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    Sunday, September 6, 2020

    Real Estate Investing: Going from 4 plex to 5 plex? Mortgage question?

    Real Estate Investing: Going from 4 plex to 5 plex? Mortgage question?


    Going from 4 plex to 5 plex? Mortgage question?

    Posted: 05 Sep 2020 03:35 PM PDT

    Does converting a 4 to 5 plex warrent a change in mortgage if you buy with a conventional loan?

    Are there stipulations day it won't turn to commercial property?

    submitted by /u/perpetuatinstupidity
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    My dilemma is that housing price is going up really high during this pandemic as compared to last year and hesitate to buy a house now.

    Posted: 05 Sep 2020 07:00 PM PDT

    I'm ready to buy a primary house to move in and make my current house to be a rental property. However, My dilemma is that housing price is going up really high during this pandemic as compared to last year and hesitate to buy a house now.

    I was expecting it will go down but due to no foreclosures and evictions, there are not much bargain houses out there to supply demands, so available houses' prices are very competitive among the buyers. I still feel like this could be a housing bubble. It might pop when people realize the housing prices are way higher than they should be and stop buying.

    My question is should I wait to buy a house till next year or housing prices won't come down for a while duding this Covid pandemic? How are you guys doing in terms of expanding your portfolio?

    submitted by /u/nobides
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    Is Phoenix a good place to buy my first investment property?

    Posted: 06 Sep 2020 01:08 AM PDT

    I want to provide a beef background about myself before I get into the question. I am 27, making 120k a year. I qualify for a 550k loan in the state of California. I was thinking, if I should get my first investment property in AZ, in the Glendale/Peoria/Litchfield Park area, since I have family living nearby. One day I think I would want to retire there also. My budget for the investment property is 320k or less, with a 5% down because that's all I have. Do you guys think this would work out? No down payment would be even better for me. Thank you guys in advance. This means a lot to me.

    submitted by /u/jqucla
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    US markets with dropping $/ft metrics

    Posted: 05 Sep 2020 05:57 AM PDT

    Have $40k, good credit, business making $60k a year and no personal income in NYC... what can I do?

    Posted: 05 Sep 2020 09:15 PM PDT

    Offer required to view all units in 2-4 unit multifamily?

    Posted: 05 Sep 2020 12:39 PM PDT

    Is it normal for requiring to submit an offer to the seller to see all the units on the property? I've seen about 4 properties (Chicago) so far where they show you 1-2 units, then if you want to see the remaining units you need to submit an offer. Is this typical or is this just due to the hot sellers market? I'm a bit hesitant with these as this will be my first multifamily.

    submitted by /u/MA_The_Meatloaf_
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    Qualifying Income - Me the Buyer/Refi’er

    Posted: 05 Sep 2020 04:12 PM PDT

    W-2 Income / Conventional Loan/Refi

    Can someone shed some light on the actual language/rules/etc relating to overtime in being considered income?

    My company formerly paid via a day rate + minimal salary for compensation. On 5/1/20 we were bought out by a competitor. Our pay structure changed to an hourly rate. I do field work on location (oil & gas) and get paid 24 hours/day for a 14 day stretch.

    Due to the amount of overtime, my corresponding hourly rate is relatively small, making my DTI out of proportion when not factoring the OT.

    My days worked are never guaranteed, though I have been working on site for the same client for 3 years.

    Is my only option to wait it out for the 1 year history to kick in? Are there any considerations or workarounds applicable? Anything i could do with a 6 month history?

    Thanks.

    Also, I've already moved on to commercial lending for next projects but the terms are no as favorable.

    submitted by /u/Micheal_ryan
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    1031 exchange after divorce?

    Posted: 05 Sep 2020 12:48 PM PDT

    My wife and i are getting a divorce... we have 1 rental property that when we sell we will have about 150k minus taxes to split... can i 1031 exchange my half and avoid the capital gains? I am thinking i can't because it has to be the whole sale ammount. But was hoping for a miricale. Thanks

    submitted by /u/cerwick88
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    Just posted first rental property- overwhelming interest!

    Posted: 05 Sep 2020 02:52 PM PDT

    I just posted my first rental property as available to social media and the response has been overwhelming. I have at least 15 people interested. I know that most landlords charge an application fee to weed out the tire kickers. What is the best way to handle it if there are 5-10 applicants who pay the fee and then are not selected? Just doesn't seem right to me to have them pay for essentially nothing. Do you have them apply in the order that you are contacted by them?

    submitted by /u/Bliss330
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    Is buying a property with full cash and renting it out in a different state a bad idea?

    Posted: 05 Sep 2020 03:48 AM PDT

    I have never invested in property before and I am only 22 years old. Im going to be getting my engineering degree soon and planning to live at my dads for a couple more years. So salary will just stack up.

    I was thinking of saving 50-100k and buying a house in full in a different cheaper state (I live in California). This way I will keep close to 100% of the rent. Then im planning to multiple that in upcoming years.

    I am probably over simplifying this, is this a terrible idea?

    submitted by /u/5dwolf22
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    Is it possible to cash out ‘finance’?

    Posted: 05 Sep 2020 02:57 PM PDT

    I'm in the process of building a house, and through a combination of a 20% cash down, unexpected trades (saving even more), and now crazy appreciation from all that is happening, I will have around 30-35% equity by the time it is completed.

    I only want 20% to get rid of PMI, anything over that is just a waste. The lot is currently in my builders business, so I won't be able to 'refinance' that way. There is also a construction loan out for the materials and labor, so that will need to be paid when financing.

    I'm guessing I will just have to go with a HELOC, but I personally would rather have it tied in with the main loan, if possible.

    submitted by /u/The_OG_Short
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    House hacking with a SFH? Roommates?

    Posted: 05 Sep 2020 07:35 AM PDT

    Has anyone had any good/bad experiences with house hacking a SFH? renting the rooms out to roommates/friends/strangers to cover mortgage costs and or make some cash flow? Can you please share your experience and feed back with this method? Would you recommend going this route? Thank you!

    submitted by /u/usernametaekn
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    Brainstorming ways to get my foot in the door with a 'for profit' mentor...

    Posted: 05 Sep 2020 04:43 PM PDT

    So, I've been wanting to get into real estate investing for about 4 years now. I've listened to days upon days of podcasts, read a handful of books on the topic, frequented forums, etc.

    However, I have been traveling the world and mostly working odd jobs. So, even though I am educated and entrepreneurial, I am low income and don't have any W2 income to show to a bank. So, I need to get creative...I want to get moving on this ASAP which rules out waiting to build two years of W2 income for a traditional loan.

    I'm just spit balling here, but what if I were to create a situation that is mutually beneficial between myself and a seasoned investor? For example, I would receive mentorship from this person, and they would also bring the money. However, the property would be in my name and I would do all the legwork. That alone would be unfair to the mentor, so what if we were to write a contract that splits the profit from the property right down the middle - half for mentor, half for mentee. So, that would incentivize the mentor to help me become as profitable as possible, as fast as possible, and it would allow me to get my first property and some guidance. Half the month-to-month profit would go to the mentor, as well as whatever profit comes from the eventual sale of the property. Of course the details would need to be ironed out and written in a contract, but again, I'm just brainstorming.

    How does such an arrangement sound to you? Anyone here have experience coming up with creative arrangements like this?

    submitted by /u/Wellas
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    Adding in converted garage to square footage of home?

    Posted: 05 Sep 2020 04:19 PM PDT

    I recently renovated a home in which I converted the garage into a room. However, I avoided getting city permits so the square footage of the garage conversion won't show up on the appraisal website. Should I advertise the home when listing it for what's on the appraisal website or should I add in the garage conversion as well?

    I think 1500 square feet sounds nicer than 1300 and it would help my home sell faster but not sure if this would present an issue

    submitted by /u/MonsterWrath
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    How would you value a home just off a main road?

    Posted: 05 Sep 2020 01:06 PM PDT

    So this area is a pretty good area in MetroDetroit, 3/1 in this area generally go around $160k. If the house was further away from the main road, I could comp it at $160 all day.

    This home is right off a main road and in need of repair, I have accounted for the repairs, but here is the caveat: the house is right up against the number 1 brewery in the city. Packed everyday. Next to that? A very popular Chinese restaurant.

    As a single 20-something, this sounds awesome to me. (I am doing OO financing so I will be living in it for a year.)

    Then I intend to rent it out. I have cash for the buy, and this will be my 4th rehab (rehab to rental) but I am wondering if there is anything I should worry about with the appraisal after the rehab or with future rents being impacted by being so close. This house is not "downtown" this brewery is kind of separated from downtown so it's not like that is a "hip" area.

    submitted by /u/razorchick12
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    Do you do your own rehabbing and DIY to the properties to get it ready to rent/sell or do you use contractors and why?

    Posted: 05 Sep 2020 09:08 AM PDT

    Wondering who does the work yourself and who hired out work when preparing a property to sell or rent out.

    submitted by /u/2gdismore
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    Trying to quickly develop a financing plan for an offer today.

    Posted: 05 Sep 2020 04:58 AM PDT

    The best deals always come at the worst times right?

    Duplex currently listed on the market yesterday at 65K asking price cashflows 625 pre mortgage with 90% occupancy (yes, and CapEx). we currently estimate 2000> in repairs to get the other side rented out to quality tenants, and near-0 for everyday inner-city average-quality. One side has reliable long-term tenants u2d on rent. We were the only people to see it yesterday. Old owner got injured in old age and "is just done with it."

    In my market, I don't expect this to last past EoB Tuesdays. Holiday weekend makes this tough and we were planning on waiting until end of year to start investing again. We looked at it yesterday afternoon, has at least 3 viewings scheduled today.

    We currently have 72K cash, 10-12K in past due unemployment incoming pending verification (so very likely but not guaranteed and suseptible to state delays ). 15-20K is our comfort number for emergency and CYA.

    My wife and I both got job offered pending background check with start dates between late September and late October. Taxable income will shoot to around 100K and saving ~5K monthly. Only have one mortgage besides our own. Obviously very difficult to get an under 50K mortgage with 0 relationships with small banks on a holiday weekend without proof of salary.

    I think we just put in the cash offer and finance later if we want to, it's just a little too close for comfort I'm having trouble pulling the trigger. Goal is 4 more properties in 3 years.

    My one other creative ideas is a Seller Finance with a 2-6 month turnaround time (no idea how I would structure that in a way that's attractive).

    Ultimately, I'm just trying to figure out a way to not be financially uncomfortable while putting an offer on this today. Any feedback is appreciated.

    submitted by /u/ZappdosMelee
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    Is it worth it to look for a new tenant while the eviction moratorium is in place?

    Posted: 05 Sep 2020 10:24 AM PDT

    Beginner real estate investor here.

    I have a basement room and bathroom I'd like to rent out in MD, but I'm concerned about the potential tenant taking advantage of the moratorium and not paying rent. Is it worth it to even look for a tenant now or wait?

    submitted by /u/brizzy86
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    Heloc Mortgage fast pay

    Posted: 05 Sep 2020 10:04 AM PDT

    Hi running through some math.

    If you take a Heloc and pay your mortgage ahead 1 month at a time does this accelerate the paydown?

    submitted by /u/Tellmewhatingon990
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    Switching Utilities to Tenant

    Posted: 05 Sep 2020 09:59 AM PDT

    Hi All-

    I've had a rental property for 8 years and in an effort to get it rented right after I bought it I agreed to pay the electric and gas, which total about $100/month. I've had the same tenant the whole time, but she just gave notice. I'm going to switch the utilities over to the new tenant (not sure who this is yet), and wanted to know how to do it. Is it as simple as disconnecting services and telling the tenant which utility companies provide service for the building?

    Thanks!

    submitted by /u/dougthepro
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    Northern VA rental market

    Posted: 05 Sep 2020 06:07 AM PDT

    How is the demand for rentals in the area these days? HUD 2021 FMV shows a decline of 2021 rent by less than 2%, as compared to 2020. MLS does show some inventory in the area. Craigslist does not show much inventory. So what's the general observation? I am deciding on if I should have a tenant vacate or not, in order to revise the rent upwards. My last revision was in 2018 and the rents jumped by 10% in 2019. The current tenant does not have the ability to pay up the increase. They are on a fixed income and been long term tenants. Any insight from folks in the area? TIA for reading.

    submitted by /u/golferkris101
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    How to analyze residential real estate deals?

    Posted: 05 Sep 2020 09:34 AM PDT

    What metrics do you all use to analyze a residential real estate deal? I'm looking at single-family detached homes in the Southern California area.

    What makes a deal good or bad in your eyes? Any dealbreakers when analyzing a home?

    submitted by /u/Clean_Activity
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    What to look for in homeowners insurance for a partial rental property?

    Posted: 05 Sep 2020 05:08 AM PDT

    Hey there,

    I am closing on a duplex, half of which I will be living in and the other I will rent out. I am curious as to what I should look for in an insurance plan since, so far, they all look kind of the same.

    Also! It's an old house and will need a new septic tank in the next 5-10 years so anything to look for to help with that would be awesome too.

    Thanks and here's to my first real estate investment!

    submitted by /u/mancirobb
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    How will unemployment income be factored when applying for financing?

    Posted: 05 Sep 2020 05:21 AM PDT

    I'm trying to think through situations that many people have found themselves in. They've lost their day jobs, but might have other sources of income like a rental or side business.

    I'm assuming a person cannot get financing solely on unemployment income (UI), no matter their previous salary, correct?

    Typically lenders want to see previous 3 months of income, right?

    Would it be possible in any of these circumstances?

    UI + property investment:
    You profit on rental income from an investment property

    UI + new self employment: You've started a profitable business

    UI + low income old business: You already have a business, but weren't making much profit

    UI + low income old business, new higher income: You've had a business that wasn't making much profit, but with extra time invested, have higher profit

    What financing options would someone have? SBA, FHA, anything else?

    submitted by /u/SimplifiOfficial
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