Real Estate Investing: How long should I wait before picking up my 2nd rental property? |
- How long should I wait before picking up my 2nd rental property?
- What’s the best way to go about finding a real estate mentor?
- Trying to determine value of family farm
- Muslim Real Estate Investment
- Maximum distance for a rental property from home?
- Chicagoland Recommendation
- Anyone bought a property with structural issues and fixed them?
- Skip Tracing
- What’s the best way to use a heloc to continue building a portfolio?
- Little to no down payment
- Will I need a second appraisal for a HELOC if I have a recent one?
- Is it still a good time to buy an investment house in CA?
- Tragic Investment
- It's a freaking war zone out there
- Need a helping hand on getting started with out of state real estate investing
- *NEED HELP* Do I finance a planned short term rental home as a Primary Residence, or Income Property.
- Bought a house in May, but not really using it due to covid, now thinking tax strategy and converting to a rental
- Permit and Zoning Issue
- Working from home and commercial property demand?
- books on uk real estate
- Looking for commercial appraiser recommendations in San Antonio, TX.
| How long should I wait before picking up my 2nd rental property? Posted: 17 Oct 2020 12:05 PM PDT Background: My wife and I purchased our first SFH rental property in July of this year. We put 15% down on it and this + closing costs consumed about 75% of our liquid savings. We had to put about 5% of the property's value into repairs before listing it, but we were able to float this across the slush from 2 paychecks. Interest in this class C area was high, and I posted here about the large amount of interest we got, although from a series of not-the-greatest applicants; but the ones we selected signed a 2 year lease and have, over the limited time of the last 2 months, paid on time and only done one stupid thing to the property that was easily fixed. The monthly CoC return on this property is about 30%. We live pretty frugally, so we've built our savings back up to the point where 15% on another similarly-priced rental property in the same neighborhood would consume our entire savings, but should we want to solidify those funds, we could technically afford to push forward on a second one. My question to you all is... should we? Is buying now a smart move, even if it consumes all of our cash savings (we have stocks and CDs and stuff we could liquefy if our personal shit hit the fan), or should we wait for what some people predict is a dip/crash in the next 12-18 months? Or should we wait until our cash savings is a little more bulky and/or we have more than 2 months' experience in this game before deciding if we want to move forward? Thanks for any and all feedback. [link] [comments] |
| What’s the best way to go about finding a real estate mentor? Posted: 18 Oct 2020 12:06 AM PDT Real estate has become a passion of mine recently and I want to pursue investing. I've been doing everything I can to learn, even enrolling in real estate agent pre-license courses. It's one thing to read about it but I want to see the process in person and ask questions. I've thought about asking brokers around me to intern however I'm not really sure how to go about it. What do you guys think is the best way to find a mentor to show you the ropes? [link] [comments] |
| Trying to determine value of family farm Posted: 17 Oct 2020 08:43 AM PDT I am trying to determine the value of a 300 acre farm in Kentucky and possibly how to sell it. It had been run by a farm manager for decades and the profits are split between the farmer and my family. About 15 years ago they fired the farm manager and have dealt directly with the farmer working the land. My family members who have been dealing with the farm have had a hands off approach for many years and suspect the farmer may not be honestly reporting the profits as the revenue seems to decrease every year. I have no experience with farms and would be grateful for any advice on farm value, tax implications, and how to sell. [link] [comments] |
| Posted: 17 Oct 2020 05:40 PM PDT Background: As a muslim, it is against our religion to partake in interest in any way shape or form. Some scholars have made it permissible due to the day and age we leave in. As someone who is looking to invest in their first rental property and with about 10k to invest, do you have any advice or ways of beginning without dealing with interest? Is that even possible? I know there is Islamic financing available where the other party pretty much buys the property and you buy it from them at a higher cost and you own the % that you pay for. Has anyone here tried that? [link] [comments] |
| Maximum distance for a rental property from home? Posted: 17 Oct 2020 02:03 PM PDT My location is a pretty ran down community and has stagnant real estate prices with a 20k population in the "city". I live about an hour- hour and a half from 2 larger cities (100k+ populations). My question is in your opinion how far is too far away from home to invest in a rental real estate property that you will self manage? [link] [comments] |
| Posted: 17 Oct 2020 03:43 PM PDT Does anyone have a small bank or commercial lender they can recommend in the Chicagoland area? I have a multi family deal (24 units) where I want explore different financing options. Thanks! [link] [comments] |
| Anyone bought a property with structural issues and fixed them? Posted: 17 Oct 2020 09:40 AM PDT My city is on an island and we get lots of structure and foundation issues. So many houses need 50 to 150k to fix the foundation problems. I hear when you straighten the house all the door and windows need to be replaced as they break? Couldn't you just take out all the window frames prior and put them back after saving thousands? Besides a crooked house with crack in the drywall, and brick what is so bad about a foundation problem house? I know a sale it must be disclosed but, if it's a rental and tenants don't mind can you still rent it out and figure out 20, years later the next guy will fix it? I'm not talking about sink holes, just houses not built to code so shallow foundation combined with freeze and thaw, so they need to drive metal beams down and lift the house up. Just there's properties selling for the land price that seem worth it. Ex selling 250k while comparables are 700k [link] [comments] |
| Posted: 17 Oct 2020 06:43 AM PDT I'm trying to skip trace using the white pages but it's about 7 people that pop up for every address. Do you guys just send something out to all the people listed under that one address or is there a way for me to figure out who is the actual owner? [link] [comments] |
| What’s the best way to use a heloc to continue building a portfolio? Posted: 17 Oct 2020 02:39 PM PDT I have an opportunity to get access to about a 100K heloc on my owner occupied duplex. I would love to use it to get another multi family without using my own cash, but are there any specific strategies to look at? [link] [comments] |
| Posted: 17 Oct 2020 12:22 PM PDT Hi! Asking for a friend. I have a friend that doesn't have enough capital for a down payment, but has an amazing credit score. He recently got a new job that pays well. Is it smart to purchase a home with no down payment? Is that even possible? I was thinking he can get a multi family home and put a portion of it on rent [link] [comments] |
| Will I need a second appraisal for a HELOC if I have a recent one? Posted: 17 Oct 2020 03:26 PM PDT I am closing on a refinance loan for a SFH this week and will be applying for a seperate home equity line of credit shortly. The appraisal I received as part of the refi was a valuation I'm happy with and is 1 week old. Any chance I can provide it to the HELOC lender to avoid the appraisal fee and get this favorable valuation, or do they typically require their own appraisal? [link] [comments] |
| Is it still a good time to buy an investment house in CA? Posted: 17 Oct 2020 08:33 PM PDT I know the house price at the highest, but if I can have a cash flow for about $900/month. Is it a good time to invest now? Or wait till the market crash? [link] [comments] |
| Posted: 17 Oct 2020 10:41 AM PDT My elderly neighbor's house suffered significant damage in a fire recently. My husband has durable POA over her. She has offered to sell us the property. She wants to cut her losses and take a payout from insurance. This is foreign territory for us so we're looking for advice. We do not want to take advantage of her. She doesn't have healthy finances and this is a huge devastation for her. The home is an 1100sq ft 50's ranch sitting on a 1/3 acre flat lot. Pre-fire appraisal of $330k. We've had one bid so far for restoration at $250k. Post restoration it would probably sell around $375. For what it's worth, she has $178k in dwelling replacement insurance and owes $120k on mortgage. Ready to build comparable lots average $130k. Would it make more sense to demo it and build a new larger home or restore with a more modern floor plan on the same footprint? What are some of the gotchas? I've heard horror stories about getting into the restoration and learning the structural damage was worse than originally thought or having to bring other things up to code. On the other hand I've heard that some grandfathered regulations won't apply for new construction such as replacing sewage line. We're not new to major renovations. We've DIYed down to the studs on our house. But we also not stupid enough to think we could handle this one on our own. We'd leave it to a licensed contractor. Other questions around financing this... Obviously a traditional mortgage won't work as it's uninhabitable. We could potentially do owner financing for it but we'll need capital to restore/rebuild. We have solid credit. High fico/low debt to income. What options do we have? I know you all can't possibly answer all of these but if you have any advice, I'll gladly accept it. [link] [comments] |
| It's a freaking war zone out there Posted: 17 Oct 2020 08:06 PM PDT I snagged a 3 million dollar deal, and I really fucked up the day of at least 2 people! The woman is an agent for a major realty company. Her broker is one of the most successful men in the industry, a regular contributor for the nationally-distributed magazine. My attorneys have advised me to NOT talk about this in public so I'm leaving out all the major details, and my gut is telling me that this post will not be admissible. But it's all I'm thinking about today because it is fresh, and I feel this strong need to jot it down. The clients are a gay couple, multi-million-dollar net worth. They were working with her previously, apparently, as I found out today. But they closed the deal with me as an intermediary, and I had connected them with a buyers agent, a friend of mine. So a month later, this agent discovers that her clients betrayed her, and then has the nerve to confront me! She wants FULL compensation of that 3-million dollar deal! I was like, excuse me?! How did you get my number?? Anyway, I know the laws and rules, asked her if she had an exclusive buyer's agreement or some contract indicating explicitly that those clients are obligated to work with her when buying real estate. She admitted no. So I told her she has no case. Then shortly thereafter, her BROKER calls me. I told him to call the BUYERS AGENT and HIS BROKER. Don't call me. But he insisted that I am the one to talk to. But I hung up on him. The buyer's agent and I had a deal where we split the commission 60/40. I'm not worried, but it really does piss me off where people can't understand that "Buyers are Liars" when it comes to real estate. They bounce around like tumbleweed...wind takes them from agent to agent to agent. And they will buy with someone they like. It's about being in the right place at the right time -- DON'T EXPECT UNDYING LOYALTY! And it's not betrayal when they ditch you and go with someone else. It's their choice. Get a contract or agreement if you don't trust them, but if you don't have that, then tough cookies! I'm extremely happy and exceedingly irked at the same time, don't know if anyone else in this community can relate. It's hard enough making money like this, but I'm finding that sore losers can be quite horribly sore as of late. Unfortunately, I don't see good sportsmanship happening anytime soon. [link] [comments] |
| Need a helping hand on getting started with out of state real estate investing Posted: 17 Oct 2020 10:51 AM PDT I have a dream that I am very serious about accomplishing. I have read the books and podcasts on real estate and it is time for me to take action. Let me preface with my current situation. I am employed full time and am self employed. Both of which bring in 6 figures. I also actively invest in the markets as well. The area of my life that I am truly void of that I want to begin is being a business owner. I have been looking at real estate to fill this gap. I am currently living in Puerto Rico and want to start getting into out of state or in state real estate projects using the BRRR methodology. What I realize about myself is that I know I need to be distant from the properties and have somebody else manage them. My issue with getting started is literally getting started. Without a team I have found this quite difficult. Reaching out here to see if anybody has guidance on what questions I should solidify to better gauge my next steps and what those next steps could look like. Thanks in advance. Not sure if this is the forum for getting personal real estate advice, but giving it a shot! I'd also appreciate any books or resources that you found most practical in launching your business. [link] [comments] |
| Posted: 17 Oct 2020 05:53 PM PDT We recently sold our Primary Residence and are renting until we figure this out. This is our big shot to start in Real Estate Investments. We have purchased a lot and are in the process of working with a builder. This is a very trendy/modern industrial smaller build. Only 600 sqft. The emphasis is on the beautiful scenery around it, and being outdoors on a very large deck. Here is our big hang-up. We can only afford 20% down right now. Going to a lender...is this enough if we want to push this through as an income property since we plan to rent it out the whole time? Or should we plan to move, get a motorhome to stay in 180 days or whatever (I'll look up the required time to be in a Primary Residence) and rent it out the rest of the time..... ***Don't worry about variables like family life etc. I am just really torn as to the Investment financial implications of which approach to take. We want to maximize profit in order to turn around and build another with the same builder and really get the builds streamlined to make 3-4 of these. Thank you in advance and I appreciate your time and input in helping me and my family out. [link] [comments] |
| Posted: 17 Oct 2020 04:54 PM PDT In May, I bought a house in the SF bay area, so it was expensive of course - 1.2 million. It was intended to be my primary home (with a new job) and its a fixer upper. (yes a fixer upper in the bay area where i bought costs 1.2 million) But with COVID, I do not actually need to use it as a primary home for another year or so, if not more as my new job doesn't even need me in the office. Between mortgage interest and property tax, and the $150K I plan to put into it to fix it up, it occurred to me I might be able to receive a substantial tax benefit if i rent it out, claim it as a true rental, and then i can in theory "write off" the renovations. It would be a cash flow negative (i could get about $5K a month on a $6000 P&I loan, but maybe with these tax savings it would be a wash. My primary home is still listed in Phoenix, and I already have a schedule E for another rental I have. I of course plan to consult a tax person, but want to hear it fast and furious from reddit. Is there any unforeseen downsides? For example, what if i convert it BACK to a primary home in a year or 2? Is that going to burn me? And my mortgage is 100% under the condition it was going to be a primary home. Could this be considered bank fraud if i suddenly claim it as a rental less than 5 months after I took title? [link] [comments] |
| Posted: 17 Oct 2020 12:21 PM PDT Sooo I had to move across the country. My wife and I decided to to sell our primary residence, and to list the our rental as the neighborhood it's in has appreciated quite a bit. In no rush to sell the rental as it cash flows but if the right offer came around we would sell. Our rental was our first purchase and home. It has a MIL in the basement. We made some changes so it became a full unit with separate entrance. Rented out the basement and lived up top for a couple of years. Moved out and rented the upstairs. Our listing agent just called us to say that the MIL kitchen was never permitted, and that the neighborhood is zoned for multi family but our lot is single family. The city has a map online that shows our specific lot as multi, but the city clerk says it single. When we bought it, our agent didn't ask for permits or check zoning. We kind of went along as it was our first time buying. We have bought a couple times since and learned from our second agent to do these things, so we'll chalk that first experience up as a learning experience. I'm more amazed that the appraiser didn't catch the no permit AND zoning cause it was my thought that the bank would have denied the loan if there was an illegal kitchen. I just want to hear everyone's thoughts about what to do next. Below are some options that we can think of. 1) Our realtor said that there are some investors who would pay cash, but for about 2% above what we originally purchased it for. So not ideal for us, but these are people who she has talked to and would do it. So a tangible option. 2) She also said that she can't list it with the MIL being advertised and would list it as single family. So one work around is to take the stove out in the MIL when the tenants move out so it no longer is a kitchen in the city and counties eyes, and list it. An investor could read between the lines. She thinks would be close to market price if the market is the same in a year when the tenants move. 3) Or a solution is to just hold the property as it cash flows nicely. My question is how would this affect insurance? God forbid something horrible happens, would the non permitted kitchen be a deal breaker for the insurance? Zoning? Thanks y'all! Looking forward to the discussion and will try to answer questions. [link] [comments] |
| Working from home and commercial property demand? Posted: 17 Oct 2020 08:01 AM PDT I'm not a pro investor, but was considering it before this year's events. So, I have an innocent question. At my office, 40% of our staff are working from home. Further, adding zoom/teams meetings has meant they likely will never need to return. We could save significant rent money with a smaller footprint. Does this mean that most areas have a significant oversupply that will persist due to long term remote working? [link] [comments] |
| Posted: 17 Oct 2020 08:49 AM PDT Hi, would anyone be able to give me any recommendations on books that would cover real estate in the uk instead of the us? Have read a few books on real estate in the us but as I'm in the uk want something that's more tailored for me, thanks in advance [link] [comments] |
| Looking for commercial appraiser recommendations in San Antonio, TX. Posted: 17 Oct 2020 09:23 AM PDT Hey, does anyone know of a commercial appraiser in the San Antonio market. Looking to get an appraisal done on an MFR (8 units, all residential). We'd need it done on a Form 71A, which is a bit of an old form that not many use. [link] [comments] |
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