Real Estate Investing: Property manager didn't vet tenant, now approaching $10,000 lost rent income due to delinquency. Thoughts on chance of holding manager liable for loss due to negligence? |
- Property manager didn't vet tenant, now approaching $10,000 lost rent income due to delinquency. Thoughts on chance of holding manager liable for loss due to negligence?
- Any real reason to use a buyers agent?
- My Gratitude for Real Estate
- Starting out as a College Graduate (in Chicago IL)
- Small business or invest in real estate?
- How much can I depreciate? At what price?
- City Demolished my property without my consent...to Sue or not to sue
- Another ambitious young bull seeking advice.
- Thought on this deal ? BRRRR
- Can i write off a car lease as business expense as a 2 family owner?
- Looking for Refi Advice on SFR
- Purchasing a Failed Flip
- Cash reserves??
- Does this SFH deal make sense (numbers wise)?
- Expenses deduction on 2019 return?
- How Do You Get Started With Little Money And No Access to Credit?
- What should I be doing right now?
- ROI on properties
- Public record showing which contractor did the remodeling
- Calculator to see if refi makes sense
- Any thoughts on REIT?
- Moving to new state, looking for new investor advice
- Average cost for complete remodeling?
- Commercial Real Estate Loan Requirements
| Posted: 19 Jul 2020 11:00 AM PDT |
| Any real reason to use a buyers agent? Posted: 19 Jul 2020 06:03 AM PDT May be somewhat of a noob question, but want to make sure I'm not missing something significant. Since I've already identified a property and can handle the paperwork myself (see below) it seems like the services buyer's agent would provide don't justify the cost. A little more background. I'm thinking of buying a property to AirBnB. I have already identified a property and contacted the sellers agent directly without the use of a buyers agent. The house is currently way overpriced for the market, but I've looked at enough comps to know what the house should go for, and more importantly what purchase price works for my business model. I'm also a lawyer and have my real estate license (but in a different state and I've never practiced as realtor). I negotiate large deals on a daily basis for work, so suffice it to say I'm comfortable with negotiating agreements and paperwork. I would also still pay a real estate attorney an hourly rate to help out (since I don't do real estate law). Thoughts? It would be nice to get the 3% back for myself. Edit: to be clear, I'd ask for 3% somewhere—it doesn't really matter the mechanics of it. Whether it's giving me the 3% commission, reducing the price by 3%, or paying the closing costs equivalent to 3%. At the end of the day, it's costs I don't have regardless of how it's characterized on paper. Edit 2: for those questioning they're in an attorney... yes, I am. Frankly, as an attorney, I don't see what value the buyer's agent would provide me if I already found the property and know the fair market value of the property. But, as any good lawyer will do, I also know my limitations and I don't practice real estate law, so I'm asking this question to make sure I'm not missing something obvious. It's more of a sanity check than anything. [link] [comments] |
| Posted: 19 Jul 2020 09:49 PM PDT I just made a post over in r/smallbusiness about feeling the stress of covid. My primary business has been on a bumpy path and there is a lot of uncertainty. One of the things I've been trying to do to combat the stress is to focus on the positive and be grateful. A thought that crossed my mind yesterday for the first time was how 9 years ago when we started the business (non-real estate related), my net worth was -10k. Today it's up around 400k. Mainly all thanks to 5 units I've bought over the past 5 years and their appreciation. To a lesser extent loans have been paid down, cashflow has come in, and my primary business was picking up steam pre-covid. But I probably haven't even earned 400k in the past 9 years of being self-employed so the thought of accumulating that amount is really empowering. I know the market could fall out tomorrow, but for today it hasn't- and that is giving me some peace of mind and is soothing my stress. I'm not posting this to brag. I hope it isn't interpreted that way. I'm trying to express my gratitude to real estate for basically helping me to feel like everything will be ok, even as my primary business faces challenges. And maybe point out the power of real estate to you as well as reinforce the power in my own mind. I'm sure a lot of you have done way more in the past 9 years- and you the real MVP, but I feel very fortunate to be where I'm at. One thought I want to close with is, I assume it'll be a lot harder to go from a net worth of negative 10k to positive 400k, than it will be to go from 400k to 1m. Hopefully it won't take 9 more years either because the snowball will pick up steam. And in the near future, real estate will help me become at least partially financially independent and not so reliant on w2 income. That's a dream worth working towards. That's something I can get excited about instead of feeling the stress! Thank you for reading and goodnight. [link] [comments] |
| Starting out as a College Graduate (in Chicago IL) Posted: 20 Jul 2020 01:33 AM PDT I'm graduating from college this upcoming winter as a Computer Science student and I was wondering how difficult it would be for me to get a good loan on a rental property since I have no prior income. I will be making around ~110k salary at the job I accepted the offer for and I was wondering if that accompanied my 690 credit score. I have about 45k saved up right now and I'm wondering if this is enough to get a good start in Real Estate? Should I spend a year building up credit? Any advice would be a godsend as I have no real idea of where to start. I have read a bunch of real estate/investing books and I'm looking to get off my ass and put all of this theory into action. Also to any investors local to Chicago, I'm having a very hard time finding properties that cashflow. Do you have any advice for me specific to this area? I know the markets are super hot here right now so it probably makes finding these deals a lot harder. I'm mostly looking at properties around the southwest suburbs. A PM with some advice would be greatly appreciated. [link] [comments] |
| Small business or invest in real estate? Posted: 20 Jul 2020 01:33 AM PDT Hey guys so I need help. I wanna buy a small business most I've seen id need 30k down to make around 80k post taxes a year. But what should I do because I wanna get into real estate but don't know how or how much ittl cost to buy n renovate or how to get funds for both! What do yall suggest? [link] [comments] |
| How much can I depreciate? At what price? Posted: 19 Jul 2020 05:31 PM PDT Basically I'm in the process of buying a house. The closing got delayed and now my bank is requesting my 2019 return. I did my taxes and submitted but now my bank is saying my numbers submitted to the irs for depreciation look off. Basically my parents quit claimed the deed of a payed off house in 2012. I lived in the house till 2018, and now it's rented starting in 2019. How much can I depreciate and over what period? 27.5 years? My parents originally paid $70,000 for the house in 1975. [link] [comments] |
| City Demolished my property without my consent...to Sue or not to sue Posted: 19 Jul 2020 01:33 PM PDT Hi fellow property owners, I purchased a shell of a duplex in St. Louis just over a year ago. Recently it was taken down during COVID 19 without my knowledge. They have my number as well as address. Do I have any recourse? Or has anyone had a similar experience. [link] [comments] |
| Another ambitious young bull seeking advice. Posted: 19 Jul 2020 10:21 PM PDT Hi there! To get straight to the point, I would like to read about your perspective on my REI goals and some advice that you could offer: My goal is to build passive income that would cover my month-to-month expenses (unique, right?). However, REI is something I want to pursue maybe 5 years down the line. I'm in my early 20s and am currently living the post-undergrad bachelor life in Los Angeles. Despite my hunch for the LA bachelor life, a majority of my monthly paycheck goes straight into stocks and conservative options hedging strategies. I already have a 6 month emergency fund, so I'm all in on stocks after living expenses. Additionally, I've been trying to absorb more REI knowledge. I just finished Rental Property Investing by Brandon Turner, and am hoping to start practicing valuing deals on my own. I am hoping that by 2025, I have enough money and knowledge to get into the REI game and start my journey to FI (no RE though). My game plan at the moment is to go back to my hometown (San Antonio, TX) and start with a house hack. From there, I'll continually build home equity and acquire a few more rental properties in SATX throughout the rest of my career. An ideal situation would be to own a few rental properties at a time (around 3-5 buildings), and then continually scale upwards in terms of portfolio home value. That way, I only own a few properties at a time, and sell when I find a new and more valuable property that would yield a better ROI. So that's my game plan for now. Thoughts? Should I go about this a different way? Are there educational materials out there that you recommend I take a look at? Please be as critical as possible, I really want to learn this stuff and do the best I can to achieve that independence I'm seeking. Also would really like to read input from someone who is an active investor in SATX. Also, I should mention that I currently work as an analyst at one of the larger mortgage banks in the US. The reason why REI is so captivating to me is because I was lucky enough to be able to work with the group that participates in REO FCL bidding on behalf of the firm. I know that the big banks do this as an attempt to wipe out the loss they suffer on the foreclosed MSR; however, the fact that they bid against other investors like you guys makes me want to jump in on the action too. Thank you for reading this lengthy post, I really appreciate it. [link] [comments] |
| Posted: 19 Jul 2020 10:21 PM PDT List price: 280k ARV:350-360k Repair: 30-40k Potential Rent: 2.3k/month Offer price: 230-240k (probably won't get it?) Assume the following post refinance Tax: 400 Insurance: 100 CAPEX and vacancies: 10% It's in a nice class A neighborhood but the house was built in the 1990s and it was used as a rental. Flooring, kitchen, bathroom all needs cosmetic work. HVAC likely needs to be replaced too. There are also no stove and fridge. This is a REO and they ask for either cash or a renovation loan. I will likely take the loan route. I should be able to get about 70k+ equity of everything goes right. And likely 200-300 in cash flow. What do you all think? [link] [comments] |
| Can i write off a car lease as business expense as a 2 family owner? Posted: 19 Jul 2020 10:00 PM PDT This is a dumb question and randomly popped into my head. I recently purchased a 2 family home and plan to lease a car because ours is dying. We live on the first floor and plan to rent out the 2nd floor. Could I and should I form a business (LLC?) and write off the lease as a business expense? Feels like a good idea, but what am i missing here? Thanks! [link] [comments] |
| Looking for Refi Advice on SFR Posted: 19 Jul 2020 09:54 PM PDT I bought a little house in April (?) of this year, cash. I want to get a mortgage for it for 80% of appraised value. My current bank is offering me a 5(!) year loan at 3.5%, but not longer. I have about $1m in RE assets with just $400k against it and a $100k/yr income and a credit score of 700... Anyone have a bank they would recommend or advice? Thanks in advance! [link] [comments] |
| Posted: 19 Jul 2020 06:58 AM PDT I'm interested in purchasing a property that was sold Feb. 2019 and recently landed back on the market. It's a SFH that the owner tried converting into a duplex. Whomever worked on the property did a terrible job, and the home will mostly likely need to be completely gutted and redone. I'm interested in purchasing this place because even after renovations, the home should come in well under market value. At the same time, I'm worried that someone tried flipping this before and was unsuccessful. How do you all feel about purchasing failed flips? Should I assume that the person was just inexperienced, or is this a sign that the property is a lemon? I'll be getting an inspection and walking through with a contractor, but I wanted to get other thoughts/opinions as well. In my area, abandoned flips are landing back on the market, so I'm trying to think this through. [link] [comments] |
| Posted: 19 Jul 2020 11:52 AM PDT Currently have one rental condo and just closed on a primary residence SFH that I plan to rent out within 12+ months. Would love to hear how others are looking at cash reserves? For example on my condo rental: HOA: $437 Mortgage: $1,383 and rent income is 2000. I was thinking of adding 10% vacancy and adding all that up multiplied by 6 months and reserving $12,129. Biggest applicable in that unit is heater and ac combo unit which was just replaced 6 months ago brand new at a cost of $9000. Would love to hear the thought process of how other people reserve cash? Currently using saving in a 1% yield account. [link] [comments] |
| Does this SFH deal make sense (numbers wise)? Posted: 19 Jul 2020 09:25 AM PDT Hi, I am working the numbers on so many homes and I'm afraid I'm experiencing analysis paralysis. I was hoping I could get some feedback on a deal I'm hoping to get. This is my first home and I intend to live in it for 6 months to 1 year after rehab as we're saving up a down payment for a more permanent primary residence. Already pre-approved for a 0% down VHDA loan at 3.25%. Plan on refinancing after 6 months to remove PMI and make it rentable. Here are the numbers: 3 Bed/2 Bath, 1300 sq. ft. ARV: $140k (seller asking $141k) Rehab estimate: $35k (actually expect 10k less, but I want to have lots of buffer room) Estimated rent: $1150 My biggest question would be, would $110k be an appropriate max offer on this deal? I ideally would want this property for $100k, but I'm afraid that might just offend the seller. Numbers with 110k mortgage: Cash flow: 225/month (30% of rent for repair/capex/vacancy; will self manage) CoCROI: 7.7% IRR (fix and hold for 5 years; assuming 3% average appreciation): 17.23% I'm new and have been reading these forums, Bigger Pockets, and several books to prepare, but I am at the point where I need to take action. I would appreciate some help. I apologize in advance if I'm missing vital information (I'm sure I am). Thank you for all of your help this far! [link] [comments] |
| Expenses deduction on 2019 return? Posted: 19 Jul 2020 06:13 PM PDT If I deduct all of my expenses I'm showing a loss on my rental in 2019 of -$1000. Will this count against my income on a mortgage application? Would this disqualify me from obtaining another mortgage? [link] [comments] |
| How Do You Get Started With Little Money And No Access to Credit? Posted: 19 Jul 2020 02:20 PM PDT So, long story short, I'm 39, recently disabled, and the only income I'm allowed to earn on permanent disability is through real estate investing. Unfortunately, my disability isn't pegged to inflation, so each year it will become worth less, which makes it really important to eventually find another source of income. The problem is I can't qualify for a mortgage on disability and I don't have a ton of cash to get started. I have maybe 60k in savings and LOCs of up to 40k. I live frugally and save about 2k a month. Also, houses in my area average about 1 million, which make it impossible to invest near where I live. What would be the best option in my situation? Does anyone have any ideas on how to get started with a small amount of money? I'm open to anything - even totally out of the box ideas. I'll honestly consider any ideas people have here. Thanks in advance. [link] [comments] |
| What should I be doing right now? Posted: 19 Jul 2020 02:11 PM PDT Hello, I have a question in regards to starting out, looking for some advice on my situation. For background I (21) just graduated with an engineering degree this last May. I was fortunate enough to be one of the few to snag a job in the current market. It is making what I would consider to be high (72K in a low COL area in the midwest). Me and my girlfriend of 5 years moved about 1700 miles away from home for this job. She is still in school, has transferred here and has about 2 years left on an RN. The company I am with values keeping their employees and will allow a lot of movement if I wish. I spoke with my manager that hired me about it during the interview and then as I have been in the position. He knows that I do not plan to stick around for a long time. Right now my plan is to be there for 2 years while my SO finishes her degree and then transfer to an office much closer to home, this is where I plan to set my roots, this is in a moderate cost of living area. Not California, not Washington but a state near there for reference. I was going to buy a home here but decided that given the current state of affairs and my absolutely plan to move in a couple years, and it being so far away I didn't want the hassle of renting out from afar we just decided to rent. Right now we're locked into a 15 month lease of which 2 months have passed, we also got a deal where 2 months of our rent was free for signing a 15 mo. By the time this lease is over we'll probably just sign a 9 month or go mo to mo unless we find something else that we like justifiably more. With the background out of the way I guess my question is what should I be doing right now? I have the money in cash to pay off my student loans (waiting till September or for the 0% to get extended in the heros act) and a couple months worth of emergency funds saved. I still owe 20k on my car and have it budgeted to pay that off mid next year. Should I just save money for that next year once I am debt free? Did I make a mistake by not buying a house here? Should I still buy a rental here and then sell it when I go to move? I really do want a house right now as I want a project to work on. I am a huge car guy and I sold my project car to get the money to pay off my student loans. Lots flowing through my brain right now. Would just love some advice on where I am at right now and where I need to be headed. Thank you guys. [link] [comments] |
| Posted: 19 Jul 2020 05:36 PM PDT Sorry if this has already been asked: On rental properties, does anyone have a minimum profit they aim for? I'm just getting started and trying to put together some formulas and analytics to determine what properties are worth it and what aren't. Thanks. [link] [comments] |
| Public record showing which contractor did the remodeling Posted: 19 Jul 2020 01:09 PM PDT Hi all, real estate beginner here. Is there a public record showing which general contractor did remodeling/renovations for a certain property? For example, when I go tour a house and really like the way remodeling/renovations are done and the quality of work, how can I find out which contractor did this via public records? Or is the only way to find out through the owner? [link] [comments] |
| Calculator to see if refi makes sense Posted: 19 Jul 2020 03:24 PM PDT Hello! Is there a calculator you folks use to decide if the numbers make sense to refi? My current rate is 3.5% and I have 530k left on my mortgage with 27 years remaining. Have the option to go to 2.99% 30 year fixed refi right now. Thanks!! [link] [comments] |
| Posted: 19 Jul 2020 03:09 PM PDT Does anyone do this? Or what're your thoughts on them? [link] [comments] |
| Moving to new state, looking for new investor advice Posted: 19 Jul 2020 01:20 PM PDT Hey everyone, not sure if this is an appropriate question to ask on here since it's not specific, just looking for general advice. My family is moving to South Carolina, and my father and I will be going into the real estate business, flipping houses and having rentals if the deal makes sense. He hasn't been in the real estate business since the 90's, and throughout his career flipped about a dozen houses. He would like me to do my research ahead of time on the local market, and try to reach out to realtors, wholesalers, property management company's, etc, to try and hit the ground running when we get there. I will definitely be doing all of these things, but I'm curious what any of you would do if you were in this situation and what the best use of my time would be. Any advice would be appreciated, thank you! [link] [comments] |
| Average cost for complete remodeling? Posted: 19 Jul 2020 12:09 PM PDT New investor here. I'm trying to do my first investment on a bad shape property and renting it out for positive cash flow. I have not start contacting contractors yet but, trying to get some general idea. How much would it cost to do a nice remodel something for a 1400 sq/ft home? Similar the image below.
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| Commercial Real Estate Loan Requirements Posted: 19 Jul 2020 11:22 AM PDT Greetings folks, I own two SFH rentals, one converted from primary residence about 4 years ago and a second purchase as investment last year. I ran across a deal i might be interested in. There are three pieces they are trying to sell altogether (adjoining land), but they are willing to separate. It is a wedding/event venue (piece 1), single family residence with garage (piece 2) and 10 two-bedroom cabins (piece 3). I am interested in the cabins . Asking price for the cabins is 700K. Would this be a commercial real estate loan? Does anyone know what the requirements would be? Any idea of down payment required and what the potential interest rate would be? I could swing 20% down. The units are rented for $600 each, which i believe is low. I would rent could be increased to $850, which would be reasonable in this area. That's $8,500 per month. I think that would cover the loan. Not sure about taxes or insurance on this type. I am in Alabama, taxes are low. Does this seem like a good deal? Anybody have any suggestions or input? Is this commercial, residential? Similar to multi-family housing? Any advice on where to begin? Thanks, [link] [comments] |
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