Real Estate Investing: Previously friendly plumber now non-responsive after his work caused major water damage in one of our units |
- Previously friendly plumber now non-responsive after his work caused major water damage in one of our units
- Index vs real estate investing
- Tenants refusing purchase inspection due to COVID
- Has anyone ever used a delinquent tax list to purchase property and resell?
- Can my parents write a check to me using their HELOC
- Creating 1% net cashflow with every 100k invested
- Any experience buying land on Craigslist?
- 24 with $83K Cash No Debt What Should I do?
- Transfer deed from parents to me
- Financing question when investing as a group in an LLC
- Alternative to Zillow's Zestimate and Realtor's Estimator?
- Hey Guys. Who has won an auction using HUBZU or Auction.com to create a flip opportunity and make a profit?
- WACC: Determining Risk and Cost of Equity
- Apartment Listing Website for Multiple Sites?
- Does Anyone Know What Reserve Requirements Are?
- Section 8 in small towns?
- Tenant wanting to go month to month
- Cap net or cash on cash cashflow
- Is there a Seasoning Period for Cash Purchases where Refi Lender does NOT ask for Source of Funds?
- 7 million homes face eviction in July...
- Dumpster Question
- Is $305 a lot for a condo fee for a “towndo?” In PG County MD
- SFH w/ non-conforming units?
- First time JV. House hack with Unrelated partner. Looking for some advice on ownership split
| Posted: 06 Jul 2020 12:38 PM PDT My partner and I purchased an up and down duplex in May that has come with its fair share of issues- cockroaches, mold, mice, and animal droppings have all become regular characters in our dealings with this property. We have done significant work on the unit over the last two months, and had plans to owner occupy the upper unit starting this month. Our main limiting factor to move-in was the installation of a stand up shower unit in the bathroom. Every local contractor we called seemed to be booked, and we were getting desperate because our previous lease was about to end and the unit did not have a working shower. Off of a recommendation from a hardware store chain in the area, we found an available plumber (let's call him Joe) , who claimed he had a job fall through for the week and therefore could come and do the shower the following day. We couldn't believe our luck, and based on pictures and experience Joe referenced about previous jobs, as well as the fact that he was on a list of trusted local pros from a national hardware store, we went with him. There were multiple small issues with the install that made us question him (tools breaking and him having to leave to get new ones, forgetting to caulk some of the gaps, not trimming the walls of the shower walls to fit the space), but the project did get completed in about a week. Joe seemed to take an extreme liking to my partner, and actually invited us over to his home for a Fourth of July party (we didn't end up attending). We were able to move into the unit as planned on July 3rd, and took four total showers between then and Sunday afternoon. Our tenants, who were out of town for the holiday, came back Sunday night to find their bathroom lighting fixtures hanging from the ceiling, which was now caving in, their bathroom floor covered in a few inches of water, and water damage to the walls in their unit. Joe, who offers 24 hour emergency service, did not respond to any of our calls or texts. After calling a different emergency plumber last night, he removed the ceiling from the bottom unit, and we found that Joe cut the drainage pipe too short and didn't glue it, and therefore each shower we took in the upper unit over the weekend basically drained right into the lower tenants' ceiling over the bathroom. After calling our insurance company, they basically said that we are responsible for finding the insurance information for Joe. This is an issue as he has totally ghosted us despite multiple attempts to contact. We need to get this figured out as soon as possible for our (very gracious and wonderful) tenants, who are currently living in a ceiling-less bathroom. What are our options here? Is there any way we can find this information without going through Joe directly? Is our insurance company leading us down the wrong path? Can we take any action against this guy? This is our first property, and with everything that has been an issue in the unit, it really does seem like one step forward and two steps back. Any help would be so so appreciated! Thank you in advance!! TLDR: Plumber did poor work that caused damage in one of our units, and our insurance company is telling us that we need to find out his insurance information to get coverage for the damages. Unfortunately, the plumber is not responding to any of our attempts to contact, and we need to get this figured out and repaired ASAP because our tenants currently have a large hole in their bathroom ceiling! [link] [comments] |
| Index vs real estate investing Posted: 06 Jul 2020 03:29 AM PDT Hi, I'm currently doing 45-50% of my income into index funds (combined via a mega backdoor Roth and also my regular 401k), but on a whim I'm wondering if I should be looking into real estate investing instead for better returns or cash flow? I'd only want to do buy and hold (probably at a distance) rather than managing people for flipping, but I frankly don't know much beyond that. Curious your thoughts [link] [comments] |
| Tenants refusing purchase inspection due to COVID Posted: 06 Jul 2020 08:58 PM PDT I'm in contract in Los Angeles to sell a 4-unit. One of the tenants' kids has asthma and they're refusing entry. These tenants have always been difficult and are a major reason I'm selling. Can I force entry? What can I do? [link] [comments] |
| Has anyone ever used a delinquent tax list to purchase property and resell? Posted: 06 Jul 2020 10:59 PM PDT An old friend of mine does this and is showing me the ropes. Haven't heard any risks from him, anyone have any experience doing this? He specifically works with lots over homes, not sure if that's important. [link] [comments] |
| Can my parents write a check to me using their HELOC Posted: 06 Jul 2020 06:50 PM PDT Hi everyone, I couldn't really find an answer to this online. But let's say for example my parents have a $50k HELOC. Is it legal for them to write me a check of $25k using their HELOC? [link] [comments] |
| Creating 1% net cashflow with every 100k invested Posted: 06 Jul 2020 04:24 PM PDT I own two rental properties outright in a HCOL areas (CA). While it's great seeing their value appreciate and the additional income is great every month, I want to purchase properties outside of CA that would cashflow well immediately. I'm considering purchasing properties in cash outright in order to minimize risk as I'm pretty risk averse. Is it reasonable to use 100k invested with 1k net cashflow per month as a metric to judge properties by? If so, where should look? [link] [comments] |
| Any experience buying land on Craigslist? Posted: 06 Jul 2020 06:33 PM PDT Curious to see if anyone's ever purchased land via Craigslist? If not, what online resource(a) did you use? Trying to aquire land for a cabin/vacation home. [link] [comments] |
| 24 with $83K Cash No Debt What Should I do? Posted: 06 Jul 2020 08:46 PM PDT FHA 203K or To No FHA 203K? I am 24 turning this week 25. I have $83K cash. I want to jump balls deep into real estate. However, $80K is not enough to cover the cash spread requirement of my goal. I am about $100K short. The plan: Use an FHA 203K to buy a duplex that is a "value add" type property. I will "add value" to the property by fixing it up etc. I will it for the required term per FHA guidelines then sell it for a profit & repeat as needed to raise the additional $100K. The end result will be myself holding $180K to use towards an FHA to buy a 4 plex using the 6.5% down FHA option for multi-family. I will live in one side rent the other 3 sides would have a 12 month cash reserve blah blah blah you get my point I am in the Seattle, WA area. I'll obviously have to look a little outside my county as everything here is over the top expensive. What are your thoughts or suggestions to raise an extra $100K? Someone suggest to find an experienced real estate partner to start off and throw in what money I have and also join in via sweat equity. Thanks [link] [comments] |
| Transfer deed from parents to me Posted: 06 Jul 2020 12:58 PM PDT My parents have a rental home that they were going to list for sale. I discussed with them and they are willing to "sell" it to me. It needs some rehab. We are planning to do a quit claim deed to take their name off and put mine on the deed. There is a 6 month wait period before I can refinance the home to pay to my parents. We want to avoid real estate agent fees and will only have to pay the lawyer. Currently, house is paid off. I don't want them to have to incur any excise taxes on the sale, can this be done via a gift? The refinance will be under $400k which is what I'll be paying them. Anyone done this before and any advice? [link] [comments] |
| Financing question when investing as a group in an LLC Posted: 06 Jul 2020 08:20 PM PDT My friends and I are trying to get into real estate investing. We want to form an LLC together to start buying properties, since we can't afford to do it on our own yet. We've asked some mortgage companies about financing for the LLC but so far none have had a straight answer for us on whether or not they could do it. Has anyone here done that, and if so how does the financing work and do you have any other advice? Thanks in advance! [link] [comments] |
| Alternative to Zillow's Zestimate and Realtor's Estimator? Posted: 06 Jul 2020 08:00 PM PDT Hi all is there an free or paid alternative service that offers real estate estimates with better accuracy to Zillow's and Realtor's algorithms? These algorithm's don't take into account things like an aging roof vs a new roof or upgraded kitchens, etc. And yet paying $400 for a home's appraisal feels so 19th century. [link] [comments] |
| Posted: 06 Jul 2020 01:32 PM PDT Hey everyone! About to be a first time flipper and finally secured good chunk of money I need to flip. I was wondering how is it winning auctions from bank owned properties? Any pitfalls? How about paying random fees to finally getting the property to flip? Any advice or direction and things to avoid will be a huge help. Just looking to get a deal any where. Some details about me. New to the game. Still making connections and trying to grow my base. Wanting to soak in as much knowledge as possible. Thanks everyone! [link] [comments] |
| WACC: Determining Risk and Cost of Equity Posted: 06 Jul 2020 03:40 PM PDT I'm trying to build a model in which I can "back in" to the intrinsic value of a multifamily property based on the cash flows. I've done some DCF analysis for a company in general, but I have not done so for a multifamily property. For my discount rate, I am using WACC. I've determined the cost and weight of debt but cannot determine the cost of equity. I know when valuing a public company you would use the CAPM, but there is no beta that I can use for the property. With that being said, how would you quantify the "beta"/ risk of the property and subsequently the cost of equity? [link] [comments] |
| Apartment Listing Website for Multiple Sites? Posted: 06 Jul 2020 06:18 PM PDT Hey REI, Now comes the time again to list my apartment in my house. I recall there being a website that helps you post your apartment to multiple sites just by filling out one form but I can't recall the website. I saw it on here months ago but didn't save the post like I thought I did..... Anyone out there know what I'm talking about or have a good website they use to list their units? I was just going to use Craigslist. [link] [comments] |
| Does Anyone Know What Reserve Requirements Are? Posted: 06 Jul 2020 06:04 PM PDT I'm looking to buy a four-plex that I'll live in and then rent out the other units. I'm confused because 2 FHA backed lenders are contradicting eachother. Bank A says Reserve Requirements are 3 months, while Bank B says Reserve Requirements don't need to be 3 months. Who is wrong? I found this from the HUD: https://www.hud.gov/sites/documents/14-02ML.PDF Page 5 " Reserve Requirement All manually underwritten loans must meet or exceed the following minimum reserve requirements: 1 and 2 Unit Properties. Reserves must equal or exceed one total monthly mortgage payment. 3 and 4 Unit Properties. Reserves must equal or exceed three total monthly mortgage payments. " [link] [comments] |
| Posted: 06 Jul 2020 06:00 PM PDT Almost everything I see about Section 8 is based around big cities? Anyone own Section 8 property in a small town? Any trouble renting it out? Quality of tenants? Things to look out for? Approval process work ok? Thanks [link] [comments] |
| Tenant wanting to go month to month Posted: 06 Jul 2020 05:55 PM PDT Hey guys, I'm trying to get more insights into my tenant situation in WA state. I have a great tenant whose lease just expired last month and wants to go month-to-month because his family is looking for a home. Obviously I don't want to do so because of the uncertainty it brings. The tenant has been looking for at least a month now and due to whatever reason they've not had any luck. My PM told me she thinks it's best to sign a shorter term lease that gets us through winter at least and meet the tenant half way. The tenant will either not find anything in their price range and renew again or we'll just find a new tenant in Spring. I've done some research and agree this is probably the best approach but would love to hear what others think. Thanks! [link] [comments] |
| Cap net or cash on cash cashflow Posted: 06 Jul 2020 05:44 PM PDT As far as I know cap net and cash on cash are two different things. Which do you look at more, or do you only use one, when trying to decide if a deal is really a good deal and worth investing? [link] [comments] |
| Is there a Seasoning Period for Cash Purchases where Refi Lender does NOT ask for Source of Funds? Posted: 06 Jul 2020 09:24 AM PDT In February, I purchased a Condo for $72k, dumped $6k into cosmetic improvements, and then went to a bank to get a refi. My father loaned me an unsecured $75k to do the invesment. The condo appraised at $100k, so the lender gave me 75% LTV; however, they required the source of the funds, a loan contract from my father, and a payoff note. It was a lot of back and forth with my father, and then at closing they wired him directly the $75k. I started my refi process with the lender only a few days after purchasing and scheduled the appraisal only days after the cosmetic upgrades. It was a delayed financing cash-out refi. Currently holding as a rental. We are doing something similar again. I purchased two weeks ago a condo for $70k. My father loaned me $50k. My question is, is there a seasoning period after cash purchases where a lender will not ask for the source of the funds? 2 bank statements (60 days)? 6 months? I would have to imagine if I didn't approach a lender for a cash out refi until 2030, they wouldn't require me to show how I purchased a condo in 2020. So what is that cut off limit? Thank you in advance for all your input and responses. [link] [comments] |
| 7 million homes face eviction in July... Posted: 06 Jul 2020 08:31 PM PDT With so many foreclosures coming I'm curious to see what y'all plans are? [link] [comments] |
| Posted: 06 Jul 2020 03:27 AM PDT City ordinance states commercial multifamily complexes must adhere to $20/mo per unit for trash removal, 16 units occupied=$320/mo. The city hires a private company to do trash pick up 1 time per week. Commercial properties that are not multifamily complexes can contract with private company. If I contract with a private company, exact same dumpster size and weekly pick up, it is $80/mo. The city says they also offer removal of yard debris, couches, mattresses, and other things that tenants leave behind or throw out. The city would be making $2880/year off of just me. With that math I could rent a 40 yard dumpster 9 times/yr for the extra things the city so graciously removes. I told the city that I don't want to buy into their dumpster service so they now will not issue me a business license and gave a veiled threat of shutting down the renovations. It sounds like small town extortion. I'm not trying to piss anyone off because I plan to move back to the area in a few years and it is an everyone knows everyone type town but this doesn't seem right. Anyone else ran into similar issues with multifamily complexes? Ideas besides giving in? [link] [comments] |
| Is $305 a lot for a condo fee for a “towndo?” In PG County MD Posted: 06 Jul 2020 08:22 AM PDT So this new development townhouse/condo or "towndo," has a condo fee of $305, townhouse is 351K, 3 bd, 2.5 ba. Is this a lot??? Home is in PG County, MD [link] [comments] |
| Posted: 06 Jul 2020 03:21 AM PDT I'm under-contract and currently doing due diligence on a property that has a main house with 3 units (main house & 2 basement units) and a cottage in the back yard. The entire property shares water/sewer, and the cottage has a separate electric meter while the house is on a single meter. It was built in 1947, and it's zoned SFH. Where can I look to find out if it's legally non-conforming? What do I tell my insurance agent to make sure we're covered for something like this? What are the risks if it is legally non-conforming? It's a recently updated property with a really good opportunity to increase cash flow by charging the tenants utilities. TL;DR: What should I do about non-conforming units? Thanks :) [link] [comments] |
| First time JV. House hack with Unrelated partner. Looking for some advice on ownership split Posted: 06 Jul 2020 02:44 PM PDT Sam is bringing 100% of down-payment money. The mortgage is joint with Joe. Both parties taking 50/50 split of the monthly operating cost. Sam would not qualify or afford the mortgage on this property without the partnership of Joe. Strategy is buy and hold. There will be some forced appreciation from day 1. Repair costs will be an even split. There is a second unit that will generate income - all income will be used to subsidize monthly cost/build equity. One party is at greater risk/$$$ in at close. As time goes on the value of that down payment will be diluted by mortgage payments and ARV. Has anyone been involved in/ have advice for this kind of joint venture? Looking for an equitable solution so Sam's down payment is reflected/protected in the transaction, but also recognises its diminishing importance as equity increases. Exit strategies are: Move on to the next property, leasing out the unit Sam and Joe will occupy; sell if appreciated to a predetermined "strike price." Anticipated minimum hold time is 5 years. Mortgage is 30. Down payment is 5% on a $600k purchase price. [link] [comments] |
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