Real Estate Investing: Just closed on my first project! |
- Just closed on my first project!
- Self employed veteran receiving disability payment - what would you do in my position?
- Keep or sell?
- Should I convert home into rental even if it won’t pay for itself?
- Are Foreclosure Homes Ever A Good Idea?
- Salaried Real Estate Jobs that prepare you for investing.
- Conventional loan on triplex
- The market will crash mid to late next year
- Help negotiating hard cash offer for studio apartment??
- Help me understand the tax implications of debt-financed distributions
- First Time Investor, Can you explain the type of insurance to buy?
- I want to buy my first property as a Duplex. Need some advice!
- house under $3000?
- Adding egress windows – Home Improvement?
- What's the Cheapest Way to Build a House/Cottage for a Vacation Rental?
- Buying a Duplex; but one address. Is this normal?
- Duplex financing advice
- How to search non school districts
- How to decide whether to continue renting out your house, or to sell it? Need advice.
- Is it possible for a Canadian citizen(and resident) to get US commercial loans to buy rental property?
- Advise (Mentorship) Needed on going from an Investor to a Developer. Please Share Your Experience.
- lender referrals in AZ
- FSBO offer with realtor vs. without realtor
- Healthcare Associates Credit Union
| Just closed on my first project! Posted: 24 Jul 2020 06:54 PM PDT Hi everyone I just closed on my first duplex which will hopefully be a smart start to a very prospering investing career. Here's the deal analysis. I used the VA Loan so I put 0% down. Duplex for 172K which appraised for 170K, I asked for closing costs to be in contract. Both sides rent out for 950$ and with taxes and mortgage my monthly payment ends up being 1,259. I'm going to spend my 1st year living in it as is requirement for the VA loan. So both sides for 1900 with a monthly cost of 1,259 with a cash flow of 641$ before vacancy and maintenance. I'm looking for a mentor or someone I can go to for advice as I'm really trying hard to get into this stuff and doing my best as far as reading. I'm 20M currently in the military. [link] [comments] |
| Self employed veteran receiving disability payment - what would you do in my position? Posted: 24 Jul 2020 04:32 PM PDT I receive 1,400 a month for military related disabilities. I also own a small maintenance company working on mostly residential income properties. I generate on average 500 a week from that bringing monthly income to 3-4K month. Monthly expenses are total less than 1,500. No debt and paid off vehicle and work equipment. I live in Colorado springs and my intended budget for a property is 180-240k. What I'm looking on here is some guidance. I have the va loan at my disposal and enough income to get probably 270k loan. What would you do if you were in my position? I feel like I have the opportunity to really use the va loan to my benefit but truly I don't even know where to start! Someone please do me a favor and point me in the right direction. Thank you! [link] [comments] |
| Posted: 24 Jul 2020 10:10 PM PDT We own a townhome in Chicago in a very good neighborhood. We purchased it in 2002 for about $340k and we can sell it now for about $700k. We have only about 20 more months on the mortgage. We've been renting it out for the past 3 years for $3900 and the rent completely covered our mortgage and expenses on it. Because of having to find a new tenant during Covid, we had to lower the rent to $3700, so we are paying about $200 each month out of pocket. At the end of the lease (in about a year) do you recommend we sell, take the profit and pay off our mortgage on our new home or keep it as a rental property, with the expectation that next year we can raise the rent back up to around $3900? I'm not sure what the benefit of keeping it would be versus using the proceeds to become mortgage-free. [link] [comments] |
| Should I convert home into rental even if it won’t pay for itself? Posted: 24 Jul 2020 08:28 AM PDT I'm on a 15 yr mortgage. Total payment including HOA (570) and taxes and insurance is about $4300. It's a 1BR/1Ba condo in DC, with a spot in a parking garage and a separate storage unit. We plan to upgrade to a larger home at some point in the near future and I'm wondering whether it would make sense to rent this place instead of sell it. Rent would likely give me $2600. With my current mortgage, I would need to pay $1700 (not taking into account vacancies, increased taxes/insurance, maintenance, etc). So this option does not appear financially viable. I could refinance at 30 years and get the payment to about $3000-$3200 per month. That way I would only need to pay about $500. At what point would this second option of refinancing at 30 years ever make sense? Obviously my cash flow is negative, but I'd be building equity in the place. Also DC is likely going to continue to appreciate. My main thought here is that if I sold this place then I would lose about 7% in sales fees and costs. Alternatively if I kept it as a rental, I could take out an HELOC and use that as a bigger down payment for a new place. Thanks for your thoughts [link] [comments] |
| Are Foreclosure Homes Ever A Good Idea? Posted: 24 Jul 2020 03:38 PM PDT I live in the GTA and can't afford anything more than $350,000 for a home. Ideally, I want to buy a home big enough to rent part of it out. I hear about finding deals under market value, and wonder if buying a foreclosure listing is a good idea. Has anyone done this? What do I need to watch out for to make sure all it needs is a few thousand in renovations, and not tens of thousands to rebuild? [link] [comments] |
| Salaried Real Estate Jobs that prepare you for investing. Posted: 24 Jul 2020 10:00 AM PDT Hi guys, I hope everyone is doing well. I want to get started in real estate investing but I have no capital. Aside from becoming an agent, what is a good way to earn a salary while getting experience in the RE industry? [link] [comments] |
| Posted: 24 Jul 2020 04:15 PM PDT One loan agent said I have to have a commercial loan for a triplex. Friends have said conventional is fine. I won't be living in the property. What are the loan options? [link] [comments] |
| The market will crash mid to late next year Posted: 24 Jul 2020 02:11 PM PDT The reason im thinking this will happen is because of the covid forbearance and the elections. Theres currently 5 million mortgages in forbearance. During thia period mortgage servicers are still sending monthly payments to the investors who own the mortgage. They are going to want that money back ASAP. The banks will be either willing or can be legislated to add those missed payments to the back of the mortgages, but thats just one part of the payments banks make. Banks in most cases also make the tax payments and insurance payments from the escrow account. If the banks endup paying the taxes and insurance at the end of the year. Theyll have to raise the escrow amount by how much shortage needs to be covered So someone who was paying $1000 a month with $400 going to escrow now has a negative escrow and to makeup for it the bank has to raise their escrow to about 750 to makeup and also add the 3 month cushion that all banks require. Add in the normal rise that comes in with taxes and insurance annually. The $1000 payment is now $1400. Those escrow notices normally go out in February, it takes a few months for the bankruptcies to cycle through, but a lot of people will need to either downsize before their credit takes a beating or just sell and rent. Que buyers market [link] [comments] |
| Help negotiating hard cash offer for studio apartment?? Posted: 24 Jul 2020 04:40 AM PDT The studio is updated, 300sq ft, 42 miles from Boston, in a very safe area, less than 1 miles proximity from several K-12 schools and listed at $100k. (Tax Assessment for $60k) It was on the market for a couple months at $106k but the price just dropped. How much can I negotiate with hard cash? What would your maximum offer be? I'm in no rush to buy a home but would love to own property near my parents, so I have a place to vacation while on the East coast (I'm in LA). My brother will probably occupy it while I'm in LA and pay for the HOA and property taxes (total around $300). I don't want to deal with tenants, especially now with all the unforeseen protections they will be given if things turn worse. [link] [comments] |
| Help me understand the tax implications of debt-financed distributions Posted: 24 Jul 2020 02:19 PM PDT My understanding of real estate partnerships is that the partnership can do a debt-financed distribution which is tax free to the partners as long as the proceeds are re-invested in a passive investment. How does this work in practice? Is there a time frame the re-investment needs to happen? Is there any recapture of this deduction? [link] [comments] |
| First Time Investor, Can you explain the type of insurance to buy? Posted: 24 Jul 2020 11:58 PM PDT What type of property insurance do you have? What does it cover? Why did you get those coverages? How often do you submit a claim? What has been you experience with the insurance company for getting a payout? What was it for? Does insurance premium vary depending on property type? [link] [comments] |
| I want to buy my first property as a Duplex. Need some advice! Posted: 24 Jul 2020 09:41 PM PDT So, I am living frugally and trying to buy a duplex by end of 2021. I want a duplex so I can rent out the other portion and live practically for free in my other unit. To me this seems very amazing, and almost sounds to good to be true. Is there any other things i should worry about? I am self employed so my income goes up and down, and I am worried if i loose a tenant I would have to cover all the mortgage my self and not knowing how much money im making it could be risky. This is the only risk i see when owning a duplex. On the flip side I also see this as a safe investment because If i loose my business and something goes wrong, the other tenant will still be there paying rent and covering the mortgage. Is this delusional to think this way? Is it that simple? Is there any other risk factors i should look at? My goal is to cut down my living expenses by living in this duplex so i can save a lot more money for my self, and grow equity in my first property Would love the advice, thank you! [link] [comments] |
| Posted: 25 Jul 2020 12:21 AM PDT Hi. I'm currently saving money to buy a rental house. I was checking what houses were sold on trulia, when I put show price low to high, it shows me a couple of houses sold for only few thousands. It's impossible in LA. What are these? https://www.trulia.com/p/ca/san-fernando/724-harps-st-san-fernando-ca-91340--2078483098 https://www.trulia.com/p/ca/glendale/2131-rimcrest-dr-glendale-ca-91207--2078292968 and what are the best way to buy house cheap? Is it auction? foreclosure? and how do you find them? [link] [comments] |
| Adding egress windows – Home Improvement? Posted: 24 Jul 2020 08:04 PM PDT Hello, I'm currently in the process of buying a cash flowing single-family home. The basement is finished and has both a bedroom and a finished bathroom. The appraisal did not recognize the bathroom and counted the bedroom as a den. Would adding egress windows (roughly $4,000) allow the bedroom to be counted and are we talking about a substantial home improvement here? Also, why would the finished basement bathroom be completely excluded from the report? (this is a walkout basement FYI) The appraisal was hired by my bank, can I reach out to them and ask questions, or is that a "no-no"? Thanks in advance [link] [comments] |
| What's the Cheapest Way to Build a House/Cottage for a Vacation Rental? Posted: 24 Jul 2020 07:56 PM PDT I'm looking at purchasing a plot of land on the ocean and I want to build a house on it to rent out. But I'm having trouble finding anything to make the numbers work. Needless to say, I was shocked to see mobile homes are north of 200k now. And pre fabricated homes aren't much better. Does anyone know what the best affordable options for building a house are for a vacation property? The area is pretty rugged with lots of hikers and whale watching, so it's doesn't have to be too nice of a dwelling. Any thoughts would be appreciated. [link] [comments] |
| Buying a Duplex; but one address. Is this normal? Posted: 24 Jul 2020 07:34 PM PDT Hi, I'm buying my first duplex and I'm buying it as one address. However, after some digging was able to discover there are two addresses. I don't know if I can use both addresses for post office or not; I assume I can. However none of the paperwork lists two addresses (contract, appraisal, loan, etc) and I'm curious if this is normal or will it be a source of problems if I don't try to get both addresses listed? [link] [comments] |
| Posted: 24 Jul 2020 07:33 PM PDT Super excited that my offer was accepted on a duplex! I'm a first time home buyer and I've been trying to research and educate myself as much as possible, but because of having to meet the deadline for finding a lender within five days of my accepted offer, I feel very overwhelmed. Offer was accepted for 136k. The duplex I'm buying shares a backyard with another duplex right next to it, which the seller of this property also owns. The seller is open to the idea of selling it to me later on. My goal was to move into this property as an owner occupant and live there for at least one year. I plan to feel out how I like being a landlord with my one tenant and hopefully purchase the other duplex next door, move to that property, and get another mortgage as owner occupant and rent out the unit I would be leaving. I have gotten quotes from three lenders so far but am heavily considering these two. The first was recommended by my realtor and I've heard that it's a big no no to go to who they recommend. I have 80k in savings, so I'm comfortable with a 20-25% down payment. (I do not have hard numbers on monthly payments just yet) Lender 1: 20% down. 3.375% interest rate. Est. $822/month Lender 1 option #2: 10% down. 2.875% interest rate. Est. $880/month This comes with PMI, but it's low. Estimated to be $25-35/month. The PMI goes away once 78% of equity is reached. My thinking is that with a lower down payment, I will have more liquid money to invest in my next rental property which would hopefully be the duplex next door. That comes with a higher monthly payment, but a lower interest rate. Also significantly reduces cash flow. The lender told me that I can write off the property taxes and probably the PMI as well. The lender seems to think the extra money on the monthly payments would benefit me because "the key is to claim as little income as possible on the rentals." Not entirely sure how the taxes work, but I do know that it's pretty easy to deduct my expenses from the gross income from the rentals. Lender 2: 25% down. 3.125% interest rate. Est. $778/month I'm leaning toward this option. It would make my monthly payments the cheapest, but it would leave me with less cash. I'm hoping that won't be a huge deal considering the tenant would be covering the mortgage almost entirely in what they pay for rent, allowing me to save up for that next rental purchase. I was curious to see what your opinions were and what you would do if you were in my shoes. Any advice is appreciated! [link] [comments] |
| How to search non school districts Posted: 24 Jul 2020 07:21 PM PDT How to search non school districts that are best places to live in any State? When kids are grown up and school district is not a requirement anymore then how to invest without paying addl taxes for school funds etc. [link] [comments] |
| How to decide whether to continue renting out your house, or to sell it? Need advice. Posted: 24 Jul 2020 08:03 AM PDT Long story short, I bought a house I later regretted due to a relationship breaking up (beautiful house, but too many compromises and it's far away from family). So I decided to move into my grandfather's house, and started renting out my house, using a property manager, as a way to cope with the financial loss. (If anybody has a better method of mitigating a regrettable home purchase, let me know). I initially liked this as a long term arrangement. My net income is about $1450, while my mortgage payment, PMI and escrow is $1800. Seems like a loss, but I "gain" about $450 in equity every mortgage payment (and continues to rise), so I figured I'm still up. However, taking into consideration about 1% of my home worth as annual maintenance costs ($330 per mo.), I'm losing money again. ($1800 + $330) < ($1450 + $450) My options are to continue renting it out and ignore the loss for now, or sell it when the current lease is up and buy another home (eventually, don't need to move out any time soon). If I keep it, I'll probably want to find a cheaper PM. However, is there any value in keeping the home, and eventually paying it off, that I'm not considering? Thank you for any advice you have :) TLDR; How do you make a determination to sell your property versus continuing to rent it out? [link] [comments] |
| Posted: 24 Jul 2020 09:44 AM PDT I've never had a commercial loan, much less an American one. My understanding of commercial loans is that the building qualifies the mortgage, and not the person, so it should be possible for me. But I also don't live in the US. Does anyone have experience with this? Would would be the best way for me to buy rental properties in the US, as a Canadian? [link] [comments] |
| Advise (Mentorship) Needed on going from an Investor to a Developer. Please Share Your Experience. Posted: 24 Jul 2020 03:38 PM PDT Hello, In the past couple of years, I have successfully procured a few Multi Family Properties. (None of these properties required any construction or renovations) My Real Estate Investment goal is to eventually be a full time Developer; and to get there, I would assume experience in Flipping will be the best teacher. For those of you who have experience in Developing:
For your information, my investments are located in California and would like to Develop projects in California. Thank you very much for your answers. It definitely helps. [link] [comments] |
| Posted: 24 Jul 2020 03:20 PM PDT Anyone have any recommendations/referrals? I have a rental I want to cash out refi (~100k on new loan), but property won't conform to fannie/freddie guidelines (condo where developer still controls HOA & owns > 25% of units). I've tried a few of the local CUs and other lenders as well, but they all offer products they plan to sell to fannie/freddie, so they won't touch it. 1 said they *might* be able to, but they won't actually confirm that it's not dealbreaker until after I pay appraisal, and also want 4 points. Any suggestions appreciated. Thanks! [link] [comments] |
| FSBO offer with realtor vs. without realtor Posted: 24 Jul 2020 10:11 AM PDT Hi all, I'm in a bit of a predicament. Went to a FSBO open house a few weeks ago and offered to forgo a realtor on my end in exchange for a slightly reduced price. Nothing official, just talking #'s with the seller. Seller got back initially and then went radio silent even after multiple attempts on my end to get an update. After a few days I figured they had went in another direction. In the meantime I decided to get a realtor (didn't sign any paperwork yet with them) and have a few showings set up for this weekend. Today the original seller got back and asked for a few $K extra. I'd still like to see the other house with my realtor. My question is if I do still want to proceed on the original house do I have my realtor submit an offer or tell my realtor about the original offer? TIA [link] [comments] |
| Healthcare Associates Credit Union Posted: 24 Jul 2020 01:44 PM PDT Anyone have any experience through them? Relatively easy to work with? I have access to this credit union due to my current job and they seem to have some great rates and I've heard good things about credit unions. [link] [comments] |
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