Real Estate Investing: Why do people own in expensive areas? |
- Why do people own in expensive areas?
- Foreclosing Notes
- Is a Real Estate License Worth it?
- located in North jersey, prices and numbers here dont make sense for cash flowing, am i wrong?
- Is it better to have a rental property with furniture or without furniture?
- Real state investors and/or hard cash lenders (Canada)
- is buying points worth it?
- Trouble getting a mortgage with good ... everything. Please give me your advice
- How do TICs work when the building is currently under a group loan and there's a new buyer? Can that buyer apply for fractional financing?
- Looking at Seller Financing a down payment
- Does this refi make sense
- buying the first rental property with no income (fresh graduate)
- Where can i get started in Texas with 25k?
- Canada Real Estate Sold Prices/Valuation/Building Permit Data
- Live an expensive city, looking to invest our money in another state, how smart is this for a newbie
- When doing market research, why are more expensive area's favorable?
- Need help with duplex purchase
- Recommendations for 1031 Qualified Intermediary
- What is the process to buying a home and putting it in a trust? How does the loan work?
- Tips on finding a twin home with both sides for sale
- Owner Financed Sale of Converted Primary. Tax Rules?
- Real Estate Accountant or Tax Person in Sacramento
- Purchasing my rental
| Why do people own in expensive areas? Posted: 12 Aug 2020 07:44 PM PDT I have been looking to buy a rental lately and when looking at a SFH I noticed that it does not really make sense price wise above the $150k range, that is if cash flow is your goal and assuming you are leveraging with 20% down. Or another way of saying what I mean is once you go above the $150k range, the 1% rule seems to go away. There was one article that I cannot recall to find atm, but it was mentioning how some areas like LA a $800k+ home rents for $3k, like 1/3% of the purchase price. Even in other cities, like randomly looking at SLC I see a SFH for $750k. Expected rent is 2600. Why would anyone buy this home simply other than people who intend to live there. Even for those who want there forever home, they could rent it for so much cheaper. I understand once its paid off owning is way cheaper than renting. But if I had the ability to buy a $750k home, I would much rather invest it so I could hopefully have my dividends pay for my rent rather than paying a mortgage monthly.... I hope this all makes sense. It's been bugging me for a while and I cannot seem to understand. [link] [comments] |
| Posted: 12 Aug 2020 06:17 PM PDT I've been looking into notes recently, in particular non performing notes. Spending 20k on a non performing note with 80k in value and then foreclosing sounds amazing but there are a few things I'm having trouble grasping like does a forclosure have to go to auction first or can you literally just claim it and sell it? For those who have done this, what advice can you share about foreclosing that you couldn't find in a book and can you describe what the hidden cost with foreclosing on a note can be? Edit: I wanted to thank everyone for all the advice and for correcting some of my misconceptions. While doubt I'll now go into investing with the intent to forclose, I still feel this is useful information in the event of it becoming a necessity to forclose after other avenues fail. [link] [comments] |
| Is a Real Estate License Worth it? Posted: 12 Aug 2020 05:49 AM PDT Hello! I am a 22 year old engineering student with one semester left and projecting a day job of around $75K annually while living with my parents rent free to start. I have always been interested in investing and real estate with intentions to flip a handful of houses to build capital to purchase rental properties and pay off school debt. My dad is down to only a few years left until retirement and agreed to providing a loan for the first couple flips and will help work on the houses with me to split the profits. We both are handy man types and plan on doing the majority of the work ourselves. The question is, in your experiences is obtaining a real estate license for primarily access to MLS, potentially whole sale homes, and save on paying commission to a realtor worth the effort and money? I am from Michigan if that helps and fairly inexpensive areas. [link] [comments] |
| located in North jersey, prices and numbers here dont make sense for cash flowing, am i wrong? Posted: 12 Aug 2020 10:45 AM PDT hello everyone, i am from Paterson and even here it seems the prices are way high and taking in the 5% per repairs 5% for capex 8% per vacancy CAPEX. i am having trouble seeing how any 2 family houses for 375 to 420k with taxes being 9k plus can produce cash flow i have saved up for years and ready to house hack a 2 unit plus proPhillyperty but not sure if NJ is worth it and have been looking around in philly instead. anyone in NJ can explain? [link] [comments] |
| Is it better to have a rental property with furniture or without furniture? Posted: 13 Aug 2020 12:28 AM PDT I'm going to be investing in a low-cost house since that's all I can afford and would like to know if I should pre furnish the property for the potential new owner or not. [link] [comments] |
| Real state investors and/or hard cash lenders (Canada) Posted: 12 Aug 2020 07:47 PM PDT Just started learning and reading about real estate investing in Canada. Primarily fix and flips and wholesaling. Seems like one of the biggest hurtles as a beginner is finding an investor or a hard cash lender. Just wonder if anyone has some suggestion or info on this matter. Thanks! [link] [comments] |
| Posted: 12 Aug 2020 10:32 PM PDT I know usually it takes like 10 years to break even on buying points. For my purposes, I just bought my first house to live with roommates in. I won't live there forever but will probably rent it indefinitely vs ever selling it. My goal is to maximize leverage with 20% down payments and 30 year fixed. Is buying points still not worth it if there's not much risk of interest rates going down further and me having to refinance? Would it be bad to buy a 2.75% rate down with points as low as possible if I don't ever sell, refinance, or pay the mortgage off early? [link] [comments] |
| Trouble getting a mortgage with good ... everything. Please give me your advice Posted: 12 Aug 2020 11:56 AM PDT Hey gang, My wife and I are incredibly new at this. We have been house hunting in Philly remotely for some time and found a real estate agent, houses, (reliable, experienced family to property manage) so we tried to get pre approved for a mortgage. My credit score is 801 and my wife's is 780+ with around 60k liquid and a DTI of 30%. All of this seems low and reasonable to get a fair mortgage, from our perspective. We are trying to finance around 100k. (Which May be the problem? Too little?) The first company, Best mortgage said 5% APR and Rocket Mortgage just straight up told me no that they won't finance any investment properties under $220k. Is there something I'm doing wrong or not getting? Any advice would help. Thanks!!! [link] [comments] |
| Posted: 12 Aug 2020 12:44 PM PDT Anyone here with some experience with TICs and how the financing works? Just say the building is currently group financed... can a new buyer come in and do fractional financing still? Or do all of the owners need to convert to fractional financing at the same time? [link] [comments] |
| Looking at Seller Financing a down payment Posted: 12 Aug 2020 02:53 PM PDT So background: I'm still pretty new to this whole real estate investing thing. I have a 2 family currently that I purchased last year. I'm cash flowing about $900 positive per month on it after all expenses. I really want a second property but don't have a lot of money to put down. There's a couple properties about an hour from me with motivated sellers, and the same agent for both. I've asked the agent to represent me on the properties, which is legal in my state. I figure the extra motivation to close the deals will help for the double commision he'll get. The seller for the five unit property is interested in Seller Financing the entire deal, that's as far as we've got so far. The seller of the 7 unit said no at first, but is now willing to consider it after the agent talked to him more. I go and see both properties on Tuesday. Both have been on the market for over a year. The cash flow is high enough on each, my current plan is to see if I can seller finance the down payment on the 7 unit property and finance the remainder with my bank. I spoke with the bank already and they said they are definitely willing to do this. The owner owes nothing on the property so I feel like this is a possible option. The 5 unit needs more work but is half the price, so I'd probably be looking to seller finance the entire purchase with a balloon. Offer under what they are asking, fix the place up and refinance in a couple years to pay the seller off. Anyway, I'm just looking for some general advice. Pitfalls to avoid, stupid things to not fall into, etc. I'm already planning to request copies of the tenants leases and the cash flow for the properties so I can verify it myself. I have a very good inspector that will come look at them if it's comes to that, and a Pest Inspector(something I failed to do with the first one and later paid for). Thanks in advance for any advice [link] [comments] |
| Posted: 12 Aug 2020 10:15 PM PDT Current rate 4.5 Refi rate 3.25 Loan:412000 Value:560000 Cost: 34k (20k for refi and 14k to principal) Current monthly 2050 New monthly 1700 [link] [comments] |
| buying the first rental property with no income (fresh graduate) Posted: 12 Aug 2020 10:12 PM PDT so basically I just graduated in may studying actuarial science. the job market has been tough lately. eventually i wanted to get into multi family homes to rent out to get my feet wet. my dad has been doing this for over 10 years and i've helped him fix them up to get ready for rent all these years and have learned a lot myself. my source of income while in college has been trading stocks/options and working part time. over the years i've saved up close to 6 figures and no debt so i was wondering is there a way to get some sort of loan to acquire my first rental? also, this is in dallas, TX and i'm hoping to get a duplex in arlington area. I also tried reaching out to people in the area and researching myself but not much information has popped up. thank you! [link] [comments] |
| Where can i get started in Texas with 25k? Posted: 12 Aug 2020 09:38 PM PDT Im a 30 yr old in NYC, 780 credit score looking to long distance invest in a rental property in or near one of the major areas of Texas. The possibility of moving over there one day is also on my mind and it would be good to already have a home i own. What areas should i be thinking about if i have 25k cash? Id prefer someplace thats a renters market, B class i guess with good tenants. [link] [comments] |
| Canada Real Estate Sold Prices/Valuation/Building Permit Data Posted: 12 Aug 2020 09:09 PM PDT Hi All, If your looking for real estate data outside of the MLS system in Canada, give this place a look www.honestdoor.com. I am not too sure how they arrived at their estimated price of property so exercise some caution when searching. [link] [comments] |
| Live an expensive city, looking to invest our money in another state, how smart is this for a newbie Posted: 12 Aug 2020 08:16 PM PDT I live in the SF Bay area, with homes so expensive here it makes sense to me to take capitol out invest it in an area with cheaper real estate for rental income. This would be my first investment deal and I'm wondering what advice would you give to investing in another state, i.e. property management, realtors, etc. For reference have been looking in Atlanta (Brother and I have spoken about possibility of working together), Richmond Virginia and Northern Virginia. Thank you for any help you may provide. [link] [comments] |
| When doing market research, why are more expensive area's favorable? Posted: 12 Aug 2020 07:54 PM PDT I am doing some research on potential markets and I keep seeing expensive markets pop up like Salt Lake City, Boston, Dallas, Phoenix, etc As soon as I pull up these markets on zillow I don't see any properties under $300k (that aren't in warzones or just total shells) So what I do not understand is, how are these the 'best markets to invest in' if using leverage (assuming 20/80 LTV) that asset would not be cash flowing. Are they simply the best markets to invest in via new construction, restaurants, jobs, appreciation expectations, etc? Is it wrong of me to assume all investors are hoping to get a cash flowing asset with leverage or are there plenty of other investors out there buying assets in cash that would never make sense leveraged, Looking for appreciation, etc? [link] [comments] |
| Need help with duplex purchase Posted: 12 Aug 2020 08:03 AM PDT Duplex, $180,000, mortgage of $144,000 @ 8-10% and property tax around $2800. Self managed property. 3 bdrm comps from $11-1300, plus a 1 bdrm comps from $8-1000. I currently rent a 4 bdrm at $950/mo and that may go down... I'm thinking of buying the duplex and staying where I am now, until I can refinance at a lower rate and buy another duplex. Does this sound like a good plan? Should I live in the 3bdrm? Pros/cons of either route? Anyone think they could get a previously (discharged 1yr ago) bankrupt (included a property) couple with an annual gross salary of $65,000-$100,000 a lower interest rate? (No debt and two 4yr old vehicles) [link] [comments] |
| Recommendations for 1031 Qualified Intermediary Posted: 12 Aug 2020 03:23 PM PDT I'm selling one of my multi-family properties to buy a new one after some very nice appreciation. I haven't done a 1031 before and my local network in Pittsburgh isn't coming up with good recommendations. Has anyone ACTUALLY WORKED WITH a good and reasonably priced qualified intermediary either in Pittsburgh (ideal) or with a national company? Thanks a lot! [link] [comments] |
| What is the process to buying a home and putting it in a trust? How does the loan work? Posted: 12 Aug 2020 03:01 PM PDT I'm trying to better understand how buying a home and placing it in a trust works... from my understanding, you would purchase in your name and then quit claim deed the property to the trust. Is there a way to take title directly into the trust? Also, if the owner of the home is the trust, how does the mortgage work? Don't banks want the deed to match the mortgagee on the loan, or does that not matter when it comes to trusts? [link] [comments] |
| Tips on finding a twin home with both sides for sale Posted: 12 Aug 2020 12:52 PM PDT My wife and I have expressed regret in the past for not house hacking when we bought our first property. Instead we bought our "forever" home which didn't leave us an opportunity in the near feature to invest in real estate. An opportunity recently presented itself for us to start over and move to a new city for a better paying job for my wife (with 3 kids in tow). We now want to do what we should have done 5 years ago, house hack a twin home. I've been looking and working with a realtor for a few weeks, but can only find one unit for sale, not a complete twin home. Are there any tips or tricks you guys have used to get into a twin home with both sides for sale? [link] [comments] |
| Owner Financed Sale of Converted Primary. Tax Rules? Posted: 12 Aug 2020 11:57 AM PDT I converted my primary to a rental. I plan to sell 3 years after conversion to take advantage of the capital gains exclusion. On year 5, my tenants may want to buy but without a down. I could sell with an interest only note, 5 year term. So, I only realize a gain on year 10. Does the caital gains exclusion still apply because I sold in year 5? [link] [comments] |
| Real Estate Accountant or Tax Person in Sacramento Posted: 12 Aug 2020 03:40 PM PDT Does anyone have a recommendation for a good real estate accountant or tax person in Sacramento, California? My situation is getting too complicated and I would really like to get some advice on how I should be doing my accounting to make it easier to file at the end of the year. I do residential real estate if that matters. [link] [comments] |
| Posted: 12 Aug 2020 09:14 AM PDT I live in a 4plex. 1-3/2. 2-2/1. 1-1/1. All currently $500-1000 under rented. This place is extremely run down. Landlord doesn't fix much unless it's an emergency. I also fix a lot of things and deduct from rent (with his written approval each time/receipts attached) I do not charge for labor. As far as I know all tenants are still working and paying rent. I've lived here for almost 6 years so we're more friends than neighbors. I currently own a duplex out of state and my situation is very different from my landlords so I'd like some insight from another perspective. I was told a few years ago he wanted to sell within 5 yrs. He lives ~2hrs away and is 80+yrs old. This property needs a TON of work and he's just not up for it. Value of other properties in the area are 1.5-1.8mil with updates and typically larger or 1 extra bed/bath. I would want to offer 1.2max. My reasons: The units have not been updated in more than 10 years (wear and tear failure happening in all apartments). There are rats. We've been trying to deal with them but the down stairs unit is pretty badly infested. Holes in walls, damaged electrical, etc. Water leaking from second floor patio into garages below damaging the ceiling. Floor in that area is drooping. Termites. Tons of other minor items that will add up. Leaky faucets/toilets, broken doors, falling fences, etc. (owner pays water so I see some value here if we fix some of these issues). Is this crazy? Is 1.2 way too low? Could I go lower? Would anyone take that offer to just get out from the crazy hole they're in? Especially during COVID? Sorry for the ramble! Thank you for any perspective. [link] [comments] |
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