Real Estate Investing: Renting to section 8 tenants? |
- Renting to section 8 tenants?
- 19y/o student trying to invest into real estate.
- Angry Neighbors to a new rental purchase
- Buying SFH outright (no mortgage) for income...?
- How much income are you guys actually making a month?
- First purchase to flip ...experiencing some buyer's remorse
- Can I powerwash and stain deck same day?
- clarifying the tax owed on a potential flip
- Bimonthly Mortgage Payments
- Maybe a weird idea but hear me out
- Does seller need to disclose a previously lower appraisal?
- The numbers on this deal make sense... is there a catch? (Terrified first-timer)
- Should I rent an apartment AS WELL AS buy a property to invest?
- FHA approved home: Can I leave after 12 months occupied?
- Marketing land on Craigslist
- Buying home by the lake and hoping to sell it in 5 years
- Closing Checklist
- Should I take. Real estate class?
- Realistically how much money do you need to start.
- Which bank is most friendly to small real estate investors?
- Finding apartments managed by owners
- How do you find properties below market value?
- Recent College Grad with a few Questions
- Fee structure for managing an investment in a 16 unit apartment building
| Posted: 04 Jul 2020 01:45 PM PDT Does anyone here have experience buying property (single family to small multi family such as a duplex) and renting them out to section 8 tenants? What has your experience been like? What is the process like? What are the risks? Have heard that it's nice to have the guaranteed income from the government monthly and as long as you screen properly you shouldn't have too many problems with the tenants. [link] [comments] |
| 19y/o student trying to invest into real estate. Posted: 05 Jul 2020 01:07 AM PDT Im 19, a student and want to invest into real estate asap. By December I will have around 10k in savings. I study for free and therefore do not have debt. My parents could potentially co-sign on the loan. I am an EU citizen so I would be buying real estate in Germany or Canada where I study. My question is: Is it even possible for me to invest or should I completely forget about it for now. Edit: if anyone was able to invest in a similar situation it would be great to hear how you did so! [link] [comments] |
| Angry Neighbors to a new rental purchase Posted: 04 Jul 2020 08:02 PM PDT Looking for some advice from reddit on a situation I'm encountering with a home I just purchased. During renovations (making place rent ready) the neighbor parked in my driveway. I approached the wife, and she was super nice, moved the car, and said she wouldn't do it again. The husband on the other hand.. ugh .. The homes are laid out along an entire street and pretty much all driveways are next to each other with maybe a 10 foot gap between each house. The previous owner (who is now dead.. hence them selling) had an arrangement to share driveways if the other wasn't using it. Idk why that's a thing.. seems awful imo. Anyway, fast forward to this morning when I drive past the house doing a quick checkup, and low and behold... the husband is now parked there. I pull in and he starts screaming and yelling at me as they are not used to change or something.. not sure.. I managed to settle things down and work it out after a 20 minute chat, but my question is this. What should I do if my tenants move in (1 week from now) and the neighbors start parking in my driveway again? I don't want to stir the pot, but I do want to know what my next steps should be here. Side Note: I'm starting to learn more and more that the property management side of investing should really be called people management as that piece is far more important to get right and can be fragile. TLDR: neighbors parking in new rental house's driveway, became confrontational with me, tenants moving in in a week. How to manage this relationship if it gets worse? [link] [comments] |
| Buying SFH outright (no mortgage) for income...? Posted: 04 Jul 2020 09:11 PM PDT I'm getting ready to sell a property and will have some extra capital lying around beyond retirement accounts, etc... I've always thought that one of the perks of investing in real estate was having the mortgage paid by the property/rent over time, gaining equity in the property. With the fairly high prices in my location, it doesn't seem feasible to carry a mortgage and make any month to month income. I'll be in a position to purchase outright though. I realize I need to tuck some money away for expenses and times without a tenant. This isn't my main source of income and would be used purely as a bonus. Hopefully the property would appreciate over time, but I realize that is market and economy dependent. How horrible an idea is this? I know I could stick to s&p etf's or higher yielding investments, but I'd like to diversify from solely stock market based investments. [link] [comments] |
| How much income are you guys actually making a month? Posted: 04 Jul 2020 10:03 PM PDT I'm just curious how much most people started with and how much they're now making off of rental income in all. (and how long it took to get to that point) [link] [comments] |
| First purchase to flip ...experiencing some buyer's remorse Posted: 04 Jul 2020 06:43 AM PDT I went to an auction to look at a cheaper property and ended up buying a : 4br 2ba brick (1377 sq ft living space upsatairs) and full unfinished basement. 1st mistake: Not realizing there was a added 10% seller premium for the auctioned property. Winning bid was 71,500 so added 7150 to the cost. 78650 out the door. 2nd mistake: Not lining up financing. I am going to end up using equity on my house to finance 60k of it and then dip out of savings for the rest. Any ideas on better alternatives to this? 3rd mistake: Didnt do my homework to properly check out house. I am worried about several things going wrong (heat pump, basement issues, pool, roof) and costing me too much for me to make money. 4th mistake: Not knowing the tax implications of flipping a house. I will learn some things through this no doubt about that. But, I have realized now that my "ready, fire, aim" approach is causing me stress. I had a couple of very good deals in real estate and wanted to take another step but I am not sleeping well on this one so far. This house built in 60's and has hardwood all rooms upstairs except kitchen and 2 baths. Heat pump 13 yo and roof is not too far from needing replaced but hoping it wont be me doing it. Hoping to put 15k in it and sell for tax appraisal..if that works I would have $93, 650 invested and get $119,000 out of it. My worries are extra money for heat pump, roof, and/or repair for basement water issues. Dont know yet about these last things...these are the things keeping me up at night. [link] [comments] |
| Can I powerwash and stain deck same day? Posted: 04 Jul 2020 09:34 PM PDT Hey guys - I just refinished building my backyard deck! It's going to be 90 degrees and sunny all day tomorrow as well as the next 5 days. Is it possible to power wash first thing in the morning and then start staining in the later part of the afternoon/early evening? I see you're supposed to wait a few days after power washing to put stain on but I'm really trying to get this wrapped up tomorrow as I plan on listing this property by 7/15 [link] [comments] |
| clarifying the tax owed on a potential flip Posted: 04 Jul 2020 08:07 PM PDT Going to keep it as simple and use round the numbers: Let's say I buy a house for $80K cash. Spend $40K in renovations. Resell for $180k. Profit is $60K and minus costs, the net profit is: $50K (which would be taxed short term capital gains i.e. 35%). However, let's say I take the $180K and buy another house in the same tax year for $150K and spend $80K in renovations. So all in, I spend $230,000 and keep this house to rent. What is the net tax owed: 35% on the $50K profit from the 1st house? OR can I reduce that b/c I spent all the $50K profit on the second house? [link] [comments] |
| Posted: 04 Jul 2020 03:39 PM PDT My dad was just telling me that you can choose to split your mortgage payment into two separate payments during the month, two weeks apart. This exploits a loophole that makes half the payment go straight towards the principle. This seems too good to be true. Does anyone have any experience with this? I'm guessing not every bank offers it, but even if some do then there has to be a catch right? That would cut the interest paid and length of payments down so far. What am I missing? [link] [comments] |
| Maybe a weird idea but hear me out Posted: 04 Jul 2020 04:25 PM PDT So, you would buy houses or old buildings, bulldoze the buildings, then sell the empty land to the feds or private citizens. Is this legal or not? [link] [comments] |
| Does seller need to disclose a previously lower appraisal? Posted: 04 Jul 2020 09:13 AM PDT Just say I'm in contract to purchase a home and the appraisal comes in lower. I know the seller typically doesn't receive a copy of the appraisal, but in this case, the seller did request to review it. If I were to back out, would the seller need to disclose the lower appraised value to future prospective buyers? [link] [comments] |
| The numbers on this deal make sense... is there a catch? (Terrified first-timer) Posted: 04 Jul 2020 03:30 PM PDT Long time lurker, first time poster and I'd love to get your thoughts on this investment opportunity. This is my first time potentially doing this and I'm scared as hell: This is a pre-construction luxury condo in downtown Miami with some very desirable features for both leisure and business travel. Half of the building will be a hotel, so there are no rental restrictions... Will be mostly a short term rental type of property.
On top of this, this is an up and coming area in Miami that is expected to value quite a bit in the next few years. The project seems to hit (even with the conservative numbers as below) all guideline kpis: - 50% rule: 41.48% / 1% rule: 1.45% / cocROI 16.09% I ran the numbers considering vacancy, taxes, utilities, HOA, insurance, and administration. Other notes: - I already have an emergency fund, and don't have other debt weighting me down. - I have considered the COVID-19 implications on airbnbs/short term rentals, but since this building will open in 2023, I'm seeing it as a long term thing. Eventually travel will go back to normal. - Developer is offering a leaseback guarantee for the first 2 years at 8% - After running the numbers, the NOI is about 4% so I won't take it, but it's good to know it's there just in case. Finally some background: I would not normally start with something this big, but I have an uncle who is an active investor (stock, real estate, etc)- not filthy rich but has been able to quit his job and live comfortably. He's my favorite uncle and has always tried to teach me about investing. As much as I like the topic, I'm not as smart as him, and I'm terrified of that first step. He has already bought a unit on this condo himself, and to encourage me, he offered to gift me 2 of the first payments (so 20% of the total). As much as I love free money, I still want to make sure the idea is good instead of potentially chasing the carrot into a precipice. Thank you [link] [comments] |
| Should I rent an apartment AS WELL AS buy a property to invest? Posted: 04 Jul 2020 04:41 PM PDT Is it a waste of money to rent an apartment close to work and also buy a house (to rent out) in the suburbs away from the city (cheaper)? For context, I'm from the Bay Area in California and commute sucks here so I need to be close to work at the moment. Or should I just rent for now and save money until I can afford a house in the city (more expensive)? I would most likely move into the home to settle in the future. [link] [comments] |
| FHA approved home: Can I leave after 12 months occupied? Posted: 04 Jul 2020 10:30 AM PDT I'm in the process of purchasing a home with a basement. I plan on renting out the rooms up top and living in the basement. I'm Trying to rent out the rooms for what my mortgage will be each month so I can essentially live for free. At some point though I would like to rinse and repeat. Reading up on FHA loan requirements and it states the property must be owner occupied for 12 months. But it doesn't say about afterward. My question: can I leave the property afterwards, continue to rent it out, and do the same process again in a different property? TL;DR: Can I go get another rental property to live in, after 12 months living in an FHA loan home ? [link] [comments] |
| Posted: 04 Jul 2020 02:10 PM PDT Hello everyone 👋 I am a newbie land investor. I was wondering if anyone here is involved in the vacant land investing side of real estate and is a pro at posting craigslist ads online. I've been having trouble posting ads without getting flagged. I have a couple of ads up advertising my properties but my problem is when I try to post ads to different states my ads usually get taken down. Also, I've set up a second account to post my properties as well but those ads get taken down too. So to put it simply: 1. How do you not get flagged by the craigslist system? 2. How do you market Craigslist ads to different states? 3. How do you use a second craigslist account without getting flagged? I try to make all my ads different look different. Does craigslist recognize the same details i put like my phone number? Must i have two different numbers for two different accounts? Any advice would be great. 👍🏼 [link] [comments] |
| Buying home by the lake and hoping to sell it in 5 years Posted: 04 Jul 2020 04:08 PM PDT Hi - We are a millennial couple that recently came upon a modern updated lake property in a small successful midwest lake-town. The house is going for 800K. We are both professionals and can afford it. My thought was to buy this property since inflation will start rising. Hopefully in 5-7 years we can sell it for north of 1M. My questions:
Thoughts? [link] [comments] |
| Posted: 04 Jul 2020 03:51 PM PDT What's a good list of things to look for in a property before you close to minimize the unexpected maintenance and repairs that might come up? I read here a lot that plumbing is a big one, maybe water heater too, roof, but to be honest I don't have a set checklist of things to inspect and make sure are functional before closing. Does anyone go through a list? [link] [comments] |
| Should I take. Real estate class? Posted: 04 Jul 2020 07:11 PM PDT Hello, I am a 21 years old and I have never invested in real estate before. It is a dream of mine to purchase an apartment building with at least six units, possibly even living in one of those units. I would like to capitalize off of a first time homebuyer program if possible. Should I take a real estate class first? I have tried to research but I am a bit confused with all of the terms and I'm not sure how I should even begin or how much I would need to get started. Do you learn this in real estate class or is there another method that I should take? Thank you. Forgive me if I used the wrong flair. [link] [comments] |
| Realistically how much money do you need to start. Posted: 04 Jul 2020 03:19 PM PDT How much would you actually need in your bank account to effectively buy a 200k SFH to live in for one year and then rent out after. Rent about 2k a month. [link] [comments] |
| Which bank is most friendly to small real estate investors? Posted: 04 Jul 2020 02:58 PM PDT I have been a chase private client for a couple of years. I put roughly 250k worth of stocks at chase so that I can be a private client for free. When it comes to loans for my real estate investment, the relationship doesn't seem to help at all. There are two primary issues with chase...
I am thinking about moving my holdings with chase to a smaller bank to build a relationship and get better access to loans. What bank is friendly to rental properties of small amount (100k to 2150k)? I live in NYC and my investments are in Philadelphia. [link] [comments] |
| Finding apartments managed by owners Posted: 04 Jul 2020 06:16 PM PDT A friend asked me an interesting question. She (not an investor - just a tenant) said that she keeps getting the runaround from her apartment's property management company because they are so huge. She said she wants to find an apartment to live in that is managed either by the owner or by a very small property management company, where she can get to know the management. She asked how she would find a place like that. I really wasn't sure. Are there apartment listings that indicate the property management company, or if they are managed by the owners? [link] [comments] |
| How do you find properties below market value? Posted: 04 Jul 2020 05:45 PM PDT I would like to find my 1st priority. Thinking about just renting it after small cosmetic changes, etc. how do you find good deals on homes? [link] [comments] |
| Recent College Grad with a few Questions Posted: 04 Jul 2020 01:43 PM PDT Hello! I read the subreddit rules, and I noticed that questions like these are best directed to a weekly thread. I couldn't find that weekly thread, and also I believe I have a more unique situation than most. I come from the tri-state area and I am an only child. I have a single mother from a ghetto area. My family consists of me, my mom, and my mother's parents. My family (all4) has spent the last 22 years of my life (I am 22) putting me through school. I went to a catholic middle school, catholic all boys high school, and a catholic university upon which I just recently graduated with an Economics and Finance degree. This pretty much was all my grandfather and mother focused on. I need to give background on my grandfather. He is a native immigrant from his country in which he grew up very poor (starving and homeless on most days). He immigrated here with my grandmother and had my mother. When my mother was 2 their house burned to the ground, no insurance. They had to start from scratch. With no property or house, a man who owned two 3 units each apartment buildings allowed them to stay in the first floor rent free for 6 months. They accumulated a relationship, had thanksgiving and christmas eve dinner together. 10 years later, that man (let's call him Rubin) decides to move down to the shore and needs to get rid of the houses. I guess he had a bad relationship with his children, because he sold the houses to my grandfather for around 50,000 total in the late 1980's (worth around 500k-600k combined total). My grandfather has since been the handyman, always learning to fix problems. Now I'm born in 1998, Rubin (Uncle Rubin as they had me call him) passes away the same year I was born. I visit his grave yearly never knowing who this guy was or why he was important. I go to school, here I am. My grandfather was diagnosed with terminal cancer last year and I am the only man left in this family trying to put together the pieces. Now with my degree, I am seeing how much potential all this has but how it was never used. My grandfather does not like risk. He is debt free in every aspect (mortgage, credit cards, loans). He made sure I graduated the same. He has my mother create 20 bullet point contracts instead of paying a lawyer. He owns these properties personally instead of an LLC. He posts flyers in the same laundry mat for 30 years and no where else to find new tenants, doesn't use the internet. Does not check credit scores of his tenants. He is a cynical man who does not trust doctors, lawyers, and politicians (i can't blame him to be honest, he gets easily taken advantage of) He is too lenient with tenants not paying rent, they get away with being weeks and months late at times. We have one of the nicest and largest apartments on the blocks, but charges 20% less than everyone else around us in rent. He does not like to take money from the people (he was poor himself) but then complains when they take advantage of him for it. When he was in his 30's, he spoke to a lawyer not aware he is paying by the hour, spoke to him for 3 hours and was charged hundreds of dollars, and now he never trusts any lawyer and thinks he can do without them. I can see the regret in his eyes and it hurts to see it. He feels he was focused on being too nice and good and was taken advantage of being nice every step of the way. I feel that is the way it usually goes. Just look at Ned Stark in Game of Thrones. The only person he trusts is me, and that scares me. I'm 22 and if I told him what to do with his life savings (which have never been invested and have been sitting in a savings account for 30 years) or the houses he will 100% listen to me. I do not believe I have enough experience to handle something of such importance. That is what I'm figuring out. My mother and I have been telling him to spend this money to enjoy himself the last few years of his life. He refuses and says all of this is for us. I appreciate that but I want him to smile more in his last few years, if you understand where I'm coming from. From the advice of the associate dean/student adviser/successful financial planner/professor of mine, he believes these should be used as an LLC (two different llc's to reduce liability on each house) and should be grown to a business. With no mortgage, he suggest expanding to a third property. He also suggested finding a young lawyer and banker who I can build a relationship with and be long term partners with. I know a few bankers from my fraternity but not many lawyers. My first goal is to get my family out of the ghetto. They sacrificed everything for me and now I want to pay it back. I want to expand, but the expansion requires a place for my family to stay that we can go outside and feel safe. So my questions: 1.) If you were in my position, what would you spend the next month of your life focusing on. I have been doing research in and out, found some excel templates for analyzing property and cash flows. 2.) How would you suggest finding a good lawyer or banker? 3.) Should we even move out? Should we expand first? Should we rent somewhere and expand somewhere in the meantime (moving out is very important, my family deserves better) 4.) Any advice on the LLC? Speak to a lawyer before or after? Should my grandfather even be on the LLC if he may pass away in a year, I feel wrong saying that but I know how tricky that may be. 5.) Is now even a good time to be doing this? I hear the market is a sellers market right now. Should I wait? How can I check real estate prices from last year to make sure I don't accidentally make a bad buy. 6.) Are finding tenants right now easy or hard? With the whole pandemic last thing I want is to get a mortgage for a business opportunity than not have anyone fill the space and unable to pay the mortgage. Should I focused on getting a mortgage that I can afford to pay even if no tenants are found? 7.) What is the best way to find a mortgage? 8.) What career options are available for someone with my skillset. I am an Econ and Finance double major with 3.5 GPA. I have 5 years experience in IT. I have extracurricular activities that include starting a social fraternity, Eagle Scout, and Esports Champion/Management (Rocket league!) I am very interested in Real Estate. I ask because I want to start this business and hopefully work in a field that relates to this business. Any extra tips are welcomed. I take advice with a grain of salt and never take it as gospel. [link] [comments] |
| Fee structure for managing an investment in a 16 unit apartment building Posted: 04 Jul 2020 09:38 AM PDT A few colleagues and I are kicking around the idea of investing in a 16 unit apartment building. Essentially, they have suggested that they would invest the cash and have ask me to manage the property (I have less money, more time than any of them). I have never been involved in a deal like this, so im open to suggestions about structuring fees/compensation. Should I charge one months gross rent, a percentage of profits, etc? What is industry standard? [link] [comments] |
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