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    Real Estate Investing: Is this normal? Using a property manager for the first time and feeling not good about the situation.

    Real Estate Investing: Is this normal? Using a property manager for the first time and feeling not good about the situation.


    Is this normal? Using a property manager for the first time and feeling not good about the situation.

    Posted: 27 Jun 2020 09:19 PM PDT

    Hello r/realestateinvesting

    Long time reader of this sub and absolutely love the content and candid feedback. My question is, we have built up a portfolio of 9 properties in 3 years and I have self-managed the properties till now. Recently, I have felt like to scale effectively, I need to hire a property manager and start developing better/more efficient systems in place to really grow effectively. In addition, I still have my full-time job and might be moving out of state for an awesome promotion. I love my job, and don't want to quit to do real estate full time.

    But, here is my question. I have hired a property manager (2-week ago) and I feel like I could 100% do such a better job. I find myself being very tempted to micromanage this person because I just feel like they are forgetting to do things, or not doing them well.

    Does anyone have any advice on switching from being self-managing to hiring a property manager? Did they get the same level of rent prices that you did? I would love to hear your experience and any advice on a successful transition.

    Thank you!

    submitted by /u/Redtech2013
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    Just closed my first deal

    Posted: 27 Jun 2020 06:16 AM PDT

    Finally got past years of study but no action. Inked the deal for my first duplex. Now... to find renters.. wish me luck. Gotta start somewhere

    submitted by /u/Slowmaha
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    How do I vet/find a syndicator?

    Posted: 27 Jun 2020 11:54 PM PDT

    I am in a position where my peers and I make a good amount of money (think Bay area techies) but we only know our own circle of like minded software engineers. We all have stocks but are interested in forming a real estate syndication for portfolio diversity and I suppose some excitement in our lives. However none of us are very social or know any real estate related people that we trust. If we should find such a person I imagine that we would form a joint LLC, pool our investments, and trust this person to take care of property management and research as well as maintain the LLC in good stand (aka taxes and forms). How do I find such a person? What kind of questions should I ask them? Is this too much effort and should we just keep our cash in stocks even if it isn't as exciting? If relevant, most of us are not US citizens but a few of us are, currently we all reside in California. I know Bigger Pockets is a forum but I don't exactly trust the people that are able to post on internet forums (ironic that I'm posting here for advice), or maybe I should trust them more? What are your thoughts?

    submitted by /u/phatatouille
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    BRRR...too good to be true?

    Posted: 27 Jun 2020 07:15 PM PDT

    I just want to make sure that I understand what is going on, as it seems like there is little downside.

    $100,000 house, I put $20,000 down, I put $20,000 in, and it's now worth $150,000. I cash out refinance 80% of $150,000, continue to pay the mortgage, and use that money I made to purchase the next one. Is that it in a nutshell?

    I just threw some numbers out there for simplicity sake, but I just want to make sure that is the basic premise behind it.

    If so, what are the downsides? Obviously I know that a house may not end up being worth what you imagine it would, but with proper research beforehand, you could eliminate the majority of that. Any information would be greatly appreciated. Would like to be involved this way as opposed to just owning single-family units and renting them out.

    submitted by /u/8181NE8181
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    Buying a condo to live in then rent

    Posted: 27 Jun 2020 11:51 PM PDT

    Any thoughts about this property? This will be my first property. They rent out for roughly 1500/month. Estimated payment is 1133 monthly. It's right near a bunch of brand new corporate offices.

    I was going to live there for a year and then rent it out.

    https://www.realtor.com/realestateandhomes-detail/39-Heather-Rdg_Shelton_CT_06484_M43440-08849

    submitted by /u/bruh7362
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    Do you ask for a rent roll before you make an offer for the property?

    Posted: 27 Jun 2020 09:57 PM PDT

    I've read that before making an offer (still dependent on the DD phase), you should ask for the rent roll.

    I've also heard people say they take the owners word for it, make an offer, then verify the actual rent through the rent rolls during the DD phase.

    Which is correct? It seems like asking before you make an offer is more efficient, but does the owner give you that info at that point in time?

    Thanks

    submitted by /u/Pennystock_YOLOer
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    Keep getting ghosted

    Posted: 27 Jun 2020 05:36 PM PDT

    So for about 6 months now I've been investigating new areas to buy in. And have had some success connecting with wholesalers/other investors who seem to be finding deals. But as soon as i ask about the details, they say they'll get back to me and then nothing. This even happens with people I've met in person and thought i had a rapport with.

    I'm not a full timer (yet) so i don't have that much time to scout, but I'm now thinking that i should start running ad campaigns myself and not spend time networking since it doesn't seem to be effective.

    How should i approach this for best success?

    submitted by /u/MisterJasonMan
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    I was going to purchase a property to rent out the main house and in-law suite. I realize now that is a very iffy situation.

    Posted: 27 Jun 2020 03:00 PM PDT

    Typically if in-laws are even allowed to be rented out the main unit is owner occupied. Me being an investor and renting out both units I don't think is allowed many places at all.

    I've heard some investors put everyone under one lease ?

    I've heard there's issues with insurance.

    Any insight would be appreciated.

    ARV for the property is 200. My purchase price is 105. I might still close on it and list it as-is on mls if I can't use it as a rental legally

    submitted by /u/GI_Sniper
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    Posting this here in case someone has an answer for our friend.

    Posted: 27 Jun 2020 08:07 PM PDT

    Please roast my financials so I don't make a terrible decision

    Posted: 27 Jun 2020 12:33 PM PDT

    Hello there! Over the past few weeks, I have started to enter the world of REI. Through books, podcasts, and networking I have managed to learn a bit and am now starting to look at properties and evaluate the numbers. I have put together a financial analysis (with the help of an excellent spreadsheet I found on this sub!) and have run into an issue. The numbers look too good.

    Here is a link to my financials

    Assumptions:

    • In the listing, the agent stated that the tenant pays all utilities
      • This seems too good to be true so I tacked on a $100 a month misc util
    • Based on my research of the area, $1300-$1400 for the 3br seemed to be the going rate, but I left it at $1250 just to be sure
    • The multifamily unit was built in 2003 so I would not plan on needing a new roof or other major capital expenditures during the lifetime of the asset

    What am I missing here? Any help would be more than appreciated. Like I mentioned before, I think the numbers look too good to be true so I assume there must be something I am missing here.

    submitted by /u/misterweston
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    Bandit sign service

    Posted: 27 Jun 2020 08:04 PM PDT

    I'm considering starting a service to post bandid signs.
    A) is there demand? Would you hire us? B) too risky maybe??

    submitted by /u/Rivet22
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    Interest-only mortgage

    Posted: 27 Jun 2020 05:48 PM PDT

    I live in South Florida and currently gearing up to make my first real estate investment. I've been watching (more like overdosing) Ben Mallah content on YouTube, and on a recent video he talked about going with interest-only instead of paying down principal. The reason being that the focus should be to fix up the property (with a little "value-add") and expect it to appreciate over time. I just wanted to see what the communities thoughts were on this and if it's a good tactic?

    submitted by /u/yuleezus
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    Beginner

    Posted: 27 Jun 2020 09:21 PM PDT

    Hello everyone! I'm a 19 year old girl who's been interested in investing for so long now. I love every aspect of it, but the problem is my lack of knowledge with some things. I feel that sometimes I have random questions that I wish I could just text/call somebody and get an answer. My goal is to start out now while i'm young and have the advantage. i've been so ready to expand my knowledge in the industry without college of course, I'm hoping to get advice on maybe the best way to begin and educate myself on the most important parts. Or if there's a way to be taken under somebody's wing to learn the game. Thank You!!

    submitted by /u/diamonddolll
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    "ISO" websources for both renter and landlord laws.

    Posted: 27 Jun 2020 04:43 PM PDT

    So I made sure to do my dd before posting and found only a couple of sources for local ordinances.

    However, I'm in the market to move with my fiance for work.

    We both have good job placements so we're looking at places that aren't crazy for renters or are lucrative as landlords if we were to close on a property.

    For example, here In South East Idaho, contractual laws are very common to where you are obligated to pay for the whole year if we were to renew our lease.

    Where as in North Dakota, many landlords just keep your deposit and first months rent.

    Advance thank yous for any constructive insight. Thank you and know you're helping some random people out of the goodness of your conscience!<3

    submitted by /u/officejack
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    Unemployed Investing Opportunities

    Posted: 27 Jun 2020 07:27 AM PDT

    Hi all, As the title suggests I was laid off in April. I'm a 25 y/o engineer looking to grow wealth in real estate. Currently I have one duplex with a cap rate of about 9%. I suppose my question would be, is there a way to continue growing my portfolio at this point? I initially thought about learning real estate syndication, but wanted to check here first.

    submitted by /u/BenderRodriguez_22
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    Grandfathered in Cesspool Septic system, concerns?

    Posted: 27 Jun 2020 10:49 AM PDT

    Hello everyone. I am looking into purchasing a new multi family home (2 residences) that has a grandfathered in cesspool septic system. From what I have read, it can cause pollution/ground contamination. I asked the seller's agent for more info around when it was built, how far from the well, etc.. and this is their response:

    I have no records of installation date, its very old and made from natural stone (not cement that can corrode/decay).

    It cost me $250 for a pump out, but rarely needs it (only 200 gallons came out last summer, compared to over 1000 for most tanks) and I only did that once in the 12 years I've owned it, cesspools take care of themselves. I only did it to see if it was functioning properly, and it was. I paid for a new riser and a safer concrete lid last summer as well.

    The dry well collects all of the gray water, and keeps soaps and detergents out of the septic/cesspool (which can harm the bacteria that aids in decomposition). I also do not know that install date.

    The well (drinking water) is over 100 feet from the septic as per code.

    The well pump and water expansion tank are new. There has been no cost for maintaining the dry well.

    I spoke with 2 septic companies and an older home expert that said not to replace the cesspool since it is functioning fine and is a lower maintenance and lower cost system.

    My concerns are, from what I read/researched about cesspools, is that they need regular maintenance. In addition it can cost quite a bit/maintenance. Lastly, if/when it needs to be replaced, what sort of cost am I looking at?

    Thanks for your help!

    submitted by /u/Reminice
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    What’s the approx calculation to figure out monthly profit?

    Posted: 27 Jun 2020 08:18 AM PDT

    For example I want to profit $2k/month what's the approx value of the CRE I need to buy? I think the profit is about 5%

    submitted by /u/RuffledFeathers411
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    Do you follow up with your tenants even if you have a PM

    Posted: 27 Jun 2020 11:47 AM PDT

    New to owning a rental property. (about 6 months)

    Do you follow up with your tenants even if you have a property manager? The reason I ask is this:

    My PM sent me a picture of some plumbing work that needs to be done. I did a quick google search and the guy they're recommending has a website and good reviews.

    I'd like them to take an after picture of the work done. But I'd also like to get in touch w/the tenants to see if they actually fixed the problem. Am I being paranoid? I don't want them to say the work is done and it's really not and then water damage ruins my rental property.

    Any advice would be great!

    submitted by /u/narkflint
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    Will Tier-1 city valuations be lower 1 year from now? Convince me otherwise.

    Posted: 27 Jun 2020 07:59 AM PDT

    I've noticed some really odd behavior in the NYC market the past couple months. On the one hand, rents are the cheapest I've seen in 10 years, because people have fled the city, at least temporarily. Either because they're moving to their relatives' houses in the burbs or to cheaper areas, or they lost their jobs and can't afford rent anymore.

    On the other hand, sellers are not really lowering pricing on buildings (starting to see some drops on individual apartments). Yet these buildings are all going to have lower rents on their rent rolls for all the units that have turned, and it's possible rents may stay down for a while. My hunch is valuations will get wrecked next year.

    One more market oddity- public REITs got totally destroyed in the stock market in March, with most of them trading below book value for a few weeks. REITs seemed to have gotten way ahead of the physical market, which still doesn't seem to have gotten the memo.

    Do you believe pricing in tier 1 cities will be higher next year? Stay the same? Or do you agree pricing will be lower?

    P.S. I believe in the resilience of cities in the long term and think they'll be fine 5+ years out.

    submitted by /u/yddevelopment
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    Question on Opportunity Zone Investment and Taxes

    Posted: 27 Jun 2020 07:48 AM PDT

    Hi there

    Imagine someone sells a business for 5 million.

    They put the money into opportunity zones and it gains 7% each year.

    So at the end its close to $10 million.

    So after ten years, can they sell the real estate and take out ten million dollars without tax?

    Sorry I am totally new to this and I realize i need to talk to a professional, but I was just looking for a crude estimate.

    submitted by /u/madmatt1980
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    How to raise funds for acquisitions

    Posted: 27 Jun 2020 05:23 AM PDT

    Hi everyone! First official post here, but I've perused this subreddit for some time and I'm hoping for some guidance on raising funds for acquisitions.

    I had originally intended to try a form of "crowdfunding" to raise money for acquisitions - for example, if the property in question costs $50,000, I thought I could find individuals who would consider offering a small denomination short term loan, say $5k to $10k with interest, pool the loan proceeds, acquire/repair the property, refinance, pay back the investors, rinse and repeat. However, after learning about SEC rules, it appears this may be considered a security, which would imply a lot of required compliance that I am not currently prepared to do. (By the way, if I'm not understanding that correctly I'd welcome your feedback here as well!)

    Do you guys have any suggestions on how I could possibly pool small loans from people interested in my business without encroaching on SEC rules? Or do you have another suggestion on raising funds entirely?

    Thank you all in advance!

    submitted by /u/day2daylife
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