Real Estate Investing: Details (Actual Numbers and lessons) of My First Rental Property |
- Details (Actual Numbers and lessons) of My First Rental Property
- Duplex Breakdown | Novice Real Estate Investing
- Which home loan/mortgage type typically offers the best rate?
- Someone asked about my old folks home strategy. Here’s the story
- Advice regarding purchase of fourplex with existing tenants in Los Angeles
- Notice to vacate when selling
- Needed Review of Rental Property (DealCheck) For Beginner
- What are the risks of investing in mortgage notes?
- Fund vs individual properties
- Creative Deal on Farm Property
- What's the difference when buying commercial vs multifamily residential?
- If you know a city well and have a slow agent, how do you get in contact with the buyer’s agent to organize a video tour?
- Tips on doing short term vacation rentals yourself versus using property management
- Rent levels in a condo complex
- What’s a good way to find a quality property management company in a different state? How can you differentiate good from bad property management companies before doing business with them?
- New Investor With Opportunity
- Primary tax exemption on flips?
- If an agent sells their own home.... how much do they have to pay their brokerage company for listing?
- What is the best and organized way to set up bank accounts for Real Estate?
- ITS SHOW TIME DUPLEX VS FOURPLEX
| Details (Actual Numbers and lessons) of My First Rental Property Posted: 11 Jul 2020 08:48 PM PDT Last October I bought my first rental property in Windsor (Canada) Here are the details Purchase Details
Monthly Numbers
Cash Flow + Equity Build Up (Monthly)
Annual Returns
The Windsor in canada has appreciated like crazy. My SFH is roughly valued at 210~215K Lessons Learnt
I hope this help you! Anyone else in the game. Can y'all share your journey as well [link] [comments] |
| Duplex Breakdown | Novice Real Estate Investing Posted: 11 Jul 2020 07:36 AM PDT Hey everyone, long timer lurker here but I thought I would make my first post on breaking down the data on a duplex I'm thinking about getting. I've read a couple books and taken a lot of notes from lectures on Bigger Pockets but wanted to challenge some assumption I've made on here. The price of the Duplex is $400,000. Both units are around 1250 square feet with the first one renting for $1550 and the second one renting for $1350. The $1550 unit has been fully remodeled and does not have a tenant currently while the second one has a tenant who has been there for a couple years and would like to stay. This is a gross of 34,800 with my mortgage payment (including home insurance and taxes) at around $23,600 a year ($1968 a month). I'm assuming around 7% off the top for vacancy and then around $2400 ($200 a month) for small repairs, large repairs, and maintenance. With all this combined I have a cash-on-cash rate of around 10% with the 1% rule falling at around 0.85%. My real question is if you guys think my assumptions are relatively accurate, how I could improve my assumptions, and if this seems like a worthwhile investment. P.S. this sub has been really awesome and I hope I get to the level where I can also contribute back! [link] [comments] |
| Which home loan/mortgage type typically offers the best rate? Posted: 11 Jul 2020 10:00 PM PDT I am looking for the most efficient way to gain leverage on an investment property. I have cash in hand to buy it outright, but I'm wondering what is the most efficient way to gain leverage. A few options I am considering... 3) cash purchase then cash-out refinance 4) cash purchase then home equity loan 5) cash purchase then heloc What are peoples' thoughts here? [link] [comments] |
| Someone asked about my old folks home strategy. Here’s the story Posted: 11 Jul 2020 11:02 PM PDT So I invest in an area I used to live in. Lots of 5,6,7 bedroom houses that where built 100 years ago. These houses sit in mostly c or worse level neighborhoods. The area Has to be low income for people not to care about your house or what you do. I buy these houses. I give one man a lease for the whole house and let them stay for 100$ a month but the lease says 500$ is the rent for the whole home. The lease holder is the house man. Meaning he watches over it and reports to me direct. He manages the in flow and out flow of tenants into the additional rooms. There are no leases for these people. They are essentially roommates of the main lease holder. Makes it easier to make people leave if they are trouble. Each person then pays 450-650 for their own room per month in rent. All utilities included. The house man pays the $100 bucks for his rent because he is helping me manage the house and the other month to month room renters. I report the 500$ in rents listed on the lease on my taxes and keep the rest of the cash paid by the other "roommates" as unreported cash income. My guy collects rent in cash only. When I build up enough cash I go buy another property. I don't care about tax avoidance. I keep my house up well and make repairs and help old folks out with safe and warm places to live. Renters dont pay rent on their birthday month and they love it. 20 units in so far paying cash per month for about $19-20,000 in monthly free cash. I Bought each house for an average of 175k + 25-35k in repairs to start it up. Stop following the rules to make your way in life. Make your own rules. [link] [comments] |
| Advice regarding purchase of fourplex with existing tenants in Los Angeles Posted: 11 Jul 2020 09:30 AM PDT I am new to this subreddit, so sorry if I am asking a repetitive question. I am thinking of a purchasing a fourplex with existing tenants, two of whom are paying subpar rents (almost half the market rate) I don't think I will be able to get the property as vacated, so what are my options to increase rents ? The existing tenants are on month to month lease Thanks so much [link] [comments] |
| Posted: 11 Jul 2020 10:26 PM PDT I'm getting towards the end of selling my duplex and I've run into a but if an issue. The buyer is intending to keep the renters in place but couldn't quality for a conventional loan. He has qualified for an FHA but the lender is asking me to provide a notice to vacate signed by one of the tenants. Our county currently has an order temporarily creating certain notices to vacate including "not for cause". So, I feel like I could get myself in a tough places legally if I were to present them with a notice to vacate. My realtor says we can give them an addendum that states they don't actually need to vacate and it's just for approval purposes. That sounds slightly sketchy to me as well. This is pretty much the only thing preventing closing. Any thoughts on how I should proceed? [link] [comments] |
| Needed Review of Rental Property (DealCheck) For Beginner Posted: 11 Jul 2020 06:44 AM PDT Entirely new to real-estate investing. I'm just trying to check properties from Zillow as they come up to better my knowledge. However; every time I'm going through the process I can't help but wonder if I am missing or including something that is making the deal seem unprofitable. If someone could run through this property and let me know if all items I have included are needed or can be reduced. Key values. 3.5% Down with FHA Room can go for around $500.00 8% vacancy for where I am I appreciate anyone who could take time to help me with this. Please let me know if more information is needed to provide a better value. [link] [comments] |
| What are the risks of investing in mortgage notes? Posted: 11 Jul 2020 09:31 PM PDT I've just stumbled across a website listing mortgage notes for sale and I'm having trouble finding much downside to the idea. The biggest risk seems to be default, but is that really even a negative if you then acquire a property valued much higher than your initial investment? Am I misunderstanding something?
Here's a current listing as an example
This is a first position lien. It is performing with no late fees. When I look at the numbers I see a 111% total ROI ($20,512.39 on top of $18,400). That's $2,034.29 in profits each year for a annual return of 11%. Or, if it's paid in full at any time, you just collect a cool 15% ($2816.46) and move on.
There's no way to get those kinds of numbers from a rental (in my area), and it seems completely hands off (assuming payments are made). A rental requires upkeep and management, so what's the downside to this passive income investment? Obviously they lack the physical real estate investment that can appreciate, but that could be considered a benefit to some degree in terms of risks. Is there anything specific in this too-good-to-be true listing I should be looking at that might be a red flag? [link] [comments] |
| Posted: 11 Jul 2020 12:59 PM PDT Hello, My question is, why do people keep buying single family homes, small multifamilies (2-4 units) and getting mortgages with rates based on their individual income, rather than investing in for example a mutifamily investment fund, where a fund manages by professional investors buys 10 500 unit buildings, are diversified in lots of places, make better use of economies of scale, have access to better lending rates, making it a 0 effort deal for an investor. It would be nice to hear different opinions [link] [comments] |
| Creative Deal on Farm Property Posted: 11 Jul 2020 10:13 AM PDT Using round numbers here. I have a farm property that I've just listed. Still have 80k mortgage on it. I have an out of state buyer interested at asking price. Roughly 250k. They will operate an animal rescue. They can put down approx 10% now and proposed land contract for 2 years at which point they'd pay me off. I have liability concerns with this (should they mistreat or neglect animals and I'm still technically the owner until title passes). Also, my idea going into this was to 1031 exchange for cash flowing rental property. The end goal is cash flow, whatever I do. How does a land contract complicate a 1031 or am I better off coming up with another solution? My basis is about 100k in this property. I've considered doing a lease with purchase option equivalent 8% interest with non-refundable 10% down deposit but that is applied to purchase. So essentially $25k down, $1500/mo 2 year lease, option to buy property at $225k with balance due in full at end of term (or we could renegotiate lease). No alterations to property without approval. Anything that would improve it of course I'd let them do. Thoughts or words of caution? [link] [comments] |
| What's the difference when buying commercial vs multifamily residential? Posted: 11 Jul 2020 08:52 AM PDT Hey everyone, Just curious if anyone knows what the differences are between owning a 2-4 unit building and owning a 5+ unit? I've noticed that the 5+ units are marketed a little differently, and I'm assuming costs are a little higher? Couple of specific questions –
Any info/tips would be helpful! [link] [comments] |
| Posted: 11 Jul 2020 05:19 PM PDT Say tou are willing to make an offer remotely. Zillow always has an agent who doesn't read your message, just sends a standard no-reply-to email, when you ask for a video [link] [comments] |
| Tips on doing short term vacation rentals yourself versus using property management Posted: 11 Jul 2020 08:51 AM PDT So I got a place that is a super hot Airbnb area. Can't decide if I should try going at it on my own or with a property management company. I got some quotes and estimates from a couple in the area and basically they take a 25% cut. Idk if it's worth it or if I should just do it myself. I already figured out all the steps and doesn't seem too hard:
This doesn't sound too bad to me and I feel like it's not worth paying the 25%. Especially since they just pass the cleaning fees on to the customer which I can do myself well. Am I missing something? Anyone able to this with minimal time spend (few hrs a week)? Anyone fail at this? Why? [link] [comments] |
| Rent levels in a condo complex Posted: 11 Jul 2020 03:49 PM PDT In addition to my owner occupied unit, I have a rental condo in my complex and am about to put in an offer on another to rent out as well. About a month ago, Zillow rent estimate for these units was about 900. I successfully rented my unit for 1100 and had to turn away many people. Zillow raised their estimate to 1100 as a result. Now I see multiple units here listed recently for 875-975. How can I encourage other owners to raise their rents? Is it legal to do so or is that price fixing? Is there something I can say to them that may be effective without falling into price fixing? Any advice or thoughts are welcome. [link] [comments] |
| Posted: 11 Jul 2020 08:12 AM PDT How do you find your management companies? How do you screen your property management companies? [link] [comments] |
| Posted: 11 Jul 2020 06:46 AM PDT Hey guys I have found a house at what seems a great deal. I am just nervous to pull the trigger because of the age of the house. I have already gotten an inspection and just have a few old house issues that should be too easy/cheap to repair. I just don't see why nobody else is offering this house. We had a plumber recently look at the house because of galvanized piping in the basement but that it. The piping is just run the basement. The rest of the house looks to be PVC. It's located in a great spot in a college town. It's also rented out already for the next school year. Aug 1st to Aug 1st, 2021. My question with all this is this a deal I should take or should I be asking more question? SFH. I am local in the area so I will be self-managing the property. The utilities and ground maintenance are all public and will be paid by the tenants. The house has a driveway its just gravel, but tons of street parking is available. Price: $340,000. Rent: $3500. Taxes: 2890/year. Insurance: 1825.40/year. Land: .78 acers. Age: 104 years. Status: mostly kept up seems to be in decent condition. 2 floors. 7/3 bed/bath. Maintenance(Assumption): 10k/year. IRR: 14.96 Cap Rate: 6.99 Edit: Added more details [link] [comments] |
| Primary tax exemption on flips? Posted: 11 Jul 2020 10:12 AM PDT Hey all, is there any way I can reasonably put in for the primary home tax exemption on a flip? This is not a live in one. My understanding is it has to be a primary residence, or be occupied full time by a tenant. So it sounds like I'm out of luck, but I figured I'd ask before giving up. [link] [comments] |
| Posted: 11 Jul 2020 09:35 AM PDT As an agent, do you have to pay your own commissions and brokerage listing fees? [link] [comments] |
| What is the best and organized way to set up bank accounts for Real Estate? Posted: 11 Jul 2020 09:03 AM PDT Just wanted to know what is the most efficient and organize way of setting up my bank accounts for real estate properties? Should I open a business checking where I receive payments from my real estate properties and then open up a savings account where expenses come out of it ( Property tax, utilities, property management fee's, and etc ). Also I was just wondering before I buy my first property is it best to open up a LLC and then transfer it over? or should I wait until I have 2 or 3 properties and start one? I would not want to be sued on my first rental property, but I don't really have much to protect except my savings account and monthly payment to my apartment. [link] [comments] |
| ITS SHOW TIME DUPLEX VS FOURPLEX Posted: 11 Jul 2020 08:13 AM PDT Alright ladies and gents. I have the option to buy a duplex using fha 6.5% down or a fourplex fha 6.5% The details: Each ripple can be a value add which will allow me to refinance the fha into a conventional after 2-5 years. I want to live in one side and rent out the other and then. However, if I get the fourplex I won't cash flow at all with the mortgage. With the fourplex I will cash flow about $200-$400 per month. What's your vote? Fourplex or Duplex? [link] [comments] |
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