Real Estate Investing: Tear my idea apart: Buying land to build rental cabins |
- Tear my idea apart: Buying land to build rental cabins
- When did you transition from investing for cashflow to investing for appreciation, if ever?
- What are some red flags when working with investors?
- Will banks give me an investment property mortgage even tho my business only operates during 7 months of the year?
- Is there a web page that helps you through steps on building rentals on the current properties you live on?
- questions about unpermitted units.
- Realtor guaranteed rent if the renter didn’t pay. The renter didn’t pay and now realtor will not perform
- Tips on buying homes for cash and reselling?
- I am looking to refi my first commercial mortgage, which is currently with a credit union. Do any of you have luck going right back to the same loan officer and getting a refi done?
- Prices don't make sense anymore for Multi family unit, is people buying just to avoid having their money lose purchasing power ? NJ
- Passive Income from Real Estate
- Why don't capitalization rates account for mortgage and interest payments?
- Do any of you negotiate buyer/seller agent rebates
- Question about property taxes for rentals
- First time home owner / hack
- How to address inspection report with seller with the goal of reducing the sale price or other options to save the deal?
- Does anyone have experience buying a home for where both the buyer and seller are non-US citizens in VA? What additional tax withholdings and fees are there?
- How to factor in furniture costs, etc when calculating cash flow on short term rentals?
- On the topic of management, what do you think about this?
- What should I expect for interest rates on a multi family ?
- Help: Should I accept a rental applicant with a 550 credit score with a family guarantor with a high credit score?
- How to deal with bad loan conditions
| Tear my idea apart: Buying land to build rental cabins Posted: 18 Sep 2020 10:33 AM PDT Tear my idea apart if you wouldn't mind... 50 Acres of wooded land with utilities running up to the property edge and a large river running along the boundary. There is an asphalt road that has been run (off a major city road that is maintained) from one edge of the property to the other. There are currently 7 obvious places on the property to build cabins that are out of the flood zone on flat ground where a gravel driveway can be easily run up to them from the main road. I have already called the city zoning office and confirmed it is acceptable to get it zoned as needed for this idea, and the utility company confirmed I am also all good to get them to run what I need to the property edge so I can do the rest myself. The numbers (These are assuming I do the majority of work myself) Land - 225k (There is a 2 acre chunk that is useless that I will sell off to home owners that have properties backing up to it hopefully for like 25k) Utilities: Water: 5k per well for each property Septic: 5k per cabin Cabin: I can build the first cabin for around 15-25k and have a fully functioning cabin with bathroom/kitchen and then will make them bigger/nicer and invest around 30k/ once I have proved out the idea There is nothing else like this easily available for rent within an hour of my mid-size midwest city and looking at Airbnb/VRBO Comps I should be able to rent it out 180 days a year for $150 giving me 27k in cashflow a year to payoff the cabin after 18 months and then begin fully covering the land mortgage within 24 months of closing. I am not trying to become a millionaire off this investment as it will mostly be for fun and would be nice to break even on this vacation property investment, but if I can build 5 cabins all bringing in 25k/year suddenly life is pretty good and my retirement home will build itself after like 15 years(and I won't have to build it myself, haha)? Anyone ever try this before? I would be going for super instagrammable cabins as well because it would make marketing easier..... Also it will be 15 minutes from a college that has around 5k students... [link] [comments] |
| When did you transition from investing for cashflow to investing for appreciation, if ever? Posted: 18 Sep 2020 03:43 PM PDT Closing on door #26 in a couple weeks and wondering if I should shift to nicer A quality houses that cashflow less but much more likely to appreciate. [link] [comments] |
| What are some red flags when working with investors? Posted: 18 Sep 2020 09:54 AM PDT Hey everyone! I have a meeting coming up with other potential investors and was wondering what are some good questions to ask? What are some responses that would make you walk away from working with them? Background: I'm new to real estate investing and would be putting in about 40k toward a flip. This would be in the Bay Area and would be going in with about 4 other people. I'm meeting the other investors through a friend and wanted to put a list of questions to ask when I do. Was also really doing a lot of research towards BRRR since it makes the most sense for long term returns vs flipping. What are your thoughts on that? Thank you so much for taking the time to look! [link] [comments] |
| Posted: 18 Sep 2020 03:21 PM PDT I can't sure to find a clear answer on google. I have a landscaping business and where I live we get snow in the winter so business shuts down. I'm looking to buy my first Rental property, I have a 720 credit score with enough for 20% down payment. Okay so I have 4 questions here. 1.Will I need 2 years of tax returns still?
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| Posted: 18 Sep 2020 05:51 PM PDT I don't know who to call for checking if everything's up to code and to law. I don't know who to call for a loan and how that process works. I have the money to start I just don't know where to start. I have a lot of land that's just not being used that I would like to build properties on. Please and thank you [link] [comments] |
| questions about unpermitted units. Posted: 18 Sep 2020 05:09 PM PDT Hello all. I am a potential first time home buyer. I am really interested in a property that has an unpermitted conversion. the previous owners (per sellers description) converted the 3 car garage into a rental unit. I was wondering if you all can share your experiences and tips when it comes to unpermitted units.
any info is greatly appreciated. [link] [comments] |
| Posted: 18 Sep 2020 09:27 AM PDT This is a bit of an odd situation, but here's the recap. I purchased a duplex in mid July. The duplex had a renter in each side. The closing date was set for the 8th, and the sellers told me that the renters were up to date on rent, but that the rent was due on the 10th. For various reasons, the closing date was pushed back to the 15. On the day of closing, my realtor (who is working remotely because he has COVID...) tells me that the sellers were keeping the July rent from one renter and I would get the July rent from the other renter. I thought this was fair since it's now July 15 (and I assume all rent has been paid) and this would allow us to both get half the total rent. However, before we signed, my realtor told me that one of the renters had not paid rent yet. (It's now the 14th so rent is past due). I responded by telling my realtor that I thought the seller and I should split the rent from the renter that has paid, and then subsequently split the rent from the renter that hasn't paid, if he ends up paying. That way, both Buyer and Seller Are affected equally if the renter doesn't pay. To keep me from going back to the seller, My agent tells me he (my agent) will pay me the rent for July if that renter ultimately does not pay rent. Based on this, I decide to proceed with the sale. Now… After the renter did not pay July and I had to kick him out…my realtor still has not paid me the rent from July. He says that he will pay me, because he thinks it's the right thing to do, but that he feels he is under no legal obligation to pay me. But he is really dragging his feet and it's been over two months now. Is there some violation of fiduciary responsibility by my realtor if he doesn't pay me? Is there anything legally I can do to get the money from my realtor? Much of our conversation occurred via text message so I have a copy of it. Edits: in total, missing rent is only $750 [link] [comments] |
| Tips on buying homes for cash and reselling? Posted: 18 Sep 2020 09:45 PM PDT I see a lot of these businesses who buy homes with cash and flip them and resell. How do people get started in that and build their way up? Where is the capital coming from? [link] [comments] |
| Posted: 18 Sep 2020 03:30 PM PDT Title says it all. This is my first time around. I think I can lower my interest rate by a point. Current loan has no prepayment penalties. I feel weird going to the credit union and basically asking them to cut my interest rate, but would also give them a chance to keep my business as opposed to doing a refi somewhere else. Plus, perhaps their underwriting would be streamlined since they already did the loan once. [link] [comments] |
| Posted: 18 Sep 2020 02:48 PM PDT Ive seen so much properties on redfin doing the numbers and none of them cash flow at all. How are people over paying for these units? It doesn't make sense am i missing something? Ive seen so many listings from purchases made last year at 300k listed now for 415k not a flip! [link] [comments] |
| Passive Income from Real Estate Posted: 18 Sep 2020 06:09 PM PDT We're looking to get some passive income from real estate and someone recommended we try syndicates. How does it work? What should we be aware of? And is this a good strategy? Our ultimate goal is to have some rentals, so we thought by partnering up with others at the beginning, we'll learn more about the industry. Thoughts? [link] [comments] |
| Why don't capitalization rates account for mortgage and interest payments? Posted: 18 Sep 2020 10:30 AM PDT I'm asking because it seems like it's very possible to have a negative cash flow on a property if your mortgage and interest payments exceed your NOI on a rental property. I'm guessing the cap rate is more of a standalone measure, almost as if the the property is paid off completely. Is that correct? [link] [comments] |
| Do any of you negotiate buyer/seller agent rebates Posted: 18 Sep 2020 08:49 AM PDT I'm in one of the 40 states where rebates are legal. Local fees are 6% I've had side deals before on cheaper properties were I used a buyer agent that would kick back an appliance or closing costs, around 50% of haul. Then we sent a LLC co-owner to become an agent and took the full commission. After I bought him out we did deals were he kicked back about half but have some unrelated conflict. I am in broker training now and was curious what is competitive. [link] [comments] |
| Question about property taxes for rentals Posted: 18 Sep 2020 12:33 PM PDT I live in the Bay Area and had a question about property tax rules and mortgage interest deductions. I currently live in a home where I took a $750k mortgage. I've paid down some of it so far and the remainder is around $650k. If I were to buy another property as a rental investment, I understand the new tax law says that I can only deduct interest in mortgages up to $750k. Question is: does that $750k cap apply to the starting principal or the current remaining principal? If current remaining, then I would think about borrowing $100k to buy the rental property for the tax benefits. Thanks! [link] [comments] |
| Posted: 18 Sep 2020 03:58 PM PDT Hey guys, question regarding loans. I want to buy a house and rent out the rooms I don't need. I'm single just about to be out of college, no debt. If I have the money for down payment is it better to use conventional loan to save on PMI and better interest rate? Or is it better to do FHA pay the higher fees but save more cash to use? [link] [comments] |
| Posted: 18 Sep 2020 02:42 PM PDT Hi folks, Broward County, FL. Got a house under contract. Inspection contingency. 3/2.5 townhouse Finished inspection today. Full report Monday but the inspector told me it's a gut job save the electrical, HVAC, and water heater. He did say there were no visible signs of WDO but since there is so much water entering from the roof and from the bathtubs and shower he'd be very surprised if there weren't any just below surface. Classic case of absentee landlord with loads of deferred maintenance. Rent increased from $1200 to $1400 in last 11 years which tells me it was a "I won't raise rent if you keep quiet about the fact that I'm not taking care of the place." The contract price assumes the place isn't new per se, but new roof, new bathrooms, new kitchen weren't factored in. It's not that the kitchen, bathrooms, and all else aren't updated or ugly, it's that those system are failing and causing structural damage now. For example, the roof has active leaks (with an S) and there is moisture in the attic from these leaks. The master bath and other bath in second floor have leaky just destroyed bathtub and shower which is allowing water to escape into area where water doesn't belong. The whole place is a shit show and there is mold in every bathroom. To be honest, the place probably wouldn't clear occupancy requirements here. [link] [comments] |
| Posted: 18 Sep 2020 01:59 PM PDT We are thinking if it is better to list myself, an employed US citizen, as a co-owner of the condo our elderly relatives (80 years old) are trying to buy, because there are possibly higher tax and fees from transactions if both the buyer and the seller are foreign nationals. As a co-owner to a non-US citizen buyer, would it be be better to finance the purchase with a mortgage or pay entirely with cash? It seems most foreign people buy homes with mostly cash since it is harder to acquire a mortgage with the good rate [link] [comments] |
| How to factor in furniture costs, etc when calculating cash flow on short term rentals? Posted: 18 Sep 2020 12:38 PM PDT Hi - I'm new here so this is probably a total newb question. I searched around but couldn't find any answers. I'm creating a spreadsheet to calculate the cash flow for a short term rental. I have various 1 time expenses that are unique to STRs such as furniture, photographer, initial supplies, etc. Do I add those in when I'm calculating my monthly cash flow? If so do I amortize them? Do I factor those in if/when I eventually sell the unit? What about other one time expenses such as the title fee, county recorders fee, keys, fobs, etc? Right now my formula is this: I'm ultimately trying to decide "well" the unit is doing and I feel like I don't know how to factor in some of these 1 time fees, or even certain recurring fees such as mortgage interest payments and principal. [link] [comments] |
| On the topic of management, what do you think about this? Posted: 18 Sep 2020 08:46 AM PDT I work for a major lender in Ontario, Canada. Over the past couple of years, our property values have increased signifigantly in the greater Toronto region. This inspired a lot of property investments from first time landlords. I can't speak with all lender but with our's, many of these landlords buying rentals that are not cash-flowing or being managed properly as a result. The main issues with this are that they can't afford management costs. This tends to become an issue when they face a hiccup like a tenant not paying and not knowing the laws. I'm suspecting there will be a change at our firm (and likely others) where landlords won't be able to acquire financing without having a 3rd party property manager lined up. This is similar with our commercial mortgages. Landlords who don't have experience managing an apartment complex or a strip mall will need to hire an experienced employee or have a 3rd party manager in order to get financing. I don't know if this will be implemented. Do you think it would make a huge difference in your investment approach if this rule applied nation wide? [link] [comments] |
| What should I expect for interest rates on a multi family ? Posted: 18 Sep 2020 12:22 PM PDT Hi, What interest rates should I expect for a multi family(3 unit) ?Let's assume owner occupied and 25% down.I also have 760 credit score. Just got quoted 3.625 which seems on the high side, and wanted a sanity check. Any insight would be appreciated.Thank you! Edit: forgot to mention loan term, which is 30 yrs fixed conventional [link] [comments] |
| Posted: 18 Sep 2020 12:01 PM PDT After 2 weeks of vacancy, I got my first applicant. The applicant said that her divorce had completely ruined her credit score. Her parent with a high credit score (800+) will be her guarantor. Her income is almost 3x of rent. Her parent's income is 2x of rent. With the rent moratorium in CA, I can't evict anyone if they don't pay rent. What do you guys think? Should I accept or keep waiting for a better applicant? [link] [comments] |
| How to deal with bad loan conditions Posted: 18 Sep 2020 06:32 AM PDT My country have unfavorable loan conditions. Interest rate is around 9% and it's front-loaded (not sure if front-loaded is regular on every loan) and to buy a house you can ask for a 30 years term. If it's an development loan you can get 15 years term. I'm buying an apartment with a 30 years loan with 9% interest rate. I know in the US this is crazy but on my country is a regular basis. Should I just try to pay the loan fast making extra payments with the extra money I have on every month or should I just use my extra money to put it on another investment (saving enough for another Downpayment and create more cash flow)? [link] [comments] |
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