• Breaking News

    Monday, July 27, 2020

    Real Estate Investing: How do you purchase another property while you have renters in your first?

    Real Estate Investing: How do you purchase another property while you have renters in your first?


    How do you purchase another property while you have renters in your first?

    Posted: 26 Jul 2020 07:56 PM PDT

    Hey all. I'm new to real estate investment, just bought a condo at the top of the year and about to get a renter in it. All in, I'll be netting about $300/month profit from the renter/mortgage margin. I want to start looking into buying another property, with a similar intent of getting renters, positive margin on mortgage, and so on.

    How do lenders qualify rental payment as income/how does it offset the mortgage? Is the idea to pay off the entire mortgage before it can count towards earned income for higher loans? I'm sure I know some people who successfully "scale" their property count while getting higher and higher buying power with lenders. Do I need to register a business for that earned income?

    Lastly, if you have any suggestions for groups that meet up (virtually) to chat about real estate investing, I would love to attend.

    Thanks for your insight!

    submitted by /u/loshofficial
    [link] [comments]

    With 10s of millions of expected evictions in the coming year, how will you view an eviction on a tenant's application if it occurred during this time period?

    Posted: 26 Jul 2020 07:40 AM PDT

    I have been reading projections of 10-30 million evictions in the next year, accounting for up to 25% of all renters. Now obviously those projections are yet to be seen, but if something like that were to happen, how would it affect your assessment of applicants? I personally would not want to cut my pool of potential tenants down by that much, and morally I don't know how I feel about holding it against an applicant who may have been doing everything they could to make ends meet during this time. But of course I'd be hesitant, especially not having any way to know the full story.

    submitted by /u/Harry_Coolahan
    [link] [comments]

    Arizona vs Florida out of state investor?

    Posted: 26 Jul 2020 08:43 PM PDT

    Im looking for my first out of state investment in Arizona or Florida.

    I wonder if anyone here has any thoughts on:

    - What area to invest

    - Where to find good property management

    - Any gotchas I should look out for

    Im looking at some average SFH properties going for ~200k, where rental could go up to $1500/mo. Im hoping to get a property manager at ~$150/mo, so end up with ~8% ROI (that's including taxes, hoi, but not any repairs).

    submitted by /u/FunnyDude9999
    [link] [comments]

    Is it better to put more or less money down on a duplex?

    Posted: 26 Jul 2020 02:12 PM PDT

    I'm purchasing a duplex which is my first property at 136k. I will be living in one unit and inheriting a tenant who pays $700 a month in rent.

    I have the option to put as little as 10% down. Would this be a good move? Is it generally better to put less money down to increase the greatest value of return?

    I had anticipated putting 20% down until a lender told me I was eligible for a first time home buyer's program and could put less money down at a lower interest rate of 2.875%. Obviously my monthly payments will be more and I will have a low PMI of $30/month, but which ever route I take, I will not be living for "free" based on the rent of the tenant. I will still have to pay regardless if I put 10% or 20% down. I would like to only stay here no more than a couple years before moving on and renting out my unit. Then is when the rent from both would more than cover the mortgage. What would you do?

    Any and all advice is appreciated!! Financing is a huge deal and it's stressing me out.

    submitted by /u/lilrebelgirl
    [link] [comments]

    Appraisal Tips

    Posted: 26 Jul 2020 07:43 PM PDT

    I have an upcoming appraisal in the next few weeks. The appraisal is for a refinance of my primary residence, which I will convert into a rental property within two years. Any tips on how I could get the property appraised for even more? Any advice is greatly appreciated.

    submitted by /u/rmyers1994
    [link] [comments]

    Used the “doctors” loan, what now?

    Posted: 26 Jul 2020 01:37 PM PDT

    So I'm 25 and I just graduated from school. I have a contract that guarantees me 120k base pay minimum with a 734 credit score. So with this I got pre approved for a doctor loan 0% down up to 500k no pmi. I want to buy a home for 200k and live in part of it and rent the other rooms. So my plan is rent part of this home and buy another one before next year to rent. The lender will loan me up to 1.5 mil, if you were in my situation would you do anything different? Or what would be your plan?

    submitted by /u/YeaJk
    [link] [comments]

    What are some of the cities in US where you can buy duplex for $200k?

    Posted: 26 Jul 2020 07:50 PM PDT

    Hi there,

    What are some of the nice cities where one can buy duplex, or a house with four bedroom in United States with $200k?

    submitted by /u/yegasi4250
    [link] [comments]

    20% down or less on down payment on SFH

    Posted: 26 Jul 2020 11:32 PM PDT

    I'm looking to buy a house soon so I've been saving toward 20% of the home value but now I'm thinking maybe it's worth it to put less down. My plan with this home is live there for 2-3 years while I get together another down payment for another house and kinda just rinse repeat. That is the reason I have aimed for the 20% down to keep the monthly payment down but now that rates are pretty low maybe I make more ROI by putting less down and invest elsewhere.

    submitted by /u/Luluhakashu
    [link] [comments]

    Seriously, frick this country and it's overpriced real estate market.

    Posted: 27 Jul 2020 01:09 AM PDT

    Hi Y'all

    This is just a rant and a post to discuss.

    Living in Switzerland is amazing. Great infrastructure, nature and high standard of living.
    But damn, building a passive income is nearly impossible.

    The real estate price is just over the top.
    I am talking about some Beverly Hills pricing here.

    2 bdr apartment, fairly modern, 700k.
    140k down payment. How ?

    A friend of mine bought a huge house in South Carolina for 600k.

    Now I have a job offer in SC, looking forward to buy a house there and some rental objects.

    How do y'all work in your markets that are over-priced ?

    submitted by /u/JuniorFister
    [link] [comments]

    1031 like kind exchange

    Posted: 26 Jul 2020 09:22 PM PDT

    Looking to sell one of my duplex rentals I've had for about 5 years. Quick details. Bought for $80k owe about $50k and in negotiations for $130k. So net about $80. But that does not include fees, lawyers closing cost ect. I Am selling with no realtors or realtor fees involved. Has anyone successfully done anything creative and applied their gains to either existing loans on other rentals mortgages. I also have a Heloc that I used for a 4-plex property I bough last year and owe $50k on that. My guess the government has this pretty tightly regulated. Look forward to hearing any loopholes or good stories.

    submitted by /u/huntwithdad
    [link] [comments]

    Can I buy a property in cash and then later refinance and get a mortgage?

    Posted: 26 Jul 2020 03:45 PM PDT

    Im seeing a discount from sellers if I buy the property using cash. Ideally I would like a mortgage so that I have more money to invest in properties. Can I buy using cash to get a cheaper price and then refinance later?

    submitted by /u/uvasag
    [link] [comments]

    Real estate License

    Posted: 26 Jul 2020 07:29 PM PDT

    After getting a real estate license, Could I go straight into Real Estate investing? I heard I have to hang my license in someone's office? What?

    submitted by /u/LostNReddit
    [link] [comments]

    Any point in buying raw land?

    Posted: 26 Jul 2020 12:38 PM PDT

    I noticed on a lot of home buying websites, you can buy raw land. For example:

    https://www.realtor.com/realestateandhomes-detail/Wade-E-Morgan-Rd-Lot-56_Charlotte_NC_28269_M94129-10563?view=qv

    Would it be a bad investment to buy land... if you're not planning to build anything on it? Basically, would it be stupid to buy land just to own it?

    submitted by /u/thatanimeguy1
    [link] [comments]

    For a loan, is DTI factored before or after rental income is taken into account?

    Posted: 26 Jul 2020 08:55 PM PDT

    If the lender wants to see a <50% DTI and I have a mortgage of $3k and I'm bringing in $4k in rent, would my DTI be 0 ($3k - ($4k x .75) = 0), or would it be $3k ($3k x 2 = $6k - ($4k x .75) = $3k)?

    submitted by /u/HDTV_FTW
    [link] [comments]

    'Sellers Market' Vs 'Good City to Invest In'

    Posted: 26 Jul 2020 08:30 PM PDT

    When doing research on other markets I keep coming across articles mentioning the city is red hot with employment, population growth etc. That rent growth and appreciation yada yada can hopefully be expected

    But then I will see an article seeing that city in mention is a sellers market due to the high demand and is bound to being a buyers market soon.

    Can someone please explain what this means? How can a city be expected to grow, yet is deemed a sellers market? Does that mean it should be avoided or what?

    I see this a lot with cities like Jacksonville and Las Vegas. Even pre-covid you can find articles stating such things.

    submitted by /u/soyerom
    [link] [comments]

    Question if Accredited LLC can raise funds from non-accredited LLC for Passive Real Estate Syndicates

    Posted: 26 Jul 2020 08:30 PM PDT

    Trying to see if this is possible/legal to do? Would it be significantly complicated (with proper legal help)?

    My understanding (Thanks to the help I already received on this reddit) is that as an accredited investor (by income), if I create a single member LLC, it would also be accredited. If I then also start a separate LLC with 10-15 members (non-accredited), could I raise funds from a non-accredited LLC, and then use those funds in the accredited LLC to invest into Passive Real Estate Syndication listings that require accredited investors?

    I am trying to start an LLC with a small group of family and friends most of who are non-accredited, for purely passive Real Estate Syndications. Each person would contribute a smaller percentage of one "buy-in" and then the profits/returns would be distributed in the same percentage. I know the easy solution may be for everyone to just invest in some of the other Crowdfunding sites like FundRise (and maybe this is what we will have to do) but the accredited investments seem to overall to be better opportunities and I would like to find a way to invest in these with family/friends.

    Any thoughts on this or other ways that we could find a way to do this?

    submitted by /u/derauqsmd
    [link] [comments]

    Any recommendations for process management software?

    Posted: 26 Jul 2020 08:20 PM PDT

    Hey all.

    I'm looking to build out an automated process pipeline for analyzing parcels of land. There are a lot of things to keep track of so I'm hoping that a piece of software like this could help me standardize a process like this. My ultimate goal is to find a relator that's willing to do the analysis for me and use the prebuilt pipeline I create to give them some guidance and set expectations for what I expect out of an analysis of a piece of land.

    Any simple pieces of software out there like this?

    Alex

    submitted by /u/looloosha
    [link] [comments]

    Morale of the story: Don’t skip an inspection

    Posted: 26 Jul 2020 01:56 PM PDT

    I live in Toronto and I wanted to buy a rental property in Windsor. Because Toronto is super expensive and I am don't have a lot capital.

    Step one for me was getting a realtor. I got a referred a realtor from a bunch of people. I meet the realtor, cool dude, hard working and honest. I checked his social media account and no red flags. Je looked great Everyone had great things to say about him. The only thing was that he was really busy. But I did not take it as a red flag.

    Fast forward a month later, I find a quadplex on the MLS. Everything looks great! The numbers are solid positive cash flow. I was only unaware of the area. That's it. I run it by my realtor and he says it looks great! He goes in person checks it out and tells me it's solid and we should make an offer.

    I wanted to skip inspection and save like $300. But I called an inspector! My inspector was someone I picked and not my realtor. For obvious reasons. My inspector does his inspection. He finds a hundred things wrong with the house. Most of them a realtor should have found out. For example one of them was that there was a break a week ago. SMH. My realtor did not tell me about this.

    After I digged into my realtor I found why he missed this. He was working too hard. Too busy. So he missed it. This realtor is a top performing agent in Windsor. He made 150K+ in commissions last year (that's a lot for a realtor in Windsor since the homes are super cheap). Everyone told me he saw legit and he was. But good performing people make mistakes 1% of the time. My was in the 1% of times he made a mistake

    Morale of the story: Get an inspection especially if you are a new investor. Inspections fees may seem a lot. Trust me a ~$300 is pennies compared to buying a terrible property. Don't skip the process.

    submitted by /u/bree_zy
    [link] [comments]

    Is there a way to roll renovation costs into your mortgage?

    Posted: 26 Jul 2020 03:55 PM PDT

    For example, if I buy a $150k house w/ a mortgage and need to spend $70k on renovations. Is there a way to roll that $70k into the loan without applying for a home equity loan? Or would I need to refinance for the estimated final value?

    submitted by /u/bucklestheboss
    [link] [comments]

    Resources for International Investing

    Posted: 26 Jul 2020 07:37 PM PDT

    I'm sure this is a topic that gets covered a fair amount so I apologize if this has been covered a bunch.

    Currently we own a property in the US, but I find myself with the ability to add an investment property as well. While it might be more lucrative to find something else here, I'm also interested in being able to live and work in this other home for short periods of time and renting it the rest of the year so ideally I'd be looking at something in the EU (likely Spain or Italy). That said, there's a lot to consider like fees and taxes for non EU residents, getting a loan internationally, maintaining the property etc. Can anyone recommend a place that good information and advice about how to go about pursuing this sort of investment?

    submitted by /u/notatrashperson
    [link] [comments]

    First Property - Financing

    Posted: 26 Jul 2020 07:27 PM PDT

    I'm in my mid-twenties and currently work in real estate private equity in the residential sector (SFR, multifamily, development, etc.). I was fortunate enough to have the opportunity to work in investment banking right out of college and through that currently have ~$100k of dry power that I'm looking to start purchasing properties with (goal is to expand portfolio over time with long term hold in mind). Will have an additional amount coming this winter.

    While I currently live in Northern California, I'm looking to purchase small (2-4 unit) multifamily properties in the Midwest where I'm originally from (know the markets I'm looking at well and currently have close relations there) in which I'll utilize property managers. After tracking deal activity for the past few months I've realized that the markets I'm looking in have very tight turnaround times from MLS listing to contract (often 24-48 hours). Given this, I've realized the best route would be to start engaging with realtors in the area to build up relationships for a pipeline versus relying solely on MLS.

    My biggest hurdle is understanding where to begin the financing process for a small investor like myself as I'd like to be as buttoned up as possible prior to receiving a property I like so I can act fast. Considering I'm more apt to go with LLCs for all acquisitions (I'm looking to expand to 10 units within the next three years and accelerate beyond that given my current steady stream of disposable income), should I register the LLC and then see what I can get pre-approved for from various credit unions (with me being the managing member of the LLC / guarantor)? How close is this process to getting a traditional mortgage / how often do mom and pop investors get pre-approved prior to contemplating offers (would imagine this would be fairly common practice)?

    submitted by /u/coste_dw
    [link] [comments]

    RE investing for expats

    Posted: 26 Jul 2020 02:44 PM PDT

    Long time lurker. Read many posts. Need advice.

    I'm an expat with no intention to return to the US any time soon. I'm looking to buy a property in the US for rental investment. I'm looking in MN because I lived there for 11 years and I'm pretty familiar with the Twin Cities area + suburbs. I already have a rental property in Edina.

    My situation: not planning to move back to the US any time soon. Make $40k/year after tax. Housing taken care of by my job. Transportation provided (no car needed). So my monthly spendings are pretty low ($400/month).

    My questions: how can I find what are the best neighborhoods in MN (ideally Twin Cities + suburbs) to buy rental properties in? How important are school ratings? Any advice on RE investments for expats?

    submitted by /u/TheAgenderAlien
    [link] [comments]

    Anyone Purchase Property in Caribbean or Central America?

    Posted: 26 Jul 2020 06:08 PM PDT

    As the title says, has anyone here invested or has currently properties in the Caribbean or a Central American country. I'm looking to invest into something now and have it as a rental. Ideally this would pay for itself and doesn't necessarily need to make money (if it did bonus).

    I have some questions if people on here with experience could answer.

    1) how did you decide on where to invest? What were the leading drivers to your decision 2) lenders, was this a hassle or was this a more of a straightforward process? Anything to expect. 3) do you also rent? Or is it a vacation home? If renting do you manage or use a management company? 4) any country that's "perfect" for foreign investor and any country you wouldn't bother? 5) I have done some research on my own with regards to the above, is there anything resources you could recommend?

    Thanks all!

    submitted by /u/Putz2433
    [link] [comments]

    Buying my first rental property in America

    Posted: 26 Jul 2020 01:41 PM PDT

    I'm am looking to buy my first rental property in America ( I'm Canadian) the house prices are pretty crazy Around here and I know buy i. America is a lot better of an investment. Anything I should know before I think about buying ? Like tax's since I'm not from America ?

    What are some good places to buy houses to rent right now ?

    submitted by /u/heythere1000349
    [link] [comments]

    How to grow your network?

    Posted: 26 Jul 2020 04:45 PM PDT

    Hi everyone, I am a new investor (23) with pretty sizable savings looking for my first deal. Throughout my real estate education, it appears that an investor's professional network is a prime driver of the success of a deal, whether that be RE agents, lenders, or contractors. How can I grow my network without experience under my belt or much value to deliver to them? Does anyone have best practices for connecting with new people or cold-calling/emailing? Any advice would be appreciated!

    submitted by /u/SuperiorReturns96
    [link] [comments]

    No comments:

    Post a Comment