Real Estate Investing: What separates the landlords that become really wealthy from the rest? |
- What separates the landlords that become really wealthy from the rest?
- Thanks for all the advice!
- Leasing vs. Renting With An HOA
- Refinance after renovation
- Buying Condos with no HOA established
- New to real estate investing, recommendations on first purchase?
- Are earthquake and termite insurance worth it for Southern California? How do we quickly estimate the cost for a given property?
- Home Ownership Distribution
- Conservative Investors: tell me your horror stories of deals gone south?
- Is this normal? Did I find a hidden gem? (Downtown development plan)
- Investing in SE Florida?
- Has anyone seen price declines in their market
- If my goal is to get into commercial RE, can I learn by starting with SFH and residential?
- Unable to find my first property after months of searching. Am I too picky or doing something wrong?
- How to make a low offer on a 4plex.
- Do I need to disclose having asbestos removed?
- Building model for Multi-family homes to buy
- Tree damaged car
- FHA question
- How were multi family transactions impacted by Covid in March and April. Were sales of residential apartments with 5+ units up or down ? From last year March / April
- looking for advice on investing in DC area or Philadelphia area
- Does anyone have any resources on rehabbing fire damage?
- Buying an apartment complex with $1.3 million
- Interested in ways to source agent phone numbers?
| What separates the landlords that become really wealthy from the rest? Posted: 14 Jun 2020 12:25 PM PDT There are 8 million landlords in the US. I'm wild guessing only a few thousand of those people actually get wealthy from real estate investing. Does anyone know separates those people from everyone else? My definition of wealthy = Multi million in real estate equity, cashflowing $200k+ [link] [comments] |
| Posted: 14 Jun 2020 07:46 PM PDT Just rented out my first duplex (previously only did SFHs) Bought a rundown duplex and put 20k into it and by doing all the work myself my cap rate is 15%. Thanks to this community for making me see the light on duplexes being worth the risk! Purchase:85k Capital investment:20k Fully rented both sides in 6 weeks before my first mortgage payment. [link] [comments] |
| Leasing vs. Renting With An HOA Posted: 14 Jun 2020 08:40 PM PDT My HOA has the following phrase in the rulebook: "No portion of any Lot or Unit (other than the entire Lot) shall be leased for any period. Any owner of any lot who shall lease such lot shall, promptly following the execution of any such lease and the upon the request in writing of the Board of Directors, forward a comformed copy of such lease to the Board of Directors. All such leases shall be in writing." It is my understanding that leasing is a process by which a landlord agrees with a tenant through a written agreement, usually for a term of a year, whereas renting is a process where a landlord verbally agrees with a tenant through a verbal agreement, and usually on a month to month basis. The handbook seems to indicate that there is an "execution of the lease" and a "copy of the lease," and that this copy should "be in writing." It seems to indicate an official process, and that this official type of transaction is what is being prohibited when it is executed on a portion of a lot in the community. If I live with roommates on my property and charge them monthly rent without a lease, could I get in trouble if the HOA had a different intention with the wording of the rules? [link] [comments] |
| Posted: 14 Jun 2020 06:34 PM PDT I bought a C-class 8 unit apartment around 10 months ago for $220,000. The place had vacancy issues and was in pretty rough shape. I renovated 6 units as the MtM tenants turned over, and put on a new roof along with a few other "ugly money" upgrades. All told I put in another $70,000. Due to the renovations, I was able to raise the rents by around $100-150 per unit per month, and I improved occupancy to 100%. My proforma indicates the property should now be worth around $385,000 at a 7.5 cap (which is conservative for my area). So all told, I believe I have around $205,000 of equity in the deal. I'd like to take advantage of lower rates, and refi some of my cash out. Here's my concern-- the property doesn't have an impressive P&L right now. In fact, I'm showing a pretty massive loss for 2019 and 2020 due to vacancy and renovations. Is this going to count against me? Do I need to be able to show stable income for a period of time? If so, how long of a "seasoning" period will most banks need? How will the banks' appraisers determine the value? Will appraisers project income into the future based on the rent roll as it currently stands and assign a factor for expenses... will they use the actual expenses of the property? Will they understand that some of the repairs/ renovations (that were coded as operating expenses for tax purposes) are non-recurring? Any insights? Thanks! [link] [comments] |
| Buying Condos with no HOA established Posted: 14 Jun 2020 11:48 AM PDT Lurker for a long time here but a question came up and thought I would try to get some input. There is a 9 unit side-by-side condo building in a part of town that I am high on. All of the units are 2 bed 1 bath 1,200 SF. It's a turning neighborhood with house prices generally in the low 200s. I am finishing up a rental a few blocks away and decided to look into this building that I thought looked intriguing. A wholesaler is selling one unit ($32k), another is listed on the MLS and rented at $610/month ($70k), 3 others are owned by the city as forfeitures and the remaining 4 are owned individually but do not appear to be lived in. I feel that the two units I could acquire immediately are fairly priced and could easily be rented probably slightly below market due to so many of the units being empty/abandoned in the same building. Another 9-unit condo comp just sold at the end of March around the corner for $1.2M. I know there is risk in being able to obtain all 9. The roof definitely needs replaced and there is no HOA established. A roof of that size I would budget about $125k for. The structure is good but I would anticipate remodeling all but 1 down to the studs. So the question is, is there too much risk in buying them individually? In other words, should I ensure that I can get them all before getting any? [link] [comments] |
| New to real estate investing, recommendations on first purchase? Posted: 14 Jun 2020 07:16 PM PDT Hey guys, been lurking this subreddit for awhile and I'm getting ready to stop renting (finally). A little about me, 26, high income (>140k/year), live in Montana. I've listened to a lot of podcasts, redditors, bigger pockets, etc., and have a pretty decent grasp of the basics (NOI, COC returns, cap rates, etc) and somewhat of an idea of what I want to do. I'd like to go BRRR method locally, but I have some questions: -Would you recommend purchasing a foreclosure for a first time BRRR? Do foreclosed homes qualify for financing? -What sort of things do you specifically look for when walking through a property, that the more unexperienced might miss? -Where do you have best luck finding deals? (Zillow, CL, etc?) And finally, the big one, with COVID and a second wave sure to follow, my prediction is we'll see the real economic fallout this fall. With that, it might be a good time to buy early/mid 2021. However, being that I am located in MT from what I hear, lots of people are beginning to move here to get away from largely populated areas. This might drive house value up, while the rest of the country's goes down? I've been told that my locality actually kept rising in value during '08 and '09. I know what they say about timing the market, but it's hard not to with volatile markets. Thoughts? Advice? [link] [comments] |
| Posted: 14 Jun 2020 02:41 PM PDT I'm considering the earthquake and termite insurances for the primary residence but I thought I should ask in this forum as more real estate pros can share the expertise through many own properties. Thank you! [link] [comments] |
| Posted: 14 Jun 2020 05:50 PM PDT I was discussing this in another thread and thought it might be a a good discussion. [link] [comments] |
| Conservative Investors: tell me your horror stories of deals gone south? Posted: 14 Jun 2020 11:40 AM PDT I'm looking for my first multifamily and have a few reasonable candidates. All have purchase price < 200k, with rent rolls < 1%. They're not in the best neighborhoods, but hard to be picky finding numbers that work. Lady friend is a worrier, "what if they get busted for drugs and the cops seize the house? What if they start cooking meth and burn it down and then the other Tenants sue?" Etc etc. In my view any real estate is a risky bet but equities obviously carry risk as well, and worst case scenario your're left sitting with a financial liability that doesn't generate income. But it got me thinking: For conservative safe-ish deals, how bad can things get? Tell me some horror stories? [link] [comments] |
| Is this normal? Did I find a hidden gem? (Downtown development plan) Posted: 14 Jun 2020 06:15 PM PDT I was looking through some of my city government plans and stumbled across a 10 year plan for downtown in my town. It's a city of about 40k people but it is the biggest city within about 2 hours. I havent fully read the plans but it has probably $250 million if not more on development plans. Most of these plans are in hope of investors coming in and offering then tax incentives through luxury apartments, luxury housing, middle class town houses, restaurants, and other commercial properties as well as an adult park and an amphitheater. I suppose I must mention that our downtown is right on the mississippi river so there are definitely views. My question is this normal for places like this city to have plans like this? I already planned on trying to invest in rentals around downtown but is this as good of news as what I think it is? [link] [comments] |
| Posted: 14 Jun 2020 09:39 AM PDT Not sure if this is the best place to ask, but I will be moving to SE Florida, north out of the Miami area. Started working from home until I move out. I got a pre-approval and started looking for a home, but then thought maybe this is my chance to get I to real estate investing. But being from Texas I feel like everything is over priced. Idk if it's the market or what. Idk what next steps to take. (Pre-approved for 450) can probably get more if I add wife's income. [link] [comments] |
| Has anyone seen price declines in their market Posted: 14 Jun 2020 04:50 PM PDT Have you seen actual price declines in your market or markets you are investing in yet ? I don't mean just price reductions on asking prices which happens in all markets but rather where the general sold prices have come down ? [link] [comments] |
| If my goal is to get into commercial RE, can I learn by starting with SFH and residential? Posted: 14 Jun 2020 07:37 PM PDT Getting ready to buy my first investment property soon... a modest 100K SFH that with 5K improvements should refinance at 130K, and cash flow at about 1K/month. I've been working with a mentor who specializes in these types of investments and have learned a ton, mostly just the basics. Comps, financing options, rehabs, etc. But if my long term goal is to get into commercial real estate, how should I orient my learning to push me in that direction? For those that made the transition, when did you feel like you were ready for it, what learning points were you able to take from residential to apply toward commercial, how did you learn the rest? I know it is comparing apples to oranges and I'm not trying to outrun my headlights, but at the same time I am always trying to fit my 1-year plan into 5- and 10-year long term goals. [link] [comments] |
| Unable to find my first property after months of searching. Am I too picky or doing something wrong? Posted: 14 Jun 2020 06:33 PM PDT Hello all, After months of searching I've not been able to find my first property to buy. This January I met with a real estate agent and explained what I was looking for. A duplex/triplex/quadplex in which I would live in as a primary residence while renting out the other units. I'm fortunate to work remote and not be overly concerned with location. I have $30k to go towards a down payment and could comfortably afford a $300-$400k property with my W2 income alone. Over the past few months I've been shown listings in the price range $250k-$400k. Very few have even come close to potentially cash flowing if fully leased assuming my live-in unit was leased at market rate. I made a post for advice on the property most approaching net 0 cash flow and concluded that would likely be at a loss. I am not in a hurry to make a rushed purchase but I feel I am not finding any reasonable options. I'm now coming to reddit for help. Could someone please give me advice on what I could be doing better to secure my first purchase? I live in NC and have been searching for a property in the Raleigh/Durham/Cary/Chapel Hill area. I've spoken to another agent who also recommended the property I previously posted on. I feel pushed towards a purchase that doesn't make financial sense. I hate asking for help without doing my due diligence in learning myself but I am at a standstill with no progress. Should I seek an agent working in other market areas? Do multi family units tend to be posted off of MLS? Is there a network available that could connect me with my ideal sale? At this point I'm considering abandoning the thought of multi family and just buying a house for myself. But I really don't like that idea. I'm not looking for large cash flow, just something I can net 0 on and gain experience with managing tenants. Glad to hear any thoughts, thank you [link] [comments] |
| How to make a low offer on a 4plex. Posted: 14 Jun 2020 06:56 AM PDT I'm looking at 4plexs. Everyone obviously is listing on mls at top dollar. "Projected cap rate of 5.25% after you finish remodeling the remaining 2 units and raise rents 20% on all tenants until you're above what the local comps are" Or "Rents are low because of long term tenants but we're pricing it based on what you could raise the rents to if you want to drive all the tenants out" They don't say that stuff literally but they price it based on numbers that only work in a hypothetical scenario. So what approach do you use to start a negotiation when you really need to be $50-100k below what they are asking? Do you offer near asking then adjust significantly lower after your DD? [link] [comments] |
| Do I need to disclose having asbestos removed? Posted: 14 Jun 2020 06:54 AM PDT A property that I own had vermiculite insulation that contained asbestos. I have had it removed using a certified asbestos abatement company. Does it mean that I no longer have to disclose it when I sell the house? Or do I have to indicate that there used to be asbestos but I have it removed? This is in Pittsburgh PA [link] [comments] |
| Building model for Multi-family homes to buy Posted: 14 Jun 2020 03:51 PM PDT Hi all! First, Thanks for any help you can give. I am a brand new investor looking to buy my first Multi-family home which I'm hoping to live in and rent out. I hope to save enough to buy one more working 2-3 years. At this moment, I am trying to put together a good model for analysis of perspective buys. Can anyone give me advice on things to include in model, common thing people forget to account for, and maybe point me towards a good beginning template? You guys have been great so far! Thanks, again! [link] [comments] |
| Posted: 14 Jun 2020 03:38 PM PDT I am a tenant at a duplex, this morning I found that a dead tree branch had fell and smashed my windshield and damaged the body of my car in multiple spots. I called my landlord to seen if his insurance covers it. He said no and that I needed to go through my car insurance. However I do not have full coverage. I'm thinking his insurance should have to cover it. It is his tree and his responsibility. There is 2 parking spots in the drive way and he makes me park in the first one because it says that's where my car will be in the lease. I tried to park in the other and he made me move. So I was also forced to park under the tree of death, that same dead oak is also hanging over the deck and a little bit of the house. Someone please give me some insight on what I can do and what he is responsible for. [link] [comments] |
| Posted: 14 Jun 2020 02:41 PM PDT I've saved up around $15,000 over the past year and I am looking to properly invest in multi family housing development/property. I have no full knowledge of real estate but so feel I am in position to make a valid investment in a property that will bring me residual income. Could anyone pass down their experience and knowledge about what you suggest I do starting out? Thanks in advance! [link] [comments] |
| Posted: 14 Jun 2020 02:30 PM PDT How were multi family transactions impacted by Covid in March and April. Were sales of residential apartments with 5+ units up or down ? From last year March / April [link] [comments] |
| looking for advice on investing in DC area or Philadelphia area Posted: 14 Jun 2020 02:15 PM PDT I am interested in these 2 areas as I travel here often but financially which is a better place to invest in terms of foreclosures Reno flip projects and buy land and build projects? I would also be interested in people I can work with so feel free to PM me. [link] [comments] |
| Does anyone have any resources on rehabbing fire damage? Posted: 14 Jun 2020 01:53 PM PDT I know fire is a whole new ball game, but I have 2 complete rehabs under my belt (and one significant rehab, but not a complete). There is a house that is listed with fire damage and they are even listing it with the city report stating that there is no structural damage. The city is holding bond on the property but even without the bond (which you have a year to pass a CoO to get the bond, my current rate is 2 months for a complete rehab— but again, this is fire damage) I have about $60k for the rehab after purchase. Does anyone have any resources for doing fire damage? Anything to read or a walkthrough of some sort? [link] [comments] |
| Buying an apartment complex with $1.3 million Posted: 14 Jun 2020 01:38 PM PDT After researching on this sub and other resources I have decided to purchase an apartment complex in the coming months. I'd really appreciate if experienced real estate investors can offer feedback on the following:
I'd really appreciate your feedback and Thank you in advance :) [link] [comments] |
| Interested in ways to source agent phone numbers? Posted: 14 Jun 2020 01:31 PM PDT Hey smart people! I'm currently working with an investor where we're looking to buy below market deals in cash (I know I know, everyone in the sub is looking to find below market deals). One method that the investor I work with does and has success with is to create phone blasts, where we call a large number of agents and let them know we are looking to find off-market deals and they can contact us back if they have any. I understand that a lot of people don't like this method and that some people may believe this won't work because everyone is asking agent's for off-market deals, but the investor I'm working with has had a ton of success with this in the past and is strongly recommending that we continue with it. So my question is thus -- how can I go about sourcing a large number of agent phone numbers in my particular area? Currently, I am web-scraping of Yelp and other companies, but are there any additional ways? Are there title companies for this? We also have a list of agents from the MLS. Any advice is appreciated! Oh also, while I have the chance to ask, how do I find Days on Market for properties or averages in some areas? I tried looking at Zillow but I couldn't find that statistic. This sub is awesome, love you all! [link] [comments] |
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