Real Estate Investing: Buying my first rental property while still renting |
- Buying my first rental property while still renting
- My bank just paid me $1500 to lower my payment by $100 per month XD
- Taking from 403B to pay off the mortgage on the first rental property that I used to live in.
- Refi or not on rental property - I already have the cash out.
- Given the market's recent run, would it be stupid to take a 401K loan to pay off a mortgage?
- Upstate NY C Deal: Too good to be true?
- Refi 4plex
- Buying Foreclosed Properties from the County
- [Landlord, US, NC] Can I make the lease renewal of current tenant dependent upon inspection of premises?
- Tips for new person in this domain.
- Question on bulk renovation supplies
- Affordable multifamily rental homes near NYC
- Need advice on capital structure
- Buying an owner-occupied 2-flat and cash-out refinance
- Expected real returns for US real estate is 2.9%. How is this possible?
- Cash Out Re-Fi or 1031 exchange or Do nothing?
- Lenders offering secured LOC
- Any investor in slc that can give me advice on a property I’m under contract with?
- Military and looking to invest in a duplex in SoCal
- Anyone have shares in ticket STWD?
- Electronic Lease Processing
- UK section 108 housing?
- What would you do?
- Taking a leap, investing in subdivision development - need general advice
| Buying my first rental property while still renting Posted: 12 Jun 2020 11:10 AM PDT First off, before you think I'm crazy, we are paying extremely cheap rent. My mom owns several investment properties and graciously allowed my husband and I to rent one for half of market value while I finished graduate school, and my husband is building his career. We realize we are extremely lucky and we are very grateful to her. I live in Southern California where property is extremely expensive. The only way we would be able to afford property of our own is if we moved to the outskirts and we both resigned ourselves to a long commute. (over an hour one way in heavy traffic) We have decent nest egg to put down for a down payment on a cheaper property. Would it be a completely stupid idea to buy a property on the outskirts of our city to rent it out, while still renting ourselves? [link] [comments] |
| My bank just paid me $1500 to lower my payment by $100 per month XD Posted: 12 Jun 2020 06:18 PM PDT I just closed on the refinance of my primary home today. It was $150,000 when I bought it, appraised for $160,000 then. After the work I've put in over the past year, it appraised for $210,00. I refinanced and got $1500 back while lowering my payment by $100 per month. Being a Realtor & looking after 620 doors for other people, I can tell you most of the math behind this, and why it's a better idea for the bank, but sometimes I zoom out and look at the basic picture and it just looks so strange. [link] [comments] |
| Taking from 403B to pay off the mortgage on the first rental property that I used to live in. Posted: 12 Jun 2020 09:24 PM PDT Hello everyone, long time lurker here and pretty new in the real estate realm. Debt: 300K mortgage on my current home (30-year mortgage). $2700/mo Investments and Assets 403B is $250k. Need Some Guidance From RE investment Minded Folks Here: So, my current rental property has a balance of $50k remaining. The mortgage is $1900/month, I get $1800 back after the property manager takes $100. The house market value is $202k and projected to be fully paid off by 2023. My current house that I live in has $300k remaining to pay off. Recently, due to COVID19, my job is allowing employees to borrow up to $100,000 from their 403B with no early withdrawal 10% penalty. (However, I would still get taxed from the money I make from the 403B). My question is what would be the best plan of action given the option of borrowing $50k from my 403B.
Thank you all for being my source of inspiration. [link] [comments] |
| Refi or not on rental property - I already have the cash out. Posted: 12 Jun 2020 08:00 AM PDT I have a rental that I lived in when I did a BRRR. Wasn't the original plan but that's how it worked out. Before moving out I took a HELOC instead of paying for refinancing. With the rates being so low now I'm debating whether to just keep everything as is or refi. Here are the details. Current value $305,000 Mortgage 139,000 at 5% P+I per month $885 with ~21 years remaining. HELOC $100,000 at 4% variable. Refi all of it with a cash out at 3.75 - 4% cash out, investment property mortgage or just leave it as is. The two combined would be about 79%LTV with refi cost. [link] [comments] |
| Given the market's recent run, would it be stupid to take a 401K loan to pay off a mortgage? Posted: 12 Jun 2020 05:45 PM PDT Hi Everyone, I think that under more "normal" circumstances, that taking the money out of my 401K means I'd be missing on gains during that time + I'd be losing the benefit of deductions on the mortgage's interest. With the market behaving more irrational than ever, I am contemplating taking a $60K loan to pay off one of my rental mortgages. This would increase my cashflow by $500 and it would also open the door for me to expand my portfolio further. I was recently declined for a mortgage because I currently have 6 (5 properties + my home) and although the investments are cashflow positive and I make solid income in my day job, the lender mentioned I was over leveraged. I'd appreciate the input of this sub. I feel as though conventional wisdom would consider the thought of this a very unwise one, but I feel as though having my 401K funds sitting on the sidelines for a few months wouldn't be the worst thing as the market approaches earnings season post-COVID. What do you think? [link] [comments] |
| Upstate NY C Deal: Too good to be true? Posted: 12 Jun 2020 09:47 AM PDT Hey peeps, I'm just getting started out in real estate investing. I have around $20K lying around for a down payment and this property popped up on my radar. https://www.loopnet.com/Listing/183-Grove-St-Gouverneur-NY/19844420/ From what I can tell, this seems like a pretty good deal:
Is this really an easy 80% ROI turnkey property? Aside from the risk of squatting tenants, what exactly am I missing here? [link] [comments] |
| Posted: 12 Jun 2020 01:07 PM PDT I am looking at a 4plex that I would house hack and live in it for a year. I currently have a FHA loan on a SFH I bought about 2.5 years ago. I talked with a mortgage lender who said I have to refinance the SFH to an investment property i.e 20% equity needed. I probably have that now, it needed some fixing up but what I'm more worried about is when I go to refi out of the 4plex in a year or so after living in it (my wife won't want to live there long) will they be making me have 20% equity into it?? Will not be possible after a year or 2 to have that so not sure if I can even do this anymore? Anyone have any suggestions or does that sound accurate? [link] [comments] |
| Buying Foreclosed Properties from the County Posted: 12 Jun 2020 10:36 AM PDT I'm looking to pick up foreclosed properties in my county and was wondering if anyone here has any advice on how to do this effectively? I've never done this before and I know I probably have a ton of blind spots that I'm not thinking about. Me: I have 2 rental properties in the county already that are cash flowing about $500+ each a month (only incl. Total Rent income - Mortgage). Looking to get to 10 properties in the next 5 years. Looking to try to acquire properties below market and finance out immediately to get my cash invested back. Hoping I can secure a loan that will at least let me finance 70% out. The county doesn't post auction sales data and the info isn't posted on the properties history with the appraisal district. My plan is to look at properties that are going up for auction and go and scope them out in person. Then hone in on 1 or 2 and hopefully get a good deal at the auction. Anyone have any experience doing this? All tips and ideas welcome! Thanks in advance! [link] [comments] |
| Posted: 12 Jun 2020 04:23 PM PDT |
| Tips for new person in this domain. Posted: 12 Jun 2020 07:44 PM PDT Hi all, I am a 24yr old guy. I have 60k balance. And I earn decent income which will grow over the time. I don't own any property, but I am planning to invest in rental business and have done a little due diligence on my part. I am looking for any advice for first timer and any words of wisdom. Thank you [link] [comments] |
| Question on bulk renovation supplies Posted: 12 Jun 2020 07:31 PM PDT So I'm looking into buying a fixer upper multi family home and fixing it while I occupy. I'm looking into a 5 plex that needs 5 new kitchen s and 5 new bathrooms. I've been looking around at different options when it comes to kitchen/bathroom/flooring etc. Getting 5 kitchens from the big box stores could easily run $25k. IKEA sells a full kitchen for $378. Vanities and other fixtures are also modern and pretty cheap. Has anyone installed something like these into a studio apartment? Where do you get your supplies when buying in bulk like this? Each of these 5 units will be a studio renting for about $850-$1000 max, so high end granite and all doesn't really seem necessary to me. What would you do? https://www.ikea.com/us/en/p/knoxhult-kitchen-white-s59393331/ [link] [comments] |
| Affordable multifamily rental homes near NYC Posted: 12 Jun 2020 06:57 PM PDT Hello! I just graduated last month and I've been able to save up 20k but still plan on saving. I've recently been looking at properties near NYC to invest in and do BRRR since NYC is so expensive. I'm looking at areas such as Newark and Philly since the prices are so much cheaper than NYC. I want to invest in multifamily homes but they seem to be around 200k-400k in both areas but the single family homes in Philly are around 70k-200k which seems to be more attainable. Should I start out with single family or should I save up more to buy a multifamily? Should I look at other areas too? Ive seen properties in the midwest that are multifamily that are around 100k and I would be willing to travel as long as I get into real estate. Any advice? Thanks! [link] [comments] |
| Need advice on capital structure Posted: 12 Jun 2020 05:53 PM PDT Bought fix and flip HouseA with 100% of the $220k purchase financed @ 10% (lender is a friend, I put no money down), but I'm left funding the rehab myself of $120-140k. Very little capital left for another flip, if any. I could however try to refinance the existing private lender mortgage with a traditional hard money lender and put 20% down ($45k), where they'll provide funding for the entire cost of the rehab, too. I'm out of pocket only $45k but they charge two points and 12%, plus $200/draw. Then I can take my remaining capital, use another hard money loan and buy another fix and flip HouseB for $160k with 20% down ($32,000), and the hard money will fund that rehab as well ($80k). With this strategy I pay a much higher cost of capital, but my money goes a lot further by being able to do two flips at once. Leverage very high, but each deal is at least $100k profit, after expenses and commissions. Plus I still have roughly $50k left in reserves just in case by not utilizing all my own personal capital. Thoughts? [link] [comments] |
| Buying an owner-occupied 2-flat and cash-out refinance Posted: 12 Jun 2020 04:53 PM PDT Hi there, I'm looking at finding a 2-flat in Chicago and have a couple questions as a newbie (although I have done a lot of reading and a little talking with an agent ). First question, suppose I were to buy and move into a 2-flat, this one has been mostly redone already, wouldn't really NEED work but if I were I might a) get new kitchen appliances/countertops in one of the units and b) finish the basement and add 2 bedrooms & a bath down there. How long do I have to wait before I can cash-out refinance, enough to be able to get my down payment out of the house and buy another place (supposing I wanted to move to another city, say, and keep this house fully rented both units)? Is there a time period you have to wait? Does my equity have to rise by a certain amount? Second question, suppose I don't have the cash for the reno above, do I have to use a HELOC to get it, or is there a more creative way to finance it? Last question is more of personal finance, how much of your net worth would you be willing to put into your house/down payment, if it was where you were living? The top end of my range will require 25-30% of my NW to meet a 20% down payment. That is about 85-90% of my non-emergency fund, non-retirement savings, which is what makes me worried, but maybe that's what people do? [link] [comments] |
| Expected real returns for US real estate is 2.9%. How is this possible? Posted: 12 Jun 2020 12:31 PM PDT I was reading this paper from AQR, a quant firm that I think usually puts out truly amazing research. I just can't understand how they came up with a 2.9% expected real return for US real estate. Firstly, they assume a 4.4% cap rate and a 1.5% CapEx rate. The latter seems a bit high to me, but I don't have any data on this so I'm wondering what this sub usually gets. The former just seems way too low to me though. I booted up CBRE's cap rate map and found that even in Tier 1 cities, class A multifamily real estate exceeded their 4.4% assumption. For reference, Chicago averages 4.6%, West Palm Beach as well, DC is at 4.5%, Fairfield County at the 4.8%, etc. When we get to class A real estate in small cities, it gets much better. Places like Memphis, OKC and Milwaukee are in the 5-5.5% range. Class C in these smaller cities is significantly higher still, usually in the 7-8% range. My other gripe with the study is that it assumes that real estate appreciation does not beat inflation, even though we know that is historically has. (paper) What giveS? Should we really expect (unlevered) real returns under 3%? [link] [comments] |
| Cash Out Re-Fi or 1031 exchange or Do nothing? Posted: 12 Jun 2020 03:53 PM PDT I've got 2 SFRs that hit the 1% rule. Both SFRs are similar with EACH one having: Purchase price: $265K. Monthly PI: $1100 and Escrow: $850. Market value: $420K. Current mortgage left: $180K. Current rate: 4.6% 22 years remaining. After repairs, insurance, monthly cash flow is $200 / door. I want to take advantage of lower rates + take cash out and invest in another property with no immediate tax liability. Which of the 5 options would you pick? Option A: Max cash out at 70% LTV. APR with points: 4.14%. Points: $7K. Cash out: 92K. Monthly PITI increases by $300. Total re-fi cost: 20K with reserves, $12K excluding. Option B: Cash out at 70% LTV with no increase in PITI. APR with points: 4.024%. Points: $6K. Cash out: $38K. No increase to Monthly PITI. Total re-fi cost: 18K with reserves, $11K excluding reserves. Option C: Simple re-fi. APR with points: 3.9%. PITI: reduced by $300 / month. Points $5K. Total re-fi cost: $17K with reserves. $10K excluding reserves. Option D: Sell both. Take $200K / SFR. Do a 1031 exchange combining the 2 and invest the $400K as a down-payment in a $650K in a Duplex or 4-Plex. I don't have anything selected. Option E: Do nothing. Don't lever up. Economy is going to a hand basket because of Covid-19. Thanks! [link] [comments] |
| Posted: 12 Jun 2020 03:40 PM PDT Good Afternoon, My self and a business partner own a portfolio of smaller multifamily properties (2-4 units). We are looking to expand operations and thus are researching the lending market for line of credit opportunities. We have significant equity built into each property however there are underlying factors involved that may not make our situation so vanilla 1) 4 properties are held in one LLC owned 50/50 between myself and business partner 2) 3 properties are held in a different LLC owned 50/50 between my business partner/wife 3) Another property would be identified as a "primary residence" and that is also owned between my business partner and his wife. 4) For reference: I am related to business partner and his wife. Line of credit we are searching for would be in 2nd position to the mortgages on properties mentioned above. Again, I understand this request may not be so cut and dry. Perhaps what we really need is a "business line of credit" as I realize a LOC of investment property may not be all the easy to attain. If anyone has experience with something of this magnitude any expertise would be helpful. Thoughts, insights, or comments are appreciated. Thank you [link] [comments] |
| Any investor in slc that can give me advice on a property I’m under contract with? Posted: 12 Jun 2020 03:38 PM PDT Looking at a duplex in south salt lake and want to make sure I'm getting a good deal on it [link] [comments] |
| Military and looking to invest in a duplex in SoCal Posted: 12 Jun 2020 03:30 PM PDT Moving to Oceanside, CAin a few weeks. I was told to use the VA loan as soon as I can. I don't spend much, and I have a good chunk of money set aside so I think I could manage. Any advice? Good beginner reads? Thank you. [link] [comments] |
| Anyone have shares in ticket STWD? Posted: 12 Jun 2020 03:12 PM PDT Just got into real estate investing and curious if other people own this. [link] [comments] |
| Posted: 12 Jun 2020 07:42 AM PDT Just wondering what everyone is currently using to get leases signed and processed. We are currently using Cozy for most administrative functions, but are still meeting future tenants in person to get the leases physically signed. Am I missing an easier way to do this? We only have 10 units right now, so DocuSign doesn't make sense for us. Thanks! [link] [comments] |
| Posted: 12 Jun 2020 01:26 PM PDT The UK has a section 8 type of affordable housing project called a section 108 . I've dug thru a bit on it but can't piece together what it is exactly. Has anyone invested in the UK and done this option? Is it like the American section 8 or how is it different? [link] [comments] |
| Posted: 12 Jun 2020 05:40 AM PDT Hello everyone, I've been interested in real estate a while, and recently an opportunity has come up and I'd like to hear your thoughts. Important context is that this is in the north of Sweden in a small community where prices are much lower than in cities. I've tried to roughly translate SEK to USD, but they may not be directly comparable anyway. Since Mars there's been a commercial property for sale at around $180k. The broker says it has an operating cost of around $16k/year and it has three spaces for rental. Two are occupied and are currently generating around $30k/year, which would rise to around $37k/year if the third was filled. The operating cost info they gave me includes things like water, garbage collection, insurance, taxes and maintenance (at $2,500 in 2019 and $4,400 in 2018). The building is in pretty good shape and is in a very good location. One of the businesses is very solid and has a contract to the end of 2024, and the other has a contract to the beginning of 2022. From my limited understanding the numbers look decent, but I'm not sure what I'm missing? Why haven't other people placed any bids? (Well they have, but they were lower than the minimum amount.) Is the empty space too high risk? It's been empty a long time now. The owners claim that they haven't tried to rent it out, because they figured it would make it more attractive for a buyer that could use the space (which I don't), but I'm not sure how much I believe that. I can get a loan at around 50% from the bank at 2-2.5%, and I would have to sell the majority of my other investments to afford it. What do you think? Does it sound like a good deal? What would you have done in my position? [link] [comments] |
| Taking a leap, investing in subdivision development - need general advice Posted: 12 Jun 2020 12:39 PM PDT Hi everyone, thanks for taking the time to read. The title mostly says it all. Our small family business has been involved with commercial and residential real estate investments for years. In the past that has looked a lot like the basic "buy, flip, rent/sell" model. However, we now have a unique opportunity to join a local builder in developing a new construction residential subdivision. We have the capital to do it, and ideally once the project takes root it would be able to finance itself. However, we're in a position here to decide whether we want to approach this project like a bank, where we simply finance the builder at x% and he pays the loan back to us, or as an investor, where we provide funding for x amount of equity. obviously going in as an investor instead of a lender inherently carries more risk, but it also carries more reward. If done right, this could have huge potential for our business. Does anyone have an general advice on a situation like this, things to watch out for, etc? And also, what would be an ideal/appropriate equity share for this sort of project as an investor? EDIT: single family homes starting $750k+ in Texas [link] [comments] |
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