Real Estate Investing: 24F wanting to get into RE investing... $50k cash & $80-100k salary... how should I start? |
- 24F wanting to get into RE investing... $50k cash & $80-100k salary... how should I start?
- What are some of your reasons to invest in lower cap properties as opposed to a higher cap?
- Opportunity zone for tax deferral/avoidance
- 1031- to use for construction?
- Buy a property with a Down Payment and No Income
- How can I finance the repairs for my next rental property?
- Starting with a one bedroom?
- Depreciation on a condo in TX
- Just realized I purchased a commercial property in an opportunity zone in 2019. Is it possible to ensure it's qualified retroactively? Is there any benefit to doing so?
- Philadelphia Real estate
- Section 8 housing inspector trying to haggle on rent
- Historical data for rents over time
- Eviction Moratorium
- Advice for Picking a Property Management Company
- Hard money
- Re-finance rates (investment property)
- Buying a house with credit cards
- Investment Property Loopholes
- Any luck marketing to Life estates?
- Do I need a real estate license if I am going to open a real estate development company (TEXAS)
- What percentage of landlords are wealthy?
- Order of operations on inherited house?
- How to Overcome Analysis Paralysis
- Good book for triplex/quad investing?
| 24F wanting to get into RE investing... $50k cash & $80-100k salary... how should I start? Posted: 03 Sep 2020 02:03 PM PDT Background: I am 24F living in NJ/NYC and I want to get the ball rolling on my real estate investing journey. I understand it is a long game and my goal is to have 50 units in the next 10 years and hopefully be cash-flowing around $15k per month. I feel it is doable if I play my cards right. I am currently renting in NYC which I know is a big sunk cost but I am young, all my friends live here, and my job is here. I will likely move out of the city in the next few years after I *hopefully* am in a relationship and my other friends start moving out (or I'll just be alone and lonely and get out anyway). I have around $50k in cash and make around $80-110k per year between my main job (software dev) and my side biz. I see my options as the following: Option 1: Start buying SFH rentals out of state (maybe midwest or southeast) where it's more affordable to scale quicker. I would ideally like to pick 1 city and stick with it so I can keep my team of people consolidated. However I understand many of the lower priced, cash flowing properties are going to be in bad areas and appreciate less. Does that make them a bad decision? Lower home prices are attractive because I feel I could diversify more. Option 2: Try to do BRRR, or flip, or rent etc locally in NJ. My dad is very handy and can do a lot of the work for me. Home prices here are higher though so I am concerned about not being able to scale at the rate that I'd like. NJ taxes also kill. Option 3: At my family's home, there is a 3 car garage with a large, unfinished loft above it. I was thinking of finishing that off and then renting it out. It could be a good sized 2bed/1.5 bath loft or larger potentially. I'd estimate it could rent for 1200 minimum. Obviously I would need to work these numbers out more to know for sure, but wasn't sure if there was something blatantly wrong (or good) with this idea. I would give part of that cash to my parents for their mortgage, but they already said they wouldn't mind because they never use it anyway. [link] [comments] |
| What are some of your reasons to invest in lower cap properties as opposed to a higher cap? Posted: 03 Sep 2020 05:42 PM PDT I'm attracted to the better tenants who are less likely to miss a payment or damage my unit. I like the product being newer which means less maintenance/capex spend. Lower cap properties also tend to be in better locations and that drives better rent growth, appreciation, and "stickier" tenants. [link] [comments] |
| Opportunity zone for tax deferral/avoidance Posted: 03 Sep 2020 06:39 PM PDT I'll consult a CPA but wanted some opinions here. I'll be on the hook for about $450k this year in cap gains, possibly more depending on how the rest of the year goes. I'm interested in tax deferral through opportunity zones, I've found quite a few in my area from the government index but many seem suspect (websites that don't resolve, don't have https set up etc) and I'm dubious parking my money there - with the state of the economy I don't expect commercial real estate to thrive anytime soon. Has anyone done this? Any experiences you can share would be great. [link] [comments] |
| 1031- to use for construction? Posted: 03 Sep 2020 09:00 AM PDT We are selling a home we used for short term rentals (closing on 9/25). We'd like to do a 1031 (it's already in the works) but use it to buy property and build a home for either short term or longer term rentals. Is this possible? [link] [comments] |
| Buy a property with a Down Payment and No Income Posted: 03 Sep 2020 08:43 PM PDT Basically I have a property I want to invest in which is very beaten up but the land itself is worth more than I would be paying for it. I already have a tenant who would pay a little above mortgage price. I also have the 20% down payment with the ability to get a bit more if needed. My credit is 720+. Based in NJ - myself and the property. How should I proceed? I don't have any income due to losing my job from COVID. Should I try to take out a personal loan and live there while also renting out (to get fha) or take out a business loan? Can I leverage the value of the property so that income doesn't matter? Any help would be appreciated. Sorry for my incompetence. If you need to know more let me know. Edit: I'm 22M [link] [comments] |
| How can I finance the repairs for my next rental property? Posted: 03 Sep 2020 03:16 PM PDT I am a young investor who is in the process of closing on my second property ( a 4-plex) I have it under contract for $70k, the property needs $42k in repairs (mainly cosmetic) but its worth around $215k in perfect condition. the old man who is selling it has had them rented out for years in there current condition for $325/m the market rents for the same beds and bath are around $600 in nice condition. I really want to update and modernize all of the units so I can ask for market rent and then cash out refinance, but I am having trouble figuring out how to do so. I called about construction loans at my local bank but they want collateral of equal value. I tried using my first property (a duplex which I live in) but they said they wont do it because they don't want to be in a second mortgage position? What are some options that I am not thinking about that I could utilize? Im still a young investor and I'm learning as I go, Thank you all in advance for the help. [link] [comments] |
| Posted: 03 Sep 2020 04:01 PM PDT First time poster. Long time lurker. I'm single, stable job and have been renting a 1 bedroom @$950. I want to buy, but don't see the need in buying an expensive place that I have to take care of all that much. In my area, I found a 1 bedroom condo going for $98k. Nice place and perfect size for me. At 0% down, 3.92% interest, it'd be about $473 a month for 30 years. I'd say another 100 for PMI. I'm choosing not to do a huge downpayment because I'd rather invest it...just a personal preference. About $573/mo total seems pretty good. Obviously there's other expenses involved like closing costs but I can handle that no problem. I'd stay for a few years, then either sell (1031 ex.) for a small appreciation (according to past trends), or rent it out for $950/month. I just want to get my foot in the door in real estate without putting down a lot of cash and still keeping my monthly expenses low. This seems much better than spending the $950/month that I am now because while it gives me a place to live, I don't get that money back. Anything I'm missing? Or does this sound like a decent start? I'm 25, so I'm not trying to do anything too crazy. Please let me know if I can provide any other helpful info. Thanks! TL/DR: is buying a 1 bedroom condo for $98k, no money down, a decent way to get started in RI? [link] [comments] |
| Posted: 03 Sep 2020 04:44 PM PDT Hi all, I was hoping to get some advice regarding depreciation on a condo. As I understand it, you are able to depreciate the value of the home but not the land - since condos are considered "air lots" there isn't land associate with them. In this case, would the full purchase price of the condo be the value with which you can depreciate? Does this vary by state or is it an IRS standard? For the sake of discussion, the condo in question has a new value of 510k. Does it matter of the property is used as a primary residence or an investment property? If so, how would it work if I lived in it and rented a room? I've read rental income is not considered personal income with regard to taxes, but that it does depend on what your personal income is. The condo I'm looking at is a 2 bedroom, brand new condo in the DFW that I'm planning on living in, potentially renting the second room, and eventually renting the whole thing down the line. In addition to the income tax and interest being tax deductible, I'm trying to determine what other accounting benefits owning would have versus leasing a place (obviously equity, maintenance, risk, etc also differences) Any advice would be appreciated! [link] [comments] |
| Posted: 03 Sep 2020 10:41 AM PDT 5-unit multifamily property purchased in LLC utilizing a commercial RE loan. Capital investments planned but so far only minor repairs related to apartment turns. Not cash flow positive at the moment. For some reason this afternoon I got curious if either of my recently purchased properties were in opportunity zones and if there were any potential positive implications. [link] [comments] |
| Posted: 03 Sep 2020 10:55 AM PDT I'm a 25M trying to buy my first house in Philadelphia to house hack. I wanted a house that needed some work, but not enough for a flipper to take on. However, the past few months I have been looking are insane. Anytime I see a house worth bidding on, I need to go well over asking price to even hope to get a call back. I have heard rumors this is in combination of both low rates and a lot of New Yorkers moving the philly. I've had houses I bid in $10k over asking without even getting a call back due to so many offers. I am feeling discouraged at this point. Should I stockpile some more cash to try and purchase something a bit more expense or should I just keep looking no matter what? I even started to look at houses that needed to be completely gutted and redone, but those are still going for more than I believe they are worth at this moment. If anyone here is familiar with Philadelphia, what do you think about buying in port Richmond? I've mostly been looking in fishtown, Kensington (closer to fishtown side not north Kensington), manayunk and even Conshohocken. I'm open to all suggestions. [link] [comments] |
| Section 8 housing inspector trying to haggle on rent Posted: 03 Sep 2020 11:37 AM PDT I have a perfect tenant coming for one of my units, but she has section 8. The housing inspector is trying to haggle the rent price. My other units already rent for that price and it is also less than the HUD recommended fair market rent for this area. Does a section 8 housing inspector legally get to decide the rent price / how much the housing authority can pay me? That sounds ridiculous to me! [link] [comments] |
| Historical data for rents over time Posted: 03 Sep 2020 02:50 PM PDT I'm trying to figure out worst case scenarios for real estate investing, and can find historical examples of house prices (e.g., 40% drops) but I'm having trouble finding examples of rents over time, which are kinda more important from my perspective. Are rents usually pretty tied to home prices? If not, does anyone have data on rents over time, especially during e.g., the Great Depression, the Great Recession, the dot-com boom, etc that they could link? [link] [comments] |
| Posted: 03 Sep 2020 07:14 AM PDT Hello all, 4 of my associates and I wanted to JV a 4 plex multi family. This would be our first RE purchase ever. However, the timing is bittersweet. We're worried that if we buy something our tenants will stop paying and because of the moratorium we couldn't evict. Is there anyway around the moratorium? Thank you! [link] [comments] |
| Advice for Picking a Property Management Company Posted: 03 Sep 2020 08:31 PM PDT Long story short, I am relocating from Portland, Oregon to Europe under DoD orders, and I am needing a Property Management Company to take over the management of my single family rental for next three years. I never used a Property Management Company before and a little clueless on where to begin with evaluation of the companies. I googled searched, and hundreds of companies populate in the area. Some charge fix rates; other charges a percentage of the rent collected. As far as I can tell, they provide about the same level of service of tenant placement, maintenance requests, and rent collections. How do you evaluate a property management company? Do you know of a good company in the Portland, OR that I should look into? PS - Sorry if the grammar is off, typed this on mobile. [link] [comments] |
| Posted: 03 Sep 2020 07:18 PM PDT I have a 10 unit in California that I have been working on what I call a "slow rehab" this to me means I've been rehabbing it as I have time/funds. Currently I have 4 units rehabbed and the fifth will be done and leased out this month. My plan was to finish the rehab and then refi out and move on to the next property. Doing some research I have learned that I will need two years of financials in order to get an institutional loan. I would rather not wait two years. My question is would I be able to approach a hard money lender and have them lend me some money for a 2+ year period untill I can refi out. The numbers: 10 units; 2@ 750 2 @ 700 2@675 4@650 Water/sewer $600+/- Electric $100 Trash $130 Insurance $75 Capex $0 ( I'm doing gut rehabs so everything is new) Purchase price 160k @ 6% seller carry Would I be able to get a hard money lender interested in this on a second I want to keep that seller carry in place [link] [comments] |
| Re-finance rates (investment property) Posted: 03 Sep 2020 02:18 PM PDT Just got approved for 3.6% interest on 75% loan SFH investment property re-finance. Should I keep shopping around or go for it? [link] [comments] |
| Buying a house with credit cards Posted: 03 Sep 2020 05:58 PM PDT I am looking to buy a property, but I am $20,000 short. I have $100k cash on hand but came to a $120k agreement, contingent I can get the $20,000 from my credit lines. How do I get this $20,000 from my credit lines other than using cash advances? I have a credit limit of just over $40k spread out over several cards. What is the most cost-efficient way to withdraw this money without having to use a cash advance? [link] [comments] |
| Posted: 03 Sep 2020 04:58 PM PDT Wondering if anyone knows of any loopholes to get out of the 'investment property' classification, outside of actually living in it. [link] [comments] |
| Any luck marketing to Life estates? Posted: 03 Sep 2020 07:20 AM PDT deal machine doesn't inform me if a property is in a life estate. I'm going through and clearing them out. Has anyone had a lot of luck with properties held in a life estate? [link] [comments] |
| Do I need a real estate license if I am going to open a real estate development company (TEXAS) Posted: 03 Sep 2020 04:02 PM PDT As the title says I have been selling real estate on the side and now want to take it as a business. Do i need a real estate license. Thanks in advance. [link] [comments] |
| What percentage of landlords are wealthy? Posted: 03 Sep 2020 07:43 PM PDT A lot of reddit users outside of this sub view landlords as being millionaires. I don't know the stat but I would bet most landlords are just trying to earn a side income, they aren't the real estate moguls being portrayed. I'm curious to see the results of this poll. [link] [comments] |
| Order of operations on inherited house? Posted: 03 Sep 2020 03:40 PM PDT My mother in law died without a will. Not married. Her three children inherit everything, including her primary residence. Plan is for my wife to buy out her siblings and rent the house out. We want to take a mortgage to pay off the rest of the existing mortgage and buy out siblings. Loan officer called this a cash out refi. Is that how you would conceptualize this? My wife inherited equity in the house (though we haven't retitled it yet). Is this a purchase or a refi? Seems like order is: retitle in three kids' names. Wife buys out siblings and pays off note. Pays with proceeds from new loan. Retitles in our name. Would just appreciate a sanity check that this sounds right. Does it matter if it's a cash out refi vs purchase money mortgage? We will disclose to the bank it will be a rental. We could do the entire transaction in cash, but would prefer to not tie so much up in the project. Thanks, [link] [comments] |
| How to Overcome Analysis Paralysis Posted: 03 Sep 2020 09:41 AM PDT To keep this as short and concise as possible:
Here's my question: What have you guys, being experienced, done to overcome your analysis and finally pull the trigger? Also, is 35%-50% of your gross effective income a reasonable number to budget for the OpEx or does it typically come out to be lower? I know that each property is different, so for the sake of this situation I would use a SFH or a duplex/triplex as the subject property. Thanks for any advice given! [link] [comments] |
| Good book for triplex/quad investing? Posted: 03 Sep 2020 11:49 AM PDT I am looking to invest in my first rental property in the next year, but I want to do some homework first. I bought "Investing in Duplexes, Triplexes, and Quads: the Fastest and Safest Way to Real Estate Wealth", but I quickly realized that it is outdated. What are some good, modern alternatives? [link] [comments] |
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