Real Estate Investing: High income young investors, How to get started |
- High income young investors, How to get started
- First Post - To buy or not to buy - To rent or not to rent.
- LLCs, umbrella insurance, and separation of assets/accounts for rental properties
- Renting your homes or House Flipping?
- E trade line of credit?
- Looking for mentors - new to the investing world
- Getting title of prefab home
- First-time buyer. How do I find a good agent?
- Finding Great First Deals
- Considering investing in a vacation property with 2 other friends. What should I do so we don’t all hate each other? Any advice on structure?
- 18 Year Old Investor
- How’s the Vegas market?
- Becoming someone's boots on the ground
- Would you take a 1M NOI Income from 1 $26M Apt. Complex, or $1M NOI from 5 4-Plexes offered at 3.65M each?
- Do you use always use the 1% rule, especially now given low mortgage rates?
- A clueless person's questions on flipping mobile homes.
- Is it bad practice to pay down mortgages faster with your net profit?
- Is the Seller Entitled to Inspection Reports?
- Any recommendations for hard money lenders or banks to loan to LLC for first income property?
- General Contractor and real estate investing. What could go wrong?
- Can I buy a SFH as my primary, then immediately rent out the rooms I'm not using?
- Thoughts on investing in New England?
- Thinking about converting personal residence to rental... taxes nearly negate all benefits? What am I missing?
- Roi calculator just doesn't work
| High income young investors, How to get started Posted: 22 Aug 2020 09:17 AM PDT I am a 23 years old software engineer making 200k+ a year. I'm on track to pay off all my debts in the next two months. I max out my 401k contributions and live modestly, saving around 80-90k per year after tax. As I live in a high cost of living city, housing here is really expensive (500k condos). But I would love to invest in a couple properties in lower cost areas. Here's what I am thinking, please correct me if I'm wrong.
If I keep repeating this, I will not have as much leverage in my portfolio but still be able to generate good returns. Now, question is, do banks allow such lines of credit? What are the tax implications? What other things am I missing? And most importantly, what are some good cities to do this in? [link] [comments] |
| First Post - To buy or not to buy - To rent or not to rent. Posted: 22 Aug 2020 06:48 PM PDT Hey, everybody. My first post in here. I Want to ask for some advice about my first steps on Real State investment. A little background: I work on a good real estate development company in Latin America. I have a good job. I´m one of the managers and earn a fair amount of money (considering earnings on Latin America) (not crazy-I´m starting my job as a manager) I end every month with around 30% of my income for savings. (No emergency found - No car debt - One good apartment on a good place: (Paying around 33% of my income for that apartment) The apartment: This is my first apartment. I just leave my parent's house and this was my way out to move with my girlfriend. I pay around $160.000 for my apartment ($120.000 on debt and I pay $40.000 on DP) but the real price for the apartment is around $210.000,00 this was kind of a gift/bonus to me from my boss and he gave me that good price as a gift. I have a good relationship with my boss (who is a great guy with a great family company) I Love my job and I have a great projection to even do better on a couple of years. I made a lot of connections with a lot of people from all kinds of industries, etc. – If I want to sell this apartment I can get $210.000,00 easy, or if I want to rent it I can rent it on $1500 per month easy. This apartment it's on a semi-luxury building (on Latin America basis), spa, Gym, good pool, etc. If I change to a regular neighborhood (like where I used to live with my parents I can just pay around $600 - $700 per month Opportunities with my job on a Development Company: As you may know, it's not a good time for the development of new apartment buildings because of COVID 19. Maybe on another, 2-3 years will be a good time and we can start developing another Building and I can get a great price on the new apartments from my boss and do that again (buy low-sell high. That's also important to mention, I can get a great price on every building we make. About my income: I make around $3000 a month after taxes/social security, etc. That, in Latin America, is over 80% of the average income. I do well. I know it's not a lot to start making a crazy investment but in my country is a good income. I live well on a regular basis. We spend around $1000 on food, utilities, etc per month. and I have to pay around $1000 for my apartment mortgage. The potential first investment: I have this opportunity to buy my first house from my parents. Small house in a decent area. Tenant pays $500 a month to my dad and I can buy the house from my dad for around $40.000,00 (he´s kind of tired of handling tenants, etc.) so I can make the proposal. To sum up: As you may see, I have some options for my next steps but I don't know how can I start creating passive income from the money left every month. I don't know If living on this good apartment is a good idea (we love it, it's close to the job, Gym, Pool, everything, its good for our mental health on our high-stress jobs that's a point to consider). I don't know if I should sell the apartment and get this $90.000 (paying the 120k of debt to the bank) to work for me on small rental properties, etc. It´s kind of hard to see it that way because this is my home and I have to give up on that. On my country interest rates go around 9% a year and the DP to buy any property is around 20% on a 30 Years mortgage. Any thoughts? I´m sorry for my English, not my native language. [link] [comments] |
| LLCs, umbrella insurance, and separation of assets/accounts for rental properties Posted: 22 Aug 2020 04:05 PM PDT I'm slowly getting into real estate investing through the purchasing of rental properties (no commercial or large properties). It's been a learning curve but I'm enjoying it. One thing that I'd like to do is protect myself and my personal assets in case something happens (and make it easier during tax season). I have two questions that I've been trying to find answers for, but it seems like depends who you ask, the answers are a bit different:
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| Renting your homes or House Flipping? Posted: 23 Aug 2020 12:49 AM PDT Which is better? If it depends, please explain how. Or in the end, both are the same. [link] [comments] |
| Posted: 22 Aug 2020 12:12 PM PDT E*TRADE Line of Credit With rates from 2.212%-5.516% variable APR, you can borrow against eligible brokerage accounts with $50,000 or more in combined collateral value to access cash without liquidating securities.1,2,3,4 I have a mortgage of like $160k at 2.8% but I also have like $200k sitting around to invest if I see an opportunity. Paying off the mortgage doesn't seem right since I probably cannot get a line of credit fast enough at a good rate. What if I just put the 200k in a "safe" big blue chip with a modest dividend then just utilize the etrade line of credit? Does this seem viable or is there some hidden gotcha in the terms? https://us.etrade.com/bank/line-of-credit [link] [comments] |
| Looking for mentors - new to the investing world Posted: 22 Aug 2020 11:50 PM PDT Hi everyone! I am new to the real estate investing world (I am a licensed real estate agent with some deals and MLO also) and I am located in Orange County (California). I am looking for mentors! I would love to be part of some sort of investing deal as a "shadow" in exchange of some free sweat equity. Anyone interested? [link] [comments] |
| Posted: 22 Aug 2020 11:35 PM PDT I just bought some land that was previously being rented out to someone with a prefab home. The person had a mortgage on the home but could not pay it so left the home on the land. What would the process be to negotiate with the lender and get the title of the prefab home? [link] [comments] |
| First-time buyer. How do I find a good agent? Posted: 22 Aug 2020 05:25 PM PDT I have never bought a house before, but I am thinking of possibly buying a house in the bay area next year. I am just browsing houses on Redfin and Zillow, but I can't really tell which property is a good property for me. My parents were realtors (in another country) and I am interested in architecture, so I was always interested in houses I have my standards, but I would find a property I like, only to later learn about problems with the house or the neighborhood when I ask about it online. I will be reading more books on home-buying and real estate investment, but I think I need a good mentor, and a good buyer's agent. Unfortunately, I have no friend who bought a house or is knowledgeable. I've requested showing once on Zillow, and didn't like how they match an agent. They just randomly match an agent and lets me unmatch them if I'm not satisfied. (I'm not sure if I can re-match them later) My agent ghosted on me because I was too early in the stage. (I am not pre-qualified for a mortgage) I am an extremely careful buyer, even when I'm buying something small on Amazon. If I buy a house, I absolutely must have browsed many properties over at least a year, and talked to many people about it. Even when I search for an apartment, I usually take months. For realtors, I want to talk with multiple realtors over a long period of time, getting advice and being shown multiple properties, so I can comparison shop and pick one who is honest, is trustworthy and can get me a good deal (including private listings, etc.) Maybe I am being too picky, but I can't imagine spending 5x ~ 10x of my entire saving without such painstaking searching processes. I know BiggerPockets is a platform for exactly this purpose, but it wasn't fantastic, and I've seen lots of guys here complaining about BP. So here are my questions: What's your experience in real estate investing/home-buying, and what specifically have you done in order to find the perfect agent (give their honest feedback and not always trying to make a deal), mentors, and the perfect house you want to live in for many many years? What mistakes have you made in the process, and what do you wish you have done differently (or what did you do differently next time)? [link] [comments] |
| Posted: 22 Aug 2020 03:30 PM PDT Hey guys! So I'm working on buying my first house, and I really want to get it right. My best case scenario would be to purchase a smaller home my wife and I can live in that also has a separate rentable space (basement, detached garage apartment, etc). The goal being to have someone else help us pay the mortgage so we can save at a higher rate. I hear this is a great approach from multiple sources, but the trouble is finding the deals and knowing the laws about renting those spaces in my state (South Carolina). Any suggestions on finding homes with separate rentable spaces that also abide by local laws? Really don't want to make a terrible first buy and then be blindsided by something I didn't know to look out for. [link] [comments] |
| Posted: 22 Aug 2020 01:45 PM PDT Rental property is in California with 2 investors residing in California and 1 in upstate ny. Likely going to contribute equally to finance the house. 1 (me) will likely help to fix up the house. 2 will likely want to use the house at some point. Any and all guidance welcome. [link] [comments] |
| Posted: 22 Aug 2020 09:48 PM PDT Hi everyone! I am 18 and I have more than enough for a 20% down payment on a home worth about $280k. I am looking to invest in Windsor, Ontario with the help of my parents co-signing. We are having a little trouble with financing since B lenders would need at least about 40% down payment on the property with a 1-2% fee. Private lenders would be about 6-7% with a 2-4% fee but with a lower down payment. I would really like to invest in a student rental and my parents can help with the extra down payment. Numbers still work out to about a $500 net cash flow but with an ROI of about 4.5% for a B Lender. I am planning to refinance in 3 years once I have a higher income since my parents are too leveraged and have other investment properties as well. Should I bite the bullet and start now and purchase a property? Or wait? [link] [comments] |
| Posted: 22 Aug 2020 08:41 PM PDT I've read a few reports, some say an increased number of buyers due to low interest rates, others say low demand due to pandemic and lack of stable local economy (for now). I'm wondering if buying a single family near the strip is a good move- it would primarily be for rentals of course. Anyone from (or know) that area and has any idea on what to expect in the next 1, 5, 10 years? Cheers. [link] [comments] |
| Becoming someone's boots on the ground Posted: 22 Aug 2020 08:41 PM PDT Hello all, I have been reading a few books on real estate investing and am working on raising enough capital to get started on my own real estate investment journey. In an effort to use my time as efficiently as possible while I continue to save, (I will start looking at properties in the months leading up to and plan to buy in November/December 2021 to be in a buyers market) I want to get my feet wet with a bit more hands on experience. I live in the San Francisco east bay area and want to work as someone's boots on the ground so I can get some firsthand experience with the double benefit of possibly having a mentor. I rummage the BiggerPockets forum and craigslist for people in search of such services in my area but no luck so far. Do any experienced investors have recommendations of where you would normally look for such services or know of anyone in need of boots on the ground in the SF bay area? [link] [comments] |
| Posted: 22 Aug 2020 08:28 PM PDT |
| Do you use always use the 1% rule, especially now given low mortgage rates? Posted: 22 Aug 2020 08:21 PM PDT I know a good rule of thumb is that rent should be 1% of sales price, but we all know the market is very expensive right now. Do you adjust the 1% rule at all given the low interest rates? [link] [comments] |
| A clueless person's questions on flipping mobile homes. Posted: 22 Aug 2020 02:19 PM PDT I'm really interested in flipping mobile homes and selling (mortgage?) Them. Ive done some research and it all looks pretty straightforward, but I don't know where to find the cheap homes, or whether or not the flipping is done by a hired contractor or the one who brought said mobile home. I also don't understand the importance of owning the land that the home is when you'll be selling the mobile home and it will technically be out of your hands. I'm really young and looking at this from a source of income point of view. Any advice or resources would be much appreciated. :) [link] [comments] |
| Is it bad practice to pay down mortgages faster with your net profit? Posted: 22 Aug 2020 09:36 AM PDT Taking the dive and learning how it all works. Would it be bad investment practice to pay off mortgages on properties quicker using your net profit? I am aware that loans can have penalties for early payment. Does this outweigh the penalty? [link] [comments] |
| Is the Seller Entitled to Inspection Reports? Posted: 22 Aug 2020 01:11 PM PDT I'm in escrow to buy a property, and I'll be doing inspections in a few days. I will be paying for the inspections. Do I have to give the seller (a trust) inspection reports that I pay for? [link] [comments] |
| Any recommendations for hard money lenders or banks to loan to LLC for first income property? Posted: 22 Aug 2020 04:06 PM PDT A friend of mine and I created an LLC to purchase our first rental (as advised by a real estate attorney in Florida, USA). Does anyone have any recommendations for lenders who will lend to an LLC, putting 25% down toward a property? I've found some but I am looking for people who have had experience. I've been told by the real estate attorney if we purchased and then transfer to the LLC the bank could call the loan to be paid in full in 30 days, we don't want that and are aware we'll be paying 5-8% interest. [link] [comments] |
| General Contractor and real estate investing. What could go wrong? Posted: 22 Aug 2020 11:55 AM PDT As the title states, I'm a GC and have been contemplating the idea of real estate investing. Flipping, rentals, etc. I have the resources and the cash flow available that it seems like it would be dumb not to get into it but surely there's something I am not accounting for. Also would it be beneficial for me or my wife to become a real estate agent for the sole purpose of facilitating deals I begin to work. I guess I'm well versed on the labor side and cost related to everything but not the real estate transaction part. Any tips, advice, or criticism? I'm open to everything but would like to build my streams of income while expanding a family business [link] [comments] |
| Can I buy a SFH as my primary, then immediately rent out the rooms I'm not using? Posted: 22 Aug 2020 11:43 AM PDT Or do I have to live there for 12 months before I start "house hacking"? Better yet, can I rent out all the rooms in the house, sleep in the living room and still call it my primary residence? I move around a lot, travel, visiting people, visiting sites, camping, hiking, sleeping under the stars, etc. Basically, what are the rules regarding minimizing my expenses (ie. getting a primary residence loan instead of an investment property loan) and maximizing my income (renting out the most number of rooms) for someone like me? Thank you [link] [comments] |
| Thoughts on investing in New England? Posted: 22 Aug 2020 09:14 AM PDT I'm just starting the process of considering a rental property for some passive income. New England is my favorite area of the country and was thinking about looking into rental properties there. Lots of people go there for skiing, lakes, etc. But it's obviously on the more expensive side. Is it unlikely to be able to make a decent passive income in New England? I see places like Texas and Florida being the most popular due to lower costs. Does it matter if I don't particularly like those areas? Is it better to invest anywhere in the country where you can get the best deal? [link] [comments] |
| Posted: 22 Aug 2020 08:24 AM PDT First - I have no idea what I'm doing. I bought a townhome and wondering viability of renting it out in the future (3.5 years from now). I'm probably missing a lot of things here, but it hardly seems any benefit after taxes rake me across the coals? Suppose the below facts:
Now...configuring taxes:
Net cash proceeds after above of $13.6k? How wrong am I, and if not wrong, why is this a viable path for anybody? Seems like a lot of risk for little payoff.. Perhaps I'm not computing my adjusted basis or something correctly? I obviously have a lot of questions and not sure what I need to be considering / looking for. Guidance appreciated! [link] [comments] |
| Roi calculator just doesn't work Posted: 22 Aug 2020 08:09 AM PDT Newly interested in real estate investing and I grew up in southern California. The homes I'm looking at are way too expensive to make positive cashflow with current prices and current rents. So I moved my sights to Lake Havasu city. Same thing there. My question is: in high cost areas does old money go in with big down payments or straight cash and just accept the smaller return or am I running my numbers wrong? What's out there is selling but what they rent for compared to what they sell for is miserable. With sales going for over asking price I wouldn't guess appreciation either. I'm definitely missing something here. [link] [comments] |
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