Real Estate Investing: The Fed now owns almost 1/3 of bonds backed by home loans in the US. Is it time to worry? |
- The Fed now owns almost 1/3 of bonds backed by home loans in the US. Is it time to worry?
- Why do you invest in real estate over stocks?
- To refi or not
- Buying cheap rental property in not-so-great neighborhood?
- Can more experienced RE investors tell me the pros/cons of my plan? 30F based in NYC looking to buy a MFH in CT
- Was always told to get a realtor who is also a investor if your looking to buy for house hack/investment property. Would you hire one that's not ?
- Does the neighbor or neighbors house matter when evaluating.
- Financing for partnerships through business entity
- Property Management Experience for Loan Approval?
- Cancel Current Lease Due to Section 8 Fraud?
- Does anybody have any experience with using SBA to buy commercial real estate?
- Sell or Hold
- Trouble Finding Tenants for my Class A Building
- Selling house - when do I stop paying mortgage?
- The economics of Luxury Vinyl Plank (LVP) VS Carpet in a rental?
- Should I renegotiate w/ my PM??
- Living in Germany - should I buy and rent out from the UK / France?
- Smallest amount a bank is willing to lend on an investment?
- Rent out condo to use as part of mortgage on a SFH
- Home sale investment profit?
- U.K. based property investment communities?
- Avoiding capital gains tax by gifting
- Do you guys include mortgage interest in your Cap Rate Calculation?
- 1% Rule
| The Fed now owns almost 1/3 of bonds backed by home loans in the US. Is it time to worry? Posted: 09 Sep 2020 07:17 AM PDT https://www.thestreet.com/mishtalk/economics/the-fed-now-owns-nearly-one-third-of-all-us-mortgages Key points from the article:
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| Why do you invest in real estate over stocks? Posted: 09 Sep 2020 09:42 PM PDT Sorry if this is the wrong place for this discussion, but I'm looking to get into investing and always preferred the thought of real estate over stocks. But after doing better than expected in stocks and all real estate appearing to be overpriced, I'm second guessing my focus Curious what everyone's opinions are [link] [comments] |
| Posted: 09 Sep 2020 05:37 PM PDT I'm looking for advice whether to refinance my two triplexes now, or to wait and see if 2-4 unit investment property rates improve. I've shopped around and found 3.625% with no points and 6k closing costs for each loan. 30 year fixed. I will break even on the closing costs after 2.6 years. The closing costs will be wrapped into the new loans, so I'll realize about $390 increased cash flow per month immediately. Currently the loans for the triplexes are at 4.75% and 5.25%, 30 year fixed. These are good performing properties and we're planning on holding them for a while. I suppose we'll do a cash out refi at some point, but I'd guess not within 2.6 years. It would be great to get more experienced investors' opinions on doing this refinance. I've only owned rentals for two years and I think there are considerations I might be overlooking. [link] [comments] |
| Buying cheap rental property in not-so-great neighborhood? Posted: 09 Sep 2020 07:06 PM PDT I'm 24, have some money saved up and looking to make some passive income. I live on Long Island, but across the bay in Bridgeport, CT I'm noticing that condos are going for very cheap, like in the $20,000 range. And it looks like condos in the area rent for about $1,300 per month. I know Bridgeport isn't the best area, maybe that's why prices are so low? Is it a good idea to buy one of them and try to rent it out? [link] [comments] |
| Posted: 09 Sep 2020 11:44 AM PDT Hi REI folks, I'm 30F, non-partnered/no kids, working at 130K/year job in NYC (allows for 2 days remote and right now, 100% remote due to the pandemic). I got super fortunate to have joined my company at the right time, so now I have 250K cash from our IPO to play with. I'm looking to get on the property ladder, and friends with more REI experience have suggested for me to look at MFH/duplex in Stamford, CT, where I'd live on one side and rent out the other. I do love the idea of house hacking and assuming I manage to save enough money that I can eventually purchase another property and turn the entire duplex into a rental property. This would be my first home purchase. I'm thinking a relatively safe budget would be $700K MFH. The reason for the Stamford location is that it is the only location I can think of that is not NY-overpriced/overtaxed, that is within 1 hr train commute to my office in Midtown Manhattan, and that is sort of hip. I have lived in the Midwest before moving to NYC so it wouldn't be a culture shock and I am looking for something less fast paced and expensive than renting in NYC. Of course with rates low, it would make some sense to buy a house now. My current rent + parking + dog fee is an obscene $3100/month so anything that lowers that monthly obligation is already a win in my book. The other alternative would be to just settle for a SFH of my own, avoid the REI world and all the potential headache, and invest whatever cash I have left in either mutual funds or in the stock market. Thoughts? Particularly curious to hear from people who are in the NY/CT area. [link] [comments] |
| Posted: 09 Sep 2020 06:02 PM PDT Hello, Im searching for a realtor who is also an investor with many years experience or who owns properties doing the same as i want too. Nowadays everyone is a agent. My thing is would you hire someone with a only a few years of being a agent and no properties vs someone who has around 5 years experience and owns 2 to 4 properties? [link] [comments] |
| Does the neighbor or neighbors house matter when evaluating. Posted: 09 Sep 2020 07:25 PM PDT I know this is a silly question, but it's not something you find in a real estate book. I have a house I want to buy in a tougher area. The house next store is burnt down. the other houses are fine, but it's kind of weird. Would this be harder to rent? Or do people think, "hey, Less neighbors"? Also I think the same thing when I buy a house with both neighbors have windows boarded up. I'm thinking, won't that scare people away. People want friendly neighbors right? :) [link] [comments] |
| Financing for partnerships through business entity Posted: 10 Sep 2020 12:29 AM PDT I would like to work with my business partner in real estate investing to eventually buy large commercial property deals with financing. We both have our own investment properties and are aligned in our goals. We were thinking of opening up some type of business entity and contributing an equal amount of money on an ongoing basis until we have enough saved and the right deal comes along. Our hopes in doing this through a business entity is that we can purchase the property through it and legally have 50% ownership each. Has anyone done this before/been successful? If not, is there any alternative methods we should seek? [link] [comments] |
| Property Management Experience for Loan Approval? Posted: 09 Sep 2020 03:42 PM PDT I'm interested in buying my first rental property (an 8-unit building for 800k) and the loan applications I'm filling out are asking for a resume as well. Will my lack of property management experience be a no-go for a building like this? I'm in my 30's and have only invested non-real estate up to this point. [link] [comments] |
| Cancel Current Lease Due to Section 8 Fraud? Posted: 09 Sep 2020 08:17 PM PDT I am in the process of buying a duplex with tenants in place. One unit is occupied by a partially blind and deaf person on a rent assistance voucher (section 8). Unfortunately I found out the landlord has never raised the rent via our local HUD and instead has the tenant paying more out of pocket than the program states ($400 vs. $100). This is technically fraud, which the old landlord was not aware of until I found the issue. Long story short, can I cancel their entire lease and give them my own with the current approved HUD amount? Or do I have to keep the lease but just amend the $ amount until I get it sorted with the Housing Authority? I would prefer my lease as the old landlord lease is very old school and is poorly written. [link] [comments] |
| Does anybody have any experience with using SBA to buy commercial real estate? Posted: 09 Sep 2020 10:04 PM PDT Curious to know if anybody has gone the SBA route to purchase commercial real estate, and what their opinions are if they made the right choice, wish they went with private lending, or through seller financing. [link] [comments] |
| Posted: 09 Sep 2020 12:55 PM PDT I bought a house to BRRRR late 2018 for $75,000. Put $32,000 of work into it and now it is worth ~$200,000. It is from year 1901 and could still have a lot of issues if I hold it because we didn't do as intensive a rehab as we could have. The house gets $1200/mo rent and the PITI is $711. This puts my pro forma cash flow around $100 after accounting for vacancy and capex etc. and my actual cashflow (year to date) around $300/mo. The issue is that I just bought a primary residence co-signed with my brother that put my DTI to over 62%. That means I can't refinance the (4.65%) mortgage to get cash out/lower rate or buy something new. My parents really want me to sell so that I could have that capital before the "market drops" in their opinion. They also manage the property and don't want it to be a big hassle. They are worried about it falling apart over the next dozen years or so and they think I should just sell. My issue is if I sell, I can't 1031 exchange because of DTI and will pay nearly $20,000 in taxes. I don't want to pay that much tax. I also won't be able to put the ~$50,000 profit into any other home without a co-signer (I don't have one). Help me to weigh my options. My ROI for the investment is infinate because it was a successful BRRRR that i already refinanced last year at a $160,000 appraisal. There is more equity in the home now that i want to capitalize again and also lower my rate. My ROE is roughly 7% with the current cash flow. I don't know how I will get a better ROE if I were to sell the home with my current DTI. I am a full-time worker at a low wage as well as a full-time student. I won't graduate with my accounting degree until Fall 2021. I have potential investments for the profits if I sold. (Without needing a lender). I just want some differing opinions please. [link] [comments] |
| Trouble Finding Tenants for my Class A Building Posted: 09 Sep 2020 01:59 PM PDT I recently sold my property in the Inland Empire and moved to a brand new 10 unit building in Los Angeles. It is a class A building with premium rents. 5/10 tenants have moved out this past month as their lease expired and I am trouble renting the units out. I even lowered one rent for a 3Bed / 3 Bath at $4,300 to $3,300. I have used two leasing agents and still no luck. My mortgage increases beginning of 2021 and I am worried I will not be able to cover the payments. What should I do? [link] [comments] |
| Selling house - when do I stop paying mortgage? Posted: 09 Sep 2020 12:47 PM PDT Selling a rental property with accepted closing date of Oct 23. Do I pay Oct mortgage? It's due Oct 1 and considered late after Oct 15, but I don't think it impacts credit until after Oct 31. If I pay Oct 1 or skip until loan buyoff through the sale, I assume it's a wash? Even considering interest, PMI, taxes, insurance? [link] [comments] |
| The economics of Luxury Vinyl Plank (LVP) VS Carpet in a rental? Posted: 09 Sep 2020 10:43 AM PDT Everywhere I look I see LVP being suggested as the flooring of choice for rentals. It's attractive, durable and waterproof, desirable for rental applications. The problem I'm seeing is cost. The cheapest I'm seeing around is Trafficmaster Grip strip LVP $1.79 a sqft ($1.39 on sale) for the really cheap/ugly stuff, or $1.99 a sqft for something that doesn't look like sheet vinyl. Then on top of that I'm seeing $1.50 for the install. So for an install in a 1200 sqft rental that's coming to around $4200 Versus something like Trafficmaster Fireworks II carpet coming in at $1 a sqft with free install at HD: $1200 (not including kitchen/bath of course) That $3k difference isn't cheap, even for a MCOL area. Is LVP really going to last 3 1/2 times as long? With a good tenant in there, won't the carpet last quite a while? With a bad tenant in there can they not also destroy LVP? And with the eviction moratorium where rent payments might stop, would it be wise of me not to plow a lot of money into a rental? or just say screw it and upgrade now while the unit is vacant? This is for a west coast duplex, $1350 2br 1 ba. [link] [comments] |
| Should I renegotiate w/ my PM?? Posted: 09 Sep 2020 06:47 AM PDT Like most, when I first made the leap, I was a bit wary of being a one person help desk, and was happy to use a project manager who had turned me onto the opportunity. The guy I use is VERY good at his job, and doesn't take on too many cabins. On a 300k cabin, we'll see 80k this year. We also have Superhost and it's run very smoothly as far as I'm concerned. He's taking 35% of the net to me after cleaning, etc. It's gone so well now that we're buying another cabin at 1M that should do 150-200k/year. That 35% is feeling a bit high with those returns, but his performance is next level. Eventually I'm going to just staff someone to handle it as I get to 3 or 4 cabins, but in the meantime, should I try to negotiate him down? Or will that make him care less about my properties? [link] [comments] |
| Living in Germany - should I buy and rent out from the UK / France? Posted: 09 Sep 2020 01:47 PM PDT I am a dual UK / French national living and working in Germany. I am wondering if it would be worth buying in France or the UK and renting out, as housing in more affordable there. Would this make sense from a tax point of view as I am paying tax in Germany? Would I be liable to pay ~50% tax on rental income? [link] [comments] |
| Smallest amount a bank is willing to lend on an investment? Posted: 09 Sep 2020 05:29 PM PDT I've googled and seen anywhere from 60-80k minimum mortgage amount. Can anyone confirm common minimums? [link] [comments] |
| Rent out condo to use as part of mortgage on a SFH Posted: 09 Sep 2020 12:55 PM PDT We own a 3BR 2 bath condo that is worth $148k. It's already been fully paid off. This is in Louisiana. There are a few major improvements that need to be done first like ripping out the carpet and putting down wood laminate and then replacing the window units that are 10 years old and all clouded up. This is going to run me about $10k. After that I am considering turning it into a rental and then using that $$ to put towards a mortgage on a SFH in the near future. Just some math I have worked out: Rent price = in between 0.8% and 0.9% (of condo value) = so rent would be ~$1,250/m to $1,300/m. This matches other properties around and they are in this same price range. To do: Get certificate of occupancy, draw up a rental agreement. Include they have to follow all HOA rules in rental agreement. Hopefully doing this would just allow this existing condo to my our first rental property with hopes to perhaps add a second once we get the hang of this first one. Sorry I'm new to all of this but any pitfalls or stuff I might need to deal with? I can deal with random maintenance. Please point out anything I glaringly missed or didn't even consider/mention. The wiki here wasn't much help and I did look at a few older posts via the Search. Thanks for any insight or info in advance! [link] [comments] |
| Posted: 09 Sep 2020 04:25 PM PDT Hi everyone, please kindly help me understand how much I may profit/lose when I sell my condo. Here's some info: Bought in 2016 for $300,000, $75,000 down payment. Mortgage principal balance: $195,000. Sell in 2020 for $340,000. Estimated seller's cost (taxes, fees, etc.) provided by my realtor is $215,923. Let's add another $10,000 for others that I'm not sure about like staging, repairs, seller's credits, etc. My estimated net at settlement is $114,000. . Does this simply mean that I would make $114,000 - $75,000 (in down payment) - $10,000 (in closing cost when I bought) = $29,000 in net profit? That seems like a lot, so I just wanted to make sure I didn't miss anything (does interest I pay monthly come out of that, Condo fees, etc.). Could that be considered a good investment? Thank you in advance! [link] [comments] |
| U.K. based property investment communities? Posted: 09 Sep 2020 12:29 PM PDT There are a lot of useful sites out there like BiggerPockets that provide useful courses, webinars etc for those wanting to get involved in property investment. However, a lot of these sites are more tailored for US users, just to check if anyone know any good similar sites that focuses more on the U.K. market? [link] [comments] |
| Avoiding capital gains tax by gifting Posted: 09 Sep 2020 09:51 AM PDT If my aunt wanted to sell me a property, and I wanted to help her avoid capital gains tax, could she gift me the title one portion at a time over several years? The biggest downside I see to this is continually triggering a reassessment of property taxes. [link] [comments] |
| Do you guys include mortgage interest in your Cap Rate Calculation? Posted: 09 Sep 2020 02:48 PM PDT Mortgage interest paid varies year to year as the principle is paid down. Not sure how to account for this one Excel. In addition I think bigger pockets calculator doesn't account for those Ether [link] [comments] |
| Posted: 09 Sep 2020 02:13 PM PDT Anyone heard of this 1% rule. Stating that as a rule of thumb you should be charging about 1% of the value of the home as rent. Doesn't really make any sense - $1k/month for $100k home seems too high [link] [comments] |
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