Real Estate Investing: Should we sell our biggest real estate property? |
- Should we sell our biggest real estate property?
- Cash out refinance during low mortgage rates and hot real estate market ?
- Asset rich, income "poor"
- Investing in Storage Units as an LP
- Some thoughts as we exit the notes business
- Dallas (TX) area cash-out refinance / RELOC?
- When is it best to buy a second house? And new to learning about real estate...
- Can’t own my primary residence, so purchase secondary to rent out?
- Thinking of house hacking (again), what’s the rental market like right now, in your experience?
- Hello real estate investors, I have a question about flipping homes
- Do you’ll think the market of houses should drop any time soon?
- How realistic is it for someone to get to Manny Khoshbins level through real estate?
- Signs that an area is appreciating?
- Should we get involved?
- CA - Maintenance agreement instead of HOA for townhomes
- Agreed to terms to owner finance 4 sf homes
- Sourcing materials from China for larger Multi Family. Anyone done it?
- Dumb question on 1031 exchange
- I guess this is more of a real estate question as well, any insight?
- Second property sale tax questions.
- Multi-Family Commercial Loans
- So I’m getting into wholesaling real estate but I have one major question
- Jersey City, NJ
- Is 5% return on a vacation rental even worth it?
| Should we sell our biggest real estate property? Posted: 05 Aug 2020 09:57 AM PDT My Grandfather left my family a small fortune in real estate which includes a 45 unit apartment complex, two rental houses, and 7 small commercial rental properties. In my opinion this portfolio has afforded my family a lot but I feel like I'm the only one that realizes this. My mom and uncle are the ones who currently run the company and are in their 60's. My uncle is tired of dealing with apartment renters and wants to sell. He thinks the money would be better invested in the stock market. I have told them multiple times that I would take over some of the responsibilities but in order to do so they would have to pay me a little each month. I think through irresponsible management of cash flow they don't realize the amount of money that we make and the potential we have to capitalize off of what we have and that we should expand our real estate holdings. Am I wrong? I think we could build this company into something that my generation could also benefit from for years to come and I'm extremely frustrated by the idea of them wanting to sell. The apartments are old and a lot of money goes into them but if the money was handled correctly I think it could net around $25k each month after expenses. It just seems crazy to me to sell off something that makes that much money and you own free and clear and out into the stock market. There's no way you can make that kind of money and it's more of a risk. [link] [comments] |
| Cash out refinance during low mortgage rates and hot real estate market ? Posted: 05 Aug 2020 05:38 PM PDT I'm fairly new to real estate investing, Live in Los Angeles, and looking at doing a cash out refinance and using the cash to buy an investment property. It seems too good to be true so I'm wondering if I'm missing something and wondering if anyone is doing something similar right now due to the current market and low rates. Current Mortgage
Cash out Refinance Proposal:
Basically I can refinance and pull $40k out in cash, keep the same monthly payment, and only pay 1,500 in closing costs. I'd use the $40k and additional savings as a down payment for an additional property that I'd rent out. This seems too good to be true. Am I missing anything here? Anyone doing the same thing right now? The other option is to do a regular refinance (no cash out) and save $200 per month. Also attractive, but getting $40k cash right now that I can put to work seems like it has much more upside, particularly if the real estate market dips due to COVID-19 foreclosures in the near future. The $40k in cash would really come in handy to swoop up a deal. Here in LA the rent to purchase price ratio is pretty low, so the main purpose of buying another property would for the appreciation rather than rental income (although rental income can be a benefit down the line). [link] [comments] |
| Posted: 05 Aug 2020 07:09 PM PDT Hi all, well I just got denied for a pre-approval from a bank because my tax returns for 2019 did not show enough income to qualify. My income is from rental properties alone, from which I have joint ownership of two 2-family homes (no mortgages), and a 3-family rental (mortgage) also in the area. I'm stumped as to just how low they consider my income even though aside from how it looks on the tax returns I am netting quite a comfortable amount (around 80k). I'm curious if anyone has any alternative strategies that I have missed thus far. Someone just mentioned asset-based lending but in talking to a few people in that area it seems they mostly deal with commercial or small business loans only. Thanks! [link] [comments] |
| Investing in Storage Units as an LP Posted: 05 Aug 2020 05:55 PM PDT I have an opportunity to invest as an LP into two storage units in a rural area of the country; investment horizon is ~5 years. At the 5 year mark, the GPs plan to refinance and offer investors a buyout option; based on there projections, IRR is slightly over 20%. Is this a strong IRR for investing in storage units; I have no point of reference so not sure. I've been interested in investing in storage units for a few months, but have just been hesitant to pull the trigger as I don't own any properties, so jumping right into storage units seems like too much from the getgo. I'm hoping to build a strong relationship with the GPs to hopefully partner in a more meaningful capacity on future deals. [link] [comments] |
| Some thoughts as we exit the notes business Posted: 05 Aug 2020 10:15 AM PDT Since I've never posted in too much depth here before, here's a quick background on me. Prior to 2016, I was being trained as the successor to my dad in the family real estate business (notes, land, and SFH). My parents split in 2016, my mom got the business, and my succession timeline got moved up in a way that I never really saw coming. I've been learning as I go, and I've done a lot of work to pare down and revamp the portfolio we had on the table as well as locking in some of our existing gains. Currently, our properties are averaging a 11-cap compared to a 5-7-cap on the same properties in 2016 as a result of value-adding decisions and market growth in our area. Not too bad for someone working on their undergrad and masters, pulling the trigger on strategic decisions, and most definitely a credit to the business school I attend as well as you guys (I've learned a lot from folks like GG and /u/german_mafia on here). As of today, we've charted our exit from the notes business and are in the process of preparing to foreclose on the last note in our portfolio (and the only one that I underwrote). All of our other exits were sales of performing notes at yields relatively close to par (w/in a percent), and I'm definitely okay with that since having deployable cash in the current environment was a major strategic goal that I had when we started back up in 2017. With regard to this foreclosure (the only one we've had to do, ever, pre-or-post-2016), this has been one of, if not the single, hardest decision that I've ever had to make. I've spent several nights in the last month up deep into the night agonizing over this decision, and I felt like no matter what choice I was going to make, I was going to hurt the borrowers and their family on the other side of this deal. I've done evictions in the past of the non-performing tenants we got hung with in 2017 and early 2018, but this doesn't feel the same way. It's not even remotely close. I don't know if it's just that I lack the nerve to be in this line of the business or if I'm giving these folks the benefit of too much of my empathy, but I'm staying out of it from here on out unless it's making HMLs to investors only. I don't have the stomach to do what's necessary with an O/O and don't think I ever will, simply due to the second-order effects that my decisions can have. I want to thank you guys, though, for being a large wealth of knowledge and hope that I can still glean some knowledge from y'all as we start to scale from SFH to MFH and commercial in the coming years, and that I can provide some insight of value to y'all as well. [link] [comments] |
| Dallas (TX) area cash-out refinance / RELOC? Posted: 05 Aug 2020 10:23 PM PDT Anyone has recent data points on Dallas area cash-out refinance or a line of credit on investment property? I have asked from Bank of America, Bank of Texas and Credit Union of Texas, no luck. Typical answer has been that cash-out refinance is "at the moment" available only for those with existing mortgage (I don't have one) and RELOCs are not available at all. [link] [comments] |
| When is it best to buy a second house? And new to learning about real estate... Posted: 05 Aug 2020 03:48 PM PDT Good afternoon all, I'm currently looking to the future and curious when it would be best to purchase a second house. Should I pay off my first home as fast as possible? Or should put money aside to purchase a second home so I can put it out rent? Or should I pay off my current house so it's the minimum mortgage payment is sustainable? Extra info: -Current interest rate on house is 2.75% -Currently using VA home loan for current house -Currently renting out rooms out of house Any other advice would be much appreciated. Thank you! [link] [comments] |
| Can’t own my primary residence, so purchase secondary to rent out? Posted: 05 Aug 2020 09:15 PM PDT I scoured the internet and can't seem to find anyone in a similar situation, so here it goes: I live with my girlfriend who bought her single family house on her own before I met her. Before her, I had saved a bunch of money to buy a house, but she has no intention on adding me to the mortgage. I've never owned a home but have always wanted to get into real estate. We are not too far from a resort town and we like to spend a lot of time there, so I figured it would make sense to buy a vacation home and keep it in my name since the primary residence is in her name. In order for the vacation house to be affordable as a "second home" I would have to rent it out during the peak season and utilize it during the off season. Renting wouldn't be a problem, and I'm only looking to break even with the rental income vs any mortgage loan. How do I go about getting a mortgage for a "second" home that I would then turn around and rent out on a short term basis while still getting the tax advantages and interest rates of a "first time home buyer". I would not be able to call this my primary residence, but currently have no primary residence mortgage. I also have excellent credit, I just can't seem to find the right mortgage/loan path for this situation. [link] [comments] |
| Thinking of house hacking (again), what’s the rental market like right now, in your experience? Posted: 05 Aug 2020 08:59 PM PDT Are you guys afraid to make moves right now due to the pandemic? Are your rentals staying empty longer? I have one rental and it's leased and they are great tenants who continue to pay. I have an opportunity to buy again and I'm afraid due to the the pandemic that our current home would take longer to rent leaving us with two mortgages for a while. Looking to hear your personal experience with current market conditions. [link] [comments] |
| Hello real estate investors, I have a question about flipping homes Posted: 05 Aug 2020 03:17 PM PDT Lets say I buy a home for $50,000 that needs some work and I put in $30,000 in repairs+labor and sell the home for $130,000. That $50,000 profit I made is obviously taxable but let's say I took that $50,000 and used it to invest into another home, is it still taxable or no? Thanks. [link] [comments] |
| Do you’ll think the market of houses should drop any time soon? Posted: 05 Aug 2020 06:46 PM PDT I wholesale and I heard from buyers reasons they want to sell their house its because the market is slowly declining ? [link] [comments] |
| How realistic is it for someone to get to Manny Khoshbins level through real estate? Posted: 05 Aug 2020 06:43 PM PDT I know he started real estate at the perfect time (1990's) when homes that were $200k then are now $1,000,000+ but in today's market with all the competition how realistic is it for someone so start flipping single families and Multi's to apartment complexes to commercial buildings and shopping centers? I know of one guy irl who does this but he has a very successful HVAC company where he earns around $500,000 per year from it and he dumps a lot of that money into commercial buildings that need remodeling and sells it for $1,000,000-$3,000,000 profits. I'm only asking because I wonder if you have to cut some loopholes and be un ethical to get to a level like that. The family friend I'm talking about came here with nothing and now he's buying himself supercars like candy and multiple vacation homes like it's me buying a bag of chips. I'm wondering if things like tax fraud is involved here or other illegal activities [link] [comments] |
| Signs that an area is appreciating? Posted: 05 Aug 2020 06:38 PM PDT What signs do you guys look for that an area is poised to appreciate a lot or gentrify in the near future? [link] [comments] |
| Posted: 05 Aug 2020 02:46 PM PDT My wife's grandfather passed away a couple of years ago and did not leave behind a will. His home, where my wife grew up, is worth 450k and the mortgage balance owed is 100k. Currently, there are 5 children who, if no agreement is made, would split the earnings of the sale of the house. My wife and I are in a position to assume the loan and or invest in the property. I understand this sounds like a messy situation which makes me cautious it I would like to know if anyone has had any experience with anything like this or has any sort of advice in getting involved. Emotions and real estate don't mix well but I would like to get any input on how to move forward if at all. [link] [comments] |
| CA - Maintenance agreement instead of HOA for townhomes Posted: 05 Aug 2020 03:38 PM PDT Hey folks, Oakland, California I'm exploring getting into real estate investing and recently I took a look through my girlfriend's townhome ownership documents to work on familiarizing myself with how they might differ from a SFH scenario. I'm particularly curious about the maintenance agreement that is in place. In the "Declaration of Easements; Agreement for Maintenance and Reimbursement; and Covenants Running With The Land", there are a variety of stipulations that appear to outline how the owners of the 10 units in this development will handle maintenance of common areas. - Each owner or owners get one 'vote' per unit - Maintenance required in common areas can be achieved by majority vote owners, a designee, and 1/10 reimbursement requirements - An owners failure to pay can be addressed with interest outlined in the agreement and property is vulnerable to liens - One clause outlines the obligation of a noncomplying to owner to reimburse enforcement court fees as necessary. While it's clear that this is a strategy to avoid having an HOA, I'm very curious about the utility/wisdom/enforceability of these provisions. The 10 units are currently an assortment of owner occupied, rented, and AirBnB. From what I've observed and have confirmed with my girlfriend, the current climate is cordial but nonfunctional. There is, and hasn't been for 2-3 years, no one filling in the point-person role and no ongoing mutual activities towards maintenance. I've seen at least one passive aggressive email complaining about an unrequited fees request for work the owner performed with no discussion beforehand. He's since departed and it seems 1-2 units turn over per year. Questions: - Is it safe to assume that all owners will remain encumbered with these clauses in their titles in perpetuity? Certainly, my GF purchased the unit she owns from an owner who bought when construction was new, so I know it's supposed to continue to attach. - From an owners perspective these clauses appear to be way more headache than the average owner would care to pursue/or appreciate being pursued for, up until non-maintenance was obstructive or harmful. Enforcement seems like a lot of thankless work while alienating neighbors who are close AF. Is there a silver lining I'm missing? - Is it correct to assume that these clauses are also terrible from a rental property/landlord perspective? We will probably rent the place when we move together to a SFH (given sunk cost), but I can't imagine buying into a place like this for investing, right? - From a legal standpoint, how valuable are these clauses in a 'brass tacks' scenario? If an owner or landlord cared to make the time and stress investment to pursue proper maintenance and protection of home value, would the courts reliably support claims stemming from these clauses? Thanks y'all! BuDongSanWang [link] [comments] |
| Agreed to terms to owner finance 4 sf homes Posted: 05 Aug 2020 11:27 AM PDT So to keep this relatively concise, as the title mentions I intend to purchase 4 sf units from an old gentleman who is willing to owner finance them. 4 units for 100k. He is willing to accept just 9k down at 6% interest over 18 years. (He told me explicitly that he doesn't care how long because he'll be dead lol) I chose 18 years because at that rate that should put monthly payments at just under 700 with the current net rent at 2075/month. 2 of these units are drastically under market because of the area and the long term tenants that he has had no desire to see evicted. I think i can get an additional 4 to 600 rent out of these in the near future. [link] [comments] |
| Sourcing materials from China for larger Multi Family. Anyone done it? Posted: 05 Aug 2020 10:43 AM PDT We are closing on a 17 plex in a HCOL which we will be stripping completely. All 1965 original stuff! Given the size, we have been considering ordering a container from China. Everything price wise isn't a big win excel for -Tile -Kitchen, bathroom and shower plumbing and faucets -Portable AC units that are CE rated for canadian laws (units a 350 square feet) Has anyone else looked into this and was it worth it? On those items we are saying around 300-350 per unit for plumbing EASY so thats 4K (including shipping and duties cost) Tile should save us another 1-2$ a square foot so around 3-6k there. A/c units around 150$ each so another 2K there. [link] [comments] |
| Dumb question on 1031 exchange Posted: 05 Aug 2020 01:22 PM PDT I have a few properties and I'm thinking about offloading one. A duplex we own has almost doubled in value and makes good cash flow but we could use the proceeds to wipe out my wife's student loans. I also think my market is overinflated so I'm not too keen on buying another property just yet. Can I use the remaining proceeds to pay down a loan on a different rental or must a 1031 go to a new acquisition? [link] [comments] |
| I guess this is more of a real estate question as well, any insight? Posted: 05 Aug 2020 01:04 PM PDT |
| Second property sale tax questions. Posted: 05 Aug 2020 08:16 AM PDT So here's the situation my wife and I find ourselves in. Her grand parents passed away leaving property to her and her brother. Her mother passed away, but prior to that, had signed the property to my wife's brother. My wife signed her half of her grandparents property to her brother in exchange for her mother's property. No money changes hands, just his for hers and now each sibling has a piece of property. We are selling her mothers property now, how should we handle the taxes? Are we subject to capital gains tax due to the property technically being given to us by her brother? Is there a way it can be shown as an inheritance by us to avoid capital gains tax? At closing we were given a 1099-S for the price of the sale. Thanks for any light you can shed on the subject. [link] [comments] |
| Posted: 05 Aug 2020 05:59 AM PDT I have done a few BRRRR deals on properties with 1-4 units, and now i'm starting to evaluate properties with 5+ units. What are the main differences and some important things to consider when dealing with commercial loans for someone who has no experience with them. Any information would help, thanks in advance! (FYI: I'm in the Houston market) [link] [comments] |
| So I’m getting into wholesaling real estate but I have one major question Posted: 05 Aug 2020 11:50 AM PDT It seems to good to be true. $3,000,$5,000+ profit if you find a cash buyer? Why wouldnt the cash buyer themselves just offer on a house that needs work and keep more money for themselves? This makes no sense to me. Also how can someone who is not buying the house able to offer the seller of the home tens of thousands if not $100,000+ on a home they will not buy? I know the cash buyer who will flip the home is the one that will give the cash to the seller and that's how the wholesaler makes the profit but why doesn't the cash buyer themselves just buy the home at a discount from the seller? Why pay someone a premium who isn't even buying the house? I seriously just don't understand this [link] [comments] |
| Posted: 05 Aug 2020 05:35 AM PDT Hi everyone, I am looking to buy rental property in jersey city, possibly under 500k and putting down a little over 10%. I am not super familiar with the area but I feel like it's a good place to own rental property. With my price range, inventory seems very limited. I only see options in Greenville area, or a few fixer upper in west side. For people who live there, do you guys feel these areas are lucrative for tenants I.e safe? I see a range of rent from $1500-1800 online, not sure if I can trust it. I am trying to buy my first real estate and any advice is welcome : ) Thank you! [link] [comments] |
| Is 5% return on a vacation rental even worth it? Posted: 05 Aug 2020 11:15 AM PDT I found a turnkey rental that would be about $40k for down payment and closing costs and what not. My yearly proceeds would be $2k after management fees and everything else. They have a 33% occupancy rate that, it's a touristy area but I can't change that because I'm not allowed to circumvent the management company by listing it. I can't install any features that would make it more appealing without board approval and it sounds strict. Is this a no go, or are there any creative ideas to make it more profitable? With a low occupancy rate I could use it but that doesn't make me money. [link] [comments] |
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