Real Estate Investing: First Property Acquired! |
- First Property Acquired!
- Using a Pledged Asset Line to Payoff Rental Mortgage?
- How to scale? Can I rinse and repeat FHA to Conventional refi, then pick up another FHA?
- HUD Covid19 Relief Options
- MIL needs a house... how can I help?
- 20 years old with 30k
- Four doors down, how do I get more?
- Paid contractor to replace flooring before home sale. They did an awful job. What should I do/how should I fix?
- When to switch from umbrella policy to LLC?
- Tenants in Unit during Closing
- How to decipher delinquent property tax lists
- What would you ask the mayor of an area you are investing in?
- Tile or LVP for Long term SFH rental
- Can a credit union discriminate on my age even with solid income?
- What would you do in my situation? I have a rental that appreciated and would like 1031 into something with a higher cap rate.
- Moving into a new home and turning current one into a rental
- Where are people investing in the Midwest?
- Advice on area around Ventura County, and my plan.
- California - LA real estate investing question
- Anyone Know What Kind of Interest Rates People are Getting Lately on a 30yr Conventional for Investment Properties?
- Condo building association and financing
- 18 year old in need of advice
- What’s the deal with pre-foreclosures/ auction properties? Looking for resources to navigate the process.
- Interested in house hacking
- Opportunity!
| Posted: 06 Sep 2020 09:46 AM PDT After years of studying REI, paying off student loan debt, and increasing W2 income, I've finally purchased my first income property. I've been working towards this, running numbers on 100s of properties, and made 4 offers before landing this one. It's a C-class duplex in a midwest city in a B/C neighborhood (a lot of renovations due to investment in local businesses in the last 5 years. Here's the stats: Purchase Price: 149k Each unit is 2 bed, 1 bath, with unfinished but dry basement with in-unit laundry and full 8ft ceilings. Each unit has a stall in double garage. Loan: 3.875% for 30 years, 25% down Rents: $675 each Tenants pay all utilities, garbage and snow removal. I only cover lawn service. Immediately after close I re-built the unsafe back stairs on one side, replaced a leaky kitchen faucet that has been damaging the cabinet and subfloor for God knows how long, and re-siliconed the tub/shower surround. We plan to do gut-remodels on the bathrooms in the spring, which on top of smaller clean-ups and fixes should bring rent to 725 per unit. Plan is to purchase approximately one of these a year, then after 8-10 years flip the equity into small commercial. I appreciate everything I've learned on this sub and hope to contribute more going forward! Edit: added garage info. [link] [comments] |
| Using a Pledged Asset Line to Payoff Rental Mortgage? Posted: 06 Sep 2020 10:45 PM PDT NOTE: I also posted this to r/fatFIRE (link to post). I currently have a SFH rental property with balance of $250k on a 30-year at 4.625% (~23 years remaining) that I'm not planning on selling. I shopped around and I can't get anything lower than 4% on a refinance for a SFH rental property. I also have access to a pledged-asset line (PAL), which is a 70% LTV line of credit against of value of my equity/cash holdings at my brokerage. The total value of my assets at this particular brokerage is ~$2m. I'm mainly holding index funds (e.g. VOO, VTI, etc.). The rate on the PAL is 1-month LIBOR + 1.1%. 1-month LIBOR is currently sitting at 0.158% so my effective rate would be 1.258%. This is variable and will adjust daily. One of the nice things is that it basically turns this into an interest-only loan since there's no amortization schedule I need to follow. I can keep the line open and tapped in perpetuity. Are there any downsides to using my PAL to pay off the rental property mortgage? There are a couple of risks I'm aware of:
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| How to scale? Can I rinse and repeat FHA to Conventional refi, then pick up another FHA? Posted: 06 Sep 2020 08:30 PM PDT This is really a two part questions. 1.) How many FHA loans can one have in theirs "lifetime"? NOT can I have more than 1 at a time (answer is no). Is there any restriction to refi an FHA to Conventional at 95% LTV then pick up another FHA and rinse and repeat? 2.) DTI will be an issue but can I just wrap my conventional loans together into an LLC using a portfolio lender and continue on with my FHA loans? In essence what are the biggest holes you see to scaling a buy and hold rental portfolio. I'm in VHCOL coastal city, upper limits to where numbers make sense for duplex $650-$750k, triplex $850-$950, Quadplex $1.1-1.2MM. [link] [comments] |
| Posted: 06 Sep 2020 10:29 PM PDT Hi All, wondering if you might be able to offer some insight. I own a rental property and have had the mortgage on a covid-related forbearance plan for the past 6 months, which is ending at the end of the month. While I have the cash to catch the mortgage up, that cash could be useful for some repairs we have to do around the property and my mortgage company has offered me the HUD Partial Claim to catch up the mortgage. I did some reading, and there isn't much out there, but I did find this article which outlines all the HUD options. Given that the property isn't owner occupied, it looks as if my option would be the non occupant loan modification (which seems to be essentially a refinancing mechanism), rather than the Partial Claim. Does anybody have some guidance as to the pros and cons associated with these options? Would they make sense as a short term option to help with liquidity? How would this type of refinancing impact my taxes next year from a income/expenditure standpoint for my rental? Hoping to do as much due diligence as possible before committing to anything, so any other resources are appreciated. [link] [comments] |
| MIL needs a house... how can I help? Posted: 06 Sep 2020 08:03 PM PDT Quick back story: My (genuinely awesome) mother in law is getting a divorce (also awesome... my wife's step dad is a lazy misogynist). She is currently renting a home but has to move by January. She is debating whether or not to rent or buy. Renting gives her flexibility if she wants to move down the road (like to be closer to us) but she hates to waste the money (~$18K per year on rent) and could comfortable afford/be approved for a ~$300K home, which is a nice house in her major secondary city. My wife and I are in a better financial situation than anyone else in the family but we're also depending on our "nest egg" to pursue our own economic ventures. We'd planned to buy an investment property in our city (major city, solid appreciation opportunity, lower cap rates), but now I'm wondering if there could be value in buying a house for my MIL and having her pay the mortgage. She gets the flexibility if she needs to move down the road, we get a stellar "tenant" and gradually own a house in a solid (but definitely not exciting, 2-3% annual appreciation) housing market. Does it make sense to forego a house in a hot, growing tech boom city to guarantee at least 2 years of an awesome tenant in a safe if not boring market? What am I failing to consider? I feel like there could be pitfalls I'm not recognizing. Any thoughts, questions, or concerns would be appreciated. Thanks! [link] [comments] |
| Posted: 06 Sep 2020 02:28 AM PDT Hey everyone, I've been serious in real estate for about 6 months now, and have saved up $30,000 in this time. I have the option to purchase a single family rental in Michigan for $25k. If I purchase this, the property will have no debt on it, banks will not lend me any money because I'm so young and have low income. Also I hate the fact of using all my money on one property. I want to be in the multifamily game, and wanted to know if anyone any suggestions on what to do. Thanks! [link] [comments] |
| Four doors down, how do I get more? Posted: 06 Sep 2020 01:42 PM PDT We now have 4 doors in the portfolio. 2 in my name and 2 in my wife's name. I haven't attempted the fifth one yet but I'm guessing banks are going to start being hesitant with financing. We have w-2 jobs that allowed us to buy the properties we have now. Our rentals are less than 2 years old so we don't have a lot of income history to show the banks. Does anybody have experience with banks refusing to give you another mortgage because you have too many and not enough successful rental income history? What other options did you use to finance? [link] [comments] |
| Posted: 06 Sep 2020 11:47 PM PDT https://imgur.com/gallery/P7dDAOJ paid a contractor to install 12mm laminate flooring in the downstairs of my home. I wanted to replace flooring before selling house. Notes of the install: - guy installed it over tile (flooring that was ripped up was also over tile and looked fine. Not sure if this is bad)
Problems I see: - gaps of varying sizes between planks
...... what are my options and how should I get this fixed? Should I call a real flooring expert? Should I refuse to pay the contractor full amount ? See pictures [link] [comments] |
| When to switch from umbrella policy to LLC? Posted: 06 Sep 2020 01:48 PM PDT I know people have different theories on how best to protect their assets. From what I gathered and what I've been doing, is holding an umbrella insurance policy for my four properties (totaling close to $1million in real estate). Is there a point in which you decided to put your assets into an LLC instead of just an umbrella policy? [link] [comments] |
| Tenants in Unit during Closing Posted: 06 Sep 2020 06:30 PM PDT I'm currently under contract for a duplex near a university.The tenants will be occupying a duplex property during closing. Their lease tells them to leave within 60 days after I give notice to vacate. Also, I must occupy the property within 60 days because I have an FHA loan. My plan is to give them notice to vacate the week of closing and then move in 60 days later. What should I do if they don't leave? I don't expect them to stay, but what if they don't? [link] [comments] |
| How to decipher delinquent property tax lists Posted: 06 Sep 2020 06:21 PM PDT So I have some delinquent property tax lists, specifically Montana. How the heck do I figure out what properties have houses, what the parcels are zoned for, size, etc? I suppose I could search each one individually but I want to figure out how to cut out and extra work if there's a more efficient way of learning/processing the data [link] [comments] |
| What would you ask the mayor of an area you are investing in? Posted: 06 Sep 2020 10:49 AM PDT Me and my family have begun investing in properties in a town near Beacon, New York. We currently own 2 multi-family properties in the town. Long story short, the mayor called us because there was sidewalk construction going on in front of one of the properties and the conversation of us investing in the area came up. He asked to meet with us and talk about our plans and his plans in the town. I thought it would be great to crowdsource some of the things you would ask given the opportunity/had the opportunity to do so in the past. Some things I plan on asking him (just to get the party started):
Let me know your thoughts! [link] [comments] |
| Tile or LVP for Long term SFH rental Posted: 06 Sep 2020 10:20 AM PDT I just walked into a killer deal in Florida. I got a SFH with brand new roof/ AC/ water heater for about 70k below market value based on comps. All the house needs is cosmetic upgrades. Apart from that, it's solid, and the inspection came back and the owner willing to fix anything on the report. Anyway, I have been shopping around Lowe's / HD/ sams club looking at flooring options. I've heard various people give me all sorts of info about what is better and why. Assuming the overall costs are the same, would you go with tile or LVP and why? Every account I follow online seems to be going the LVP route, but a lot of higher end landlords often say tile. I am leaning towards tile, as from what I hear it's more gouge resistant and if I need to replace a single tile I could. My plan is to do the cosmetic upgrades and hopefully never have to touch this house again for 30 years. TLDR; tile or LVP for long term SFR, assuming costs the same? Thanks and stay safe! [link] [comments] |
| Can a credit union discriminate on my age even with solid income? Posted: 06 Sep 2020 05:43 PM PDT I searched google for this answer and I saw yes and no aswell. Wanted to see if anyone here can confirm the correct answer. Thanks For an investment property* [link] [comments] |
| Posted: 06 Sep 2020 04:18 PM PDT I lucked out and bought a town house in pre legal weed Boulder, CO. The value has more than doubled to mid 400s. I'm only getting $1695 a month which puts me at -$150 a month after paying on my nearly paid off 15 year mortgage and maintenance fees. I was looking at maybe doing a 1031 to find a higher cap rate investment but I am hesitant since I have the most amazing tenant. Additionally my primary residence has appreciated and I was thinking about selling it to buy a duplex to live in for a year and then rent out. How would you proceed? [link] [comments] |
| Moving into a new home and turning current one into a rental Posted: 06 Sep 2020 03:47 PM PDT This will be my first rental property and I'm looking for some advice. I'm going to go with a property manager a friend of mine had recommended. 1.) What are some things I should do before we start renting it? As a homeowner there's a couple of really minor things that we haven't bothered fixing but are they things I should fix before renting? One of the more annoying things is in one of the rooms we have 2 small holes that we filled in with spackle but we don't have any touch up paint left and have no idea what color paint it was. Major things are getting replaced/fixed. All carpet is being replaced the day we move out. Brand new appliances installed. Etc. 2.) Who should be responsible for general maintenance items like replacing filters, fire alarm batteries, etc. is that something I should work out with the property manager? 3.) I have a bunch of smart home devices installed. The property manager hasn't had any owners that had the extent of devices I have so she didn't have any suggestions and left it up to me. I have about a dozen z-wave switches, smart roller shades on several windows, z-wave outlets, nest protect fire alarms in every room, etc. I've already bought new devices foe the new house so I don't need them. The problem I'm facing is that if we keep them in the house, having to deal with tech support for them would be a nightmare I don't want to deal with, but also replacing them with dumb devices is also going to be a substantial cost. Just wondering if anyone out there has dealt with this and if you can offer any advice. Thanks [link] [comments] |
| Where are people investing in the Midwest? Posted: 06 Sep 2020 03:05 PM PDT Hey folks! I'm looking for cities to invest in residential real estate. I've read that places like Cleveland seem to have an attractive value proposition. However, I'm looking to expand my search to include other cities. Bottom line, what cities should I look into further & what makes them worthwhile? [link] [comments] |
| Advice on area around Ventura County, and my plan. Posted: 06 Sep 2020 02:49 PM PDT Hey guys, I've been renting in Camarillo for almost 4 years now, and I work at the naval base. I am a first time home buyer. I know that interest rates are low because the house prices are high, and it's vice versa. I have a budget of around 575k, and I have 10% down. My credit is in the 800. I qualified for a conventional loan. Since interest rates is at an all time low, I dabbled in the idea of buying a SFR to live in, rent out the other rooms, and eventually keep it long term as a rental property due to low interest rates. I have mostly been looking at Moorpark and Simi Valley area, and originally ruled out Oxnard because of school district. Camarillo, Thousand Oaks, and Newbury Park SFR tend to be out of my price range. I haven't look too much into Ventura since I thought Moorpark and Simi Valley would be more attractive since they're a bit closer to San Fernando Valley and LA. However, I'm finding it pretty hard to get my offer accepted since it's a huge seller's market, and there is an inventory shortage at the moment. My question is what other areas should I look into? I know Santa Paula is developing more and more with new homes being built, but it seems to be just based on potential. I know that Oxnard has pocket of areas that are good, but the school district isn't highly rated and that would have an effect on the appreciation of the property. Also, I've heard both sides and read a bit on whether to buy now or wait for the dust to settle with COVID. I thought about buying now as eventually turn the property into rental property because the interest rates are so low at the moment. Would that be a good idea? I know if the price drop, then the interest rates will go up and I will, more or less, have the same monthly payment, but will gain more equity. Nobody really knows for sure how big of the drop in price will be or how much foreclosure will happen. I didn't want to try to time the market, but I'm also not in a big rush to buy a home. I also don't mind buying a fixer upper in a better area with low crimes, and good school district since it's easier to fix a house than make an area better. Should I keep looking around, and also expand my search area? Or should I wait until after COVID ends to see what is going to happen? Thank you for your input! [link] [comments] |
| California - LA real estate investing question Posted: 06 Sep 2020 02:30 PM PDT Hi everyone, I'm at a pretty young age and have very little knowledge about real estate investing, however, my dad has trusted me with a portion of his retirement money to be invested by me on his behalf. I've been considering the stock market for a while now, but the huge volatility in the stock market and our short time horizon have convinced me to take a look at real estate. I know the LA market — CA in general — is pretty saturated, but I was hoping I could get some clarity on a few questions: I know fix-and-flips are popular now, but I find them particularly difficult and doubt I can get it right without years of experience in the field. This includes making sure the numbers are accurate and have the right contacts to do the work — otherwise you'll lose money. But, what about purchasing a nearly demolished house, tearing it down and building a brand new house? This strategy could also be used by simply purchasing a land. I know this requires more capital to be completed, however, shouldn't the costs be more clear? I guess what I'm saying is that the math becomes simpler since there aren't many surprises compared to the fix-and-flips strategy (I've heard many unpleasant stories on how problems with the roof, AC, plumbing, etc could significantly increase the estimated costs, leaving investors with little to no profits). Moreover, you know how much it costs to tear down the house, rebuild it and then sell it for a profit. Lastly, if I outsource the work to construction companies (everything from tearing down the house to rebuilding a new one) would there be any profits left for me? I would appreciate it if I could get some clarity and guidance on how to effectively implement this strategy to maximize profits. Thank you in advance. [link] [comments] |
| Posted: 06 Sep 2020 10:40 AM PDT Not sure if any of this helps but Assuming California 440k Appraised 200k current loan Excellent Credit 30yr [link] [comments] |
| Condo building association and financing Posted: 06 Sep 2020 08:20 AM PDT I'll keep it short I'm looking at an 18 unit rental property. It's currently deeded as 18 separate condos but operates at a rental property. I would plan to keep it as rentals. There is currently a condo association in place, which I could abolish with ease if I choose. Are there benefits to keeping or sacking the association? My lender said I would be able to get a significantly better rate since it's deeded as 18 separate units opposed to one property. Are there any drawbacks I an not aware of in this situation? [link] [comments] |
| Posted: 06 Sep 2020 05:10 PM PDT Is now a good time to buy an investment property? And if so, is a condo or townhome a better choice? I will be investing in Florida, I was thinking Orlando would be a good area, somewhere near the University. I currently am 18 with 300k saved in cash and 60k invested, from a dropship business where I make 100-150k/yr. I know it's not good to hold lots cash, so I thought it would be a good idea to diversity and put some in real estate. Based on that info, how much should I spend on a condo or townhouse, and how much should by down payment be? Also is the goal of 1% in rental income to property cost (200k home, 2k/mo rental income) a minimum goal or is it fine to be below that? And is a condo better than a townhome since you don't have to take care the exterior as much, even though there will be a bigger HOA? [link] [comments] |
| Posted: 06 Sep 2020 01:21 PM PDT As the title reads, i'm looking to learn a little more about pre-foreclosures. You may have seen my previous posts in this subreddit, and I have recently stumbled upon a property with an unpaid balance i would like to possibly acquire. Pre-foreclosure @ 38k 2,000 Sqft Property taxes >1.5k yearly I could buy it out right but i would like to renovate using a 203k. No more than 50k. What are some things that could go terribly wrong in this scenario? And for anyone who has purchased from auctions/preforclosures, what do you do to ensure you don't get screwed going into the deal? From the pictures given the house looks to be in quite impeccable shape. [link] [comments] |
| Posted: 06 Sep 2020 12:08 PM PDT Hi, I'm 19 and just finished AFBMT. I'm on a 6 year enlistment so I'll get out when I'm 25 and then hopefully transition to working as a firefighter back home (average salary is in the 80k range). Looking ahead to the future, I'm interested in getting into real estate as a secondary source of income by renting property. I had heard buying a multi family dwelling and renting out the other units was the best way to get into it but I'm just looking for general advice and knowledge on the subject. Also any advice on how to expand into more investments beyond the initial home would be appreciated as well. Thanks everyone! Reposted here hoping y'all could be a bit more helpful than the folks at r/RealEstate [link] [comments] |
| Posted: 06 Sep 2020 11:45 AM PDT I have the opportunity to sit down with a landlord whos acquired over 100 property's (UK) over 30 years and pulls in over a million in rental income a year, what questions as a new comer would you ask? [link] [comments] |
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