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    Wednesday, September 16, 2020

    Real Estate Investing: What is the order of operations for actually closing a deal ??

    Real Estate Investing: What is the order of operations for actually closing a deal ??


    What is the order of operations for actually closing a deal ??

    Posted: 15 Sep 2020 07:49 PM PDT

    I've been searching this sub and google and am coming up short....

    why does there not seem to be anything that simply details step by step what happened at each point of the deal?

    My partner(s) and I are trying to buy our first property and we just don't know when things are supposed to get done.

    Our agent kind of sucks.. we just clicked the "I'm interested!" button and filled out our contact info and someone called us. Guessing that was a mistake?

    At what point are we supposed to ask all of our questions? When can we get the rent roll? Or when can we ask for proof? Do we have to make an offer first? Can we just tell the agent to ask? Can I get a new agent because she sucks and replies slow?

    Can't find shit on the order of actual things happening. Everything seems to assume covid doesn't exist and we have an agent that replies more than a couple times a day.

    I see so much "your agent will help you take care of __________"... will she?

    Not so sure of it... is there just somewhere to read what happens step by step by step ?

    submitted by /u/bin-c
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    Do umbrella insurance policies usually cover more?

    Posted: 15 Sep 2020 06:46 PM PDT

    Umbrella insurance policies are all the rage in the comments of this subreddit. Today, I took the plunge and got one, since I have boarders in my single family primary residence.

    The sales guy on the phone described it as adding to the limits provided by home and auto insurance, but he also made it sound like it would only cover situations that those already cover. Is that true? I was under the impression it was more general liability coverage, and would cover more situations.

    submitted by /u/jfaghihnassiri
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    Offer on my first deal

    Posted: 15 Sep 2020 07:21 AM PDT

    Just had an offer accepted. My first investment property, single family town-home 3br/2ba in a military town. Still pending inspection, closing details etc etc. But the numbers are decent considering the current sellers market. Let me know what you think.

    Price: $170,000

    Downpayment: $34,000

    P&I: $620/month

    Prop Taxes: $184/month

    HOA: $41/month

    Home Insurance: $40/month

    Total Monthly Payment: $955

    Vacancy & Repairs: $70/month

    Rent: $1400/month

    Monthly Net: $445

    CoC Return: 15%

    submitted by /u/AfterlifeOmega
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    As a beginner where do I start?

    Posted: 15 Sep 2020 02:23 PM PDT

    Hello,

    I am currently looking to buy my first multi-unit property. My goal is to have a place to live and make some cash flow which I will then invest into a future property.

    I make $84,200 a year, have an 820 credit score, and have $70,000 to invest.

    I'm looking for something in NJ or NY so that I can commute to work.

    There are a LOT of resources available and was wondering if someone could give me some advice on the best way to get started.

    I'm a little overwhelmed and have very little experience.

    I would appreciate any advice. Thank you!

    submitted by /u/blunt_eastwood
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    What's the point of being a DIY landlord?

    Posted: 15 Sep 2020 05:34 PM PDT

    I see a lot of post here from people who manage their own properties DIY style.

    I don't understand why someone would do that for residential properties unless they are paying themselves a living wage and genuinely don't mind it. By DIY, I don't mean just managing. There's people on here that know every tenants situation, do repairs themselves, handle disputes, be on call 24/7, cut the grass themselves, I just don't see the point of that when you can be focusing on the financial aspect of real estate. Isn't the labor costing more than what you're saving with a property manager?

    I'm not against self management. I have a commercial property that I manage that myself. But commercial tenants are professional and only email me during office hours when they have an issue. Residential seems like the opposite of that.

    submitted by /u/GamingTox
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    NYC multi-fam purchase during a pandemic....good idea?

    Posted: 15 Sep 2020 08:28 PM PDT

    Just trying to get some last minute thoughts before I give the order to have signed contracts & depo sent out on this property, which would be my 1st property.

    About to get into contract for a multi-family property (2 units + separate-entrance basement) in a desirable zip code in Staten Island, NY (safe area, good schools, near hospital).

    Purchase price - 800k (with 20k concession so net 780k...might be worth adding that the house should appraise for about 830k), 20-25% down

    The plan is to live in the main unit and rent out the 2BR rental unit (can probably get $1600-1700, or $1300 if it's converted back to a 1BR so I can keep the 3rd bedroom for the main unit, which we can use). I'll be putting 20-25% down, so my monthly mortgage payment/taxes/insurance will be in the $3500 range, which is about double what I'm currently paying for rent, without factoring in potential rents I'd be collecting, as well as tax benefits & the potential for some appreciation over time.

    My plan is to build up some equity and start buying investment properties down the road (likely not the conventional 20% down route, but rather some form of the BRRRR strategy out of state). I may will cut back on maxing out my 401k & IRA, unless I am able to comfortably max them out consistently (earning about 140k/yr).

    Anything you would do differently or any major concerns that pop out (other than being super picky about picking tenants)?

    submitted by /u/bogiemonster
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    Should I buy this investment property or Skip??

    Posted: 16 Sep 2020 12:01 AM PDT

    Hello does it makes sense to buy this 1400sqft. (3bed+2bath) house in NorCal? Purchase price = $400k and down payment 25% ($100k) Loan amount = $300k @3.5%. No HOA but it has Mello roos of $2k annually. Here are the monthly numbers on my investment of $100k:

    Mortgage = $1950/month (1350 (P+I) + 600 (taxes+insurance) Rent expected = $2000/month Cash Flow = $50/month

    submitted by /u/sacsfo
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    Basic questions about buying first investment property.

    Posted: 15 Sep 2020 12:57 PM PDT

    I've been a homeowner for awhile, and understand the basics of financing and how mortgages work. But I'm seriously considering purchasing a second property to use as a short term rental and personal vacation property, and have a lot to learn. I know the market I'm looking at fairly well (both for purchasing and short term rental), and am pretty confident that with a little hustle I can confidently make about 1.5x my total annual mortgage payment in rent, and have a place to bring my kids occasionally.

    I think it makes sense superficially, but have a lot of questions in the following areas, and would appreciate any advice or resources:

    • The difference between 2nd home loans vs. investment properties, how it affects insurance, taxes, etc.

    • How insurance works for non-primary homes--I'm considering buying in a fairly high-risk area for natural disasters, and want to know how much risk I'd be taking on, or if FEMA assistance would be available, etc?

    • Also, I have a few different options for structuring the purchase, and am wondering what makes the most sense--I could pull together just enough cash to put 5% down (what my broker says is the minimum) and finance the rest, or I could move funds from a retirement account or tap equity on my primary home to put 20% down. I can crunch the numbers and see what the spread is between 80%LTV loans vs. 95% etc. and figure the payment part out between these options, but I wonder if there's anything I'm not aware of as far as tax liability, etc?

    Thanks so much for any general advice people can offer, or resources you could point me towards.

    submitted by /u/PMmeserenity
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    West Coast Fires and damage to rental property

    Posted: 16 Sep 2020 12:03 AM PDT

    For those of you that have had your rental properties damaged (or potentially damaged) by the fires on the west coast. How are you dealing with this? I'm curious to know what your strategy is to manage this risk.

    submitted by /u/1fatkid
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    How much so you pay monthly fpr being a landowner

    Posted: 15 Sep 2020 11:15 PM PDT

    Water/Sewage Trash Bill I am purchasing a 4 unit 2 bdr each apartment complex and want to calculate my approx monthly bill.

    submitted by /u/booksandotherdrugs
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    Opinions on next steps?

    Posted: 15 Sep 2020 09:14 PM PDT

    Hello All, wanted to get your thoughts. Am trying to decide on next steps. Currently own a 2 bed 2 bath rental and a 4/2 primary in medium COL high growth market. Refis on both are in process. Getting pre-approved for an additional investment at the same time but thinking of other options. What would you look for? How big of a deal is it to convert a primary to rental within months of refi?

    Stay in primary and just buy 2nd investment? Convert primary to rental and buy/live in some kind of multifam?

    submitted by /u/sawyersbar
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    Should I rent with an eviction moratorium in effect?

    Posted: 15 Sep 2020 02:04 PM PDT

    I have a house that I finished renovating and was planning on renting it out but now I'm not sure with the eviction moratorium being extended to the end of the year. I know the tenant has to prove that COVID has made them unable to afford rent but I'm not sure how willing the city will be to cooperate with landlords that want to evict even if the tenant fails to fill out the proper paperwork for the moratorium

    Should I just have a stricter vetting process? I'm in a class C neighborhood so I was thinking of requiring a credit score of 650+, a income of at least 3X rent, etc. Anything else I should keep in mind or do you think I should just be better off selling?

    submitted by /u/MonsterWrath
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    Best way to gain access of MLS without paying full price?

    Posted: 15 Sep 2020 07:12 PM PDT

    Closing on first deal

    Posted: 15 Sep 2020 06:42 PM PDT

    Closing on my first deal on Friday. It's an owner occupied duplex 3.5% down. My PITI is $1260/month. I'm inheriting tenets who have lived in the property for 8 years. Their rent has never been raised and they are paying 1000/month, which is about $600 below market rent. They have a lease I place that expires in June of 2021. As of now I will have to cover the extra $260. Is there anything I could do to raise the rent so that they are paying at least $1260 to cover the mortgage? Property is in CT. Thanks

    submitted by /u/kkrotz11
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    Financing or buying property with code violations

    Posted: 15 Sep 2020 05:30 PM PDT

    I know as investors, properties with code violations are often sought after. Can these properties be financed with violations or be sold with existing violations? Does the investor inherit these violations and become responsible for resolving them once buying the property or does the violations and associated penalties stay with the seller?

    Would the violation "cloud" the title and prevent it from being financed and/or sold?

    Have a potential opportunity but want to make sure I understand what I would be signing up for.

    submitted by /u/rcalfor
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    I have been able to save 36k within a year from my job. Should I buy now or wait another year and buy later?

    Posted: 15 Sep 2020 09:53 AM PDT

    Basically I'm not sure if I should buy a small 100k SFH now, or wait until next year and go for a 200k property. If waiting is the best, would it make sense to save 5 more years then make an even bigger purchase? Or is best to buy every year and start building equity and raking in cash flow now? Further, is my plan to save 36k a year, allocating 20k for a down payment and the rest for cash reserves a good plan? Should I be allocating more or less to cash reserves? Thanks in advance for any advice.

    submitted by /u/RayDonavanProg
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    First time home buyer refinance..Help!

    Posted: 15 Sep 2020 08:41 PM PDT

    In January of 2020 I bought my first home for 220k my credit was shit 640 so I got a 4.25% rate on a 30yr FHA loan. I have been paying down my student loans and am now at a 700 credit score. I want to refinance to get a better rate, what would be the best way to go about this and who should I refinance with? Also should I wait until I hit 740 in my credit score?

    submitted by /u/jacmolin18
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    Is a 30% return a good return?

    Posted: 15 Sep 2020 09:20 AM PDT

    I think it is outstanding - but I've run into a weird situation and wondering if I am out of touch or the other guy is.

    So I invested money in an LLC that was going to buy a piece of property and develop it. The concept was presented as buying raw land, getting the land subdivided and entitled so that multi-family could be built. The original investment (from a number of people) would cover all of this and we would determine if we were going to sell after or get more investment or a loan to do construction.

    All of this was to be handled by the managers of the LLC.

    11 months after investing, the land was entitled and it was determined to list it for sale - we got a full price offer that resulted in a 30% profit for everyone.

    As stated, I thought this was great - however, one investor has been raising hell with the managers about accounting for all expenses. He is trying to get the other investors on board to hire an accountant to go through the books - including getting the 3rd party architect (who the LLC signed a contract with - as approved by everyone) to detail how every penny of the contract fee was used and why it was used for that.

    Everyone else is just wanting to get the check and move on, but he is holding it up right now (need 100% vote to dissolve the company and distribute).

    I don't understand his anger - is 30% over 11 months not a good deal?

    submitted by /u/donwileydon
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    Good deal or not?

    Posted: 15 Sep 2020 12:39 PM PDT

    Hello

    I have the opportunity to purchase a home for $62,000. It would be with a hard money loan and I will refinance after 6 months. Below are the details:

    Price: $62,000 Hard money fees over the 6 months: $8500 Cost to fix property: $15,000 After repair value: $100,000 Rent I can make: $1000 monthly.

    Thoughts?

    submitted by /u/itsmeandyouknowit1
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    DIY Landlords

    Posted: 15 Sep 2020 08:33 AM PDT

    For those of you that are "mom and pop" landlords, or have between 1-10 residential units, what are the biggest pain points for you?

    I manage one SFH and am curious as to what others think.

    Thanks!

    submitted by /u/ybrodey
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    What real estate investment information is worth paying for, if any?

    Posted: 15 Sep 2020 07:31 AM PDT

    I am just learning about REI, I have heard about pre-foreclosure lists that people create from publicly available sources. I have also seen sites like airDna that purport to provide estimated revenue for STRs. What is your experience with buying REI information and are there other sources of information that are worthwhile? Is there anything you would like to have that isn't yet available in an easy to use format?

    submitted by /u/imissyourmusk
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    What is your strategy in this crazy time?

    Posted: 15 Sep 2020 02:27 AM PDT

    I keep thinking RE prices have to drop at least a little in 2021 (especially in places like Vegas, which has somehow gone up in this crisis). I was looking at Research Triangle. With the future of remote learning at colleges a bit up in the air, I wonder if supply could increase a lot more there. So just interested to hear what your strategy is if you are sitting on a few hundred K of cash. Would you wait, buy outright SFR, MFR, etc?

    submitted by /u/bee4534
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    Good first deal?

    Posted: 15 Sep 2020 09:33 AM PDT

    I have recently come across a listing that I think could be a good first deal.. would love a critique.

    1b/1ba condo in HCOL area

    list price: $221,000

    HOA: $218

    rental price: around $1500, perhaps higher depending on time of year.

    I would probably purchase using conventional loan with 20% down at 2.75-3.0%: out the door cost including taxes and such would be $1144

    College town with tons of money and very low vacancy expected. Probably not as great as some deals on here, but it is really difficult to find anything in this area where the numbers remotely work. Advice is very welcome.

    submitted by /u/Wiz-Khaleesi
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