Real Estate Investing: My wife tells me this is a terrible idea, but the numbers look right |
- My wife tells me this is a terrible idea, but the numbers look right
- How as COVID affected your local real estate market?
- Owning Rental Property just to help pay for primary residence a good idea?
- How can I offer value to a potential mentor?
- New Jersey investing
- Newbie!
- My boyfriend is persistent on building a house to invest. But I feel like it will be a failure.
- How Do You Deal With Potential Nightmare Tenants?
- Debating Selling vs Renting out my house
- Advice for first time real estate investor?
- Unresponsive property manager, should I be worried?
- Finding Foreclosures
- Should I put money for a downpayment into a savings account or invest into a brokerage account instead?
- Please help me understand how to use equity.
- Advice on Inherited Tenants
- learning about portfolio management?
- Analyzing a Rental Property
- Rehab portion of BRRRR
- IS this a deal for Wholesaling?
- Simple overview of investing?
- Rental Property in mind - Tenant is running a day care? Florida
- Strategy for first time cash buyer
- Whats the 2nd best financing (leverage)?
- CA moratorium question.
| My wife tells me this is a terrible idea, but the numbers look right Posted: 15 Jul 2020 11:41 AM PDT Newly constructed Townhome, that I am looking as an investment property to be leased out, is in a growing part of DFW. Local real estate is hot, so there is always the risk of buying at peak, but I see a lot of retail and office space being created, so post covid, I see huge potential. Looking at the numbers, townhouse is ~$430k, 25% down and with a 8% vacancy, all costs included would be $2600. Current rent estimate for comparable new leased apartment is $3500, so I am expecting at least $3200 in rent. Here is the calculation. It's barely cash flow positive for the year at ~$2k, but I have factored in all possible expenses. Wife is worried that a) I am buying at the peak, b) rents wont necessarily increase over time if there is a downturn, so my barely cash flow positive property will turn negative, not to mention drop in property prices. Would like to know your thoughts. I think I may be experiencing the "fear of missing out" syndrome, so would love to get some unbiased feedback. Edit: Forgot to add. Charles Schwab, a Fortune 500 company, moved its SF HQ and has set up shop 1/2 mile away. Other employers in the area are Fidelity and TD Ameritrade. [link] [comments] |
| How as COVID affected your local real estate market? Posted: 15 Jul 2020 10:42 PM PDT What effects have you seen thus and what do you predict will happen? [link] [comments] |
| Owning Rental Property just to help pay for primary residence a good idea? Posted: 15 Jul 2020 09:12 PM PDT I bought a dublex last year as my first house. My mortgage is going to be $1550 after refinancing and my tenant pays me $1300 and the floor I lice in could rent for about $1100-$1200. I live in a 3 bedroom apartment for about $300 "Rent". I'm about to have a baby so I have no problem living here for the next 5 years or so but I really want to buy a primary residence and have no desire in buying another rental. I just did this to be able to house hack and save money as a 23 year old starting out his life. My fiance and I talked about it and we decided it would be a good idea to keep this property and use the income to help pay for our primary residence so we can continue to live below our means but still afford a nice house. This could also be our kids first place when they decide to move out. I know this might be against this alot of what this subreddit is about but Im just curious what you guys think of that idea. [link] [comments] |
| How can I offer value to a potential mentor? Posted: 15 Jul 2020 02:58 PM PDT As someone with no real estate experience and minimal construction experience, what could I offer a more experienced investor to develop a relationship. I'm willing to work hard and for cheap/free in exchange for their knowledge but I'm not sure what I could bring to the table. Any ideas? Thanks in advance! [link] [comments] |
| Posted: 15 Jul 2020 11:50 PM PDT I've seen a lot of posts claiming New Jersey is a terrible market to be a landlord and not to buy as it's a tenant friendly state Where can I find information on why people say this? I love NJ and have a few properties I'm looking at but I'm a new investor and scared I'll make a mistake buying here Any tips? [link] [comments] |
| Posted: 15 Jul 2020 10:09 PM PDT I am 19 years old, I have been researching and learning about wholesaling Real estate the past couple weeks. I love the idea, this seems achievable.. a way to get my foot in real-estate..but is this a good market to get into? .. I see you can get contracts online with assignee options, but what about local laws, people say you need to have an attorney check your contract?..$$ Im in south west Virginia.. not many nice areas to flip, I read most wholesale deals are done in middle class neighborhoods. Is it possible to wholesale in say a small old timey town around here, i feel like it could be pretty niched,.. fewer buyers? .. fewer investors..? Idk. Maybe the lower priced homes dont scare me away as much (median here 70,000) Honestly i just want to learn more; propper wording with the seller. Actions. Ive been a pitch-man for a few years so im comfortable in sales. I travel all over selling products but theres not much money in this right now.. [link] [comments] |
| My boyfriend is persistent on building a house to invest. But I feel like it will be a failure. Posted: 16 Jul 2020 01:39 AM PDT We are in South Eastern parts of Melbourne. We have saved enough to get a loan for a house. He wants to build a house that will cost 600,000 650,000 in Officer on a block of land 430 square meter. We plan to live there for a few years and sell it when the price is good. His arguments are : Officer is fast growing and so the houses will be worth more. 4 bed room + a theatre room house is going for $750,000 in the market Building is more profitable (high chances we can claim $25k from government according to their new house builder scheme) But to me paying $330,000 for 430 Square meter of land in a slowly developing land is too much. Its further away from CBD as well. And it cost $600-650 k just to build the house! There is always a chance there will be extra unexpected costs that will throw us over the budget. My boyfriend has already build in an area where he claimed so many times that will bring him 100k profit. He built it himself with the help of his friends building company. After a year of hard work, he lost 4 grand on that house. He claimed that the market crashed just when he was selling. I suggested buying in Hampton park or Narree Warren south for a 4 bed room house. It is going for 550,000 for 600 to 700 square meters. We can renovate it and live there. The house value will steadily go up and renovation will give it a boost. To me that is a safer plan. We just have totally different views. I have this gut feeling his plan will lose us money. I am even thinking about breaking up if the house fail again and I lose my money for his decision. Let me know what u think. And if you don't know, tell me who I can approach to talk about this. I want experts opinions before I go ahead. [link] [comments] |
| How Do You Deal With Potential Nightmare Tenants? Posted: 16 Jul 2020 12:04 AM PDT My SO and I have a property that's a 4B3BA SFH in SoCal. It's currently too big for the two of us and we want to live around there. I've been thinking of building an extension/standalone ADU studio in the backyard for the two of us to live in while we rent out the main house (currently being rented out). The thought is we'd live there until we start a family and move into the larger house, while renting the studio. What are some things I should be thinking about? My family keeps mentioning how SoCal heavily favors tenants and even if they break lease, you can't legally kick them out until they get served. How do you guys deal with these tenants and avoid any court or legal time? Thanks in advance! [link] [comments] |
| Debating Selling vs Renting out my house Posted: 15 Jul 2020 08:18 AM PDT Hey Everyone. I will try to keep this as simple as possible. About 8 years ago my sister in law passed away leaving behind 3 children. My Mother in law took the two oldest kids, and my wife and I took in the youngest. Our house was too small and on the other side of town so, my mother in law purchased a larger home in her neighborhood for us to live in and make the very affordable mortgage payments. The home is still in her name, but she would like us to take over the home. My wife and I would like to relocate to another state. We are considering selling the house and also considering renting it out for extra income. If we sell.... technically it's a second "investment" property owned by my mother in law, so capital gains will be paid from the proceeds, and the remainder will be gifted to us. We bought the home for 143k and put down 40k cash. The house would sell for 320-340k and the mortgage balance is 86k. Selling would leave us with about 200k to put towards our new home out of state. The other option would be to buy the home from my mother in law for the 86k balance and rent it out for about 2500 per month. A 15 year mortgage + escrow payment would be about 1200 per month. The positive cash flow will be needed 100% to put towards our rent/mortgage in the new state. If we sell, we would be buying a 330k house with about 200k down. If we rent out our house, we will most likely rent a home for 1-2 years in another state before attempting to use the equity to buy a second home. To make this complicated...I don't make bad money, but there is not much extra after supporting my wife and 5 kids. It will be very hard financially for a while. The house is in pretty fair shape with roof being 2 years old and AC at 5 years old. Is it worth the trouble and risk? If we can keep the house rented out, and low maintenance....our out of pocket cost will be about the same either way.....but 5-10 years from now it should be a different story. [link] [comments] |
| Advice for first time real estate investor? Posted: 15 Jul 2020 05:23 PM PDT I'm building an ADU in the back of my lot to rent and wondering if there is any good advice for a first time real estate investor like myself? I'm hoping to gradually expand into other properties including leasing out my own home over the next few years. Any advice to successfully grow my portfolio in a hot market like LA? Any watch outs? Some of the other questions I'm still trying to figure out: 1. When is it worth hiring a property manager? 2. Should I create an LLC now or wait until I have more properties? As a newbie, any advice would be much appreciated! [link] [comments] |
| Unresponsive property manager, should I be worried? Posted: 15 Jul 2020 08:43 PM PDT So I am selling a rental and thr buyer inspection is tomrrow. Last Friday I was made aware of a break in to the unit. My PM said a contractor would be out Monday and Tuesday to get quote and do work. It is wednesday night and I have not heard if the work has been done or received a quote. I left numerous teXT and calls. Should I be concerned? Am I bothering the PM. P.S the PM is also my seller agent, she has been very good thus far. [link] [comments] |
| Posted: 15 Jul 2020 08:29 PM PDT I know there are foreclosure sites out there but which ones have yall found to be the best? Also, is it worth subscribing to any of these sites? Inhave found a handful but i just dont know if it would be worth it. Any advice helps! [link] [comments] |
| Posted: 15 Jul 2020 08:08 PM PDT Hello, I'm a 16 year old interested in pursuing real estate in the future and I'd like to know if its generally better to save up for a down payment in a savings account or if it could be beneficial to invest within a brokerage account instead. From my understanding, you can take money out of a brokerage at any age without any penalties, so couldn't you hypothetically just invest into something safe (like index funds for instance) within the brokerage account from 18 years old and take it out at a few years later, all while getting a much higher return than you would in a savings account? All this time (so over the past 2-ish months, since that's when I started getting serious with personal finance education) I've just assumed a savings account is where you'd put money for a purchase such as a down payment, but I just randomly had this question pop up so I came here for an answer. Any replies are much appreciated! :D [link] [comments] |
| Please help me understand how to use equity. Posted: 15 Jul 2020 08:52 AM PDT I have a large amount of equity in my primary residence. I would like to invest in vacation home that I would ABnB when I'm not using it. The equity is about 2 times more than the cost of the vacation home. What is the best way to go about using the equity? Thanks in advance for the help! [link] [comments] |
| Posted: 15 Jul 2020 07:25 PM PDT I haven't inherited a renter before. So this is rather new territory for me. Renter without a written lease. Long term renter (~10 years) who has obviously taken care of property per my viewing and inspection. Seller has showing of 2 years on time paid rent, including for July 2020. I should treat this as a brand new renter right? Application, credit check, security deposit, etc? [link] [comments] |
| learning about portfolio management? Posted: 15 Jul 2020 07:21 PM PDT Is there someone to hire that does this? Is it a critical skill to learn? For example I am thinking about how to use a process to determine how long to hold, to flip or hold, and most importantly learning how to not overleveraged. Basically how to keep things stable for the long term. Is this just instinct, or are there certain rules and a portfolio manager that does these calculations? [link] [comments] |
| Posted: 15 Jul 2020 06:49 PM PDT First let me say i appreciate all of the knowledge you guys put in here its great for beginners like me to learn from. With that being said, im pretty new to real estate investing and ive been looking around my college area and based on what i know, i see potential in a sfh. So im looking for what my next steps should be in order for me to get deeper and get a good look at the numbers. [link] [comments] |
| Posted: 15 Jul 2020 12:29 PM PDT Do most people do the rehab work themselves? If not (because I'm not handy at all), how do people find qualified contractors, especially for if out of state? [link] [comments] |
| IS this a deal for Wholesaling? Posted: 15 Jul 2020 06:16 PM PDT hey folks. looking for some advice. I got a call from a woman responding to one of my buy cash craigslist ads She has a house here in Ny that she has up on Zillow for 338 days now for 1.1 mill She wants to see if i can purchase it. from the photos ive see, there is very little that needs to be done other then possibly the roof. house is 3800sqft, i will go by and see it later tomorrow. Is there an angle here i should try to hit with her or is this not a deal? Im wondering if i can make her take off a few hundred k to make it a deal since she is just trying to get rid of it. What do you guys think? [link] [comments] |
| Posted: 15 Jul 2020 10:32 AM PDT Many people will start by holding and/or flipping low priced houses <$100k or <$150k, foreclosed houses, section 8, ect. Repeat. Get cash flow from your houses to reinvest in more houses(making sure to not over leverage). Then end up buying the same or more expensive cash flowing real estate and small businesses? Is this generally what happens? and what does it look like in terms of how long it takes to break even on a property? Thanks for the assist! [link] [comments] |
| Rental Property in mind - Tenant is running a day care? Florida Posted: 15 Jul 2020 05:57 PM PDT Currently in the works to buy a rental property in FL. House was rented out a few months ago so it will not be delivered vacant, which is not an issue but is something I preferred. After having my realtor check the place out (mind you this is out of state for me) they noticed they had about 10 kids there and an adult. Once my realtor asked the listing agent why that was the case, they mentioned the tenant is running a day care out of the house. Now it isn't a major issue per se, but it is worrisome and not the norm. Does anyone have experience or knowledge with this? Any legal issues? Past horror stories? Can anyone update me with the eviction status in Florida? Can I evict if need be? Thanks! [link] [comments] |
| Strategy for first time cash buyer Posted: 15 Jul 2020 01:57 PM PDT Currently have one rental property and looking to acquire a second. Have set aside enough cash to buy a home without financing. Looking for SFH in $2-300k range in college rental market. Not having purchased a home in all cash before I was curious to hear thoughts and experiences in others. Is there a general rule of thumb on what you might expect to save, say maybe 10%? I have already found a lender that would refi at 80% of appraisal, so likely I would pay cash if it could yield a price savings and then refi further down the road. Is the process significantly different? [link] [comments] |
| Whats the 2nd best financing (leverage)? Posted: 15 Jul 2020 11:05 AM PDT Due to a change in job status I find I no longer qualify for conventional (Fannie/Freddie) financing. It's been a real buzzkill, especially with rates being low. Nixed a refi I had on my primary (3.99 still) and one of my rentals (5.25). So the question is what's my second best option? I currently have one under contract that I'll be using commercial financing: 4.5%, 20 (maybe 25) amort, 5/5 arm. This deal was planned for traditional, but due to job status, here we are. Terms really kill the cashflow. Is there anything better out there? Here's a few I've looked at: I received a quote on private money, 4% origination and 12% interest. I found this laughable. I reached out to Visio (rental lender) and rate was 7%. Suggestions? [link] [comments] |
| Posted: 15 Jul 2020 12:55 PM PDT Hey Everyone, I have a tenant-occupied rental property in San Diego, CA. The lease is set to expire, on August 1st, 2020. I am not renewing the lease because I am selling the property. I gave the tenants a written 60 day notice that I am not renewing the lease, and they gave me a written acceptance of the notice. The wording around our local Corona Virus moratorium seems to be strictly concerned with evictions, and thus it seems that an accepted vacancy notice should be fine. I figured I would ask here while waiting to hear back from my lawyer to see if anyone knows if this is true. Our end goal is to have the tenants out of the property by August 1st, 2020 (When the lease is up). They have been having a hard time finding another place (supposedly), and I am worried that they could use the moratorium to stay rent free after the lease ends. They could theoretically do this considering the eviction process is non-existent according to the sheriffs office. Maybe worse case scenario we do cash for keys, and or assist them in finding another place? Thank you for any input. [link] [comments] |
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