. Edit1: 3rd party inspector said, "The tenants said there was a ball float that was left in the wall and caused the floor damage. Walls wasn't bad except the nail pop. The flooring is peeling the veneer surface badly. It appears mostly up close to the exterior wall as if it was from the water leak. Hard to say but if was from the dog it would have been on the entire floor not just that area. The scratching would be from furniture but not peeling of the veneer. Peeling of the veneer is not from a dog. Scratches from dog claws yes but not peeling of veneer. " I am confused if ai have laminate or hardwood since he is talking about veneer layer. Please excuse my mistake if it was laminate and mentioned as hardwood. Edit -2 : Interesting update. "Dogs not the culprit". It is a glued on wooden floor. Spoke to the 3rd party inspector. He was shocked to hear that the PM team did not let me know. He said PM team is pretty reputable and he is very surprised. Quoting his 2nd email before phone call: "A ball float is a rubber blow up device they put in the drain pipe for testing leaks just before they Sheetrock. It appears they didn't remove it forgot and sheet rocked the home leaving it in the wall. When the ball float deflated over time it started leaking in the wall as when using water in the upstairs bathroom. The home did not have dog smell." He also said, The dogs were generally in the garage or backyard and not let inside. He did not get any dog smell inside the house as well. The scratches could be because of builder folks "could" have moved furniture and caused the scratch marks and in general the tenants were OK people. Now, I will need to involve PM's boss, PM and the builder to ascertain who caused what and need to get this sorted out. Thanks a bunch you guys, speaking to you all clears my mind and gives me some direction to approach this and think of a lot more cases to think and rule-out. [link] [comments] |
| Posted: 28 Jun 2020 09:05 AM PDT Currently have a rental under an FHA mortgage, was told that if I wanted to re-use the FHA to buy another owner occupied property I would have to re-finance the first one and then buy the second one with the FHA. They said that if you currently own a home and you are planning on using an FHA to buy another owner occupied home the property has to be 100 miles or more away from your current residence, is this true? It would make no sense for me to buy 100 miles away because I want all my properties at a 30 minute drive from me at most. Does this only apply when vacating a home you currently own to buy another one with an FHA? Does it apply to my situation where have had the property as a rental for a while and it isn't my primary residence? [link] [comments] |
| Finally getting started with real estate and ordered some books! Posted: 28 Jun 2020 05:04 AM PDT I've been pushing off deep diving into getting as much research as possible before investing in real estate as I am taking boards for nursing in 2 days. Ordered my books to come in on the same day I test. I just felt like I had to share how excited I am to actually read something enjoyable rather than answer multiple choice questions 8 hours a day. I'm ready to get this wealth and cashflow going! In case you're wondering I'm starting with The Book on MAnaging Rental Properties, the Book on Rental Property Investing, and Rich Dad Poor Dad. I have a HUGE list of books to go through. Figured I'd do one concrete planning book and one mindset/leadership/communication book at a time. Feel free to throw down any recommendations. [link] [comments] |
| Do any smaller investors have GOOD experiences with property managers? Posted: 28 Jun 2020 06:41 AM PDT Whenever people talk about a property manager doing poorly or outright being unethical, it's usually from people with smaller <5 unit portfolios. The ones I see happy with their property managers, are those who own bigger properties or portfolios beyond 20 units. Are there any smaller investors with good experience with PM companies? All I hear is the negatives. [link] [comments] |
| Can't decide where to start investing (long story) Posted: 28 Jun 2020 11:35 AM PDT The area I live in now (metropolitan Indianapolis) I've basically lived in most of my life, but I hate living here*. I only live here because the cost of living is extremely cheap and my parents are letting me live with them until I can afford to move out (I'm 20 atm). So basically I have almost no cost of living and can save/invest almost 100% of my income which I am very thankful for. I'm currently working on getting my real estate broker's license so I can make more money in a shorter period of time (compared to my current wagie job) and learn a lot about the business and how to talk to / work with people. My plan is to make money in the real estate field and put that money towards a down payment towards a duplex/triplex/etc. all while throwing some money into dividend yielding stocks so I can have a stream of passive income on the side. Personally, I'm not crazy about living in a duplex, but, under the right circumstances I could live with it if it's an area I like. I want to invest in the Las Vegas area**, but I have never actually been there. (I've seriously considered actually flying out there and just driving around to get a feel for the area). I just know from my research and what I've been told that Nevada is a very tax friendly state and I'm extremely anti-taxation. Also, the less taxes I'm obligated to pay, the more room I have for cash flow or improvements /maintenance to any given property. I should also note I plan on owning successive properties through an LLC for even more tax reductions (maybe I should own the first through the LLC?) I know the area I live in (Hamilton county Indiana) like the back of my hand; all of it. I know exactly which neighborhoods are more family friendly than others, which areas are nicer (lower crime, better infrastructure), what types of homes appreciate in value the most and in which municipalities, and in which areas. The problem is, I don't like living here* and I want to move out as soon as I can. Home prices here, though, are typically much cheaper than in the Las Vegas metro area, which would mean it would be easier for me to start here, especially since I know the area so well, but I don't want to stay here or have my money tied up here. (I should also note that I don't want to invest right now because I recognise we're in the middle of one hell of a price bubble) *Why I hate living here: the weather here SUCKS and I get really severe mood swings that are directly tied to the weather. Living here is extremely rough on my mental health, so much so that my therapist has recommended I move somewhere more sunny. It's cloudy here more often than not and it's humid as fuck, which I hate. It feels miserable, and as my friend from Florida puts it, "There's always a grey hue in the sky, even when it's 'sunny' out". The area is also really boring to me geography-wise; I like mountains and am one of those people that just needs to see something on the horizon when I'm driving or walking around. If I want to see actual mountains, I have to drive like 6 hours south and book a hotel room. **I really like desert climates with mountains and Las Vegas has that plus the tax advantages of being in Nevada. I really want to live in the area because there seems to be a lot to do and a lot of natural scenery including mountains, which are very important to me. Also Las Vegas is one of the sunniest places in the US, and I don't mind the heat. Phoenix is great too, but Arizona state income tax is too high for me. [link] [comments] |
| Mortgage Forbearance. What's the catch? Posted: 28 Jun 2020 10:55 AM PDT There are people saying that the covid-19 mortgage forbearance program allows property owners to ask for a true mortgage forbearance that will allow you to completely freeze your mortgage, adding the payments of both principal and interest to the end of the loan without any penalty. Opposed to before where they were saying we would be on the hook for a lump sum payment after several months or the total deferred amount getting added to the monthly payment movings forward. Is this true and if so what's the catch? Does taking this forbearance mean that we won't be able to evict a tenant no matter what? Does it somehow affect our credit score? Something in the fine print we're no seeing? Here is the video that explains it. https://www.youtube.com/watch?v=VhJEoOqENWQ Edit: This is what is says on FannieMae's website. https://www.fanniemae.com/portal/media/corporate-news/2020/covid-payment-deferral-7018.html "COVID-19 payment deferral: Homeowners can resume their regular monthly payments and the amount of their missed payments moves to the end of the loan term. Note: Mortgage servicers will begin offering the payment deferral repayment option starting July 1, 2020." [link] [comments] |
| Advice on reallocating property to higher end property Posted: 28 Jun 2020 10:12 AM PDT We inherited a condo worth 250k. While we do qualify for the generational step down of property taxes, the condo is in a snowbird area and hard to find a full time renter. It would rent for about 1500 a month, $350 HOA and $600 annual property tax. We are not interested in finding renters during the peak season and then maintains the condo in the off season so we are looking to sell. I'm contemplating rolling the sales over into another property in the 400-600k range, which is a condo price in my area. Then renting that out for a small but immediate cash flow. Are there any steps to take tax wise? Would 25% down on 2 400k properties be better in 10 years than a 33% down on a 600k condo? We do have other investments so I wouldn't feel over leveraged in either scenario but I'm also at a point where I like not doing much. [link] [comments] |
| Posted: 28 Jun 2020 08:13 AM PDT Hi all, I have a quick question that's probably been asked before but I'd like someone to be straightforward about. I am about to get my first investment property and want to know how many properties you guys had before you started an llc? And what to do if you don't get an llc at first? I'd appreciate any answers! [link] [comments] |
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