Real Estate Investing: Property has appreciated so much that the 1% rule no longer holds. |
- Property has appreciated so much that the 1% rule no longer holds.
- Investing abroad vs local real estate?
- Is house hacking viable with no income as a student?
- New custom duplex won’t meet the 1% rule. Thoughts?
- New, how do I learn?
- What's the deal with all the cheap empty lots in Florida? Mostly in undeveloped neighborhoods.
- Rental Demand During COVID?
- I have never invested, have 40K saved up and am wondering how to get started.
- I'm reading about Zillow's Hove Value Index Methodology and I don't understand this passage
- Any special considerations buying from SFH rental company (Starwood Waypoint)?
- Things to look out for on a smaller Multifamily unit?
- To invest in beach lots in this pandemic?
- A new re business idea?
- Does anyone know a good property manager in Austin TX
- Live in commercial building.. thoughts?
- Selling a house
- ROI criteria?
- Interested in a multi family
- How do off-market deals work?
- Do you generally pay more for insurance for vacant properties or properties with tenants?
- Opportunity Zone Investing
- Tax question from a newbie: small investor with one property, not placed into an LLC or anything
- Evaluation of sale vs rent while taking into account capital gains tax
| Property has appreciated so much that the 1% rule no longer holds. Posted: 05 Jul 2020 12:47 PM PDT I currently own two SFH which I generally targeted the 1% rule (1% of purchase price monthly rent) when I bought them. We currently live in a one bedroom condo that my wife purchased for $150k a few years ago. We plan to move into a SFH soon, but it got me thinking. I can rent this for probably ~$1600/month which hits the 1% rule, however the property is now worth ~$210k. This would not meet my usual 1% rule of thumb if I were to currently buy this property. Factor in the annoyance of rental restrictions in a condo building with an HOA, and i'm strongly leaning sell and reinvest the cash in something that would meet the usual criteria. Does this logic make sense? It's slightly different since i'm at a decision point with us moving out, but i'm curious what the seasoned investors do when their properties have appreciated so much their original criteria doesn't hold (obviously a great problem to have). Do you have some set amount of appreciation where you plan to sell it? Do you hold until you see a good investment to put that cash towards? [link] [comments] |
| Investing abroad vs local real estate? Posted: 05 Jul 2020 09:29 PM PDT I'm a Canadian from Montreal. I do not quite like the market here, it's too over-priced. With today's tech and services at our disposal (like I've learned there are vast Chinese investors here who have never even visited their properties) it is pretty easy and doable to just buy into a property someplace else to get a better return on the investment. Is it really that simple? The options here are slim. It's all condos which are too saturated. [link] [comments] |
| Is house hacking viable with no income as a student? Posted: 05 Jul 2020 09:51 AM PDT I'm going to college next year, and I was looking at house hacking as a viable early investment plan for myself. I have ~80k in cs:go skins I can cash out to around ~72-75k USD, as well as $20k saved up. My parents are willing to cosign, and I flip high-value domains for a good profit although it is not consistent income. Here's the problem. I will be going to college in cambridge, ma, and I want to buy a location near my college, but the options are extremely expensive. I want to take the risk and invest now rather than later, but I'm not sure if I'm being naive. Opinions? Thank you. [link] [comments] |
| New custom duplex won’t meet the 1% rule. Thoughts? Posted: 05 Jul 2020 11:31 PM PDT A builder I have discussed a few deals with approached me with a project. I couldn't make a new construction deal work so he is going to fund the construction of a new duplex that I design (I pick the floor plans/all cabinet/countertops/floors/fixtures/etc), and then when it's done I will take an FHA loan out and live in one side of the duplex. Rent the other. Cost of duplex will be $185-$195k including the lot (there is also room for one more duplex in the future). Rent for both sides combined will be $1700 when I'm not living there. Rental properties are in very high demand due to the town growing like crazy. Also a college town. I've read what seems like a million articles and probably 15-17 books on real estate. Am I being too optimistic and ignoring the 1% rule for this deal? [link] [comments] |
| Posted: 06 Jul 2020 12:06 AM PDT Are there any resources for self-study? My vague current model is Rich Dad Cashflow Game which I played with my parents years ago, but where do I go from here? I just bought on amazon "How to Invest in Real Estate" from BiggerPockets. I'm currently investing about 50% of my income into index funds via a mega backdoor Roth, but am curious if real estate investing might be for me. [link] [comments] |
| What's the deal with all the cheap empty lots in Florida? Mostly in undeveloped neighborhoods. Posted: 05 Jul 2020 02:55 PM PDT I've been looking to empty lots to invest in. I've seen a ton of cheap lots in California, especially around California City, where it looks like they have entire subdivisions that have been undeveloped for well over 20+ years, out in the middle of the desert, and all the lots are literally dirt cheap, which makes sense because the land is useless and nobody wants to live their. But I see the same thing in Florida cheap empty lots in undeveloped subdivisions mostly on the Gulf and central part of Florida. They seem like they would be good, an acre lot an hour away from Orlando for under 6k, but something is off, the whole neighborhood is undeveloped, and I feel like their is something they're not saying. Are they all in flood plains or something? or the need for more houses hasn't grown enough yet? (that would make it a good investment) Where is the best place to invest in cheap vacant lots? I feel like there is a catch to everything and all the agents are hiding something. [link] [comments] |
| Posted: 05 Jul 2020 05:52 PM PDT As a lurker and aspiring investor I was just curious if you guys have seen a slow down in rental demand during quarantine etc... [link] [comments] |
| I have never invested, have 40K saved up and am wondering how to get started. Posted: 06 Jul 2020 03:15 AM PDT Hi, I have never owned real estate and am looking for steady cashflow. I am wondering what the most stable real estate is(family homes?)(I don't want to get burnt with real estate), how I find good real estate(any books?), Do you find yourself spending a lot of time maintaining your real estate, or can I just hand it off to a property manager? What a good general approach might be? Thanks [link] [comments] |
| I'm reading about Zillow's Hove Value Index Methodology and I don't understand this passage Posted: 05 Jul 2020 10:41 AM PDT Historical appreciation is based on the housing stock that actually existed at that timePreviously, the ZHVI was calculated over a fixed basket of homes over its entire history to ensure that the median comparison across periods had a value appreciation interpretation. Had it not been calculated across this fixed set of homes, differences in the median could have reflected differences in the composition of the housing stock — such as the opening of a large subdivision of higher-end homes — rather than more comprehensive appreciation driven by market forces. But under the older method, appreciation was always taken over this fixed set of homes, regardless of whether they existed at that point in time or not (new construction and demolitions were ignored). To better reflect the appreciation of both the historical and current housing stock composition, the new methodology resizes the housing stock annually based on what actually exists. This makes it a more accurate current and historical measure of home value appreciation, especially in smaller regions that may have grown a lot and in which the housing stock has changed considerably over the years. Source https://www.zillow.com/research/zhvi-methodology-2019-highlights-26221/ Are they saying that under the old methodology they only used a certain amount of homes as data points in a given market, when they were calculating historical appreciation? Even if those homes at some recent point were demolished, but before they "refreshed" their data to take into account demolitions? [link] [comments] |
| Any special considerations buying from SFH rental company (Starwood Waypoint)? Posted: 05 Jul 2020 10:04 PM PDT Any body have experience or advice on buying a SFH rental from a SFH rental company? I'm looking to close one that was originally purchased and renovated by Colony American Homes in 2013 which has since merged with Starwood Waypoint. Its in a solid B+ neighborhood and it looks great as a rental on paper (16 cap), but I'm concerned because if it were a great rental, surely the company would hang on to it? Does any body have insight on any they might sell or have advice on any obvious red flags to look out for? Cheers [link] [comments] |
| Things to look out for on a smaller Multifamily unit? Posted: 05 Jul 2020 07:39 AM PDT Looking at buying a 5-10 unit property in Westbury CT for $330-375k (10% cap). This would be my first one. What should I look out for? [link] [comments] |
| To invest in beach lots in this pandemic? Posted: 05 Jul 2020 08:53 PM PDT Planning to buy a beach lot and put up small nipa-like villas I was thinking of putting in AirBnB. You think this is still a worthwhile investment despite of current situation? [link] [comments] |
| Posted: 05 Jul 2020 08:10 AM PDT Recently my family bought an RV. We live in Phoenix, Arizona which is full of communities, including ours, that have HOAs that do not let you park your RVs in your yard. I've been trying to find a solution to this for most the summer. I've called several storage facilities and rental rates are $130-$300 a month depending on coverage and space size. But I hate just throwing money out the door, so I've been looking at available lots in the area I could just buy and store my RV on myself. That way I get skin in the Real Estate game instead of rental income...but I dont need a whole lot and can't really afford $500-$1000 a month extra right now. So then this morning I was thinking, what if I buy a lot and split it into smaller lots for rv storage and then sell the lots to other people? The rv storage community can be governed by CC&Rs to ensure it remains just storage and then people can convey the properties when they sell their Rvs or keep them for their next RV. This way the lot is yours and you everyone can get the value of their rental money invested into property instead of just giving it away. I was also wondering if doing this would allow the use of residential land instead of commercial. I know I'd be interested in something like this right now if it existed, so wondering what others thoughts were here? Something to this or just me thinking crazy? [link] [comments] |
| Does anyone know a good property manager in Austin TX Posted: 05 Jul 2020 02:33 PM PDT I had bad experience with my current property manager. [link] [comments] |
| Live in commercial building.. thoughts? Posted: 05 Jul 2020 04:24 PM PDT Curious to get some opinions, see some discussion on this idea/strategy. "House hacking" is generally recommended as a form of building wealth, typically 1-4 real estate, or even renting rooms. I'm curious why I don't hear/see much on doing a similar thing but with a business. I know a few business owners who lease a store front that has what is effectively a studio apartment upstairs or in the back. Provided the apartment and the commercial space have no access to one another, this seems like it could be desirable as (to my knowledge) businesses are longer term tenants than typical residential tenants that are also more likely to care about the upkeep of the building. I'm sure a couple factors limiting the popularity are
Do you think there's a viable strategy here? Also, do you know if having living quarters for a commercial space increases value significantly? All of my contacts leasing commercial space with living quarters are not using the living quarters often. Maybe once every couple months. Very small sample size though. I am just wondering if by occupying that living space, you're also severely lowering the rental price you can reasonably ask for. Anyway, if you have any experience or thoughts on the subject I'd like to read them! [link] [comments] |
| Posted: 05 Jul 2020 11:21 AM PDT I've got a rental that I'm looking to unload. I've never sold anything before, and I'm looking at trying to minimize the transaction fees. Has anyone tried https://www.rexhomes.com/? For sale by owner? Or is using a realtor/MLS and taking the 6% hit unavoidable? [link] [comments] |
| Posted: 05 Jul 2020 02:46 PM PDT I'm interested in dipping my toes into the buy and hold real estate market. I've spent a lot of time reading Bigger Pockets and working with a landlord who I trust to try and find good candidate properties. I'm curious though, what are the actual ROI thresholds (or do you use other determining factors) that you require to deem a property worthy of investment? I know some of the rules of thumb for screening properties, but when you get into final financial evaluations on a serious property, what figures do you require? [link] [comments] |
| Posted: 05 Jul 2020 02:19 PM PDT I'd like to hear honest opinions in regards what I have in mind. My mother is due to receive about 130k in cash and I'd like to help her figure what will be best for her, I just don't know how to go about it. I personally own a property already in El Paso TX and i have been renting the house without any troubles for the past 5 years and I know the area has potential specially since is near a military installation that has almost constant people wanting to rent. That being said she could probably purchase something in that same area and get about 1% return which will be enough to get her a monthly income. I also like the idea of getting a multi family in Massachusetts which is where we live and that will help her maybe get more income but we would have to find a way of financing the rest of the purchase which is where I have my doubts, knowledge and what would be the actual feasibility of getting a loan at her age(65) and no income. Is there any special programs for older people that anyone know about? Can the income requirement of an FHA loan be met by the potential income of a 2 unit or 3 unit of a multi family? Hope all this makes sense. Thanks. [link] [comments] |
| Posted: 05 Jul 2020 06:01 PM PDT Say I find a property on the MLS, I usually let my realtor know and they draw up a contract, talk to the seller's agent, tell me to get an inspection, and sometimes recommend a few people etc. If I find a property on craigslist, do I still let my realtor know? Who draws up the contract in this case? Is the process any different? If someone could explain the off-market process, that would be great [link] [comments] |
| Do you generally pay more for insurance for vacant properties or properties with tenants? Posted: 05 Jul 2020 05:01 PM PDT Basically, the title. About to shop for insurance and I am curious. [link] [comments] |
| Posted: 05 Jul 2020 01:08 PM PDT |
| Tax question from a newbie: small investor with one property, not placed into an LLC or anything Posted: 05 Jul 2020 03:32 PM PDT In terms of deducting depreciation and other rental expenses, do these apply to the standard deduction or is separated out and only placed against rental income? Lets say I have 10k of pesonal deductions, so normally I would take the 12k standard deduction. Now with a rental in the mix lets say I have 20k gross rental income and 18k of rental deductions. Am I now itemizing with a total of 28k in deductions or is the rental piece separated out somehow? [link] [comments] |
| Evaluation of sale vs rent while taking into account capital gains tax Posted: 05 Jul 2020 10:26 AM PDT I own a house in very desirable neighborhood that I no longer live at. Currently living in another state and won't move back to where the house is. House is probably worth $1.5 with $500k outstanding mtg maturing in 2027. What I'm trying to figure out is rent vs sale options that take into account capital gains tax. Are there any excel templates out there to follow? Also, is capital gain simply calculated sale - purchase? Does it take any improvement inside the house into account ? [link] [comments] |
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