Real Estate Investing: For those who have replaced their job’s income with rental income and are thinking about quitting your job. |
- For those who have replaced their job’s income with rental income and are thinking about quitting your job.
- Tenants did not include person on the lease who is currently living there. How to proceed?
- Should I cash-out refi to pay off my investment property?
- Reclaiming last month's rent and security deposit from previous owner after closing
- When naming LLCs....
- How Do I Find A Good Real Estate Agent?
- I’m an investor in a big city that never sees anything >6% Day 1 CoC. What cities or areas of the US realistically get to 10%-15% CoC?
- Starting at 20 years old any advice?
- Elderly mother- house left to me
- Is now the time to buy?
- Partnering on a house
- 20yr old w/30k asking for advice...
- Crowdfunding Websites Geared towards MultiFamily Investing
- Refinance investment property that is collateral?
- Sihanoukville Real Estate Rocketing up: $30billion Investment
- Refinancing when Retired? $900,000 in equity
- Is roi the same as cash on cash?
- Is real estate a richer persons game?
- Bay Area Property Manager/ Agent Recommendations
- Real Estate Commission Discounts
- New investor looking at a property, does this price sound absurd, or would you recommend going for it?
- A penny for your thoughts, investing in SLC
- Looked up the property boundaries for a house I'm interested in, and it appears part of the fence may or may not encroach on neighbor's property. Advice?
- How would you utilize cash to gain an advantage in corona?
- Looking for investor friendly agents
| Posted: 07 Jul 2020 05:19 AM PDT How do you know you're ready? At what point are you comfortable enough to walk away from your career to only use your rentals as your income? Also, how do you take benefits into consideration? How do you deal with health insurance, life insurance, other benefits, etc.? I'm nowhere near that point (haven't even bought my first SFH yet), but it's a goal I'd like to ultimately reach. I know this will vary from person to person but I'm curious to see what the community has to say. [link] [comments] |
| Tenants did not include person on the lease who is currently living there. How to proceed? Posted: 07 Jul 2020 07:18 PM PDT I'm currently renting to two tenants in a unit, a mother and daughter, who are both adults and on the lease we signed a few months ago. They told me it would just be them and everything went smoothly with the credit and background checks. On the day of the move-in the daughter was not there (she lives and works 3 hours away so I put 2 and 2 together pretty quickly she wasn't going to be living here and would just be cosigning) and the woman had a man with her that she told me was there to help her move in. I said to myself okay, sure, I get it. Well, I get a maintenance request and she's not home, but this gentleman is there to let me in. At this point I'm super skeptical, but who knows, coincidences have happened once or twice in history. Some time later I get another maintenance request so I go over again today and he's there and it's pretty obvious he's residing there, or at least there often. My question now is, how do I approach this? I'm assuming I'm going to have to add an addendum to the lease with him as a tenant and subject him to a background check. Is that something I should 100% do? At this point it's already rented and my thought process is "well there was a reason they didn't tell me about him so I assume somethings going to come up". If that happens do I tell them he has to leave or they get evicted? In the grand scheme of things they are pretty average tenants. I've spotted a few bits of damage they've done when I was over and I've gotten calls about some minor things breaking (door knobs, etc) that we have replaced in the past. I'm just looking for an outside perspective of if the worst happens to be true here, how would you proceed or am I just overthinking this? Edit: Just realized this may not be the ideal subreddit. If so, please let me know and i'll remove this. [link] [comments] |
| Should I cash-out refi to pay off my investment property? Posted: 07 Jul 2020 04:13 PM PDT With today's low interest rates, I am considering a refi on my "second" home. I have enough equity in said second home that I am wondering whether I should cash out and consolidate my two mortgages under one lower interest rate. It seems to make sense on paper but would love any added perspective on things to consider that I may be overlooking. Some details: Home 1: Occupancy: second home Principle remaining: ~$300K Rate: 4.05% Years remaining: ~27 Est. value: ~$600K Home 2: Occupancy: investment Principle remaining: ~$100K Rate: 4.875% Years remaining: ~26 Est. value: ~$140K Refi Offer on Home 1: 30 years, 2.75%, <$3K total closing costs Essentially, if I cash out enough to pay off home 2, my monthly P+I would be the same as my current P+I on Home 1 pre-refi because of the lower rate. If I don't cash out, then I save ~$400/mo on home 1's P+I, but continue to pay much higher interest on the smaller loan (rate-wise). Cashing out to pay off the Home 2 mortgage seems too good to be true, what am I missing? TIA for any advice. Edit: formatting Edit 2: thanks for the helpful comments. what most have helped to point out is that i lose out on income tax advantages if i pay off home 2 and that my cash-on-cash return is probably best left as-is. what i hadn't thought of at the time of posting is that this is more or less the age old question of whether cash or leverage is better for investment properties. In my situation i think i'm better off leaving leverage intact on home 2 [link] [comments] |
| Reclaiming last month's rent and security deposit from previous owner after closing Posted: 08 Jul 2020 12:59 AM PDT I just closed on a SFH that currently has a month-to-month tenant. The closing documents and settlement statements did not include anything regarding rent, which is fine. Sellers have been an unorganized PITA so I didn't push for prorated rent. After my first conversation with the tenant today, the said they originally paid first month's rent, last month's rent, and security deposit per the original lease more than five years ago: each one at $700. So technically, I'm still entitled to the last month's rent and security deposit totalling $1400. The tenant seems great, even before mentioning the rent and deposit. The tenant said they will try to track down the lease and/or bank statements, but it has been awhile. Seller says that they allowed the tenant to not pay rent the last two months to call it even. I asked for proof and am waiting for a response. Property is in WA State and was through a wholesaler. I did not consult with an attorney during the process, now I know I should have. Is it too late to get an attorney? If the seller was lying and I can find some sort of proof from the tenant, can I take it through small claims court or is it too late since we already closed? [link] [comments] |
| Posted: 07 Jul 2020 04:48 PM PDT Do you ever use the property address? For example: 123 Main Street LLC [link] [comments] |
| How Do I Find A Good Real Estate Agent? Posted: 07 Jul 2020 10:32 PM PDT I'm all set and preapproved, and I need help looking for an agent. I'm not sure if I should look on Zillow, find an agent online, or go with the last real estate agent I worked with. I would just go with the last agent, but on the last deal we weren't able to have seller pay any closing costs. In fact, I paid title insurance. The Agent normally specializes in selling land, but I'm buying multifamily investment property now. Where would you look? [link] [comments] |
| Posted: 07 Jul 2020 10:36 PM PDT Basically title says it all. I read articles and watch YouTube videos claiming they need a minimum of 10-15% cash on cash return to even consider the property. Or those that say they aim for properties that can hit the 2% rule (my local can't even hit the 1% rule!). As someone from a very over priced big city, these kind of numbers are like unicorns to me, mythical. Can anyone educate me? [link] [comments] |
| Starting at 20 years old any advice? Posted: 07 Jul 2020 08:07 AM PDT I have been lurking this sub for awhile, and I have noticed there are some very bright people. I was curious if you were to go back in time and start at 20 years old what would your strategy be? [link] [comments] |
| Elderly mother- house left to me Posted: 07 Jul 2020 05:10 PM PDT Hello! I need some advice. My grandmother has gone into a nursing home and we are looking to sell her home to pay for the nursing home she is in. She has quite a bit of "stuff" inside, as well as some water damage in the basement. Is it possible to do some sort of estate sale and sell it all as is (can we even do this while she's alive)? Or should we make reparations and sell the items separately? My mother/ aunts want to get this out of their hands as efficiently as possible to best fund my grandmother's current housing. Any advice/ other suggestions would be greatly appreciated! [link] [comments] |
| Posted: 07 Jul 2020 10:44 PM PDT I'm new to real estate investing and am seeking seasoned RE investors' opinions on whether it is a good time to buy now with low interest rates or wait for the market crash and buy with higher rates. Thanks. [link] [comments] |
| Posted: 07 Jul 2020 03:38 PM PDT Looking at buying a duplex together with my parents. For them one half will be a second home (maybe airbnb) and the other half will be rented. My parents would take out the mortgage, but I'd put up a portion of the down payment. They want to keep all the cash flow themselves to pay the mortgage. How do I price this deal for myself so that I get my money's worth when the house is finally sold ? I.e. 10% of the proceeds at sale is not going to cut it because I missed out on the cash flow I'm sure I'm missing some details here. What is/are the easiest way to structure this in a fair way? Thanks [link] [comments] |
| 20yr old w/30k asking for advice... Posted: 07 Jul 2020 09:32 PM PDT Ever since I started working I have always saved and been pretty smart with my money. I took a micro/macro economics class in HS and that's when I was introduced to "Investing" I since then loved the idea of investing into Real Estate. I work as an hvac tech currently and make decent money. I chose this career path not only because I knew college wasn't going to be for me but, also because that would save me alot of money when it comes to owning property. I was really motivated in HS however since graduation I have been too focused on HVAC and have kinda lost focus on my longterm goal yet I have saved for it. What advice do you experienced real estate investors have for someone like me? Where is the best place to start? I thank you all for your support. [link] [comments] |
| Crowdfunding Websites Geared towards MultiFamily Investing Posted: 07 Jul 2020 01:34 PM PDT Hey All, Does anyone know of crowdfunding sites that are more geared towards multi family investing and not aligned to a REIT structure? Want to dip my toes into value add multifamily investing on a small scale and this was one of the ideas I was tossing around, but do not know if what I'm thinking of exists? [link] [comments] |
| Refinance investment property that is collateral? Posted: 07 Jul 2020 08:55 PM PDT Is a cash out refinance possible on an investment property that is used as collateral on a business loan? *Business and property are in Texas [link] [comments] |
| Sihanoukville Real Estate Rocketing up: $30billion Investment Posted: 07 Jul 2020 08:39 PM PDT
Preah Sihanouk provincial governor Kuoch Chamroeun addressed this data at a press conference on the "progress and direction of the Sihanoukville provincial administration" on 9 June. Read: Cambodia News [link] [comments] |
| Refinancing when Retired? $900,000 in equity Posted: 07 Jul 2020 08:36 PM PDT Hi all. Trying to refinance for lower interest rate, not pull out cash. I am making this post for my parents (62F, 71m) as I pretty much handle their finance stuff since they dont really know english or how to use tech. Is it possible for them to refinance when retired? They don't have jobs and live off on social security. My mother retired this month and also got her first Social Security check. My dad been retired for about 8 years. CA home was bought in mid 90's for ~150,000, but refinanced in 2010 and taking out $115,000 from equity. CA Home to be refinanced 30 years @ 5.5% Mortgage Principle: ~$184,000 Monthly payment: $1630.00 (~$500 Principle) Home Value Today: ~1,150,000 Home 2 (Different State). Current Residence Paid Cash in 2011 @ $110,000. Fully owned Home Value Today: ~300,000 Their income: Mom: $950 in social security + pension Bank Accounts: $72,000 Dad: $826 in social security and 3,500 in the bank Rent income from home to be refinanced, (its a duplex): $1,900 total (oldest tenant has been there 15 years, 2nd for 5 years) Total monthly inflow: ~ $3200.00 Total in Bank Accounts together: (checking + saving) ~75,500 Mortgage is in my mothers name, as of today she has a FICO score of 826 according to experian, with oldest account being 26 years. No debts except for the mortgage loan. Since we live in a different state currently, they plan to return to CA and move in so that it could be primary residence. They plan to sell the house within 5 years, and so I believe it be beneficial for them to refinance as they still need 20 years. It would be a 15 year loan, but the benefits would be putting more towards the principle pocket more when they sell the house. The house seems like it will continue to rise due to luxury apartment being built a 1 block away as well as a hotel and other construction projects nearby. Supposedly a small outlet mall or something idk. However given that they are now retired, what are some things they can go about refinancing given their assets but limited monthly income? [link] [comments] |
| Is roi the same as cash on cash? Posted: 07 Jul 2020 11:46 AM PDT |
| Is real estate a richer persons game? Posted: 07 Jul 2020 07:29 AM PDT Maybe it's just my area but the only people I know who are making big money in real estate are already multi-millionaires. They buy expensive buildings like apartments and have someone manage it or other commercial real estate. The regular investor can't buy stuff like that on their own. Yes, anyone can buy a house and rent it out but buying index funds or REITs would have similar returns without the hassles at that level. And I usually hear these smaller investors not making much, if any, cashflow. It makes me wonder if real estate is truly a rich persons game? I'm not a real estate investor, I'm just wondering if it's worth buying property over index fund investing if you aren't a multi millionaire. [link] [comments] |
| Bay Area Property Manager/ Agent Recommendations Posted: 07 Jul 2020 06:43 PM PDT Hi - First time investor, looking to buy a multi family property in the North Bay (Vallejo/ Antioch) or Central Valley (Fresno-area). Was wondering if folks had a recommendation for a property manager and Agent in the area? Would like to lock down those down before going further. Thanks! [link] [comments] |
| Real Estate Commission Discounts Posted: 07 Jul 2020 05:17 PM PDT After paring down to one SFR rental for retirement, I'm thinking about restarting RE investing, both as a mental/physical exercise, and to make some money (although money not the main factor). I do enough volunteer stuff to feel like I am contributing to the greater community, but it's not always in line with what I like best: Projects, mostly starting/designing them, mostly trade related (I am a licensed, but very minimally experienced General Contractor.....another story.) While working my wife and I generally had about four units, most of the time SFR. My thought is to partner with a Realtor (I have prospects), with the goal of fix and sell (slow flip 1-3 years?), and option of just keeping long term rental, pulling cash for additional purchase. I would like to partner with Realtor to be on top of deals as they come along, not to mention the trade contacts they have, and possibly PM (though I would probably do that myself). What (if any) is a reasonable discount to ask of a Realtor/Partner when it comes to sales commission? Of course, on the front end, and assuming a listed purchase, the Realtor will get a buying commission, kind of automatically, which I think should translate in to a discount when it comes time to sell. I'm in California, and in our area commissions are 5% to 6%, 5% being pretty easy to find. Assuming a 50/50 split between listing/selling brokers, what would be a reasonable commission setup, using my partner as the listing agent/broker? Thanks [link] [comments] |
| Posted: 07 Jul 2020 04:58 PM PDT Situation: Own a townhome that is essentially the left side of duplex (shares a wall with one other townhome), but different lots divided down the middle. Prime area of my city close to downtown. Want to purchase the other half and rent it out as the current owners do. Bit of background (skip down if you want quicker numbers) Bought my side for 245k 3 years ago. I asked the owners of the other side what they would be willing to sell for and they weren't even slightly interested unless I could do 350k. This sounds crazy high, but they did give me some insight into the numbers. Annual gross rent (not counting vacancy, but I've never seen it vacant, literally people move in the day the previous lease ends): 34,800 Expenses (annual): - Owners pay all utilities: 5400 - property tax: 2400 - got quoted landlord homeowners insurance at: 2000 - maintenance and capex: 3000 If I bought that side it would be easier to manage as right now we have to talk about shared elements such as the roof, fence, etc. I could share internet between both sides which would cut the annual utilities to about 5000 and I could combine the lots which might reduce the property tax but who knows. I could also explore putting solar on the roof but from initial research on that it seems more break-even in my area. Quick numbers So in summary you get: - 350k asking price (no realtors so they save money on that) - 34,800 in gross annual rent, but lets put 5% vacancy to be safe and bring that down to 33060 - 12400 in annual expenses roughly a 5.9% cap rate if you self-manage I was quoted 3.625% interest for an investment property with 25% down and after accounting for mortgage payments it would cash flow about 4500 per year, increasing by 500-600 per year as long as the mortgage is still being paid (and obviously stepping higher once paid off). This assumes 2.7% rent growth annually and 3% growth in expenses annually. Rent growth has been in the 2-5% range for my city in the last 5 years, and annualized it's been roughly 3.3% over that time frame. Annualized Appreciation in the neighborhood according to Zillow: 3 years: 8.7% 5 years: 9.1% 10 years: 5.3% 15 years: 4.2% 20 years: 4.9% 24 years (max of zillow data): 4.7% worst period was may 2007 to October 2012 where the neighborhood depreciated at a rate of 3.2% annually, peak to trough decline of 16%. So it held up decently well in the recession compared to most areas. So appreciation has been spectacular in the area, though especially good in the last 5 years which makes me feel like I'm buying at the top. Any advice you guys can provide would be great! Thanks! [link] [comments] |
| A penny for your thoughts, investing in SLC Posted: 07 Jul 2020 04:41 PM PDT I currently live in Salt Lake City area. I am currently renting, but looking to buy. For some context, I currently have about 6k/month of income after all taxes, retirement, insurance, etc is paid. I have no debts of any kind currently. I am considering purchasing a single family home (or duplex?) in the SLC area. At the present, the SLC market is very hot. Many cash investors. Most respectable homes in the 250-350k range have 10-20 offers on the first day of listing (no exaggeration). They all go above asking price, of course. I am not from SLC. I would eventually like to move away from the state. I have a girlfriend in PA school (just started) here in Utah. When she finishes, 2 years and some change, I would be inclined to move away. I know ultimately that I'll be back (the cultural and familial gravity that Utah exerts are seemingly inescapable). I am leaning towards purchasing a home here in Utah (right now thinking single family), living in it for two years, and then moving, while keeping the house and renting it out. I would then buy a second home wherever I move. I would love to get y'alls advice. This is all very new to me. Is this something worth doing? If anyone is familiar with the current Utah market, would you advise for or against buying? Has anyone managed properties out of state? What is that like? Thanks in advance. [link] [comments] |
| Posted: 07 Jul 2020 04:33 PM PDT This is actually for a primary residence, but I know you guys know a ton about buying property so I figured this was a good place to ask. Home is old, built in 1940, and the fence appears very old too. I'm not sure it would ever even be an issue, but about 30% or so of the fence appears to cross onto the neighbor's line by a couple of feet. If it came to trying to claim adverse possession, is it the time that I have possessed the land, or the time the fence possessed the land that matters? This is in Tennessee if that matters. Have any of you had this issue before and did it cause you to not purchase a property or perhaps ask for a concession to rebuild the fence? Thanks for any help you can guys can provide! [link] [comments] |
| How would you utilize cash to gain an advantage in corona? Posted: 07 Jul 2020 04:31 PM PDT like buy one now in places NYers and CAers will move to, try to get hud homes, foreclosure, short sale etc. [link] [comments] |
| Looking for investor friendly agents Posted: 07 Jul 2020 04:21 PM PDT How did you guys find investor friendly Agents, Brokers, Property managers & contractors. I'm looking to move to another state. I tried biggerpockets, but there aren't a plethora of agents in there that are always active. Open to some advice [link] [comments] |
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