Real Estate Investing: Roughly one month out from starting a "house hack". Do I have my ducks in a row? Poke holes in my position please |
- Roughly one month out from starting a "house hack". Do I have my ducks in a row? Poke holes in my position please
- CMV: PMs taking first month as finder’s fee is an unreasonable practice
- How do you make profit on a rental property when the investment cost is so high?
- Buying property in Canada as a foreigner?
- Can a Trust get a mortgage?
- Foundation damage- what would you do?
- BRRRR out of state
- How to structure this purchase?
- 10-year ARM vs. 30-year Fixed
- Easement for Orphan Land
- Why is my financial advisor so against me investing in a rental property?
- Are there any private companies that provide affordable housing?
- About to buy first property, looking for educational materials on how to get into investing
- Out of State For First Investment
- 1st Time Home Buyer: 4-Plex Financing??
- Thinking about getting a private loan for a real estate flip that is currently under contract and I have some questions- business/LLC and real estate questions
- How to pick a lender? Should I pick the Agent's or Attorney's recommended mortgage lender?
- Flip or Flop Fiction
- Cash out refinance after increasing rents?
- Am I the only one afraid of jumping into REI with the eviction ban in place?
- Best approach dealing with asbestos in flip
- Getting contact info for an abandoned property?
- How risky (in terms of local laws, other legalities) is it to run an Airbnb real estate business?
- If you're an Airbnb investor, what are you looking for in a property to invest in?
| Posted: 28 Oct 2020 10:28 AM PDT Finished $40k renovation on a 4bd 2ba house, and should be wrapping up the cash out refi late November. I'll get $20k at closing, which will stay liquid as the starting reserves for this property. Planning on renting the extra 3 rooms for 800, 850, 900 (size based). Utilities paid by me, they each have a mini fridge in addition to the kitchen fridge, powerline adapter (Ethernet to each room) provided and I'm covering stuff like cleaning common areas, supplying TP, yard work, etc. in hopes of reducing disagreements/frustrations. Average room price around here seems to be about 750, but does not include the extras like a mini fridge, cleaning covered, etc. I'm waiting to do two things until the refi is done, but these two things need to be done prior to having tenants, correct?
I think opening bank accounts could go over poorly with the lender doing my refi. I'm almost certain taking out landlord insurance for an owner occupied loan would raise eyebrows as well. I will be living in it, but it just seems best to wait until after closing for these things. Am I right? I'm in Tacoma, WA and I've joined the WLA (Washington Landlords Association) to obtain a lease which I've filled out and added addendums to, so it fits my situation better. Planning on using Cozy for background checks and payment. Maybe advertising too. I'm still searching platforms that cater to room rentals (traveling nurse, military, etc). I'm wanting decent credit 700+ and 3x rent. Deposit $500. Month to month only. PITI is set to be around 1450/mo. I can cover this with my W2 no problem so I feel like my down side is not too severe, though of course I want to avoid non payment, or damage. I have a detached garage that I'm currently storing my tools in while selling them, but once it is empty enough I am considering setting up 4 fenced /secured storage areas in there to rent out for additional X/mo. This is not a precursor to tenants IMO. All exterior doors are key pad entry for easier change when having tenant turnover. Each room has a keyed lock on it. I don't want to ramble, but I'm hoping this is enough info to start. Do you see anything I'm doing wrong, or not doing that I should be doing at this point? My goal is to have ads posted Dec 1. [link] [comments] |
| CMV: PMs taking first month as finder’s fee is an unreasonable practice Posted: 29 Oct 2020 02:15 AM PDT I don't oppose a finder's fee in general. I get that it takes expertise to properly advertise the property, hold showings, screen the tenants, and conduct move-in procedures. My beef is that taking 100% of the first month puts the homeowner under too much risk if it turns out that the PM didn't screen the potential tenant so well. Two cases in point I've had from the last two years: A) Tenant signs lease in Dec 2019. Finder's fee covers all of Jan 2020. Since then tenant has only paid March and June and with delayed ability to evict will probably pay only those three months of one year lease...so PM effectively will get 40% of all money collected this year for that tenant. B) In 2019, a different PM knowingly signed lease for a man previously convicted of domestic violence. He proceeds to beat his wife so loudly that the tenant in adjacent unit complains about the noise. The PM waits until the 6 month mark to evict to avoid clause in contract about giving back finder's fee if they evict less than 6 months in. This means I need to find a new tenant in late December (bad time of year to find new tenants), and so much damage is done to unit that all of security deposit and several months' rent needed to cover rehab. Again, I don't mind a finder's fee, but how about either spreading it out over the year or making it month # 9 instead of month # 1? The first month is the only month in a lease where you can instantly void the contract if they don't pay. The same leverage doesn't exist for other months. Therefore, seems very unreasonable to me that PMs take this particular month before they've proven that they've found a tenant who is going to give me more than just headaches. [link] [comments] |
| How do you make profit on a rental property when the investment cost is so high? Posted: 28 Oct 2020 09:15 PM PDT One of my friends bought a house for $300k as an rental property. But I don't understand how they'll be able to make money from it. Even if they charged rent at $2k/month, it would still take 12.5 years to make back their investment cost, not including the maintenance and utility charges. Maybe I'm missing something. If anyone could shed some light I'd appreciate it. [link] [comments] |
| Buying property in Canada as a foreigner? Posted: 29 Oct 2020 02:14 AM PDT From Ireland here and looking at buying a property in either USA or Canada. Does anyone know where I can get information on this as a foreign investor? Thank you [link] [comments] |
| Posted: 28 Oct 2020 06:16 PM PDT Hi folks. I am planning to set aside a substantial sum of money in a trust for my kids. To ensure that the money continues to grow, I am planning to have the trust purchase rental properties (duplex, triplex) and other assets. I have 5 doors that I currently own under my name and I intend to apply the same principles to rental properties purchased by the trust. However can a Trust get a mortgage and does anyone have experience with that? For legal reason I do not want to buy these properties and then move them under the trust. I would rather the money go to the trust and then the trust buy's the properties. [link] [comments] |
| Foundation damage- what would you do? Posted: 28 Oct 2020 06:17 PM PDT In 2009, my husband and I purchased our first home. It had been a flip by the previous owner with the 3rd bedroom and master bath added on. When we put it on the market in 2015, the buyers inspection came back with foundation damage and the buyers backed out. In order to keep the new home we had offered on, we refinanced the property and made it a rental. We've had the same tenants since and they've taken excellent care of the house. The problem is we can't afford to fix the foundation. I worry everyday that something will happen and the tenants will be hurt. Pulling cash out on the house isn't an option as we've had a really rough year financially and our DTI is maxed. We're thinking about offering the home to the tenants with the agreement that we'll fix the foundation with profits made on the sale. Alternatives would be to sell to an investor or put it on the market, not sure which way gives us the largest profit. Or, do we hold onto it for a couple more years and hope our finances change and nothing bad happens before then? Edited to add better spacing [link] [comments] |
| Posted: 28 Oct 2020 05:44 PM PDT Are there people here that have successfully done a BRRRR out of state? What was your experience like? How did you acquire the deal? Did you build your team out first or did you find it along the way ? [link] [comments] |
| How to structure this purchase? Posted: 28 Oct 2020 11:41 PM PDT Let's say my 2 siblings and I each have around $20K cash and are interested in purchasing a $100K ARV property. We want to be equal partners in the property but also pave the way for future purchases so don't want to ding all our credit. What is the strategy for applying for mortgage? Should we have the property under only 1 persons name to minimize credit hits? I have the property management background but maybe only $50K debt to income ratio available due to existing house hack. My siblings have $200 - 300K debt to income available each and no liabilities. Assume trust is not an issue with regards to money in our family due to our culture. [link] [comments] |
| Posted: 28 Oct 2020 04:43 PM PDT What would you go with (1) 10-Year ARM at 1.75% or (2) 30-Year Fixed at 2.375%. In a RE market that's heavily dependent on appreciation vs. cash flow (e.g., NYC), I'm thinking it's better to go w/ the ARM. Plan is to hold forever most likely but given the cash flow vs. appreciation dynamics, think it makes sense to just keep this leveraged as long as possible. Might make sense to go interest only in a couple years when the product is back so no point in paying a premium for the extra term premium. Thoughts? [link] [comments] |
| Posted: 28 Oct 2020 06:48 PM PDT I am interested in purchasing this piece of land which has been unsold for over a year in a prime location. I think the reason being that there is no way to get to parcel unless you go through another property (office park) I spoke to the seller agent and he said that there is an easement. Can you guys please explain this to me, he sent me this easement agreement https://www.dropbox.com/s/y3pnt3jzhxglbap/Screen%20Shot%202020-10-28%20at%209.42.38%20PM.png?dl=0 Does this mean that as owner of this parcel I have access to this easement in perpetuity? I'd really appreciate any feedback on this. Thank you in advance. [link] [comments] |
| Why is my financial advisor so against me investing in a rental property? Posted: 28 Oct 2020 09:47 PM PDT Hey there, New to all of this but a quick question. One of my good friends who I have known since I was 6 (I'm 30) has been buying rental properties and making passive income from that for the past couple years. It's a side hustle for him and he uses property managers. He is about to buy a new rental property in a very good and thriving area. He asked if I want to invest with him and help pay for the down payment. His Dad is also investing in this project. We would split the passive income 3 ways. Anyway, my financial advisor has repeatedly told me this is a bad idea. He goes off on a rant about how he has a client who did this and the tenants were nightmares and they ended up losing a lot of money etc. I counter that with the fact that we will be using a property manager and in my mind it's a good idea. He says the property manager will be taking a lot of the income and I won't see much. Since this is all new to me, I just wanted to get some more opinions. I feel like my advisor just wants me to keep investing all my money with him (I have a Roth 401k through T.D Ameritrade that he set up for me) and not invest my money anywhere else. Any insight would be very helpful. Thanks! TL/DR: Friend wants me to help with a down payment on a rental property. My financial advisor says it's a bad idea. Is it? [link] [comments] |
| Are there any private companies that provide affordable housing? Posted: 28 Oct 2020 09:33 PM PDT I've always wanted to create some sort of program where I bought multi family units and rented them out for pennies on the dollar, basically just enough to maintain the building without really taking a return for myself. Is this already a thing? If so, is there anyway to get involved on a small scale? I'm still young and early on in my financial journey, but I think it'd be a great idea for a private company to essentially forgo a lot of the profit associates with rents to help provide affordable housing to those who really need it. There could be a strict application process to help ensure there were quality tenants who just happen to be lower income, and providing them with cheaper housing could help them live a much better life. [link] [comments] |
| About to buy first property, looking for educational materials on how to get into investing Posted: 28 Oct 2020 07:46 PM PDT My partner and I have saved up enough that we are about to purchase our first property, where we plan to live for the next 2-3 years. We are looking at apartments and condos around $300k. We are only planning to live in this for the 2-3 years as we would like to start a family around then and do so in a larger house. I recently finished a masters program and was lucky enough to land a very lucrative job and we should be able to save more than enough for the down payment on the next house. Because of this I would like to keep this initial property to rent out and hopefully use to springboard myself into investing in a number of properties as I believe it would be a very powerful wealth creation mechanism for my family. I plan to lay out some more specifics for feedback soon but was hoping someone could point me in the direction of some materials on the real estate investment world and the strategies commonly used, books would be ideal and preferably written in the last 10-20 years as opposed to the 70+ year old books recommended in the sub's about section. I have a very strong finance background and can model the investment particulars more so looking for an overview of strategies and nuance's to think about. TL/DR: Need a book or two on how to begin investing in properties that were written more recently than the antiques in the sub's about [link] [comments] |
| Out of State For First Investment Posted: 28 Oct 2020 11:51 AM PDT Hey y'all, I had some questions about potential real estate investing out of state. I feel like my story is pretty typical for out of state investing, I live (and am living for the foreseeable future) in a HCOL area (NYC), but am interesting in buying real estate in my hometown in Texas. I am currently 21, and have saved up around $30K. Technically, this investment wouldn't be fully hands-off since my parents still live there along with almost all my extended family (aunts, uncles, grandparents) and my parents said that they're looking for something to do and keep them interested and would be more than willing to help take care of the property. Furthermore, my parents have saved up around $200 - 250K and said that they would be willing to help up to $30K if they think that the investment is reasonable so then we would be going 50/50 into the investment. It's all kind of lined up well for me to invest in real estate because my parents' best friends are all in real estate, one of them being a real estate agent who could help us find properties and save on fees, and their other friends being a couple who make a living flipping houses who could also give us advice on property. I also have two uncles who are residential contractors who could probably let us know if anything is clearly wrong with the house and also may be able to cut down our repair costs by a bit (along with give us estimates on how much it would cost to repair). We're still really early into the process, but my question is are there any huge red flags that I may be missing? Is $30K enough to purchase a first house, or should I take my parents offer and own half a property? Also, I know this may be dependent on the area and how the math works out, but do y'all recommend I invest in a single family home, or maybe look for a duplex/triplex? Any other insights, help or advice will be greatly appreciated as I am sure that there are things that I am missing. Thanks y'all! [link] [comments] |
| 1st Time Home Buyer: 4-Plex Financing?? Posted: 28 Oct 2020 08:36 AM PDT Hi, I just had a conversation with a mortgage loan officer who says that I can put down 3% through a conventional loan on a 4-plex if it will be owner occupied and my first purchase. I keep searching online ie. Biggerpockets, Google Searches, but I get different results such as 20-25% for a conventional 4-plex. Could someone kindly clarify if which is correct? My goal is to put down a low down payment on an owner occupied multifamily property. Thank you! [link] [comments] |
| Posted: 28 Oct 2020 05:40 PM PDT So a family member currently is providing the down payment funds and materials for the rehab. I will be doing everything else. The question is...they are doing this as a total investment around $50k with a very conservative rehab number. And are asking for 7%, which is a great number. It is under their personal name for the 20% down payment. -I am super close to finishing 2 years in construction education and I have had two time full jobs and construction is most of who I am. I put school in the middle of them in the last 3-4 years
I am suggesting getting a new LLC-seperate, and for just RE, because we plan on doing more in this market afterwards (if it doesn't rip us lol) What are the benefits?? Can see all the finances easily with business accounts/cc's and all the other tax benefits for LLC's? Basically just looking for ideas on what would be best on how to structure all of this. Thanks in advance!! [link] [comments] |
| How to pick a lender? Should I pick the Agent's or Attorney's recommended mortgage lender? Posted: 28 Oct 2020 01:40 PM PDT I just won the bid on my first home purchase, near Boston, MA. I have an attorney, who I picked based on my Agent's recommendation (redfin), and he had good reviews online. I have no idea how to pick a lender. Ofcourse I will shop around for the best rates and fees, but what else should i be looking for? I have heard some of the big banks like bofa, wells fargo, quicken loans, are terrible with their service. But once i have the papers signed, what service do i need apart from just making my monthly payments? Are smaller local banks really much better? I am planning to go for a 30 year fixed mortgage on a jumbo loan, to lock in the low rates. And I want the lowest possible rate, but i don't care too much about a couple of hundred bucks here and there in fees. My agent told me he always uses one particular lender who does a good job. That is at US Bank which i don't know anything about except that it is a big national bank with apparently a local presence. My attorney, told me to go with someone at Eastern Bank, which is local to the area, and he says they are great specifically for jumbo loans, and that he's worked with them a lot and they do a great job. The person at Eastern Bank offered me a rate 0.25% lower than what US Bank offered. But my agent said to shop around for rates, and bring it back to the guy at US Bank and he will match it. Its been hard to find good reviews on either institution, or any other institution, so i dunno how to go about finding a lender. Should I do some research online (please point me to some good resources, when i google it, i see the notorious banks like bofa and quicken as top rated), and then just pick whatever looks the best? Or should I pick one of the two recommended lenders, in which case should i go with the agent's recommendation or the attorney's recommendation? We are signing the purchase agreement on friday so i need to lock in a lender soon. I really appreciate and advice!! Thanks!! [link] [comments] |
| Posted: 28 Oct 2020 05:22 PM PDT From someone with no 'flipping' experience... what are the main hassles and headaches that TV shows like 'Flip or Flop' leave out of episodes? [link] [comments] |
| Cash out refinance after increasing rents? Posted: 28 Oct 2020 12:02 PM PDT I am wondering if anyone has ever been in a situation where they were getting a property that is renting way below market, and were able to raise rents "increasing the value of the property" without putting any money into renovations and cashout refinance based on its new value after maybe 6 months of steady rents at the new prices. [link] [comments] |
| Am I the only one afraid of jumping into REI with the eviction ban in place? Posted: 28 Oct 2020 02:24 PM PDT Passed up an opportunity to purchase a duplex a few months ago due to the eviction ban and dropping rents in nearby cities. However, I see a lot of new posts of people jumping into the REI game. I also do see some "tenant hasn't paid me since April and I can't evict them" posts on BP. We don't know how long the eviction ban will go on, and of course the economical climate is uncertain too. I realize that as long as the unit cash flows and is in a good location; it's a safe play but still can't shake off the feeling that legally I can't evict the tenant in case they decide to stop paying. And sure you can make sure their work is "Covid proof". Am I being too cautious? [link] [comments] |
| Best approach dealing with asbestos in flip Posted: 28 Oct 2020 02:22 PM PDT Basically what the title says...I own a duplex and have since 2015. I'm splitting the parcel into two units, flipping the front one this spring and selling in late summer. In drawing up the budget, I had to explore costs of drywall removal and I remembered the popcorn ceiling and the place was built in 1974, so almost certainly is covered in asbestos. I guess I'm having a hard time deciding which of the options below to do: 1) Get unit tested ($600-800) and have environmental company remove toxic areas (another $1,500-$3000+). Have fresh, no asbestos unit and replace drywall for nice new look. 2) Don't test unit and try to re-surface the walls to make look new, sand, and paint. Much less cost, however, the walls aren't in amazing shape and I'd likely run into areas that may cause headaches in replacing other things like doors, lighting, electrical, etc. What would you do or have you done if experienced something like this? Thanks [link] [comments] |
| Getting contact info for an abandoned property? Posted: 28 Oct 2020 12:55 PM PDT Greetings; I live in NC, and found an abandoned property that I would like to buy, I've found the name of the owner, and where they live, via the tax dept, but I've been unable to get their phone number to call or text them as the state doesn't provide that info. What is the best way to get phone information? Skip tracing is out because they require a minimum of 50 which I dont have. thanks. [link] [comments] |
| How risky (in terms of local laws, other legalities) is it to run an Airbnb real estate business? Posted: 28 Oct 2020 12:52 PM PDT See title. NOTE: This is only referring to the legal aspects of Airbnb business such as county/municipal/HOA restrictions short term rentals, guest injury lawsuit liability, etc. This is NOT talking about other risk aspects such as COVID-19, excess wear & tear on house, high cleaning costs, etc. [link] [comments] |
| If you're an Airbnb investor, what are you looking for in a property to invest in? Posted: 28 Oct 2020 12:39 PM PDT I was thinking about looking into Airbnb properties to invest. I think travel is going to pick up soon (by soon, I'm sure it's about 6 months from now). I was thinking about retrofitting a house to take in guests. The question that I am asking is that as an Airbnb property investor, what should I look for when investing in Airbnb properties? [link] [comments] |
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