Real Estate Investing: First investment property? $50k property, rents for $700/month |
- First investment property? $50k property, rents for $700/month
- Interested in building tiny homes and turning then into air bnb
- Condo, Townhouse or House?
- Can i buy a residential home that's in a business zone?
- Model home leaseback
- Catch on 5% vs. 20% down?
- Bad credit due to Charge-off , $600,000 in cash assets
- What are the most important things to do when talking with sellers?
- "motivated sellers" - lol
- How to get started?
- If foreigner wants to purchase property in the US, do they need to physically come to us to sign documents?
- Beginner bought large lot advice plz
- How to estimate construction costs on a new multi-family development?
- What kind of partnership agreement is this?
- New To Real Estate Investing. Can you recommend some good books to get started?
- Potiential Wholesale Deal
- General Real-estate Investing
- If I'm wholesaling off the MLS, is it better to used an assigned contract (instead of double closing) in order to be more transparent with the buyer?
- Confusion about getting a Mortgage and THEN a home improvement loan for fixing things.
- Reality check on my plan?
- Carpet Replacement
- What to do next? Buying home with small instant equity. Offer/details in post.
- How can I learn to close small cash land deals myself? (NY)
- Driving for dollars
| First investment property? $50k property, rents for $700/month Posted: 03 Oct 2020 08:43 PM PDT I'm 23 and looking to invest in real estate. I currently rent, don't own my house. Currently making $65-80k/year (varies due to commission) and have $20k saved up. I found a 3br 1.5ba house 45 minutes away in a pretty rough area, but up and coming, for only $50k. Currently is rented by long term tenants who have been there for 4.5 years. They rent for $700/month. If I put $10k down, it would cash flow about $400-$450/month. I like this property because I'd be starting small, and that makes me feel safer. But I don't know if it's worth it, why not just go bigger and buy a triplex? I don't know. The numbers seem to work on this deal though, and that's all I care about. If it was $300,000 and the numbers made sense, I'd do that too. But I can't find anything that works in that price range. Would this $50k property be a bad decision? Good decision? Should I just keep saving and go FHA on a triplex? Just looking for general advice [link] [comments] |
| Interested in building tiny homes and turning then into air bnb Posted: 03 Oct 2020 09:58 AM PDT So me and my wife will be paying our house off soon and looking to rent it out and buy a home with about 2 acres of land (which is easy to do in our area). We are thinking about building 4 tiny homes and making them look really nice and possibly turning them into air bnbs plus short term rentals for medical students, we live in a huge medical district and my wife is a nurse and has access to resources to advertise to med students. We also have the advantage of having a major golf tournament that comes around once a year where literally every hotel and air bnb is booked. My question is, does this sound like a good idea, and what are some issues or concerns I'm not thinking about? I'm a residential home builder, so i have a good idea on what each tiny home would cost and how to build them. Any advice would be greatly appreciated Edit: first off thanks for the responses I've received. So to add a little more info, the tiny homes would actually be a 20 x 20ft 2 story tiny homes ( living room and kitchen downstairs, bed and bath upstairs), they would have all the amenities a regular home would. The area i live isn't necessarily a vacation spot, but people come here all the time for business. So my thinking is if the air bnb side is going slow, i can do short term rentals with the influx of medical personnel that are constantly coming through, and with the numbers ive run i could be booked only half the year and still turn a decent profit. Are there any people who are currently doing air bnb that have advice? [link] [comments] |
| Posted: 03 Oct 2020 11:13 PM PDT I am looking to potentially buy my first property within the next 6-9 months. The idea would be to live in it, not to rent it out. Since this would be my first property what would you recommend me to buy? I know generally condos are cheaper and will need to look one with a low HOA. Same goes for a townhouse. A house is generally more expensive but also since you don't need to pay for the HOA the monthly payments are similar in some cases. What would you recommend? Is there anything I would need to look into further on any of them? Just looking for some thoughts or experiences that you might have with any. I live in Dallas TX and been looking at prices in between 175k-300k. [link] [comments] |
| Can i buy a residential home that's in a business zone? Posted: 03 Oct 2020 07:06 PM PDT First time investor: Wanting to buy a house listed on HUD homestore. Just checked zoning as it is on a busy street and discovered house is listed in a business zone. There was another house adjacent to property in question currently with occupants that is also zoned commercial. Will it be possible to purchase to rent for residential use? [link] [comments] |
| Posted: 03 Oct 2020 07:28 PM PDT What are the pros/cons of a model home leaseback from a builder? Are these typically cash only sales? Will builders consider financing? Are the leases pretty standard? [link] [comments] |
| Posted: 03 Oct 2020 09:32 PM PDT Looking for input from somebody with RE experience to help explain the 5% vs. 20% comparison. How is 5% down not nearly always more favorable than 20% down? Let's use a 200k property for this example (and bear with all my assumptions). 5% vs. 20% down is $10,000 vs. $40,000 in present value. So, we are essentially trying to justify going through the 5% down route for the sake of having an extra $30,000 RIGHT NOW in today's money. Why? Leverage. Let me break it down based on my amateur and most likely spotty reasoning. 5% down on 200k will mean that you will end up paying more in interest and PMI vs. if you had put down 20%. Average PMI in this case comes out to roughly $6,500 TOTAL (sum of monthly PMI payments until 20% equity is reached). Additionally, the extra amount you are paying in interest by opting for 5% vs. 20% is roughly $110,000 vs. $90,000 (based off a 3.3% interest rate over 30 years). This is obviously because the interest rate is being applied to a larger mortgage amount in the 5% down case vs. the 20% down case. So, and I know there has to be something I am missing which is why I'm posting this, the total amount extra "wasted" by putting 5% down vs. 20% comes out to $26,500 ($110,000-$90,000 = $20,000 and then tack on the $6,500 additional paid to PMI ). Now, this of course would be a no-brainer analysis if you went ahead and used the extra $30,000 difference on something that does not appreciate (you would be giving yourself $30,000 of breathing room in the present, but would ultimately be losing $26,000 EXTRA over the course of 30 years). However, if you decided to leverage that $30,000 by instantly investing it in the stock market, in theory (based off of a 7% annual appreciation in the stock market) that $30,000 would grow to $240,000 over the course of a 30 year investment period. So, by putting 5% down and immediately investing the extra $30,000, you are saving yourself $214,000 ($240,000 (value of the $30,000 investment after 30 years) - $26,500 (extra you would save by putting 20% down vs. 5% down after 30 years)). Of course, the market could yield a lower average yearly appreciation; but likewise, the RE market could do the same. Also, this is also of course assuming you could afford the extra monthly interest and PMI payments, have excellent credit, and have the difference in down payments immediately ready to invest. So, I guess what I am trying to get at is what am I missing? It just seems like this is cut and dry, even if assuming average yearly stock market return is even half the assumed amount. Can somebody please genuinely explain the factors that I am missing? TLDR ish; Trying to determine the pros/cons of putting 5% vs. 20% on a property. I am looking for somebody who can help open my eyes to how, based on current and past trends, 5% down is not always consistently the better financial decision if you immediately reinvest the extra 15% in the stock market. I am genuinely looking for more insight into this and know my analysis is very heavily based on my amateur DD. Is a 5% conventional loan unachievable in a typical scenario? For a $200k property, I come up with roughly the following: 5% vs. 20% down: $30,000 difference in present value. If you put 5% down and immediately invest that difference of $30,000 into the stock market, this amount would grow to $240,000 over the course of 30 years (based off a 7% annual ROI). By putting 20% down, you are directly avoiding $26,000 in extra interest and PMI payments ($110,000 with 5% down vs. $90,000 with 20% down in total interest paid comes out to a $20,000 difference, plus a total of $6,500 that is paid in PMI by not putting 20% down). So, is saving $26,000 worth losing out on potentially $240,000? Under my assumptions in this case, putting 5% down yields an extra $214,000 over the course of 30 years ($240,000-$26,000). What am I missing? Any help is genuinely appreciated. [link] [comments] |
| Bad credit due to Charge-off , $600,000 in cash assets Posted: 03 Oct 2020 05:26 PM PDT Hi friends, I have bad credit due to some AMEX charge-offs from 2015. I had significant losses in business and went into severe depression which included not paying debt obligations; although AMEX was partially responsible for these losses (another story) These charge-offs won't fall off my credit report until 2021. I have spoken to AMEX several times over the years trying to negotiate, threatened to sue with an reputed attorney but nothing. I even offered to pay in full but they refuse to remove the charge-off. The debt amount is less than $15k. They are willing to settle for 50% but not removing the charge-off. Paying or settling a charge-off will not improve my score at all. I have about $600k cash from a successful business I had a few years back. I have not had much income in the last couple years except capital gains from stocks and some real estate deals that I did last year. Which I use for my living expenses. I live like a poor man in a tiny office and shower at the gym or my parents house. I have enough cash for downpayment and want to buy an apartment building but I cannot due to my bad credit. I dont know what to do. I do not want to wait until 2022 when the charge-offs are taken off my report. Please help, please guide to get me out of this miserable situation. [link] [comments] |
| What are the most important things to do when talking with sellers? Posted: 04 Oct 2020 12:06 AM PDT Beginner here. What are the most important things to know when talking with potential sellers? Thanks [link] [comments] |
| Posted: 03 Oct 2020 11:38 PM PDT |
| Posted: 03 Oct 2020 09:48 AM PDT I'm currently a financial planning major but real estate interests me. Where could I get started to learn more about it? Any YouTube, site, book, etc recommendations? [link] [comments] |
| Posted: 03 Oct 2020 11:15 PM PDT If foreigner wants to purchase property in the US, do they need to physically come to us to sign documents? [link] [comments] |
| Beginner bought large lot advice plz Posted: 03 Oct 2020 09:29 AM PDT So I have acquired my first investment property. I bought a lot (oversized .37) acres. I have contacted the city and they have told me that with the existing house (2bed 1 bath) I could divide it up with old parcels into 2 lots. But if the house is not there I can divide it into 3 lots. I just recently spoke with a very experienced home and commercial inspector / house builder and he told me that he believes that the person that contacted me from the city doesn't know what they are talking about and thinks he would get it passed with the house and still get three lots out of it. Below are some pics My question is : 1. What do you guys think of his opinion about the clerks in the city office?
[link] [comments] |
| How to estimate construction costs on a new multi-family development? Posted: 03 Oct 2020 10:12 PM PDT How does one estimate construction costs on a new multi-family development? I know prices for things such as slabs and windows, but the cost of building an entire complex from scratch seems hard to estimate accurately. [link] [comments] |
| What kind of partnership agreement is this? Posted: 03 Oct 2020 09:32 PM PDT A few years ago, my parents placed my name on their mortgage and title so that if anything were to happen to them, there would be no issues about me getting the house. I am trying to buy my first investment property but my name on their mortgage is making it difficult to secure a loan for myself because my DTI is too high. My parents pay their mortgage and I have documentation showing that they are the only ones that have ever paid on it and I have never touched it. The lender wants me to also have something in writing showing that my parents have legally agreed to pay the mortgage payments. If I have that documentation, they can treat my parent''s house as a rental property. I just need to know what kind of agreement is this that I have with my parents so I can use the correct template and get the documentation together. My parents are in the process of refinancing their mortgage and removing my name completely so I don't run into this problem in the future but that will take some time and I need this done ASAP because I have just gone into contract. [link] [comments] |
| New To Real Estate Investing. Can you recommend some good books to get started? Posted: 03 Oct 2020 09:18 PM PDT I am new to this and I don't know what information to trust. I have very little money to get started. Can you recommend some good books to read? Thanks! [link] [comments] |
| Posted: 03 Oct 2020 08:36 PM PDT I'm trying to land my first wholesale deal. I'm talking with this person that is selling a home for 156 that's with 200k. The home may need light repairs. I'm new to this and I don't want to contract a home that's not a good deal, is getting a home for 44k less that what is worth a good deal? If it is a good deal, how do I calculate my fee for transferring over the contract to a cash buyer ? [link] [comments] |
| Posted: 03 Oct 2020 11:37 AM PDT Hello everybody! Is this legal? I am about to graduate college and Me and my girl friend who have been together for 4 -5 years together are planning on moving in together. She is looking to obtain a first time homeowners loan. I am wondering since we are not married, can she get a first time homeowners loan and later live together in the property for some time 5 years, pay as much of it off move out and get another property (while renting this one). We both have a good chunk of money saved up. 5 years later after living in the initial property. I then want to also apply for a first time home owners loan under only my name, but we will both be living in this new property and renting the previous one. Is this allowed, since we are technically not married and I am essentially just a roommate.? This is in no way illegal? Has anybody ever done this before? I am in Texas just for your info. [link] [comments] |
| Posted: 03 Oct 2020 09:44 AM PDT Looking at distressed rental properties, some on the MLS are too good to be true; I want to bring contracts to buyers for ones only that I've been able to assess their viability using my local network there, so that buyer doesn't have to take as large a risk. I have some boots on the ground in a far away state where I'm finding MLS deals. My buyers are on the opposite coast with me. I don't want to scare them off with a double close. Am I being too sentimental? [link] [comments] |
| Confusion about getting a Mortgage and THEN a home improvement loan for fixing things. Posted: 03 Oct 2020 09:42 AM PDT Hey Everyone, I want to start off by saying I do not own property and am very new at all this, so forgive any ignorance that might be in here. I will also say I do not have a lot of money saved, but this is something I am almost willing to take the risk on. Recently I was presented an opportunity to buy a property near my hometown, which is one building approximately 1600 sq ft, in a little town. It has a small restaurant operation on the bottom floor, and the upstairs has been split into two apartments. IF I decided to go through with this I would live in one half and rent the other out. The property is being sold with all of the restaurant stuff included for about $130,000. This is literally my dream setup for an affordable price, but anyways. My confusion revolves around the mortgage and the loan I would need to take out to remodel/fix the place if it needed major repairs. It was explained to me that one you get a mortgage, your credit is trashed until it gets paid down, and as such you wouldn't be able to take out a loan to make repairs. Pretty much you are screwed if anything happens. Is that correct? I feel like the place would not need anything major done right away (I assume, haven't had an inspection yet) but it DEFINETLY needs some TLC, the cabinets, flooring and wallpaper would need to be taken care of. It looks a little sad inside to be honest. I would want to replace these things to make it a little nicer inside, I would also be doing something with the business downstairs. How do you get a home loan to increase the value of a property and fix things when your credit drops so much? There is so much information out there my head is spinning. Does anyone have any information on this from firsthand experience? I have tried to do research on my own but I keep finding contradicting information for everything I find, and honestly I would like to hear from people with firsthand experience. Thanks for reading. [link] [comments] |
| Posted: 03 Oct 2020 03:10 PM PDT I am new to real estate investing and interested in getting started with owner occupant real estate investing. im hoping to get critique or advice on this plan and its feasibility. Around 1 year from now i would like to buy a 3 or 4 unit property in a B/C neighborhood with changing demographics and an upswing in appreciation in recent years with a FHA loan in a high tax state (IL). Ideally i would like to purchase a property that needs work and use a FHA 203k loan that includes purchase price+renovation in one loan. I hope to use a very low down payment (3.5-5%) which is why i plan for fha. Ideally i would like to refinance into a conventional owner occupant loan after 1 year in which I hope to have built up enough equity via renovation to meet an 80/20 ltv ratio. I would live in the property for one more year to meet the owner occupant requirements of the new conventional loan while saving for another down payment. From here I would repeat the process, purchasing a 2-3 unit property in a slightly nicer neighborhood with a new FHA loan. As for numbers, 3-4 unit properties where I am hoping to buy start a little under $300k for fixer uppers but can go over $550k on the same block in current market conditions. I make 75k-80k (salary+yearly bonus) and have just started my career in a growing field at the beginning of this year. Last year i did my taxes but was in college most of the year with internships over summer/winter in related fields. I am hoping to purchase a property for 250-325k and have the total loan be no more than 400k including renovation. Rents range from $1100 for 1 bedrooms to $1600 for 3 bedrooms. My main concerns are qualifying for a high loan on my current income and reaching 20% equity in the property in a year to refi out of the fha so i can redo this process. Thank you for reading and looking forward to any and all advice! [link] [comments] |
| Posted: 03 Oct 2020 02:54 PM PDT What is a good carpet to put in a house to sell? I currently have berber. Need it for the basement and steps. Any recommendations? [link] [comments] |
| What to do next? Buying home with small instant equity. Offer/details in post. Posted: 03 Oct 2020 02:45 PM PDT Hi Everyone, I'm in the process of buying a family member house under market value. Purchase price of 300k 10% gift equity 10% cash for down payment Payment per month came up to $1410 (PITI, include property tax and home insurance) at 2.750% 30 year conv ($1.3k cc) I'm planning to spend 7-8k in repair, cabinet repainting, Vinyl floor, painting and reglazing bathroom and the house is currently estimated at $340k-350k I believe based of Zillow, realtor etc.. the house is a 4 bed 4 bath at 1900sqft, I couldnt find a similar model sold in last 6 month but for 4 bed-3bath sell around 350-360k in the area. I'm planning to live in the house for a year and rent it for $2100 once I'm out (surrounding median rent) What can i do next? I've been reading a lot about BRRRR but this seems like it's not applicable since the ARV wont be enought. Ideally to take advantage of the instant equity. Note: 200k income, no debt and about 50k saving. [link] [comments] |
| How can I learn to close small cash land deals myself? (NY) Posted: 03 Oct 2020 08:15 AM PDT I've been trying to research this but all the resources I'm finding say that this is entirely possible and not that hard but are very vague and don't go into particulars. Do you have any resources you'd recommend for learning how to close your own deals for small amounts of land ($0-15k)? At what point does it financially make sense to involve an escrow agent? [link] [comments] |
| Posted: 03 Oct 2020 10:25 AM PDT Does any one use deal machine when driving for dollars? How has it work for you? [link] [comments] |
| You are subscribed to email updates from Real Estate Investing. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment