Real Estate Investing: Offer accepted on a Duplex! First time investor. |
- Offer accepted on a Duplex! First time investor.
- FHA Mortgage Delinquencies Reach a Record, Led by New Jersey
- Looking to get out -- I'm not cut out for this i think
- Sound proofing duplex more?
- 27. Looking for first duplex/quad in Texas. Some questions (financing etc)
- Subdividing land, what to consider
- Similar state like colorado?
- Owning Investment RE in a Different City
- Needing an investor ASAP
- Broadening horizons
- Real Estate Investments. Cannabis or Education?
- Check your city website for your local 'Tenant Training Manual'
- Illegal Non-Conforming 4-Plex, worth a lowball cash offer?
- Investing for retirement and climate change
- Orange County Tax Professional Needed (CA)
- Closed on a 4-plex in Los Angeles
- Is basically breaking even stupid as hell?
- Accidental landlord, negative cash flow in HCOL, should I get out?
- advice needed: where to buy to HH a duplex in? Nj or Philly?
- How dumb of an idea would it to be to buy and make payments on a house if we only plan on living in it for 2-3 years
- How to obtain 30year mortgage?
- Refi offer - keep shopping?
- Benefit of RE for high income earners?
- For those of you who are non US residents and bought in the US, did you use LLC or your own name?
- 2/5 Rule Capital Gains Tax
| Offer accepted on a Duplex! First time investor. Posted: 17 Aug 2020 12:22 PM PDT About a year ago, I discovered househacking from a Facebook ad. Within that week, I became obsessed with this subreddit, biggerpockets, youtube, etc. I told my husband and he thought I was crazy. I told him we had to eventually move to somewhere with more affordable housing. Well, he slowly got on board and we moved in March! I told him he needed to gett a job as an electrician or plumber so he would know how to fix stuff in our future rentals, and he is now a plumbing apprentice! I found a realtor, and we've been looking for our first property for months. We couldn't get an investment loan, so the plan was to purchase an affordable house, fix it up a bit, live in it for a year, then find our next house and rent one out. Well 10 days ago a duplex went on the market. It has 1 side vacant so we jumped on it. We put in a full offer at $47,900 and it was accepted! I can't believe how low the price is! The single family homes we've been looking at are around $45,000 so I'd expect a duplex to at least be double that price. I thought there may be some sort of catch, but when we went to look at it I loved it! I'm just hoping now that the inspection goes through and there aren't any major problems. It doesn't feel real yet, but I'm so excited to start this journey. I know it's gonna be hard, but I can handle it. Duplex 1bd 1br per side Cost $47,900 First time homeowners conventional loan with 3% down with the local credit union. Rent: $550 per side [link] [comments] |
| FHA Mortgage Delinquencies Reach a Record, Led by New Jersey Posted: 17 Aug 2020 10:00 PM PDT Federal Housing Administration mortgages -- the affordable path to homeownership for many first-time buyers, minorities and low-income Americans -- now have the highest delinquency rate in at least four decades. Federal Housing Administration mortgages -- the affordable path to homeownership for many first-time buyers, minorities and low-income Americans -- now have the highest delinquency rate in at least four decades. The share of late FHA loans rose to almost 16% in the second quarter, up from about 9.7% in the previous three months and the highest level in records dating back to 1979, the Mortgage Bankers Association said Monday. The delinquency rate for conventional loans, by comparison, was 6.7%. Millions of Americans stopped paying their mortgages after losing jobs in the coronavirus crisis. Those on the lower end of the income scale are most likely to have FHA loans, which allow borrowers with shaky credit to buy homes with small down payments. For now, most of them are protected from foreclosure by the federal forbearance program, in which borrowers with pandemic-related hardships can delay payments for as much as a year without penalty. As of Aug. 9, about 3.6 million homeowners were in forbearance, representing 7.2% of loans, the MBA said in a separate report. The share has decreased for nine straight weeks. U.S. Virus Relief Set to Vanish in Series of Fiscal Cliffs Housing has held up better than expected in an otherwise shaky economy, with record-low mortgage rates fueling sales of both new and previously owned houses. With job losses mounting and Congress slow to act on a fresh stimulus package, that momentum could be threatened. New Jersey had the highest FHA delinquency rate, at 20%. The state also had the biggest increase in the overall late-payment rate, jumping to 11% in the second quarter from 4.7%. Following were Nevada, New York, Florida and Hawaii -- all states with a high proportion of leisure and hospitality jobs that were especially hard-hit by the pandemic, the MBA said. But the current spike in delinquencies is different from the Great Recession, thanks in part to years of home-price gains and equity accumulation, according to Marina Walsh, vice president of industry analysis for the bankers group. [link] [comments] |
| Looking to get out -- I'm not cut out for this i think Posted: 17 Aug 2020 06:14 AM PDT Title sums it up. 4 doors on 3 buildings and sob stories left right and center. I may have been OK without a pandemic but I'm bleeding money and just can't give people ANOTHER reason to stress out. My tenant who is behind thousands since March decided he needed a new toilet which resulted in the subfloor basically crumbling. Entirely new subfloor, flooring, toilet and it went through the shower drain. Not one call about his toilet being a problem. I obviously need to rehab these properties but people have to leave for that and .. I can't. I'm chatting with my realtor this morning to get his opinion and estimation of the situation. I guess I'm not cutout for real-estate. Any advice on getting out? Holding on somehow? Property manager isn't an option as these properties aren't cash flowing as is and until tenants leave I can't really fix e'm up not that I know what i'm doing there anyway. [link] [comments] |
| Posted: 17 Aug 2020 06:47 PM PDT Just recently purchased a duplex and moved into one side. I've noticed the walls are pretty thin and I can pretty much hear everything next door. Any tips on adding in additional sound proofing? Or how to mitigate some of the noise? [link] [comments] |
| 27. Looking for first duplex/quad in Texas. Some questions (financing etc) Posted: 17 Aug 2020 07:36 PM PDT First off: the financial bits/important info Me: 28, no dependents. Currently renting in another 6 months (around 930/month total). Income is 65k/yr. Around 2500 extra a month after all expenses. Assets 210k taxabale brokerage (none of that is taxable if withdrawn/liquidated). 40k roth ira (about break even so hypothetically could be drawn out penalty free) assorted hsa 5k bank No debt. I'm looking for a quad unit/duplex for my first rental/long term. I moved here around 6 months ago not knowing the area. After being here- like the growth, the military bases (lots of them-good potential long term rental opp), etc. I plan on buying a du/quad/maybe even larger unit depending on a few factors. 1: What way do most investors secure financing? Is it ideal to get a property with as low a down payment as possible in order to secure multiple? I would plan on living in a unit as a primary residence unless I ever moved for work which leads me to 2 2: Does anyone here live in a rental but use a property management company? I feel like I would like to alieviate any stress of managing it (to an extent- I owned a house for 4 years and understand repairs cost) - by possibly having a property management company manage the other tenents/not disclose I'm the owner. I have a llc I could have them make payment to. Thanks! [link] [comments] |
| Subdividing land, what to consider Posted: 18 Aug 2020 02:33 AM PDT I have half an acre of lake front property in a desirable area that I would like to subdivide into two plots of land. I've checked with city zoning regulations, and subdividing appears to be possible as long as each plot of land is at least 10,000 sq ft. I would prefer to have less land since it's easier to maintain. My old house built in the 1930s is on one side of the land. An addition to the old house built in 1990 will have to be demolished to subdivide the land. I would like to either sell the old house or rent it out. I estimate I could sell half of my land with the old house for $500k to $600k based on values of similar properties in the area. Renting the home would likely get me about $3k to $4k a month. On the other half of the land where there is no house, I would like to build a new home. I estimate it would cost anywhere from 350k to 600k to build a new home. Is this a good idea? What factors should I be aware of when subdividing land? Should I sell or keep the land? [link] [comments] |
| Posted: 17 Aug 2020 11:38 AM PDT Looking for a area like Colorado Springs that hasn't went completely mad on home prices yet but has similar views/lifestyle. Is Utah/Wyoming my only options? I looked into Boise, ID and it looks insanely expensive compared to here. [link] [comments] |
| Owning Investment RE in a Different City Posted: 17 Aug 2020 07:12 PM PDT I currently rent in a MCOL city. I want to buy a house/townhouse but there is a possibility my job will move me in 1-2 years. If that were to happen, I would ideally like to hang onto it as a rental and just pay a property manager to handle it since I would be out of state. What's y'all's experience with this? Is it smooth sailing letting a property manager handle it from afar or just a pain in the ass? And have you been able to make the numbers work taking 10% off the top? I would underwrite it as an investment property before buying even though I'd be living in it for awhile. Does this make sense or am I better off selling it when the time comes or just waiting until I'm in a more permanent situation to buy? (The fear being I'll put off homeownership longer and miss out on cash flow and appreciation/equity building). Tl;dr is owning investment real estate from afar worth it? [link] [comments] |
| Posted: 17 Aug 2020 09:02 PM PDT Long story short, our home in central Texas was auctioned without notice to us and 6 months of payments were mailed back. The home means everything to me, and if I had it, I would spend any amount to keep it. As it is, I'm a 1099 employee with minimal paper trail (working on that currently) and due to medical hardship 4 years ago, my credit is in recovery status. We need an investor to potentially buy it and rent to us, until we can buy it ourselves. We make more than enough money, and have the money for a down payment for a land contract/RTO situation, but we're willing to do anything at this point. The company who bought it at auction want a high price for it, but it is worth it to me, and to my family. Is there anybody who does this kind of thing that would be willing to give me pointers or a direction to look (other than at other properties)? Or potentially be interested? [link] [comments] |
| Posted: 17 Aug 2020 05:51 PM PDT New Yorker here interested in investing in real estate. Pretty laughable to say out loud on a working class income. I'm trying to broaden my horizons to other housing markets that are worth checking out. Total noob here as far as market research goes as well, so if you have any recommended resources I'll happily check them out. Totally okay and interested in investing long distance and wouldn't mind relocating out of the rotten apple if need be. Any other New Yorkers out there? [link] [comments] |
| Real Estate Investments. Cannabis or Education? Posted: 17 Aug 2020 05:27 PM PDT Hi all, I am total & permanent disabled veteran. My current income is from my Disability Compensation. I have not accessed any of my Military Retirement benefits (I can due to 100% Service-connected T&P disabled veteran). Therefore, non-taxable income is $3100 (public info). & Traditional Investments (stocks, mutual, ETFs) etc. Researching for an investment property outside of California. I have recently traveled to Texas, Oklahoma, Arkansas, Kentucky, New Orleans, New Mexico, & Arizona by road trip (have a dog, & back problems don't do flight so well). My initial research was based on investing in Texas near University area. Having veteran benefits, use the benefits to purchase a property & rent it out to students, for $1500 a month. Due to Covid-19, new data created, new Risks. However, during this Pandemic, have been able to connect back with my veteran brothers. Some live in Oklahoma & want to do a joint Investment on Cannabis Production & Distribution. Should I stick to my original plan (research) for Texas University area property, for rental income (students). Or take the higher risk, get a country property, joint Investment w/ veteran brothers, on Cannabis industry? (I Know will require active work) - however the Cannabis Real-Estate Investments is very promising. Thanks For helping me decide. [link] [comments] |
| Check your city website for your local 'Tenant Training Manual' Posted: 17 Aug 2020 08:02 AM PDT Something I've noticed lately is that the modern Tenant is completely ignorant of the laws surrounding Real Estate. Every time an issue comes up, they've been trained to Google the answer. Something I've been doing lately is printing out my local "Tenant Training Manual" to give to my tenants. I also include a link in the tenant portal. For my area, this is a 60 page document that goes through most of the pertinent laws regarding renting properties in the city. Most importantly It goes through Tenant Responsibilities & Landlord Responsibilities. This gives the repair requests a proper framework to discuss, preventing misinformation & many arguments before they happen. This has helped me cut through the bullshit and get straight to the point on a variety of topics.
Etc. I could go on, but I think it's value is self explanatory once you know it exitsts. It's a great tool that I don't think many people know about. It sets the guidelines for best practices and helps avoid lawsuits. [link] [comments] |
| Illegal Non-Conforming 4-Plex, worth a lowball cash offer? Posted: 17 Aug 2020 10:54 PM PDT Hi all. I've been under contract for a 4-Plex in Indiana for several months. We were just about to close in June when my lender called to tell me that they could not fund the loan due to it being zoned single-family. The seller has been working hard on their end with the city to get a legal-non conforming status. They've dug up old records that show it's been used as multifamily since at least the late 70s and have presented their case on 2 different government meetings. The first meeting with the Zoning Board went well and they recommended the status be granted. The second meeting was today with the Common Council and I watched the live-stream on their Facebook page. The change was denied, with some councilpersons reporting they'd gotten phone calls requesting it stay as single-family from people in that neighborhood....I have no idea if that is true or just politics. One person who spoke at the meeting (city-planner???) said that if the status was denied, nothing would really change at the property. They would not kick out any tenants or demand the property be converted back to single-family, and we'd still be able to get new tenants in the future. They just wouldn't officially endorse it as multifamily. I really like everything else about the property. Fully occupied with tenants who have all been there at least a year with leases all renewed into 2021. We had agreed on $125K and it would bring in over $2K per month in rents. Roof was just replaced and there doesn't seem to be a ton of deferred maintenance I'd have to take care of right away. The obvious downside with the zoning as-is are the following: I'd need to pay cash which would lower my ROI (but increase my cashflow). If the property burns down and needs to be rebuilt, insurance would pay for a single-family home to be rebuilt...not another 4-plex. This seems like a risk worth taking as I think the single-family would be worth about the same and I'd be able to sell it easily. The big risk is that the local government suddenly decides to get more strict and demands the home be converted back to single-family. There's no indication of that happening and it seems like these non-conforming homes are pretty common in the area, but things can change. I've already changed my mind 10 times this evening on if I should pursue a lower cash offer. Would you still try to acquire this property if the price was right, or just stay the hell away? I'm not sure what a hypothetical cost to convert back to single family would be....but I could do some more research and factor that into the offer. [link] [comments] |
| Investing for retirement and climate change Posted: 17 Aug 2020 10:41 PM PDT I plan to secure a retirement place now with low rate, rent it out as rental property, and move in after 30 years. Taxes, job market, health care are easier to research. What's bothering me is predicting natural disasters and what the world would be after 30 years. - Florida is a common choice, but its disaster proneness and global warming effect discouraged me. Higher home insurance rate could become a burden. The rising sea level also endangers some beautiful beach towns. - Taxas is known for its economic potential and lower costs, but it's also prone to disasters. The high heat could be concerning with global warming. - I like coastal cities (read as expensive!), but rising sea level is the concern for all. - Northern states seems safer, but the longer darkness affects my mood. - West coast is prone to earthquake. WA and OR are wet and dark; CA is expensive and dangerous AF. It seems only NM, CO, UT, NV seem safer according to the map. What's your take on long term investment? [link] [comments] |
| Orange County Tax Professional Needed (CA) Posted: 17 Aug 2020 10:39 PM PDT I am looking for a tax professional in orange county CA to discuss tax strategies and business structure. This would be for FY 2020, not 2019, so it's not a fire drill. Thanks in advance for any references! [link] [comments] |
| Closed on a 4-plex in Los Angeles Posted: 17 Aug 2020 09:52 PM PDT Purchased a 4-plex in Los Angeles. Purchased for $765K. Monthly rents are $5,760. Property is in a B area. Standard 25% down. [link] [comments] |
| Is basically breaking even stupid as hell? Posted: 17 Aug 2020 08:24 PM PDT Boston Zip Code, and is currently primary residence (Condo). Is it a terrible idea to keep and tenant the condo if we are able to do so when we move to a SFH? Breakdown below: Current Condo Breakdown
Potential Rental Breakdown
Thoughts? [link] [comments] |
| Accidental landlord, negative cash flow in HCOL, should I get out? Posted: 17 Aug 2020 10:36 AM PDT Wife and I bought a SFH primary residence in 2018 in Seattle suburbs then moved into the city 1 year later to be closer to work, never sold though. Rented it out with soft plans to use it again when we have kids (either move back for the space, or let parents move in to help with kids). Mortgage is $3500, currently renting for $3k with 10% going to the property manager, so negative $800 cash flow not including taxes and maintenance. Both it and our current home are new construction. I'm learning that negative cash flow is a red flag in some areas but not others, not sure where to go from there though. NW is ~$1M and we both work in tech. [link] [comments] |
| advice needed: where to buy to HH a duplex in? Nj or Philly? Posted: 17 Aug 2020 05:39 PM PDT hello everyone, my job is in north jersey and i live with family in the basement. im 27 and i am currently savings every penny i can. My goal is to HH a duplex and cash flow after i move out. i have around 75k to 150k to use for this. Would like $200 cash flow per unit or a 10% cocr after all expenses. right now i have an online store and work full time in jersey city, my family also works in north jersey but closer to where we live. trying to see what makes the best sense that will benefit me 5 years from now.
if you had to choose, what would be best for you financially down the road? [link] [comments] |
| Posted: 17 Aug 2020 05:23 PM PDT Me and my fiance's lease is up next June, and to be honest I kinda feel like throwing up giving monthly payments to someone else, to an asset I don't own We have one child, and plan on having more in the future, but for now, a two bedroom house is very much feasible for us 3, and even 4 (finished basement) I'm an experienced tradesmen (pipe fitting) and a bit of experience in carpentry, as well as my old man who's a professional painter Combined income of us two is ~$120,000 a year, very much so stable Looking at houses for ~$120,000-$150,000 The plan is (oh boy you guys have heard this one before) is to fix up an old house, and sell to some hipsters for a profit I understand there is some risk involved [link] [comments] |
| How to obtain 30year mortgage? Posted: 17 Aug 2020 04:41 PM PDT Is it possible to obtain a 30year mortgage for a two property, 20-unit rental, between 3-4 guys? We will have an LLC set up. [link] [comments] |
| Posted: 17 Aug 2020 04:24 PM PDT Hi all. I got an offer on my primary home to refi from a 3.5 fixed 30 year (I've had it four years) to a 2.99 for 30 years. They are adding about 9,000 in closing costs. In addition I have to pay down my principal by 36k. My payment goes from 2,650 to 2,150 a month. This is primary home, I have 815+ credit. [link] [comments] |
| Benefit of RE for high income earners? Posted: 17 Aug 2020 02:57 PM PDT So COVID wiped away my husband's occupation for the time being but thankfully, I have job security and a good paycheck. We both like the idea of investing part of our assets in RE and after months of searching finally found a multifamily property in great condition and seemingly great tenants who want to stay. We are waiting to hear back on our offer! Problem is, I make too much money to claim any depreciation on the investment property. The plan would be to eventually qualify my husband as RE professional which likely require more than 1 duplex. My question is, is there any tax benefit to owning investment properties if he doesn't/never qualifies as RE professional? [link] [comments] |
| For those of you who are non US residents and bought in the US, did you use LLC or your own name? Posted: 17 Aug 2020 02:01 PM PDT It is hard to gauge how much of a liability magnet you are. The other consideration is tax. [link] [comments] |
| Posted: 17 Aug 2020 01:34 PM PDT Hi all, I purchased a home last winter as a first time homebuyer. It's a small two bedroom, and I currently share it with a tenet. My tenets lease is ending in October, so I am thinking about what I want to do next. I have thought about either living there by myself (and creating an office) or renting the whole thing, moving back home for a while duing covid and finding a small studio for myself around 1250-1300. Essentially, I am the only owner in a townhouse that does not rent out my unit, the building's HOA is quirky, and I find it a little exhausting to play roommate and landlord at the same time. My monthly expenses are 2,200 (mortgage, taxes, etc) and I believe I can rent it out to cover property management as well, maybe a little extra for maintenance. It will probably not give me any additional monthly cash, but it should pay off the loan/keep it self afloat. My questions are: 1. Is there any reason for me to stay until the one year mark. I.e. until the 12th month mark. It doesn't look like there are any available first time home buyer end of year tax credits that would be advantageous (anymore), but let me know if I am missing something. 2. I had talked to a couple financial advisors for free through my company's EAP program. I got some conflicting advice about the 2/5 year capital gains program. One person had told me it would be advantageous for me to stay the other year. Another person told me that it would allow me to not pay capital gains tax for the 2 years but since I would be renting it out I would have to do depreciation recoup for the last 3 years (IF I SOLD it within 5). These first couple years are definitely a trial period for this property, so I can see me maybe doing that. I am mostly considering keeping it, although I hear the market is pretty good to sell right now. I think I bite off a little more than I can chew for this place, and wondering if anyone has any thoughts about what things are going to look like. Is it better to hold out until after the recision—another 6 years or so? My location is fantastic—it's in Logan Circle DC and it is likely to be in demand even with covid and/or a shift to remote work in the future (but who knows). I can also see myself doing a 1031 exchange with this condo for another one in the neighborhood in the future—something a bit more new. [link] [comments] |
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