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    Friday, July 24, 2020

    Real Estate Investing: I put together a spreadsheet for evaluating rental properties, would love some feedback

    Real Estate Investing: I put together a spreadsheet for evaluating rental properties, would love some feedback


    I put together a spreadsheet for evaluating rental properties, would love some feedback

    Posted: 23 Jul 2020 09:01 AM PDT

    I'm new to REI, and I've decided to put together a spreadsheet to help me evaluation various properties. I'm kinda confident that I didn't screw anything up, but I'd love you guy's feedback on it: is it wrong? Is there anything missing ? Is it ugly? (I probably already know the answer to this one)

    You can find a link here. You could just view it in Google Drive, but it's easier if you download it and view it in Excel.

    submitted by /u/jfasi
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    Having lunch with an investor who has 90 units in 12 years, what should I ask?

    Posted: 23 Jul 2020 08:52 AM PDT

    I currently have one duplex, (32yrs old) and my rough goal is 10 units by age 37.

    What questions should I add to my list for him? We live in the same market, Midwest LCOL.

    submitted by /u/Heydanu
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    How to scale investment properties?

    Posted: 23 Jul 2020 03:47 PM PDT

    I am 27 have a duplex. How do people start scaling, and how do some do it so quickly. Saving for multiple down payments seems like a lengthy process. At least has been for me?

    submitted by /u/anoncafe
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    Why I don't like investing in multi-family

    Posted: 23 Jul 2020 06:53 AM PDT

    Ever been to a foreign street market like in Mexico where there are 50 sellers selling the exact same mayan calendar, each claiming to have made it by hand?

    That is what is happening with the multi-family craze right now. Investors/landlords want to cram as many people into a property as they can to make as much money as possible. In my area, this has inadvertently created a housing shortage for families that want to rent a place that has more than 1 freaking bedroom.

    I recently listed a 5 bedroom house and within 5 days I got over a dozen showings and 8 applications. I took down the listing a few days ago because I found good tenants for that house. And yet, I'm still getting calls about that place. Here is the tragic thing, if you drive around town, you will see dozens and dozens of "for rent" signs everywhere. Hundreds of them. Landlords turning their 1500 squarefoot houses into 3 tiny units.

    Come on, guys. We are suppose to be the people thinking outside the box here. We are investors. Stop it with the multi-family craze.

    Are you in it for the long run or not? Multi-family units tend to attract short term tenants. So, you'll be having to find new tenants every 6 months. They tend not to take care of the house. I have multi-family properties, and from my experience short term tenants are a lot more likely to be problematic tenants.

    On the other hand, the best tenants I have are the ones that have no plan at all to move. They take good care of the house. They decorate, keep it spotless clean, and fix little things that need fixing. They always pay on time. They are responsible family couples.

    It's the long term tenants that I like and they always want their own single family house. Not crammed into a small unit by some greedy landlord.

    In the past on here I have mentioned that I never have a problem getting applicants for my properties. Some people on here were like but how? I treat my tenants right by not cramming them into tiny-ass places. Every one of my units has a dishwasher and washer/dryer hookups. Treat your tenants right, people. Stop only caring about maximizing your profits. Tenants are people, too. And nobody likes to stay at a crammed place for long.

    submitted by /u/nowisnow85
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    How can I buy this property? Looking for advice.

    Posted: 23 Jul 2020 10:09 PM PDT

    I found a triplex near my college that I'm interested in buying. Two units are already being rented for 1850 each. I want to live in the third unit and either cashflow slightly or have low monthly payments but I can't afford the down payment of about 120k. Is there any way I can buy this property without paying the full down payment that will also make sense with the numbers? Thanks for the advice!

    submitted by /u/DustyDust4
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    Real Estate Broker? How?

    Posted: 24 Jul 2020 01:00 AM PDT

    Is it mandatory to be a sales agent before becoming a real estate broker? What's the fastest way to becoming a real estate broker?

    submitted by /u/LostNReddit
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    Cares act mortgage forbearance and refinancing

    Posted: 23 Jul 2020 06:50 PM PDT

    My parents interest rate is 6% and they have 13 years left on their 30 yr loan. They are paying $2,600+ per month. They have a Freddie mac loan. They are looking to refinance the loan in the future and I am looking into the mortgage forbearance from the cares act.

    Based off this information can anyone tell me what they would do if they were in this situation.

    The $32,000 would be spent to prevent me from having to take out student loans, maybe invested in index funds, or my parents would fund the remodel once I get an FHA loan on a house next year

    Im only 19 so please dumb down the comments, thank you. And im not sure if this is considered real estate investing, but I dont know where else to go.

    submitted by /u/joe28eiid
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    Good deal?

    Posted: 23 Jul 2020 11:37 PM PDT

    A place that hasn't hit the market. 739sqft SFH 2bd/1ba (with unfinished dirt floor area underneath - tall enough to walk around in) on 7500sqft moderately sloping lot. Storage shed. Built 1910. It is appraised at $60k. I should be able to get it for $25k. No roof leaks. Newish gas furnace and gas water heater. Vinyl siding. Good foundation. Fast growing market. That's where the good ends.

    Asbestos tile ceilings. Strong dog dander smell, no urine. The bathroom and laundry room have a bad sub floor, about 70sqft. Roof should be replaced. Hardwood floors in living room and bedroom. It has a mix of plaster walls and paneling, likely will have to be removed for wiring. No insulation in attic/walls. Old roof. Old windows. Likely needs to be rewired. No appliances. Kitchen needs It's pretty much a total gut.

    Going to schedule an inspection.

    submitted by /u/MaxJaxV
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    First BRRR Deal Analysis and Questions

    Posted: 23 Jul 2020 10:37 PM PDT

    Background: I'm a 28yo looking to acquire my first BRRR rental property and will submit an offer of $125k for a foreclosure property. I've previously received pre-approval from Chase for a 160k conventional owner occupied loan at 3.35%. This was because I was considering house hacking if I found a good duplex deal but I'm leaning more towards BRRR now.

    Questions:

    1. Am I able to initially finance the deal with a conventional owner occupied loan and then refinance it as a conventional investment loan after renovations? If not, does it even really matter much which loan I initially finance with since I am going to refinance anyways? I figured the interest rate would be a percent or two higher for a few months and maybe a larger down payment to 25% which is okay for me.
    2. Should I be refinancing with a different bank after renovations or do banks not care?
    3. For the flooring, I was initially planning to use engineering hardwood floors but after browsing the subreddit it seems like most people recommend luxury vinyl plank for the durability and simplicity. Would this make any difference towards the ARV?

    Also if anyone's interested in giving feedback on the deal itself my numbers using /u/saudiaramcoshill spreadsheet are below. Thanks.

    https://imgur.com/a/PMfRMvJ

    submitted by /u/craygeeboy
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    Starting in southern Oregon

    Posted: 23 Jul 2020 09:58 PM PDT

    I'm going to be relocating to southern Oregon at the end of the year/ beginning of next year. I've been in the construction side of the industry for four years and have been doing a ton of research on flipping for the last few years.

    Has anyone had any luck there? Housing is significantly cheaper from where I am now (Portland area) and the wife and I are planning on doing a live and flip when we move. Any one had any luck with flipping in southern Oregon?

    submitted by /u/Captbv14
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    I have a ton of money saved up. Is investing it all in real estate a good move?

    Posted: 23 Jul 2020 09:45 PM PDT

    I'm a rookie when it come's to the real estate game. I was lucky to get into a niche industry at a good time 6 years ago at the age of 23 and since then bought a 430K condo in Chicago, a 140K Porsche almost paid off, and saved up about 800K in the bank. I invest some in Vanguard every month but the majority of money is sitting with me, I admit it does give me a sense of security, but am I making the wise choice by letting it sit? Should I buy multiple investment properties? It seems as if its a good time to buy right now, but will prices go lower next year? Being in debt really scares me, just don't know what the move is right now, any advice would be helpful, thanks!

    submitted by /u/lightmindaligned
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    How to make an offer on our unlisted small apartment complex

    Posted: 23 Jul 2020 08:12 PM PDT

    We live in a 3-unit complex in California. The property is owned by an individual (I think) and is managed by a decent mgmt company. We realized we really like our apartment. (technically a freestanding townhome, the other two units share a building).

    Never owned a home but our financial situation has recently improved a good deal and we may be able to afford it if the place were on the market for market price. But have no idea how to approach this.

    I'd assume there is public info available on the owner, is that true? We were home shopping last year and have a decent agent -- should she reach out? Is it bad form for me as tenant to ask the mgmt company.

    Thanks so much in advance.

    Finally, curious if anyone knows laws /requirements/advantages for mortgages relating to rental properties where I would intend to reside.

    submitted by /u/Sustainabler
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    Memphis Investor Loans

    Posted: 23 Jul 2020 08:11 PM PDT

    Does anyone know good banks or credit unions that can give good deals on investor loans in the Memphis area? I know some people in other locations get 10% down with 5 or less interest, wanted to know some good options out here if this community knows any.

    submitted by /u/Tough2Name
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    How to move 20k from one partner to the other without incurring taxes?

    Posted: 23 Jul 2020 06:35 PM PDT

    Recently, I've gone into business with 2 other partners and we are leveraging our cash/liquid to put towards a down payment. Unfortunately one of the partners just graduated from school and does not have a long history of credit giving him an immature credit score. Partner number 2 has liquid but he has a decent credit score and I, myself, have the best credit score with some liquid funds. To get the best mortgage rate for an investment property, we need to leave partner 1 out of the loan but his name will be on the deed. We need to move 20k to either myself or to partner 2. How can we achieve this without taxes, suspicion, etc? We are planning to wait at least several months before applying for a loan/preapproval. Any insight is greatly appreciated.

    submitted by /u/allhailtothethief
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    Get paid as an owner or as an employee?

    Posted: 23 Jul 2020 04:23 AM PDT

    Brother and I own a few investment houses. He handles a lot of the repairs and I handle money/deals/etc. I contribute a lot of my own money to the family funds and don't get paid for my time/efforts. He doesn't contribute money and wants paid for his time but also wants share of cash flow after houses are done. I think he is being short sighted and "double dipping". Am I out of line?

    submitted by /u/muffinman013579
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    How to leverage other people's money?

    Posted: 23 Jul 2020 05:14 PM PDT

    A lot of books talk about using other people's money, but what's the right way to actually do this?

    - What legal structure should you use?

    - What's the minimum capital should be accept?

    - How do you screen investors to make sure they're not hard to work with?

    - What is a reasonable fee for managing real estate? Can it be something like 20% of cashflow and 20% of property appreciation when it is sold?

    - What are things to keep in mind then you are raising money from people? Esp friends and family

    With my income and savings I can do one or two deals a year, but I want to scale more than that.

    submitted by /u/asksulay
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    Insurance cost too high?

    Posted: 23 Jul 2020 05:04 PM PDT

    First time investor. Getting ready to close on my first property. It's a 3 unit building purchase price of $42,900. All brick structure in pretty good condition overall, but lower income area. Was quoted $1,955/year for $362,000 replacement cost on main structure, $30,000 on garage, and 1 mil in liability. Seem high or is this standard? I was expecting closer to $1,000/year.

    submitted by /u/psn-atheist
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    Predictions on buyer’s market?

    Posted: 23 Jul 2020 04:36 PM PDT

    When will the tides turn toward a buyer's market? How long will interest rates be low? I want to buy an investment property, but of course I want to do it as smartly as possible.

    submitted by /u/Silasanton1
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    HELOC

    Posted: 23 Jul 2020 03:54 PM PDT

    Hi - looking into HELOC. Is 3.79 a good rate now? $99 origination fee, $50 annual fee.

    submitted by /u/meowsnick449
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    Liability vs Umbrella?

    Posted: 23 Jul 2020 03:39 PM PDT

    Hello. I own a townhouse that I will soon be renting out. I got a quote for landlord insurance (DP3) that includes $500k of "Personal Liability - Each Occurence."

    Do I also need an umbrella policy/clause? What's the difference between the two (if any)?

    submitted by /u/americasfinestson
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    Looking to Find Bulk Data on houses in a City

    Posted: 23 Jul 2020 03:23 PM PDT

    Hi r/realestateinvesting I'm trying to find some bulk data in a city, for a business plan I'm throwing together. I would like to find out how many backyards are in a city. If there was also a way to generate the list of houses that have a backyard that would also be appreciated. Apologies if this is a rookie question, I'm quite new to this field. Thank you

    submitted by /u/FuelandFire
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    always get the longest loan?

    Posted: 23 Jul 2020 02:33 PM PDT

    Hello,

    Living in San Francisco Bay Area, the mortgages on the homes here are always quite large. As a result, most of my friends and I that own homes are on 30 yr fixed APRs. Reading online, you always hear the pros and cons of shorter mortgages (mainly shorter ones you don't pay as much in interest overall).

    I have a college buddy in LA that's full time business in buying and holding real estate. His family is in construction so he's been buying and flipping or buying and holding. His recommendation is to always go 30 years right now because with interest rates in the 3-4% range, your better off keeping the money in your pocket and investing it elsewhere to get you better than 3-4% returns.

    This has been on my mind because I'm considering refinancing right now and trying to decide if I want to take cash out to put towards another purchase and am thinking if I should change to a 15 or go back again to 30.

    Another question I had: is it bad to refi if only 4 years have passed? I ask because it seems due to amortization, the majority of your payments are going towards interest rather than the principle in the beginning of the term. I'm only 4 years into my original loan.

    Thanks!

    submitted by /u/datousteve
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    Anybody do real estate investing and commercial real estate?

    Posted: 23 Jul 2020 10:44 AM PDT

    See question above. I have a few rental properties, husband wants to branch out and get a small shopping center. To me, the reward doesn't seem worth the extra risk. Anyone done both and can offer words of wisdom or warning?

    submitted by /u/yugeballz
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    Duplex deal analysis - North NJ

    Posted: 23 Jul 2020 10:17 AM PDT

    Thoughts on these numbers for a 2-family in North New Jersey

    Purchase Price: $220,000

    5% down @ 3.2%

    Total Cash + Reno + Closing: $62,000

    PITI: $1,769

    Utilities + CAPEX: $400

    Total Monthly Expense: $2,169

    Income: $3,000

    Net Cash Flow: $831 or $9,972/year

    15.93% ROI

    Income was estimated as is on the lower end and does not include the two garage units on the property. If that monthly income is upped to $3,600 a month you get the following:

    Net Cash Flow: $1,431 or $17,172/year

    27.43% ROI

    submitted by /u/dollhairYOLO
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