Real Estate Investing: Landlord is selling house I am renting |
- Landlord is selling house I am renting
- My friend wants bought out of his half of a multi-home
- Expanding the Business- Too Big a Jump?
- Las Vegas Tops U.S. in Rise of Apartment Tenants Not Paying Rent
- Appraisal Packet for HELOC
- Need help removing my phone number from a property that's getting a lot of attention from investors.
- Shared Housing Sublet Business in Korea
- Rental Income Due Diligence
- Best places to find renters?
- Keep current property or sell?
- How has the eviction bans impacted your current real estate portfolio and plans to expand?
- PM Dispute
- Updating an exterior - looking for ideas
- SFH New Build Opportunity
- Do I have to pay California State Capital Gains Tax if I sell a property in CA, but don't live in CA?
- Billionaire as a lender?
- Heloc vs cash-out refi
- First investment property
- Tips for Beginner
- Anyone here very gotten started with city home ownership programs?
- Fixer upper or tearer downer
- Does a disregarded single-member LLC protect against liability?
- QuickBooks for keeping track of flips
| Landlord is selling house I am renting Posted: 05 Oct 2020 07:49 AM PDT Me and two other people rent out a townhouse for $2,200 a month +$100 for a pet fee that my roommate pays for his dog ($733 per person, $833 for the roommate with a dog). It's in a very popular town right outside of Philadelphia with a very very good school district and access to public transportation. My landlord is selling the 3 bedroom 2 bathroom house for an asking price of $389,900 and asked us if any of us were interested in buying it. We signed a 2 year lease that ends at the end of May and I was planning on buying a house in the area once the lease was up anyways. I currently have $40,000 saved for a down payment, closing costs, and overall home buying expenses. With that, I'm not 100% sure how much can be applied to down payment, but I've been using $30,000 as a safe estimate. I have been using Zillow's monthly payment estimator to factor in down payment, taxes, pmi, insurance, and everything to get a monthly payment if I were to purchase the house. If I put $30,000 down and went in at his asking price, my monthly payments for the house would be $2,375. My roommates both would like to stay in the house as renters, plus if any of them wanted to move out, I have quite a few other friends that rent in the area that could end up taking their spot if needed. Another thing about the area is that they are about to finish building a new office building that is going to bring in a lot of new jobs, supposedly further increasing the market in the area that is already a very competitive market. When we signed our lease, we had to complete with quite a few other applicants and ended up getting picked because we showed up with our deposits in hand and offered to sign a two year lease rather than a one year lease. So I already know that this house is very attractive to tenants, plus after living here for a year and a half, there would be no surprises after purchasing. Other things that are important to this decision is that I currently make just over $60,000 a year with no debt. I've paid off my student loans, no credit card debt, and I have a company car that includes personal and work related gas, expenses, and insurance. What do you think about this decision? What advice do you have about the situation? [link] [comments] |
| My friend wants bought out of his half of a multi-home Posted: 05 Oct 2020 08:14 PM PDT I have a real-estate friend who went in and bought a multi-home with me a little less than 4 years ago. My friend is in real estate for a living, and I view him as successful at it. I live in the first floor of the unit and the second floor is rented out. We treat it as two separate units; my friend pays half the mortgage and takes the profit from the second unit. I pay the other half of the mortgage. My friend wants out of the multi-home. He simply wants capital for another project. I felt rushed with everything my friend was telling me. The first words he said was "do you want to live for free?" To buy them out, my friend advises I refinance and pull out money to give to him. He believed that I could refinance to a 30-year loan and the second floor would pay for the mortgage, "so I could live for free." Through browsing, I realize their recommending that I use the BRRRR Method. In the moment, I felt like I was being asked to increase my debt, and the sales pitch made it seem like I was being scammed. He said he could walk me through the refinance, and he could teach me what he does for a living. We also started on different terms, in my head I thought they should receive the equity they accrued. My friend said they should receive the equity plus new evaluation. It's only been four years, but we did buy the multi-home below value, so there would be some money involved with doing it this way. In my mind it seems fair, because if we sold the property it would be 50/50, and they would receive what they're currently asking. My friend did say what they would receive was done freehand, and I noticed the equity they accrued was the mortgage payment, not the money paid to the principle. They also sent a screenshot of an excel sheet, instead of the spreadsheet, which I also am weirdly feeling slighted about. I felt like we walked away with my friend just thinking I'm an idiot. Last detail, I told my friend I don't want to make a decision right away. I graduate with an MBA in May, and I am considering moving upon completion. If I stay in the area, yeah I wouldn't mind buying him out. I find the multi-home successful. But I would rather sell the place (in May) if I leave. Maybe it is because my friend needs the capital, but they were telling me about how keeping the place would still be great to own because I would have a better debt-to-income ratio and property managers are reasonable in the area. I was able to punt until at least January (I said I needed a year and he said we will talk in January, ugh). ANYWAY, I need to get educated on the subject. As a non-expert, who already is feeling slightly scammed, I am foremost curious if what he offered is fair. Secondly, I wanted to get opinions who were removed from the situation. Lastly, who should I speak professionally about this? [link] [comments] |
| Expanding the Business- Too Big a Jump? Posted: 05 Oct 2020 08:59 PM PDT I'm in a position to build a mixed use building in my smallish (50k ppl) city's downtown. Spending about 900k. 3000 sqft residential, 3000 sqft commercial. Based on market rents and a 7% cap rate the building would be worth ~1.5m with 90% occupancy. I own the land and can use it as my down payment according to the bank. The current debt level on my portfolio would grow from 600k to 1.5m (almost 3x). But based on the projected value of the build, my debt/equity ratio would stay about the same at ~40%. I'm a little caught up on borrowing (to me) so much. I'm trying to tell myself that from a portfolio management standpoint- the bank is lending based on the building's ability to produce more so than my personal capacity to cover the note. Currently own 5 units, this would bump me up to 10-12 depending on the layout. I'm trying to get to financial independence ASAP and I feel like higher leverage is higher risk- but give me the potential for a lot higher (and faster) reward. Any thoughts on mixed use development? Any thoughts on raising my debt level like this? Too big of a jump or is this a reasonable step up? [link] [comments] |
| Las Vegas Tops U.S. in Rise of Apartment Tenants Not Paying Rent Posted: 05 Oct 2020 07:00 AM PDT
[link] [comments] |
| Posted: 05 Oct 2020 08:19 PM PDT Hey guys, having an appraisal done tomorrow for my duplex I live in and want to make sure the appraiser sees what I see with the comps. I've done a ton of work to the property, replacing the roof, hot water tanks, landscaping, all fixtures and doors, and pretty much gutting both kitchens and bathrooms, plus a lot more. This can be seen in the rents as well, as I get top of the market rent in both units. I'm Licensed in my area and actually had some clients that needed a 2F in the area right around where my house is so I've been inside and seen first hand almost all the ones sold in the past year or so. Although this is more of a C+ area, the condition of the house definitely affects the price per square footage and want to make sure the appraiser uses comps for the ones that are most updated. Also when I purchased my duplex last year the appraisal came back 1,100 square footage more than was listed in public records (it definitely seemed much larger than was stated when I did my walk through) and want the appraiser to know this info. How would I go about structuring a packet that doesn't come off too "pushy" that help justify my price, and make sure the appraiser knows the true square footage? Should I state the price I'm targeting within the packet, maybe justifying it with the average price per square footage of the other comps and adjusting it my property's square footage? This appraisal can make or break alot for me so I'm really trying to get as much as possible. Thanks in advance!! [link] [comments] |
| Need help removing my phone number from a property that's getting a lot of attention from investors. Posted: 05 Oct 2020 02:49 PM PDT This is a longshot, but I'm at my wit's end on this. For about the past 3 years, I have been plagued by people calling or texting me, asking if they can buy my property. The problem is that they have the wrong number, and I don't own the property they're trying to buy. My guess is that my number got added as a typo somewhere, or maybe my number is the old owner's number (unlikely, since I've had it since 2003). If it helps, the property is on Ann Arbor Ave. in Dallas, TX. I've already looked up the property tax records on this site, but no phone number is listed. If I search Google with my phone number, there are some hits on those creeper sites like truepeoplesearch . com, but nothing from any official sources. For a while I could tolerate all the spam, but as the days/months/years go by without this guy paying his taxes, the volume has become unbearable. According to the property tax site, the property is only worth $17k, and he owes around $400. At this point I'd pay his damn tax bill if I thought it would do any good. I've also tried asking the people that call, how they found my number, but they tend to get really cagey about it, and won't give me anything useful to go on. Can anyone help, please? [link] [comments] |
| Shared Housing Sublet Business in Korea Posted: 05 Oct 2020 10:56 PM PDT I have been thinking profusely about how to scale my shared housing business ever since I entered and I would like to get some feedback from the community on just how sustainable my business is and if it's scalable. I got into shared housing in korea about 6 months ago, started with one and now I have three houses that I am subletting. All contracts I make with landlords are two years, with the option to extend two more without raising the rent significantly. The landlords are aware of what I'm doing and approve of it, most landlords have a negative perception of AirBnB so my model is based on long term stays with tenants (3,6, or year contracts). The shared housing business is registered and I pay taxes. It takes me about two months to save enough money to get a house: 1 month deposit ($3000-$5000), 1 month rent ($800-$1000), furniture ($1,500-$2,500). If I can get all the rooms filled I usually with profit $450-$600 after utilities. Landlords usually give me about 2 weeks to 'set up the place' before the contract begins. In this phase, I am hustling my ass off arranging furniture deliveries and setting up WiFi and tv stuff then advertising out the rooms. I rent out to mostly foreigners and they are on 6 month contracts or one year contracts. I rarely rent out to people less than 3 months. I've never been one to take a chance in myself, and it's been a thrill these past couple of months. My goal is to have five houses by the end of this year and 15 houses by the end of next year. Then quit my day job which is working in retail sales. My question is, do I focus on increasing my houses until I reach a certain number and then take a break? [link] [comments] |
| Posted: 05 Oct 2020 09:32 PM PDT Looking for advice on what is typically allowed to be asked for from the seller to verify the rental income. Under contract for a 4plex. Of course I will ask for any leases in place, but how to verify tenants are paying on time and paying the agreed amount? I've heard of Schedule E's? How to verify tenants have been paying the past few months? Are bank statements too much to ask for? Aside from the rental amount, what other due diligence tips does everyone have? I've done the basics in checking out the area and determining if it's a good rental market or not. I ran some numbers the purchase price and advertised rents will net me decent cash flow. All units are currently rented. Inspection will be done in a couple of days. Just curious what due diligence everyone does. [link] [comments] |
| Posted: 05 Oct 2020 05:45 PM PDT I'm sure this has been covered a million times. I'm closing on three investment properties here soon -- one will be a yearly rental and the other two will be monthly due to the location. Home away? Craigslist? MLS? Where does everyone go to find renters? [link] [comments] |
| Keep current property or sell? Posted: 05 Oct 2020 12:20 PM PDT I am looking to buy a new home as a primary residence and I'm not sure if I should keep and rent my current property or sell it. I purchased my current home a few years back for 60k, current rental rates for homes in my area is are about $1400/month and will sell for 180-190K. Is it better to sell it and take the money out or rent it out? [link] [comments] |
| How has the eviction bans impacted your current real estate portfolio and plans to expand? Posted: 05 Oct 2020 10:59 AM PDT We have sold all our Portland, OR properties because we fear the eviction ban will continue indefinitely. We are also sour to the fact of buying more in other state because of the CDC ban. Husband said it's hard to reverse these policies once they get rolling. Just wonder if any other investors are thinking the same thing. We are contemplating dumping the money in the stock market for awhile. [link] [comments] |
| Posted: 05 Oct 2020 06:16 AM PDT I signed up with a property manager recently to manage a SFH. Based on our contract, part of their compensation is that they keep any "administrative fees". Examples of administrative fees listed in our contract include late rent fees, application fees, and returned check fees. On reviewing the tenant's (signed) lease, I noticed that there is a monthly "pet fee" charged to the tenant. This was surprising, as the PM had not discussed this with me. Frankly my preference would be to not charge the tenant this fee at all, but given that it is being charged, I believe it should be paid to me. This does not strike me as an "administrative fee"; it's not like the PM is filling out paperwork or carrying some sort of administrative burden on behalf of the pet. Furthermore, the language in the lease calls this an "increase in rent". The size of the fee is not huge, but not entirely insignificant either; for context, one year's worth of these fees would be about 20% of one month's rent. I told the PM that the pet fee should be paid to me, as it is an increase in rent. They said no, it is an administrative fee and belongs to them. We are at an impasse. My contract with the PM stipulates that disputes will be handled by a mediator, with the mediation cost split equally between us. What are my next steps? Am I the one in the wrong here? Is this worth pursuing further? I see my options as: 1) suck it up and continue the relationship with the PM; 2) pursue mediation to recoup this money; 3) walk away from this property manager and find a new one. Any advice? This is in TX if it matters. [link] [comments] |
| Updating an exterior - looking for ideas Posted: 05 Oct 2020 08:40 AM PDT So we have a house with a rather dated exterior. The home is roughly 120 years old and the exterior consists of brick and wood siding. We want to update it but not paint the brick. Tempted to lose the 1960s sun awnings, add shutters and go darker on the wood. Maybe two tone on the siding/trim. But I'm not much of a designer. Do you have any ideas? Thanks in advance. Also, the brick guard on the deck looks very dated. Pics: [link] [comments] |
| Posted: 05 Oct 2020 04:50 PM PDT My father in law is a semi retired general contractor and owns a parcel of land on which he wants to build a SFH rental property. His drawings and estimates are for a 1,466 sq ft home that will cost approximately $147,500 plus the cost of the owned lot ($22k) for a total of ~$170k. He inquired about my interest in being a primary part of the financing with him putting in the lot and $20k cash. Through a portion of my cash savings and tapping a HELOC I believe I could come up with the other ~$130k. Home sales for the area for those homes over 50 yrs old averaged $123/sqft while homes less than 30 years yrs averaged $162/sqft. Rents based on market could range in $1,200-$1,500/mo which would cash flow mortgage/ins/taxes. As this is my first time evaluating a RE opportunity I'm wondering how much "sweat equity" would be fair for my FIL. My assumption would be to finance the construction between the two of us and then would expect to move to a traditional investment mortgage once the house is built. Should I look to establish an LLC since we have two separate parties invested? What else should I consider? Appreciate any clarifying questions or insights/thoughts. [link] [comments] |
| Posted: 05 Oct 2020 04:49 PM PDT I have a rental property I'm looking to sell in a few years [link] [comments] |
| Posted: 05 Oct 2020 04:43 PM PDT I'm 18 and looking to get into a real estate eventually but my girlfriends dad heard about it and he is friends with a guy around 800 million net worth. He owns over 200 properties and usually lends using a credit line to people investing in real estate. He offered to give me a loan for a lot and gave me his real estate agent that works with. This all seems a bit sketchy to me just wondering what I should watch out for and any tips you guys can give me. [link] [comments] |
| Posted: 05 Oct 2020 04:43 PM PDT Trying to educate myself on how to begin investing. Currently have a home est value of $500k with $245k left on 30 yr mortgage at 3.8%. We have a $60k limit HELOC at 3.74% variable we have used on and off for the last couple of years to pay off higher interest rate loans. Balance will be back at 0 next month. I'd appreciate if someone could enlighten me on when a cash out refi is more appropriate to get capital. Homes in my area are high so I'm afraid the $60k won't get me far. What other things should I consider? Trying to secure capital for when the time is right, perhaps next year? Thanks so much for your wisdom! [link] [comments] |
| Posted: 05 Oct 2020 10:37 AM PDT I am planning on buying a multi family property and potentially living in one of the units sometime next year. This is also my first home purchase. I worked out the numbers and if I can get the seller to meet a purchase price that makes the investment make sense for me (CoC return of 3% in my case, accounting for maintenance, taxes, mortgage, and vacant) I would be super interested in purchasing the property. A little context about myself. I have done a lot of research on real estate investing and been hearing a lot about fancy terms like BRRRR, however that is too much management for me as I have a full time job and other work that eats up my time. I am not worried about job security of meeting mortgage payments. I mostly just want a positive cash flow. I am willing to do some personal management of the property once I live there. I want to take this leap to be a property owner as I want to stop just watching others invest, and actually do the investing (aka overcome analysis paralysis). A little context about the property. It's a multi family home (3-4 units) in a somewhat populated city. The rental market in the area seems to be on a downturn since COVID, which is why I think the original owner is selling so soon. The only number where I can stomach the price is at like 80% of the current purchase price. Which would be what I would offer and wouldn't go higher as it wouldn't cash flow. The property purchase price is about 1 million. I think the units may be currently vacant or only have one occupant. I have a showing scheduled this week. My questions: As a new home buyer, what questions should I be asking the agent in this case? What questions should I ask during the showing What are common pitfalls to avoid (I know I should get an inspection to make sure there is no major problems)? How can I negotiate the seller down by 20% of their original price? Can I ask the agent for past rental income statements for the last 2 years? [link] [comments] |
| Posted: 05 Oct 2020 02:17 PM PDT Hi, sorry if this was already a post. I am a 17 year old who wants to build passive income. I recently started learning about wholesaling (just basic info) and renting out buildings. I want to know a couple tips from you guys for someone who is just starting out. I will hopefully start after I finish high school. I also have some questions. Is wholesaling real? I know it's real but is it true the way these YouTubers and tiktokers show it? It seems very simple but is it actually simple? How to do wholesaling? Is it possible to make good income from owning houses and renting it out? What are some of y'all's typical yearly income and how man houses do you have and in which area? How much of your said income is spent of repairs yearly? Where do you get contracts? Like how do you write contracts in such formal language, is there a website that helps or what? And where do I go to learn about the legal stuff in real estate? And what are tips you have? [link] [comments] |
| Anyone here very gotten started with city home ownership programs? Posted: 05 Oct 2020 02:10 PM PDT To try and make a long story short, I have been trying for years to come up with a way to get my foot in the door as a real estate investor. I am low income, self employed, not willing to make a huge change to my lifestyle like getting a W2 job, but really interested in owning properties. I recently discovered that some cities have affordable homeownership programs. You can apply to be a part of the program, and if accepted, you get the chance to buy a property at far below market value. There are restrictions, like you need to be low-income, your appreciation is capped at 3% per year, you can only have one bedroom for each person in your household +1, etc. For my situation, it looks like it could be a foot in the door. So, I thought "what the heck, I will apply to the program." However, quickly after starting, I have realized they make you jump through hoops. I need to attend ownership classes, I need to submit incredibly detailed financial documents, secure a loan anyways, and follow their very hard-to-navigate application process (very disorganized and a bureaucratic nightmare). Then, if accepted, it takes at least 4 months to become eligible, and then you are sorted into tiers, and then it is a lottery system for each house that is available. Sometimes, it takes years to finally get a property. So, I was going to enter the program on a whim, but now it seems I might have to jump through hoops forever before I eventually get a chance. TL;DR: I'm just curious if anyone here has experience with such programs (affordable home ownership). Was it worth it? [link] [comments] |
| Posted: 05 Oct 2020 10:01 AM PDT What's sorta criteria do you use when second on a complete renovation versus tearing it down and starting over? I'm specifically talking about a property selling for 120k that has a 1940s two story SFH on an acre lot adjacent to 200-400k homes on 1-2 acre lots a half mile away from million dollar homes on 1-2 acre lots. The home has a portion of the floor that will need replacing to water damage. It has a steel I beam that looks like it belongs in a skyscraper under the home/over the garage. Some small fire damage. Electric(breaker on up) plumbing, sewer, insulation, shingles and minors roof repairs, home is down to studs and will totally need redone. [link] [comments] |
| Does a disregarded single-member LLC protect against liability? Posted: 05 Oct 2020 01:42 PM PDT |
| QuickBooks for keeping track of flips Posted: 05 Oct 2020 07:18 AM PDT Switching over from excel to quickbooks to start keeping track of my flipping business. Any ideas how to get it setup for this? I am totally ditching my excel sheets as they are super unorganized. [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