Real Estate Investing: Mortgage rates on investment property |
- Mortgage rates on investment property
- Buying rentals below market value
- Flaws with this Class C multi-family opportunity?
- What's the magic to finding good commercial lenders?
- Land value and purchase price
- What is a fair commission for a real estate agent?
- Just sold my house, how much debt to payoff vs how much to save for investing?
- Parents stuck paying rent on a closed business
- My future plans with real estate
- Australian first time investor
- Changing loan from Owner occupied to investment.
- Choosing between 2 properties
- Advice for negotiating an off market deal
- How do you find sheriff sales?
- NJ Refi Brokers for investment properties?
- Tax Question on Sale of Investment Property
- First time investing help
- Looking for guidance in vacation rentals.
- Investment cash out refi to put in money market?
- Options for a loan that would cover mortgage + renovations
- Hotel investment fund
| Mortgage rates on investment property Posted: 30 Sep 2020 05:37 AM PDT Yesterday I had a call with a mortgage broker about a mortgage for an investment property. I was offered 3.5% on a $200,000 mortgage 20% down and the cost of the loan is $3000. This is for a 750+ credit holder and the investment is in FL. Is this good or can I do better ? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Buying rentals below market value Posted: 30 Sep 2020 10:32 PM PDT I am confused when people say to buy rentals below market value. Should I analyze a rentals market value at its current conditon (need of repairs) or at its renovated condition? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flaws with this Class C multi-family opportunity? Posted: 30 Sep 2020 08:18 PM PDT I am relatively novice and looking at a Class C multifamily complex in a MCOL city (Philadelphia, Pittsburgh, Minneapolis, Columbus, Chicago). Quick stats:
Two questions for the smart minds here:
Thanks! Happy to answer any questions [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| What's the magic to finding good commercial lenders? Posted: 30 Sep 2020 05:43 PM PDT First, I'm talking about commercial multifamily (>4 units). How do people find commercial lenders? Do you just google and then call? It's a slog. I'm doing it right now, but maybe that's how others do it, too. And, do you use brokers? I used a broker on my first deal and I thought it was helpful for my first commercial deal to have someone guide me through some parts of the process. However, it really seemed like the value he brought was the knowledge of active lenders (and, I had to pay a 1% fee for it). How do others make the tradeoff between broker vs straight to bank/lender? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2020 05:42 PM PDT How do you correctly value land that would have a condemned building on the property. Does this effect the price you would pay because you have to demo etc. or does that not matter. For example. A .45 acre lot is market price 960k. The land is only 840k and the "property improvements" is valued at 120k. Obviously you wouldn't want to pay for the 120k cause it's has no use to you. All comments and ideas are appreciated. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| What is a fair commission for a real estate agent? Posted: 30 Sep 2020 09:17 PM PDT I have two closed friends that are real estate agents. One of them is a full-time agent and has a team of agents under him. He is very successful and he also does flips on the side. The other agent is my brother in law, he has a full-time job and does real estate on the side. He usually closed 6 deals per year. I still don't know who to choose as my agent, but I would like to know what will be a fair commission. I live in California and I was thinking 4%, what do you guys think? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Just sold my house, how much debt to payoff vs how much to save for investing? Posted: 30 Sep 2020 07:34 AM PDT Hi all, I just sold my house and I'm trying to figure out what to do with the proceeds. Here's some background information: 31M unmarried. I make $145k/year plus $35k avg yearly bonus paid out in Nov. I also receive $1,200 / month for rent from friends that live with me. I contribute 5% to my 401k which is the max my employer will match and I typically max out my HSA each year. I don't have any investments outside of my 401k and HSA and presently have no emergency fund (was used for down payment on new house since I didn't sell with a contingency). I live in a MCOL/HCOL area. I received $144k for the sale of my house. I already purchased a new house so I don't need any of that money to go toward down payment or anything for the new house. My goal is to begin purchasing my first investment properties next year to grow my wealth. I want to use the bulk of this money for that purpose. However, I am thinking it makes sense to throw a good chunk towards my debt to free up cash flow and lower my DTI. Current Net Income (monthly):
My current debt is:
My current expenses are:
My thinking is that I should put $61k of the $144k toward paying off all my debt, keep $15k in my emergency fund and use the remaining $70k plus my bonus this year to purchase real estate next year. Does this make sense? Would it be better to hang on to more of the $144k to invest as opposed to paying off all of my debt? I'm looking to invest in MCOL areas (average multi family homes are around $250k-$350k. I'll need 25% for down payment since it's an investment property and I want to have a good buffer on top of that to deal with anything that may need to be taken care of without having to dip into my emergency fund. Thoughts? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Parents stuck paying rent on a closed business Posted: 30 Sep 2020 03:18 PM PDT Going to try and keep this short and to the point - My parents own a business that is unable to function in the current pandemic. They signed a lease in 2014 that pretty much guarantees the continuation of paying rent until the year 2022. It is a small business that we already went and cleared out and now the landlord is continuing to charge us because it's in his rights to do so. There's no way out of the lease in it's current state but I'm curious if there's been anything new introduced with the rise of the pandemic that would allow us to break out of this bind. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| My future plans with real estate Posted: 30 Sep 2020 07:00 PM PDT Hi! I have a colleague of mine who is deep into rental properties in my area (MS). After talking to him extensively about it I'm very interested in entering it myself. Currently I'm making enough to put about 1k a month in savings. I'm looking specifically into buying houses and renting them. My plan is to save up for quite a while, buy an LLC, and make sure I have enough for a down payment on a loan for the cheapest decent house I can find, plus a bit for potential repairs and maintenance in the immediate future. From there, getting a home loan, finding renters, and putting any left over money, rent profit, and my 1k a month in a bank account specifically for my housing business. From there I'd continue to save, using only the money in that account for repairs, maintenance, etc and not use the money in that account for anything else. I'd save until I could afford another downpayment, with enough leeway for upkeep and repairs. Rinse and repeat. Obviously this would be years and years of work and effort, but I think it would be worth it. That said I know very very little about rental properties, real estate, and honestly even running businesses in general. As far as I know this could be a terrible idea. Plus I have no idea how much I'd need for a down payment. I guess I'm mostly just posting this to see if it's possible to do this this way, if it's a good idea, and if so if there is any good advice or useful things to know when venturing into this business. This could all be incredibly dumb, but I'd obviously rather know now than when I try to start. Thanks in advance! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Australian first time investor Posted: 30 Sep 2020 05:36 PM PDT Hey guys I'm turning 21 this year and have 70k saved up for a deposit on something. I have a few questions since its my first time buying. I plan on buying an apartment due them being much cheaper and renting out one or two of the other rooms to tenants Can I get a first home buyers grant and a off the plan grant if I buy an apartment, considering it's my first time am I eligible for both? And does this mean I can put just a 5-10% deposit down ? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changing loan from Owner occupied to investment. Posted: 30 Sep 2020 01:19 PM PDT When i initially started my buying process in August i was planning on staying local in my town and working fully remote. Now i am pursuing new job opportunities that might cause me to move. I still want this home i am closing on but there is a chance i may no longer be moving in and rent it. With that said, Do i notify my mortgage lender and should i expect a higher down payment and interest rate? I currently have 5% down and 2.75% interest. I don't really feel like getting in trouble for fraud if i don't end up moving there for a long time [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2020 07:57 AM PDT Hi all! Would really love some advice on choosing between 2 investments. Really like the idea of property #1 but afraid I may get in over my head. I own my own home (with a mortgage) and a second that I own outright that will be put up for rent soon (need to finish flooring, should be ready to go next week). Property #1: 2/1 SFH w/ detached 2/1 "apartment" in the back. Each unit has it's own parking, yard, and washer/dryer connection so it's basically two separate houses on one large lot. I'm pretty sure they are metered together so utilities would probably have to be included or split between tenants somehow. I've seen the house already and going to see the apartment in the back later today. House is in decent shape, would probably paint and put new flooring in. I'm guessing the same for the apartment. Mortgage would be $~650, rents would be $950-1,000 per unit. If I end up paying utilities, that may bump the rent up closer to $1050-1100 per month but I'd much rather have the tenants pay if at all possible. This one sounds like a no-brainer to me in terms of cashflow but I am nervous about it needing more work than expected and taking longer to get rent-ready than I'm expecting. The down payment would eat up most of my savings, and after updating I'd be left with very little. I have been making double payments on my mortgage to pay it down faster, so I figure worst case scenario I can re-allocate the double payment from my current mortgage to this property if needed, but really don't want to go down that route. This property is owner occupied so I would find my own tenants. Property #2: 2/1.5 SFH - this one is pretty straightforward, already tenant occupied although rent is below market. Tenant has been in place for about 6 months. This one is tempting because it's turnkey, just sign on the dotted line and start collecting rent. I would of course verify tenant and lease info before moving forward with this property. Mortgage would be ~$450, rent is $750, tenant pays utilities. Market rent is $850-950, so room to increase when lease is up. Down payment would be about half of my savings, so plenty of breathing room left in this case. What option would you recommend for a new landlord? Update: Went and saw property #1's apartment today. Wow. It's pretty much a total gut job. Electric and plumbing need to be completely redone. Slab has major cracks. Both units are on the same meter so there's that too. Still think it's an awesome deal for what it is, made an offer tonight. If I end up buying it I probably won't get the apartment rented until the spring or summer at the earliest, but the main house would cover the mortgage in the meantime. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advice for negotiating an off market deal Posted: 30 Sep 2020 03:13 PM PDT I would love some advice on negotiating and structuring a deal for an off-market purchase of a house I've been renting. The house is in Tahoe which is a very hot market right now. The owner is a friend of a friend. He lives out of the country and asked if I'd like to purchase the house. He came back with a number based on older comps which makes it a good deal, but of course, I'd like to do better. He isn't desperate to sell, I don't think he'll put it on the market if I say no, but I think he'd like to offload it easily given that he's out of the country and travel restrictions are ongoing. A few points that I'm not sure how to negotiate around: 1) The lot size of the property is 20% smaller than all of the other comp properties. 2) One garage bay is converted into a rec room. This was done with permits, but is not part of the GLA and probably never will be. You have to walk into the garage to get to it (not connected to the main living area). He is saying he wants 50% of the average price/sqft of the comps for that ~200sqft space. 3) I don't know how to negotiate around brokers' fees and other closing costs. He's asking for a price based on the selling price of comps, but my sense is that a lot of these fees would be eliminated using a RE attorney to write up the deal. How would you handle this in negotiation and what might I be missing? 4) Inspection. There's definitely some deferred maintenance. Should I wait until after I can get an inspection done to negotiate or negotiate a price now and deduct any inspection costs? I'd love any advice you might have. My biggest thing is I don't want him to get an appraisal during negotiations as that almost certainly won't favor me. Thanks! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| How do you find sheriff sales? Posted: 30 Sep 2020 02:52 PM PDT I looked up sheriff sales online and saw different websites, however, I don't know which websites I can use. They all ask to register to look at the homes. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| NJ Refi Brokers for investment properties? Posted: 30 Sep 2020 08:45 AM PDT hello everyone, would you mind sharing any contacts for mortgage brokers in North NJ for a few multi-family investment properties? Looking to refi asap to lock in the low rates. Many thanks in advance! [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax Question on Sale of Investment Property Posted: 30 Sep 2020 09:46 AM PDT I'm selling an investment property and will have capital gains taxes on the sale. The buyers have asked for closing costs and some of the costs can't be included in escrow, so I've been asked to pay some of those costs out of escrow after close. If I pay $5000 to them out of escrow, can I still subtract that $5000 from my gains so I'm not paying taxes on it? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2020 01:04 PM PDT I have been looking for my first investment property for a while now. Recently I found a triplex that is being sold by owner. He is asking $299,000 which is close to market for this property but it is an older house it was built in 1922. One unit was remodeled sometime in the past two years. One just needs a little updating and the last unit needs a complete remodel. Owner estimates $8-10k for the remodel based on previous remodel. Roof is two years old. It's located in walking distance to a college. Current rents are $950 biggest unit and $650 for the other two units. I worry about the life left in the appliances and any other issues being a older house. I can do most of the remodel myself. If I put 20% down my estimated monthly profit would be around $890 but I'm not sure I want to part with that amount of money right now. How do you get around with financing the property with a smaller down payment without living it in? Do you guys think this is a good deal? Also how much would you offer for the property? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Looking for guidance in vacation rentals. Posted: 30 Sep 2020 07:53 AM PDT My wife and I are currently selling our SFH and considering all of our options when it comes to investment properties. We have discussed the two/three family direction however; we have been intrigued about the potential for a vacation rental investment. We have explored the area of Kennebunk (and surrounding towns) Maine and feel that this area offers great rental potential. Can anyone help me work through the Financials of this? More specifically: how do I find rental averages for a specific area based on month? If I were to buy a two or a three family after aquiring a vacation rental would the vacation rental be considered a SFH because we do not have signed leases? Requiring us to put down 25% on our next investment property? Looking for someone who is well versed with airbnb and homeaway and can share their experience working with those platforms. Any help would be greatly appreciated. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment cash out refi to put in money market? Posted: 30 Sep 2020 10:51 AM PDT Has anyone considered refinancing an investment property to get cash out to put into a money market? Is that insane? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Options for a loan that would cover mortgage + renovations Posted: 30 Sep 2020 10:29 AM PDT I'm trying to buy my first property to live in that also has a passive income stream, and while a duplex would be ideal, they're in VERY short supply here. Another option that's actually fairly attractive is to buy a single family home that I can renovate to have a garage apartment or possibly even split into a duplex. The downside to this is that I don't have the cash to pay for the renovation, and I'm a little fuzzy on what financing options are to do what I'm looking at. Is this a good idea or a non starter? I have some experience with renovating my own place, and based off of my rough budget I'm also pretty confident I'd have a more valuable property after renovating a SFH than buying a duplex for the same price. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2020 07:54 AM PDT Anyone here have any access / experience investing in hotel investment funds? Curious what that experience was like and how those operators are thinking about strategy in the current environment. What's the best way to get access to one of these funds? I follow multifamily pretty closely but rarely hear anything about hotel investing. [link] [comments] |
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