• Breaking News

    Saturday, August 8, 2020

    Real Estate Investing: Jumping in. This will be my first rental. A triplex to be self managed. Share any words of wisdom.

    Real Estate Investing: Jumping in. This will be my first rental. A triplex to be self managed. Share any words of wisdom.


    Jumping in. This will be my first rental. A triplex to be self managed. Share any words of wisdom.

    Posted: 07 Aug 2020 04:28 PM PDT

    After a lot of looking and research I'm pulling the trigger. It is located 20 minutes away from my primary residence isn't he Midwest (40 miles from stl). It's a triplex that currently rents for 725, 550, and 875. The 875 unit is 3 br, 2.5 bath and needs a lot of cosmetic work (paint, new carpet, few baseboards. It's tenants have been there for 2 years and will no plans to move anytime soon so they are happy with the condition.

    I'll be managing myself. It's 40 years old and I can do any carpentry, electrical, and plumbing.

    Purchase price under $150. Got a 3.5% 30 year with 25% down which will be $775 with escrow. After trash/water and healthy maintenance budget I'm expecting expenses around $1200/month. I want to save plenty for renovating the largest unit when it becomes available. The $725 unit is like new and the $550 unit needs very minimal touch ups as it sits. I'd like to replace the carpet with LVP as tenets move out. New roof last year.

    Biggest expenses will likely be furnace/ac within a few years (one unit original, other is 25 yr old. Smallest unit has baseboard heat and window unit. Also is on an original septic. They have very large tanks and inspector said to pump them at least every 2 years and there should be no issues.

    Been stressing out so much over plunking down some savings but sick of having a chunk of change sitting in a bank account. Been seeing you guys talk about the hardest part of re investing being the jumping in part so I'm going to barrel through this part.

    submitted by /u/harda_toenail
    [link] [comments]

    Buying a Multi-Family in a Small Town to Get Started When You Can't Afford Cities?

    Posted: 07 Aug 2020 11:17 AM PDT

    I've recently become permanently disabled and I'm hoping to get into real estate to supplement my income. However, I can't get a mortgage which leaves me with only around 100k to play with. While I can't afford anything in the major population centers, I can afford some multifamilies in relatively distant smaller towns.

    For example, I can get a fully rented triplex in a small town (5k town, next to a 30k city) for $89,000, and it rents for about 2400 a month. It's also a low crime area, but the population is stagnant at best. What would be the downsides to properties like these?

    To be honest, I just want to grow my income to the point where I can qualify for a mortgage in a better area someday, though the cash flow would be nice too. Would this be a good strategy to use to get started with? What issues should I expect?

    submitted by /u/Generalbrock2000
    [link] [comments]

    Saw this on the agent notes in a listing

    Posted: 07 Aug 2020 10:38 PM PDT

    Watch what you're buying. This was in a new listing: "Previous owner sold property then refused to move out or pay rent due to COVID. Property to be sold with occupant in place and waiting to be able to get a flight out of country which is not possible now due to COVID restrictions."

    This was for investment property (2+ units) in Southern California.

    submitted by /u/Sug-Madiq
    [link] [comments]

    How many of you have a real estate license?

    Posted: 07 Aug 2020 06:18 PM PDT

    It seems to be a no-brainer for most looking to buy properties. And I suspect many of you would be to:

    - get MLS listings
    - not completely rely on a broker
    - fully understand the transactions
    - save 3% at closing

    Any other good (or not so good) reasons an investor shouldn't be licensed?

    submitted by /u/shahn078
    [link] [comments]

    Taking equity out of house loan to buy an investment home. Raleigh area or surrounding Sacramento or any other good cities?

    Posted: 07 Aug 2020 07:53 PM PDT

    I purchased my home at 160k and it's now worth 350k. I'm thinking about taking equity out of our loan to invest in another small property. I keep bouncing between smaller cities in the surrounding Sacramento area, Raleigh/Durham area or have started to look outside these two area but my comfort level isn't as great as I look outside. Any advice on where to look that would be the better investment and what type of investment? House, condo, etc? So new to all of this!

    submitted by /u/tnt131313
    [link] [comments]

    Is it even possible to find rental properties that can deliver a COC return of 8-12% these days?

    Posted: 07 Aug 2020 08:42 PM PDT

    I'm new to the real estate investing game and have been looking for properties to invest in, but can't seem to find any properties that would net the golden 8–12% COC return investors typically target. I've been doing research in different markets and at best I find 3-4%. Do most investors break even in the first couple years before finally turning a profit due to rent increases or appreciation?

    Numbers Used in Calculation: Mortgage Payment based on 20% down // Rent based on Zillow's rental estimate or rentometer // 10% PM fee // 10% maintenance

    submitted by /u/CensorialSnap
    [link] [comments]

    First time investing

    Posted: 07 Aug 2020 09:21 PM PDT

    Hi everyone!

    I live in Miami, FL and I'm looking to start investing in real estate and have been looking to buy a place either in the Tampa, FL or Orlando, FL area. Since this will be my first investment property, would you suggest to get a condo/apartment or a house?

    I'm hoping to not be too hands on with it. Not sure if I should get a property manager to handle payments and issues with renters.

    Would appreciate your input :)

    submitted by /u/daniel2824
    [link] [comments]

    Min Maxing Rent-By-The-Room

    Posted: 07 Aug 2020 11:13 PM PDT

    I have a plan so crazy that it might work....

    1. Buy 7 bed / 4 bath Ex Nursing Home for $425,000
    2. Add 3 more bedrooms and 2 more baths
    3. Rent it out by the room for about 600-700 per room including utilities
    4. Hire maid to clean bi-weekly
    5. Live in it myself to use conventional loan with 5% down at 2.625% fixed 30 year mortgage
    6. Cash flow like crazy

    Looking at the numbers....

    • $21,250 Down Payment (5%)
    • $5,000 to paint the rooms
    • $30,000 for adding two bathrooms and adding a couple divider walls
    • $0 in closing costs (Ill have the seller pay them in exchange for a higher rate)

    Total Cash In = $56,250

    Total Rent (Once fully rented) = $6,500/m $78,000/y (or $5,850 if I live there)

    Total Expenses = $3,251

    • $200/m Maid
    • $150/m Gigabit internet
    • $1,607/m Mortgage
    • $300/m Insurance
    • $300/m PMI
    • $600/m Water + Electric
    • $40/m Vacancy rate padding (7%)
    • $54/m Repairs Padding (10%)

    Total Cash Flow = $3,249/m $38,988/y

    Disclaimers and Context....

    • I rent to mostly Air Force Active Duty members that are local to my area
    • I do not charge a deposit because I can go to the Air Force and garnish wages worst case scenario
    • I do month to month leases because AF members appreciate the flexibility
    • I offer kick backs to current renters for helping recruit their replacement (last month of rent free) thats how I have had only 15days of vacancy in two years between 8 renters
    • I do plan to expanding to local tech workers as well as college kids
    • I am slightly scared of going into something this crazy but the numbers just seem to work and interest rates are so insanely low
    • Im using money I saved up after making $20-$40K a year for 5 years for this deal
    • I now make over $90K starting just recently so if things go south I can sustain myself easily

    What do you think of my numbers? This is in Florida and I use numbers from my current rental proportional to home many people liver there as a base line. I will likely be putting an offer on this house next week. Not many people are competing for retirement homes right now because of COVID so I think that gives me a slight edge. Thanks for your time.

    submitted by /u/PleaseDoNotClickThis
    [link] [comments]

    Advice: Family man wanting to get into Real Estate Investing

    Posted: 07 Aug 2020 03:40 PM PDT

    I'm a married man, father of 2 little ones and wanting to get into real estate investing. I have a full time job, a home in the midwest, solid emergency fund, 40% savings rate, and no stupid debts. My immediate challenge is how do I get started without putting strain on my wife and kids. Any advice would be beneficial :)

    submitted by /u/ccharding
    [link] [comments]

    Hold or sell

    Posted: 07 Aug 2020 11:06 PM PDT

    I have a rental property (a 3b/1b unit in condo) in Boston. I bought in 2014 with price $300K, 4.625% 30 year loan and $70K down. Now it worths about 450K and has about 200K loan left.

    I rented it out. Here's monthly break down:
    - Rental income = $2200
    - mortgage payment + tax = $1500
    - Condo fee = $225
    - Property management fee = $100
    - Other maintenance (varies)
    - Insurance = $100

    The ROI seems low; most of the time, it just breaks even. I now live in another state so I have to hire a property management company. Due to not living in the property, it is categorized as "rental property" instead of "primary residence", so that tax rate is higher. Both contribute to higher cost. I wonder if this rental property is still a good deal compare to other investment tools.

    Should I sell the property or hold for appreciation? If I do sell, what would be the good timing consider the current instability?

    submitted by /u/MoonlightFlowing
    [link] [comments]

    Might decide to purchase my grandparent's home that had a Reverse Mortgage in the late 1980's.

    Posted: 08 Aug 2020 12:42 AM PDT

    Hello Reddit!

    I am looking for anyone who could explain in the simplest of terms how buying a property (single family home) with a reverse mortgage works. Reverse mortgage and home was purchased in the late 1980's

    My specific situation:

    My grandpa passed away last year and my grandma isn't doing so well at the moment. They have owned their house since the late 1980's.

    My mother and her sisters have recently found out that when my grandparents purchased the house, it was purchased with a reverse mortgage.

    No one knows a darn thing about Real Estate in my family (I know a little bit of common knowledge) and I don't want the home (or their inheritance) to be taken, or handled incorrectly.

    I'm quite nervous about what will happen if I don't try and step in. I grew up in this house and would hate to see it go.

    I've been in a good spot recently to purchase a home and have already been thinking about investing. So, it is very possible that I'd like to purchase the home when my grandma passes.

    I've tried googling over and over how reverse mortgages worked in the 80's and how much my grandparents purchased the house for but can't find anything that far back in real estate history

    I would really appreciate any advice on what I should expect with their reverse mortgage situation and history, as well as the best way to handle this situation.

    Thank you so much everyone!

    (I also would like to post this discussion in /r/realestate). I hope that is okay, if not please feel free to remove a post. Thank you!

    submitted by /u/_onthefly_
    [link] [comments]

    Looking to get into real estate investing, am I able to simply buy peice of land, throw my pop up camper on it and rent it out?

    Posted: 07 Aug 2020 08:50 PM PDT

    I was thinking about land in New Hampshire

    submitted by /u/sae1294
    [link] [comments]

    Portfolio lenders

    Posted: 07 Aug 2020 08:49 PM PDT

    Who uses them and what kind of rates are you getting?

    I'm still on the hunt for one in my area. Currently limited to commercial loans. Just trying to see if it's even worth my time/effort to continue the hunt.

    I currently don't and won't meet Fannie/Freddie underwriting for another 9 months due to pay structure change.

    submitted by /u/Micheal_ryan
    [link] [comments]

    Should I do a cash out refinance if I don't need the money right now?

    Posted: 07 Aug 2020 08:19 AM PDT

    I'm considering refinancing my primary residence to save a bit of $ each month. But I realized I could keep my payment the same and get about $25k in my pocket by doing a cashout refi.

    I may be unemployed soon, so I want to act now. I have a healthy emergency fund that I have (irresponsibly) not invested over the past 5 years, so I don't perceive a need for cash right now.

    I also don't really have a productive use for $25k @ 3ish percent interest, but the cost to borrow it is so low, I'm inclined to just do it anyway since I'm already refinancing. I can just pay it back early if it turns out I don't need it. My current rate is 3.75%.

    I could use the cashout money to fund some home improvements, but I could do it without the cashout as well. I'm also just, finally, starting to dollar cost average into stocks and metals. So I could invest the leveraged funds there if I wanted.

    SO Would you do the cashout refi or a regular one? My main goal is to protect my savings against possible inflation.

    submitted by /u/ixikei
    [link] [comments]

    LLC setup

    Posted: 07 Aug 2020 03:27 PM PDT

    Do you really need an LLC if you own few rental properties?

    submitted by /u/yadaredyadadit
    [link] [comments]

    Pay off home vs keep some debt

    Posted: 07 Aug 2020 05:40 PM PDT

    Is there a tax benefit to keeping a mortgage? My parents recently came into some money and was wondering if they should just pay off their mortgage. I was wondering if it's better to pay it off completely or keep some of the mortgage so we can keep some of the tax benefits? I'm not very literate on financial stuff and all this kind of got pushed onto me by my parents who don't speak English so now I'm trying to learn everything on the fly. Is there even tax benefits to having a mortgage?

    submitted by /u/greenghostt
    [link] [comments]

    How do people double a property’s value?

    Posted: 07 Aug 2020 08:38 AM PDT

    I just saw a post where they bought a house at $160,000 and it's now valued at $340,000.

    Where I live in the U.K. a 3 bed 2 bath costs upwards of £250,000 and the cheapest you can buy for is 1 bed 1 bath for £150,000. My biggest struggle is not knowing how to get capital for multiple houses as even big changes (extension, loft conversion) don't drastically increase house prices.

    It's very strange seeing the value of houses double as in the U.K. you only really get out what you put in.

    submitted by /u/Mitsalt01
    [link] [comments]

    Assistance Evaluating Mobile Home Park With Straight Leases

    Posted: 07 Aug 2020 08:48 AM PDT

    Greetings all. First, I would like to thank this community. I have been a longtime lurker and have learned a ton from all of you, so thank you so much.

    As the title states, I am trying to evaluate the worth of a small mobile home park that does not charge lot fees, but instead rents each home as if it were an apartment. Most formulations I have seen suggest taking occupied lot values and multiplying by 70-80 to get to a quick and dirty valuation. I have yet to see any formulas for the scenario that I am looking into.

    Since the economics seem to act almost like apartments, I have applied those metrics to it. The specific questions that I have are:

    1) Is there some other analysis that I should be doing to reverse engineer a fair price?

    2) Is this sort of setup (outright leases instead of pad rentals) something that investors usually stay away from? I can see an argument that way because unlike a traditional apartment, the homes themselves obviously have much less value. However, the numbers here seem to make some sense (20% CoC return, etc).

    Thanks for your assistance!

    submitted by /u/FBAnovice15
    [link] [comments]

    KWYKN - From 1 Million to 30 Million in 10 yrs

    Posted: 07 Aug 2020 12:10 PM PDT

    Knowing What You Know Now - How would you turn a 1M starting investment fund into a 30M equity position in a 10 year period?

    As a beginning RE investor planning to leave a successful tech career in my mid 40s, I'm presently doing the due diligence around getting my brain sorted out before I start making plays. I'm already somewhat risk averse and habitually commit significant research to a project. I've knocked out 5 of the books at the top of this list and have interviewed a handful of colleagues with adjacent experience. However, much of the information I'm finding is geared towards the beginning investor who has limited starting finances/time/education.

    I don't fear the trap of not getting started. I do fear the trap of not moving with the appropriate haste/safety mix for my level of available inputs. I am very well funded for my outset, I'm able to commit tremendous amounts of time to my efforts, and I'm not a complete mental reject.

    Leaning on the depth of YOUR experience, KWYKN, how would you use these advantages to rationally build a ten year plan for the kind of growth I outline in my title?

    Thanks!

    BuDongSanWang

    Edit - Lots of great feedback. Much appreciated.

    Here's a similar previous post on this topic for future fact finders. Hat tip to u/SRD_grafter for pointing it out.

    submitted by /u/BuDongSanWang
    [link] [comments]

    Arizona, buy now or stay on the sidelines?

    Posted: 07 Aug 2020 03:22 PM PDT

    I been living in Gilbert/ Chandler area for a bout two years. Was gunna buy last year but I heard the money printers rolling and was told bad things happen to markets soon after so I stayed on the side lines, kinda regret it as I am still renting.

    Unemployment rate for AZ is about 10%, Gilbert/ chandler being about 4%. Eviction ban has been extended. New neighborhoods are being built almost on every other block. Might be over exaggerating, but if I am it's just a little bit. Some other states look much worse. And I hear a lot of people from Cali are moving out to AZ. Isn't AZ's real estate supposed to be one of the strongest in the country atm? I am rather new to this still. But these are the numbers I have gathered.

    Any advice? I plan on buying a 3-4 bedroom house and house hacking it, renting the rooms out to co workers/ friends or anyone really while living there myself. I talked to a real estate agent and of course he says it's time to buy due to low mortgage rates. But honestly imo these rates mean nothing to me, the prices of these homes especially in gilbert/chandler are just outrageous. I mean 2 years back I could had bought some of these homes for 30-50k less. Please, this is just ridiculous. Even if I have my pre-approved VA loan. No way! San tan/ Queen Creek are about 30-50k less in price but its a good 30-45 minutes away from work. And if I plan on renting these rooms out well, there are more jobs in Gilbert/ Chandler of course.

    Anyone here experienced in real estate and in the markets that can help me decide on whether to stay on the side lines or not? I'm soo tired of renting, but I also don't want to miss out on a great opportunity. I have been waiting for soo long now.

    submitted by /u/StickyNoodle69
    [link] [comments]

    With the current climate, is it more difficult to find wholesale deals?

    Posted: 07 Aug 2020 08:58 AM PDT

    I'm looking at getting into wholesaling. I know that as of right now, it seems impossible to find a good rental property (just since everything is selling for way over asking after 1 day on the market). Because of that, is it harder to find distressed owners who need to get rid of their properties?

    I'm wondering if there is more competition for wholesaling now and/or if owners realize that they can sell their house quickly on the market.

    Any insight?

    submitted by /u/freebird348
    [link] [comments]

    Possible to invest in HOAs?

    Posted: 07 Aug 2020 02:18 PM PDT

    In some markets like DC the HOA makes a killing where it's basically a huge chunk of the monthly payment. Doesn't seem like these HOAs can be desolved that easily. Couldn't find anything online, but are there any investment options you can do here? Like an ETF focused on HOAs or something?

    submitted by /u/redkeyboard
    [link] [comments]

    Costs accurate for building new homes?

    Posted: 07 Aug 2020 10:25 AM PDT

    I've been considering developing some lots recently so started looking at input costs - Are this guy's costs accurate regarding framing material? His numbers look high for framing lumber. I'm in the Northeast for reference

    From the post:

    "That means the average new 2,000 square foot home selling for $350,000 in Averagetown, USA used about $25,000 worth of framing lumber at the beginning of the year when the National Association of Home Builder's annual study came out. That same material now costs $33,750"

    submitted by /u/taipan__
    [link] [comments]

    Anyone operate in Arizona?

    Posted: 07 Aug 2020 11:42 AM PDT

    How is the permitting process for Residential improvements or new construction?

    What are the Zoning restrictions like?

    submitted by /u/OddFocus3
    [link] [comments]

    No comments:

    Post a Comment