Real Estate Investing: A PSA: random Reddit users won’t be able to tell you if you have a good deal or not |
- A PSA: random Reddit users won’t be able to tell you if you have a good deal or not
- 40 single family homes. Where do I go from here?
- Are the only good deals off market?
- Hawaii Real Estate
- How do I gauge the health of a regional market?
- The right time to redo a rental kitchen?
- Am I wasting my time looking local?
- Would you rather?
- Thoughts on this Duplex deal?
- First time investing FHA, love the property but not sure if the numbers are good!
- Noobie here. How do I learn about real estate investing?
- Closing on a duplex in August...
- Am I right to back away from a refinance?
- Investment Options for 2 - 3-year savings towards first Investment Property
- Buy now or wait?
- Would you do this project?
- Is it worth leveling slanted/sagging floor in rental originally built in 1880s?
- How difficult is it to oversee landlord operations and renovations from a distance?
- Blending House Hacking and the BRRRR method?
- Real Estate License?
- House Hacking Question -- Is this a bad idea?
- Any experience using MLS listing agents to avoid large commissions?
- Real Estate vs. Stocks/Bonds
- Preferred financing for commercial multifamily?
- Difference in rent between house and townhouse of equal size?
| A PSA: random Reddit users won’t be able to tell you if you have a good deal or not Posted: 23 Jun 2020 04:42 PM PDT Not trying to be negative here, but I think this needs to be said. Multiple times per day, every day, I see posts on this sub along the lines of "should I cash out refi my primary residence and buy this rental?" Sure, sometimes third party opinions can be helpful. But it appears the majority are just people asking basic questions that you need to learn (in depth) in order to be successful. Pick up some books. Biggerpockets has unlimited information. It took me at least a year of reading and listening to podcasts before it finally started to click. The best way to know if a deal is a good one is to do a TON of research. Think for yourself and analyze. Best of luck out there my friends!!! [link] [comments] |
| 40 single family homes. Where do I go from here? Posted: 23 Jun 2020 04:03 AM PDT Back story: started buying distressed single family in 2011-12 in Midwest. I didn't have a crystal ball, I bought because the numbers made sense, never thought I would see the appreciation that happened. Lots of my houses doubled in value, some even tripled. Monthly cash flow after everything is around $17k per month. LTV 45%. Lots of people I talk to always say "time to start paying down mortgages aggressively". Since LTV is so low I want to keep growing and adding units. Prices are obviously high but deals do come up. What do you guys think? [link] [comments] |
| Are the only good deals off market? Posted: 23 Jun 2020 07:15 PM PDT I feel like the general consensus amongst professionals is that if a house makes it onto Zillow then it can't be a very good deal. Has that been true in your experience? And if so, where do you find houses personally? [link] [comments] |
| Posted: 23 Jun 2020 11:27 PM PDT Anyone have any experience here. I'm planning on using my VA loan to get a place for a few years and rent when I get transferred. However just about every property I look at here doesnt even come close to the 1% rule. I dont know how any landlord makes money here, and that is before I found out about the leasehold and fee simple property difference here. [link] [comments] |
| How do I gauge the health of a regional market? Posted: 23 Jun 2020 11:14 PM PDT The stock market makes watching industrial sectors pretty easy, as you can follow the prices of various indexes. I don't know of a way to assess the health and direction of say, the multi-family real estate market in Nashville TN, other than by reading opinion pieces, or by asking an agent who makes her living by selling me on buying property there. Are there regional indexes I can watch? How do you personally do this? [link] [comments] |
| The right time to redo a rental kitchen? Posted: 23 Jun 2020 04:26 PM PDT I own a duplex and due to some personal life changes will be moving back into the lower unit this summer. While I am there I could update the kitchen, bath or back hall. The upper unit may also be vacant soon and needs some kitchen updates. No major reno, just new cabinets, flooring etc. I'm thinking of spending up to 10k/unit. Neighborhood is booming and in high demand. It's a historic home with lots of character so I can't do bare bones cheap updates (but won't go overboard either). I currently net $600/ month when it's fully rented. I could up rents with new tenants and net $800/ month. With updated kitchens and baths in think I could net 1000/month. In a perfect world I spend 20k and net 1000/month. Under two years to pay back investment. Seems reasonable, until I think about keeping rents where they are and investing that same money into another property. How do others decide when to do work on their properties? [link] [comments] |
| Am I wasting my time looking local? Posted: 23 Jun 2020 02:37 PM PDT Hi all, thanks for taking a minute to check this out. I currently have no doors under my belt but have ~$45k cash on hand. While not in a position to buy today with how uncertain work has been during COVID, I was wondering if anyone has any experience with the Northern California area. Specifically the greater Sacramento area. I've been learning and reading over the last 10-12 months while building up cash to put down on my first home. I am looking at preferably getting a Duplex/Triplex to offset cost of ownership while I live in one of the units and roll the savings from home payments into rental investment units. However, I'd like to keep it local after my first one if possible. The first property I'm not terribly concerned about cash flowing in the short term or even breaking even, ill have a property I can build equity in and if I can lower my out of pocket cost each month I can put that into the next unit. But I'm not seeing very many deals for the "next unit" around here. Other than banking on San Francisco natives continuing to move east and praying for appreciation, most deals just aren't working on paper. Rents aren't high enough for the home prices after factoring in taxes/insurance/maintenance/vacancies. Is anyone familiar with the area? Am I wasting my time looking for properties locally and should I focus my efforts on looking out of state? Any insight or advice would be hugely appreciated! [link] [comments] |
| Posted: 23 Jun 2020 10:16 PM PDT Own 8 doors and make 15% ROI (net) but the houses are known for housing criminals and lots of drug use. Or own 2 doors with a 7% ROI (net) and the tenants seem nice and in a nicer area. [link] [comments] |
| Posted: 23 Jun 2020 04:15 PM PDT Duplex, 2/1 on each side currently getting $1,350/mo for each unit. Asking $315K. Debt service, taxes, Ins currently estimated around $1,500. New roof, home in good shape and ready to be rented right away. Property located in S. FLA. [link] [comments] |
| First time investing FHA, love the property but not sure if the numbers are good! Posted: 23 Jun 2020 09:54 PM PDT Hey guys this will be my first investment property under FHA loan. I am 24 years old and a middle school teacher here in Texas. I'm trying to analyze these numbers but I am very new to this. I used a bigger pockets calculator but not sure what they mean or if they are good. The 4plex is brand new from 2019 and has 3 bed 2 bath. Rent is going for 900 a month and in my unit where I'll live I will have two friends living with me making me an extra $600 a month since I'll split it into 3. There are HOA fees per month ($42). I will be paying the water bill as well. Rental income per month will be $3300 and total expenses came out to $2611. I will try to negotiate to bring the property from 330,000 listing price to 310,000 as long as seller pays for closing costs. Idk if that's a good idea or if I should lower more? Numbers: NOI is 22,536 CoC Roll is 78.68% Pro Forma Cap is 7.51% Equity built after 5 years will be 75k Cash flow in 5 years close to 55k Help me analyze the numbers. Also I heard that a decent cap rate or cash on cash return should be above 10%. This one is at about 7.5%. does that mean it's not a good deal? Should I keep looking for more properties? I really liked this one especially because it has 3 rooms. Also it's brand new so I wouldn't have to fix much.. Thank you all. [link] [comments] |
| Noobie here. How do I learn about real estate investing? Posted: 23 Jun 2020 06:03 PM PDT I want to learn how to invest in real estate properly. Does anyone have a link where I can learn all the real estate math and lingo? I want to invest in properties (single/multifamily homes) mostly. [link] [comments] |
| Closing on a duplex in August... Posted: 23 Jun 2020 05:43 PM PDT So, I'll start with the details so far, in case anyone is interested. The property is located in Central NY. Going to be living in the lower unit and renting the upper unit. Purchase price - $185,000 Closing Costs: $6,897 Down Payment: $37,000 3 Bedroom Upper unit rent: $900/mo 2 Bedroom Lower unit rent: $1150/mo Garage rent: $100/mo PITI: $1,065/mo There will be a few other expenses such as water, trash, etc. (But I will be living in the lower unit and also using the garage, for now) So, I'll be living there for about $175/mo. Not a bad deal, I think! The lower unit is fully renovated with a huge master bedroom/bathroom, etc. This will be my first property, and I plan to use Cozy to collect rent and screen tenants. I had a few questions for you guys! Where should I get my lease? I have a real estate attorney I am using for this transaction, but I have not asked him about it yet. I have heard about landlord associations and such, as well as the forms available on Biggerpockets and other websites like that. Someone suggested I get copies of leases from apartment complexes around here and use them as a base to write my own and have my lawyer review them. Anyway, I just wanted to hear your opinions before I take the next step! I will also warmly welcome any advice to a beginning investor! Ideally, I'd like to buy another duplex within one year to rent both units out. I'll be happy to answer any questions about my experience so far if anyone has any! [link] [comments] |
| Am I right to back away from a refinance? Posted: 23 Jun 2020 09:06 PM PDT I own a handful of Duplex rentals in cash and I was about to begin a cash out refinance on them in March. After COVID my job was furloughed and I backed away out of fear that maybe the timing wasn't right since if anything went wrong I wouldn't have my salary to back me up. Now that the COVID crisis seems to be winding down I'm reconsidering going through with the cash out refinance but I can't seem to pull the trigger. PRO'S: Interest rates are dirt cheap and I could expand my portfolio and rental income. I could also keep 40% equity to keep monthly payment low CON'S: I'm still furloughed with a high chance of it becoming permanent. I don't have any future purchases lined up yet so I'd be making less until I could secure new properties Side note: Even though I parked most of my extra income into Real Estate it has been a huge learning experience over the last 3 years since I started. Any advice welcome [link] [comments] |
| Investment Options for 2 - 3-year savings towards first Investment Property Posted: 23 Jun 2020 03:06 PM PDT I am saving for a downpayment my first investment property in 2 - 3 years. Any advice on what I can do with the savings in the meantime? I am thinking of investing part of it in index funds over the time period. [link] [comments] |
| Posted: 23 Jun 2020 12:53 PM PDT Hi all, I know, its the eternal question: Buy now or wait? I want to buy a rental property (on a mortgage) in the $250K range that has a positive cash flow or at least breaks even. With all the mortgage delinquencies currently happening, its not hard to see that in a few months there may be a huge housing crash. As morally questionable as that sounds...should I wait to buy then? My intent is to hold onto the property for a few years, hopefully it appreciates, then sell it. And in the meantime buy multiple other rental properties. Cheers [link] [comments] |
| Posted: 23 Jun 2020 06:59 PM PDT House is currently a 2/2/2 1100 sq ft. Built in 1965 Purchase would be 100k Rehab estimated 60k but expecting 70k The problem is it is in a great area with not a ton of recently sold comps. There is not a ton of turn over in the pocket. New builds are going for 350k+ I'm estimating the ARV about 235k There is an additional 200 sq ft of storage that is ideal for adding a mother in law sweet on thr side of the garage. The 60-70k is not taking this space in to account. My problem is that the price is right but it's a big job and wondering if it really makes sense to take on the job for the equity that will be available. This is one that I would hold on to long term. [link] [comments] |
| Is it worth leveling slanted/sagging floor in rental originally built in 1880s? Posted: 23 Jun 2020 06:51 PM PDT I bought a 2 unit house that was originally built in the 1880s. They've renovated it and added support under the house at some point, but the floors are slanting from all sides towards the center and just been like that for years. It's got 3 floors and the 3rd floors in the bedrooms the slant is very prominent and is bothering me, you can't put any furniture without it looking crooked/off and you can feel the slant as you walk, in one room I measured a 5 inch drop from one wall to the other side of the room. I removed all the carpets and uncovered the subfloor and now I'm asking myself, should I just add new flooring and call it a day or should I get under the subfloor, raise it to the highest current point then install the new flooring? Is it worth it rent wise, property value wise? Also, I'm doing this work by myself. This is my first property. [link] [comments] |
| How difficult is it to oversee landlord operations and renovations from a distance? Posted: 23 Jun 2020 05:34 PM PDT I will be attending school in a city with a decent real estate market, but a 2.5 hour drive away is a city with in what my opinion is a severely undervalued market with potential. How hard is it to oversee rentals that are essentially a day trip away? What about renovations? I think my best bet would be to oversee renovations for a full summer myself to build connections and then once I have guys I trust, I can more comfortably move away from the area. [link] [comments] |
| Blending House Hacking and the BRRRR method? Posted: 23 Jun 2020 01:38 PM PDT Hello, I'm 16 and I've just recently decided to teach myself some basic stock investing and real estate investing, and I wanted to know if you could hypothetically house hack a duplex/triplex (as in live in one side and rent out the other) whilst also utilizing the BRRRR method to refinance the distressed home to make an up front profit. I don't know if this is a stupid question or not, as I've only been learning this stuff over the past month and I still haven't got all of the basics down, but any answer would be much appreciated! :D [link] [comments] |
| Posted: 23 Jun 2020 04:32 PM PDT I am self employed with virtually an expensive job. I am looking to get out of the trading my time for money deal and get into real estate. Ive bought a couple house that we've lived in but would like to buy flips or rentals. My dad has a broker license but doesn't use it that I know of, he is very difficult to do business with. My question is would it be beneficial to get a real estate license? I would like to get into residential and commercial real estate. Thanks in advance and thanks for all the info already here. [link] [comments] |
| House Hacking Question -- Is this a bad idea? Posted: 23 Jun 2020 03:43 PM PDT Low COL Midwest CityWife and I are considering purchasing the duplex we live in from the landlord. Needs lots of work, but we love the place and the location. 15 minutes from Lake Michigan, 15 minutes from downtown, close to nature. #s Combined Income $130,000. I work in Tech Industry. Asking price ~380,000 for 6 bedrooms, large unfinished attack and unfinished basement. Put 40,000 down. Property Tax Rate ~2.5% Homeowners Insurance ~98 Estimated mortgage, insurance & taxes of $2,374 Rent from other unit would be ~$1675/month My understanding is that we should put 1% of price of home away per month toward repairs, so putting an additional 300-500 per month aside for vacancy & repairs. So looking at $2800-2900 per month - 1675 = 1225 we'd still be responsible for each month. Would you pull the trigger even though we aren't even close to cash flowing? We'd be saving 400 / month in rent + putting equity into the house, so those both seem like advantages. Plus if we moved, we would cash flow. But I recognize this is definitely at the high end of my price range. I'm not experienced in this at all, but have been listening and reading a lot and would honestly just like some real humans opinions and thoughts. [link] [comments] |
| Any experience using MLS listing agents to avoid large commissions? Posted: 23 Jun 2020 03:30 PM PDT I'm considering selling a property FSBO to avoid commission fees. However, I'm aware of the importance of the MLS given its broker network and the popularity of consumer facing apps such as Realtor.com. There appears to be a wide range of choices from ultra-low cost online listing tools to full service agents. Any advice on using an MLS listing agent or how to select one? Edit: To clarify, we just moved into a new home and unforeseen circumstances have required a creative solution. I'm just trying to find a way to minimize my losses. That being said, I'm also interested in hearing why this isn't a good idea. Thanks [link] [comments] |
| Posted: 23 Jun 2020 11:32 AM PDT Can someone point me to a 'dummies guide' to deciding between real estate investing / being a landlord vs. investing in stock/funds? I live in a home that I bought at the bottom of the market but am planning to move in the future. If I were to rent it out the total costs would be circa $2.5k (Taxes, Bonds, Inspections, Registrations, Mortgage, Insurance, Repairs) and the rental income would be circa $3.5k. However, as much as I run the numbers it just never seems to make financial sense to be landlord compared to investing in stocks/funds, especially if I were to sell the house at some point without reinvesting in real estate or may have to pay a relocation fee. I'm sure I'm missing something but don't know what. [link] [comments] |
| Preferred financing for commercial multifamily? Posted: 23 Jun 2020 03:09 PM PDT What sort of terms do you look for? The balloon payments make me think financing is much more expensive if I have to keep refinancing every few years. Interested in hearing what everyone is using here. [link] [comments] |
| Difference in rent between house and townhouse of equal size? Posted: 23 Jun 2020 10:58 AM PDT Just wondering your thoughts. I live in a large boring suburban area with many apartment complexes scattered around. There are also many houses and single family home neighborhoods. Very difficult to judge how much to rent a house for because there are so few for rent. The few available have no contacts or applications on Zillow and have been sitting for a while so I try not to consider those in my analysis. How much more do you think a 3/2 1800sqft single family house on 1/4 acre would rent for vs a townhouse of equal size? Considering finishes are of equal caliber, little to no crime, same schools and location is relatively close. [link] [comments] |
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