Real Estate Investing: How I turned $54k into $400K+ in 8 Months. Deal Analysis of my Mobile Home Park |
- How I turned $54k into $400K+ in 8 Months. Deal Analysis of my Mobile Home Park
- Sold my flip in 3 days
- Cap rate 4%....why bother?
- Need a large warehouse for my business and a bit lost.
- Do you allow tenants to have pets in your rentals?
- How to get a professional to inspect a house before buying?
- Real Estate Investing with Friends?!
- Ways to finance new investment properties
- Looking for your valuable feedback!
- Advice - Where should I go from here?
- How does closing cost + repairs factor into 1% rule?
- What is the best way to structure a lease in this situation?
- Section 8 Investing
- Demolishing 6 plex, Anyone done something similar?
- Brain fart. This shouldn't be so difficult. Should I pay it off?
- Lenders?
- Can I get an FHA loan if I have gotten a USDA a few months ago?
- Looking for input on a residential property in Windsor, Ontario
- Tracking Foreclosure Auctions
- Shipping container homes
- Real estate agent with no ssn
- First time buyers- wife and I buying a 6/4 two unit in LA. The houses look great but sewer inspection just returned 15-30k estimate for old pipe to street. $1.3Mil sale. Ideas?
- Single Family Home with a $1550 Mortgage Payment. What Rental Price would you Look for if you were to Invest?
- Rehabbing my duplex advice.
| How I turned $54k into $400K+ in 8 Months. Deal Analysis of my Mobile Home Park Posted: 21 Jun 2020 10:27 AM PDT About a month ago I posted an analysis of a deal that a broker sent me, and I promised to do a break down of my current park. And since I'm putting together a refinance package I figured I'd go ahead and do it now. Because I know I'll get DM's I'll start by telling you the story. And at the bottom you'll see the math. My Story: In 2012 I started buying 4plexes in Vegas, and LEAN FI/REd at the age of 35, living off of 3k/mo. I realized it wasn't the life that I wanted and became determined to be FAT FI/REd ($10M NW, 300k/yr) I wrongly sold my units and more than doubled my initial investment of 100k. I falsely believed the parroted words that getting into commerical was easier, no job, no assets, no credit no problem. Well that turned out to be a lie, and after being denied the third time by bank on personal NW/Income requirements for 50+ unit multifamily, I pivoted my investing to Lending to flippers, and did some flips myself, a Non-Perform-Note or two, a wholesale or two, but knew since I loved the business model that I wanted to get into MHP. How I Found this Park: I was at a Networking event when a newbie came in and they had a mobile home park under contract and wanted to figure out how to put a syndication together. I asked him how much his park was selling for, and he said $750k! I explained to him you only need about 25% of the purchase price (187,500) to purchase, and you don't need to syndicate, you just need to know someone who has that kind of cash. So I invited him to lunch. We evaluated the deal, and it was actually a terrible deal. But a partnership was born. So I gave him the metrics we would be looking for.
For 18 Months we looked at 5 deals a week, sent 1 Letter of Intent to Purchase a month, and Went under contract once a quarter. Of the other 5 deals we looked at there either were massive CapEx expenses, faults with advertised rents, or Waste Treatment systems that need repair beyond 50% of the purchase of the park. And then one day, he downloaded this OM into the dropbox, and I happened to be sitting at my computer, looked at the OM. 16.5 Cap, 750k purchase price, 150 Park Owned Homes, 24% vacancy. We immediately sent a Letter of Intent (30 minutes later) How We Closed and Why We Got a Deal: During due diligence we found that the demographics of the park did not match the cities demographics, and the 80 year old Property Manager, had lived in the community since it was built. There has been years of embezzlement from the previous property manager, and the owners were using this park for parts for their other parks. They wanted to get rid of it and improve their other parks (which also are larger parks). We secured a 165k Seller Second, and have a Hard Money Loan of 460k, and I brought 165k to the table. Our Hard Money Lender gave us a 90k Line of credit to do rehab. We closed in October of 2019. I own 80% of the equity, my Acquisition Partner brought no cash, and has a 10% equity stake, the Managment Partner brought no cash and has a 10% equity stake. Details of the Park at Purchase
Financials:
How does a Cap Rate, at Refinance actually work? Commercial real estate is valued by the capitalization of income. Which means whatever the Cap Rate that the property is judged to be at the income is divided by the percentage to increase the value of the property. So If I raise rent on the 45 existing units by $10 month and make no other changes $10 * 45 * 12 = $5,400 then we apply the 16.5% Rate ($5,400 / .165 = $32,727) Increase in the value of the park. But what if I sold and leased another home ($350 x 12) / .165 = 25,454. Each home I sell and lease the lot to adds $25k to the value of my park. And I've got about 110 vacant homes that came with the purchase of the park. 120 * 25k = $3,000,000 More Cap Information: So I purchased at a 16.5 cap. A 2-3 star park in the area of 150+ units or more with a vacancy rate of 5% trades at a 5cap. So I did some math .165 - .05 = .115 (Cap Rate Delta).115 (cap rate delta) * 120 units Each home I sell reduces my cap rate by .00096 Details of the Park At End of May:
Trailing 7 Month Financials:
Notes:
Side By Side Comparison:
WAGES: When we annualize wages it comes out about $61,000. About 2/3rds of that will be assigned to capital expenses (which excludes it from NOI) as we do our taxes NOI +48,117 + 40,000 = 88,117 What else is missing?
What Does that Mean? I spent $54,000 to increase the NOI of the Park by $62,208. If I apply the 16.5 Cap Rate I've increased the value of the park by $377,018. ... but wait... there's more ... Remember how way back I said for each home sold I decrease the cap rate by .00096. Well, we added 15 units So .165 - .014 = .151 so I actually apply a 15.1 Cap Rate $411,973What Does the Future Hold? I am currently targetting a 2.5M ARV for my new loan, at Covid-19 terms I'm looking at a 65% LTV structure. The Park is already valued at a conservative $1,077,967 (I should note, that the original PP of the parks was $600,000 and then $100,000 for the homes, and $50k in business assets/goodwill), so I have almost doubled the value of the park in 8 Months. A new loan at the current value would cash out my existing loans but leave me with my original investment left in it. If I get the loan on the 2.5M ARV at 65% The new loan would be 1,650,000, which would net me $900,000, We'd retain $500k for the stage 2 rehab, and distribute $400k. On my 165k investment I would get $320k tax free, and would get my intial investment of 165k back. My ROI would be ~200% in less than 8 months. My Partners will get $40k each, which is an infinite ROI. Once we refinance we will start searching for 2 more parks to get our Pad Count as close to 500 this year as possible. EDIT: Book Recommendations:
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| Posted: 21 Jun 2020 05:02 PM PDT Feel free to not upvote this, I just wanted to provide one anecdote as an investor in the Atlanta RE market. House is 1200-1300sqft, built in 2005, 3/2 with no garage, one of four identical houses all next to each other. The lot is 0.25acres and narrow, but a decent backyard. I bought a year ago for about $114,000, invested $70,000 into the reno. You can check my post history for photos. Listed Saturday morning (less than ideal, but weather caused a delay in our photos). By Sunday we had 4 showings and received a full priced offer at $280,000 but asking for some closing costs. Market still red hot and there is so little supply I honestly think I sold to early and should have waited for multiple offers. That said, we aren't through the due diligence or appraisal period, so I'm not counting it as a done deal yet. I'm still learning, but this market is insane. No way I can find the same house in the same neighborhood for <$120k. I have already picked up my next flip, exciting times. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Jun 2020 12:08 AM PDT Curious as to why anyone would buy a low cap rate such as 3-4%? Do you get into deals knowing you need to find ways to reduce expenses or increase income/value? Is it worth the additional expenses to rehab, or are these "deals" just a result of someone being a little out of touch with reality? Sincerely, average price per sqft $590 [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Need a large warehouse for my business and a bit lost. Posted: 21 Jun 2020 04:36 AM PDT Sorry ahead of time if all over the place. I am in the Tampa market. My business is in imports and distribution. I have been in a 12K sq ft warehouse for the last 6 years. Current rent is around 6,500 a month. I carry inventory so I have anywhere from 400-900K in paid for inventory at any given time. I usually net around 200-300K a year and roll most of it back into inventory and growth. FINALLY this year my net profit should break 1M. As of this moment I have more cash than I can spend. Currently Have about 950K in the bank and generating 150-250K net per month (market is currently volatile so no idea if I can keep this up). I have have a 500K LOC that isn't touched and about 700K in paid for inventory as of now. The size of my building needs to be 15-25K sq ft. What should I be looking at considering my current situation? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Do you allow tenants to have pets in your rentals? Posted: 21 Jun 2020 07:41 AM PDT I am a dog owner and lover so I sympathize with people looking for a home that allows dogs. Are dogs really capable of that much damage to the house? I guess it would depend on the dog. I may be wrong but I feel a fairly well behaved dog and a responsible owner isn't going to cause much damage. Also allowing pets does set you apart from other rentals. Would it make sense to charge an extra $50/$100 month if they have a pet? What do you do in regards to pets? Any past experience with allowing pets and regretting it? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| How to get a professional to inspect a house before buying? Posted: 21 Jun 2020 04:59 PM PDT I am a new investor. I am educating myself as much as possible for things to look for when buying a house, but i'm certainly no expert. Is there a way to hire someone who is a neutral party to come and inspect the house? How would I find this person? What would they be called? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Investing with Friends?! Posted: 21 Jun 2020 04:55 PM PDT Hello everyone, I'm new to the community, but would like some advice. My friends and I (5 of us are "locked" in, we're still trying to convince the other 3 to get on board with the idea) are interested in forming a real estate company/real estate syndication group. We are still are probably a year or so away from purchasing our first property, as many of us in the group are young professionals, getting settled into our careers. What advice do you all have for forming this type of investment group? What structure should it have? What are some pitfalls should we look out for when venturing out on this type of investment strategy? Any advices would be appreciated, feel free to ask question if you need more info to give sound advice. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ways to finance new investment properties Posted: 21 Jun 2020 02:56 PM PDT Hi everyone, My husband and I just rented our first rental property and I am curious the best approach to buy new rentals. Some of these questions might sound stupid so I apologize in advance. Of course the obvious way is to save for the down deposit for our new property, we would be purchasing $100,000-120,000 so the down deposit would is something we are able to do. However if we do not want to always be putting our savings every year toward a new property is that where home equity loans may be a good option? To be honest I do not fully understand how the home equity loans work. The cons and pros. Are they good ways to buy investment properties. My husband and I do not have a huge income, we are able to save up the new down deposit every year but I feel it may be better to keep that amount. We are townhouse living, plan to make this a rental in the future, but we do need to start saving up for a down deposit for our future single family home. Our plan on building rental properties over the next few years will affect those savings. Anyone with a similar experience, or have any advice of building their investment properties without having a very large income? Thank you! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Looking for your valuable feedback! Posted: 21 Jun 2020 04:53 PM PDT Long time lurker, enjoying this forum a lot and wanted to ask for your opinion. I have been stressing out lately. Why? Because I just closed a HELOC at a great rate for 30k for 10yrs. This should be a great "debt weapon" but when you don't know much people who can give some advice, it can stress you, trying to figure out your own. Here's my current status: - 40yrs old working full time - $150k cash in savings - Primary residence owing 195k @ 3.25% (15yrs left) - Rental SFH owing 100k at 5.5% (29yrs left) - Rental SFH owing 85k at 4% (13yrs left) I get about $300/mo cash flow from each rental. How do I utilize this HELOC that can make the most sense? I was thinking of paying off one of the rentals but that may not make sense for others. Should I look for another SFH?Should I use to pay down any of the mortgages? Replies on this post will help me figure it out. What would you do? Thanking you in advance for your valuable feedbacks! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advice - Where should I go from here? Posted: 21 Jun 2020 10:10 AM PDT Hi all, I'm a new(er) real estate investor and I've been following this sub for some time. I've reached a crossroads in my real estate investing journey, and I'm looking for some advice from more experienced investors. I'm located in Ontario, Canada and I currently own two properties. I'll provide a breakdown of each. Primary Residence: Duplex purchased in 2015 for ~$187k. Current mortgage of $148k at 2.49%. Recent appraisal has the value at around $225k. I live in the main unit which is 2+1 bedrooms, 2 bathrooms. There is a second unit on the second storey that is one bed, one bath. I rent it for $850 all inclusive. Total costs for the primary residence are approx. $1,500 month (including mortgage, insurance, and all utilities. Total income per month = $850 Secondary Residence: I purchased this property in November of 2019 with 20% down. Purchase price $195k and current mortgage balance of around $150k @ 2.89%. Recent appraisal after the zoning change is $240k. The main floor unit is 2 bed 1 bath, rented for $1,300 monthly plus electricity. I just finished constructing the second basement unit, which is also 2 bed, 1 bath and I plan to rent for $1,150 plus electricity. I spent extra when constructing the second unit so each tenant would have their own electric meter and I wouldn't end up on the hook for any surprise bills. Total expenses per month on this property is about $1300, so I was barely breaking even with just one unit. I'm very happy to be able to rent the second unit now. Total expenses per month = $1300 Total income per month: $2450 Personal info – I'm 27, working in my field on a comfortable salary. Married, no kids, husband currently unemployed due to COVID. We plan on staying in our current residence for another ~5 years. I plan on real estate investing for the long term, I found such a passion for it and personally love being a landlord. I have an emergency fund already, and there's no immediate/major repairs required at either property. I'm wondering what strategy everyone here would take. Should I be focusing on paying down the two mortgages as fast as I can? Or should I save for another 20% down, and leverage the income/equity I already have and continue to purchase multi-unit properties? Thanks! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| How does closing cost + repairs factor into 1% rule? Posted: 21 Jun 2020 06:47 AM PDT Hi all, new to REI and learning about the 1% rule with rental properties. What I don't understand is how closing costs and repairs factor into the 1% rule. For example.. If I buy I property for $80k and it rents for $850/mo, that would fall into the 1% rule. But the closing costs would be about $10k (3% down payment) and repairs would be another $10k. Does this property still fall into the 1% rule? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| What is the best way to structure a lease in this situation? Posted: 21 Jun 2020 05:58 PM PDT I have a rental property near a university that I primarily market as a student rental. The house is a bungalow which means it has a large room upstairs—much larger than the other bedrooms. It also has its own half bath. In the past, I have rented it out to single students for a bit more than the other bedrooms. I have a couple that wants to stay in the bungalow for this upcoming school year, but it's not exactly straight forward. The girl has an internship the first semester and will only need the room for the second semester for school. She also needs to stay for 5 weeks before school starts. Her boyfriend will be staying the full year. When they are both occupying the room, rent will be $500/month. When it's just the guy, it will be $375/month. I'm clueless as to how to make this work and would really appreciate advice/ideas. Can I have them each sign multiple leases for different time periods? If so, I was thinking about having the girl on a week-to-week lease until she leaves for $31.25/week ($125/month), have the guy on a lease for 6 months for $375/month, and have a joint third lease that's just for the second semester for both of them for $500/month. Much thanks in advance! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 Jun 2020 10:09 AM PDT I'm 19 and am looking at buying a rental unit and renting to section 8 tenants. I'm not finding much information on how much I can expect to get monthly from the program. The average rent for the area I'm looking at is $750 per month for a 2 bedroom. At this rate I would cash flow $300 at about a 12% cap rate. I know section 8 can most of the times be higher than the average rent for the area, but am finding zero info about how I can get a rough estimate. Anywhere I can look to find this? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Demolishing 6 plex, Anyone done something similar? Posted: 21 Jun 2020 04:52 AM PDT I found a 6 plex in a good area. However the building was originally a 4 plex and the owner illegally built 2 more units which is now encroaching the property line of 2 lots. The original price for the 6 plex was 450k and it is being rented for $5000 a month with little vacancies. I got into the talks of purchasing the complex, but found out this problem while doing my due diligence. I normally wouldn't consider it but the price is really good after discovering the enchroaments. (assuming the neighboring owners won't sell me the easement). The new price for the 6 unit is now 200k. Now, assuming the worst case scenario is to demolish 2 units to free my enchroachments, how possible is this? The whole building is cement hollow blocks. How difficult or possible would it be to demolish 2 units? Has anyone done this before to give me some advice of the cost and risk that comes with this type of deal? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brain fart. This shouldn't be so difficult. Should I pay it off? Posted: 21 Jun 2020 05:22 PM PDT I have a rental that I have decided to move into when I retire in 6 years. I have positive cash flow on the unit. I also have cash on hand from a number of other properties I liquidated this year. I would typically be leveraging cash on hand into additional properties, but will not be adding to the portfolio anymore as I move towards retirement. I have a $300k loan balance at 3.125%. I don't have plans to invest additional cash on hand into the market and will likely leave in high yield money market for now around 1.4% current yield. Should I pay this loan balance off? I am no genius, but have always tried to leverage my cash rather than pay down principle. Is it reasonable at this point to shift my focus on saving on total interest out of pocket on this unit even if my renter is making the payment? Don't I stand to save in the long run by paying down or off 3.125% borrowed money versus the 1.4% high yield returns. Sorry, I have worked the same plan so long I just can't my mind wrapped around this end game maneuver and wanted confirmation. Thanks in advance! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 Jun 2020 12:27 PM PDT What lenders have you used? I have a great relationship with TD Bank. I have multiple accounts with them including the only loan I have currently. (Auto) Does a good relationship go further with a lender than say the local CU advertises openly? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Can I get an FHA loan if I have gotten a USDA a few months ago? Posted: 21 Jun 2020 03:59 PM PDT Hi all, I just recently bought a house in March with a USDA loan (no money down, first time homebuyer) and wondering if and how I would be eligible for an FHA loan? I want to take a crack at buying a rental property. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Looking for input on a residential property in Windsor, Ontario Posted: 21 Jun 2020 03:21 PM PDT Hello, I've looking in to getting an investment property in the 200K range in Windsor. I've found a few houses in this range that rent for about 1500 (a few already have tenants willing to stay). This would be my first investment property so I was hoping to get input on whether the risk/reward makes sense and if there are any special considerations. With the monthly cost being 1000-1100 for mortgage+taxes+maintenance I'm wondering if it makes sense to lock in 50k for a down payment. Thanks for your time! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 Jun 2020 07:28 AM PDT Hi Everyone, New RE investor here. I was hoping you all could provide some tips on how best to track and evaluate foreclosure auctions as a more opportunistic way to buy properties and/or land. Thanks! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 Jun 2020 02:18 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 Jun 2020 01:28 PM PDT Hey guys! I just signed up to get my real estate license in California, but I don't have a social security number... I have a itin number instead, I was wondering if it's still possible for me to get my real estate license in California? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 Jun 2020 01:26 PM PDT We hope the sellers pay after we get more estimates. Sewer inspection had video of roots, a pooling water area, and a blister in the metal. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 Jun 2020 01:21 PM PDT Simple questions here but this is some background info. I bought a 280k house with mortgage around $1550. I will be living here a few years then plan to rent it out. I have a high income so the property may be even paid off by the time I move elsewhere (likely in the same area, but this house does not have a garage and I need that in a few years). I believe I got a great deal. I love living in this home and never planned on renting it out when I bought it. But, my questions are, if you were looking to buy a 280k rental home with a $1550 mortgage, what would you look for to rent it out per month?
Thanks ahead of time for all responses. I just want to get an idea of if a struck a great deal on this property as an investment even though I did not plan on it as an investment when I bought it. The house had a 99% chance of selling faster than others in the area according to Redfin and I snagged it up in 3 days since it was listed. edit: took out a question [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 Jun 2020 12:53 PM PDT I owe $113k on my duplex, it was built in 1910 and everything works great it just hasn't been taken care of cosmetically through the years, I purchased it last year for $135k It has hardwood floors which are nice and each unit is 2,636 SQFT and 2 stories The most pressing issue is I need new pipes installed because the water pressure is very low on the left side unit. I currently have the other unit rented at $900/m I had planned on asking more because of how nice they are but I was by far the most expensive rental comp in the area at the time. Since then alot has changed in the area, a dellapitdated house that sits to the right of my duplex was vacant and run down when I bought my place, but was since purchased rehabbed and currently rented out at $1000 and the house is 200 SQFT smaller than my units. The neighborhood I'm in is a historically designated downtown area as well and there has been extensive renovations due to trumps opportunity zone stuff There are about 100 newly renovated loft apartments coming on the market soon on a very sought after street that is .07 miles from me, the floor plans range from 1200 sqft and 1500 sqft each with rents going from $1100 to $1500 My unit is so close to all of this new development and is so much bigger I want to cosmetically update both of my units and ask atleast $1300 on both sides upon completion. My mortgage is only $884 I also am a real estate agent and I'm planning on paying this building off this year so I would be making a free and clear $2600 at that point I'm 23 and just starting off so I'm strapped for cash right now I'm seeking advice on how to aquire rehab funds? HELOC? Is my logic correct in thinking I could ask that much considering the numerous new rentals popping up around me? Thanks again for the advice. [link] [comments] |
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