Real Estate Investing: Successful ways to find deals |
- Successful ways to find deals
- AirBnb in non-vacation locations
- Do I have an angle to start here?
- First Real Estate Deal
- Funding for expensive first flip - Do these terms exist?
- What percent funded should HOA's usually be?
- Is the solution in my book wrong? Trying to calculate the value of a property.
- Are you guys/gals increasing rents this year
- Selling a property with title concerns
- Tax Lien/Deed Redeem Payback
- How to have rental losses count against other income
- Tax PRO for STR Investing and Normal Taxes?
- What would you do in my shoes?
- For the most part is cash flow something you buy or create after you buy by adding value?
- Multiple homes, estate sale
- I just inherited a condo and I'm looking to turn it into a vacation rental.
- Income property purchase with VA loan
- Tenant placement service
- Anyone have any ideas on where to get capital without going through traditional financing?
- First Investment Help
- Biggest/Most Annoying Problems Encountered While Investing
- What should I do with 200k cash in the Bay Area?
- How do you find a good realtor?
- Real estate investing > 401k
| Posted: 21 Oct 2020 07:49 PM PDT What are some of your most successful strategies to find deals in your area? Most of the multifamily listings in my area are overpriced and won't cash flow. Some strategies I've been reading about include direct mail, cold calling, purchasing a list of properties online, buying tax liens, Craigslist, word of mouth, and browsing properties that have been delisted. So what's been successful for you personally? [link] [comments] |
| AirBnb in non-vacation locations Posted: 21 Oct 2020 09:36 AM PDT I live in a middle sized college town in NC. Rent demand and prices are strong relative to cost (I get an average around 12% gross yearly on the rentals). College being partially virtual doesn't seem to effect regular rental market yet. Browsed through budget houses, and nice townhomes on AirBnb and in my market and they are only rented for thanksgiving, Christmas night, and May 7th 2021 (looked it up and its college graduation day). I wasn't sure how normal this is, or why the owners would even be motivated to airbnb over just leasing. [link] [comments] |
| Do I have an angle to start here? Posted: 21 Oct 2020 04:44 PM PDT Hello all, I'm currently in about $40,000 of debt between my car and school loans. I'm actively paying that down each month with my current job and savings. Currently I'm an insurance agent who works fully on commission, but I'm not in any way fulfilled by the job, the clientele, or the lifestyle. I have been considering trying to get into real estate for about a year now to see if it will be more satisfying for me. I have about $15,000 in savings to work with and am wondering if there's any way to use this cash to start getting into the RE business. Any suggestions or tips are appreciated. Thanks! [link] [comments] |
| Posted: 21 Oct 2020 07:16 PM PDT I found a great 2 family deal in my childhood neighborhood. $190,000 purchase, $2,500 gross rental income (in need of minor cosmetic repairs once vacated). Mortgage is still covered if either unit is vacated. One unit is on a year lease and 2nd is month to month. Down payment will $38,000 + closing costs. I only have $20,000 to currently spend ($35k in total savings atm, don't want to cut it too close). How can I make up the remaining money for down payment. I really don't have family to ask for money but this is a really attractive deal. I'd consider hard money lender but I'm not flipping/refinancing so there really isn't a big payoff. [link] [comments] |
| Funding for expensive first flip - Do these terms exist? Posted: 21 Oct 2020 11:21 AM PDT Hello, there. Currently bidding on a property on Hubzu that is in a very expensive part of my area. Current bid highest bid (which is me) is $414k, my max autobid is set at $460k, the rehab is between $40k-$50k, with an ARV between $700k-$715k. Being a licensed agent in this area I was able to pull quality comps, so I'm confident in the ARV, and walked through the property multiple times including with my plumber to make sure it was winterized correctly (it was). I also had to oversee an extensive rehab of the duplex I'm currently living in, so I was able to use a lot of that experience in getting my Rehab budget. The house was built in 2001 and seems to have been well taken care of by the bank since being foreclosed so I don't see much as far as any unexpected major surprises All this being said, I'm having some issues getting funding. My local PML that my brokers use for flips said he won't lend that much on someone's first flip, regardless of the numbers. I also tried a mortgage broker I found at one of our local investor networking meetings and his fees/terms were ridiculous (14%, 2 points, $10k mortgage broker fee, while needing over $100k skin in the deal). I personally would have no problem with the 14% and 2 points if I didn't need so much cash down. I'm currently closing on a HELOC on my primary for about $50k and have some money saved, so I could probably afford between $70k-$80K equity in the deal if the rehab was funded as well, but definitely not $100K+. Right now our current bid is based on doing a live in flip, so were preapproved for a 5% down loan with some of the rehab wrapped in. Obviously it's not ideal because we would have to live there for year and the bank usually prefers all cash, which is why I'm looking for HM/PM, but if we can't find anything else it will at least be a way we can fund the deal. To wrap it up, it looks like we can bring 20% purchase price to the table as long as the construction costs are also covered by funding as well. I've heard of HMLs doing 20% of purchase price with construction cost being covered by the buyer, or 20% down on purchase price + construction costs to get funding for all of it, but I haven't seen 20% purchase price s down payment with lender covering the rest AND rehab costs. Is this a viable option to look for, or am I going to SOL unless I can bring more money to the table? Any other possible funding options out there that I missed? I've always heard find the deal and the money will come to you, but it doesn't seem to be that easy! [link] [comments] |
| What percent funded should HOA's usually be? Posted: 21 Oct 2020 02:12 PM PDT I noticed a condo I have my eye on had a reserve study from 2017 said it was 76% funded but the new 2020 study says its now 46%. The biggest ticket item in both studies was the roof. The new 2020 study had a large number of $20-$40,000 items that the 2017 study didn't. Are condo HOA's ever 100% funded? Should they be? What is an acceptable level of funded? Should I be worried about owning a condo in which the HOA is now only 46% funded vs 76% a few years ago? [link] [comments] |
| Is the solution in my book wrong? Trying to calculate the value of a property. Posted: 21 Oct 2020 06:01 PM PDT I'm trying to calculate the value of a property by taking the average GIM. This is the question & solution according to my book. Is it wrong? I keep calculating it, but end up getting a different answer.
• Sale 1: Sold for $950,000, Potential Income $121,800, Vacancy and Credit Loss 4%. • Sale 2: Sold for $906,500, Potential Income $114,840, Vacancy and Credit Loss 3.5%. • Sale 3: Sold for $880,000, Potential Income $112,230, Vacancy and Credit Loss 4%. None of the selected properties have any additional income. Based on the comparable sales given below, what is the reasonable value of this property? A. $854,450 B. $437,900 C. $954,000 D. $621,300 Solution: C. $954,000. Estimate GIM from Comparable Sales ►GIM = Sale Price ÷ Gross Operating Income Sale 1 -Gross Operating Income = $121,800 – 4% = $116,928 -GIM = 950,000 ÷ 116,928 = 8.12 Sale 2 -Gross Operating Income = 114,840 – 3.5% = $110,821 -GIM = 906,500 ÷ 110,821 = 8.18 Sale 3 -Gross Operating Income = 112,230 – 4% = $107,740 -GIM = 879,000 ÷ 107,740 = 8.16 The range of GIM from above sales is from 8.12 to 8.16 A reasonable GIM of 8.14 can be used to estimate the value of the subject property. Estimate of Value = 117,200 X 8.14 = $954,008 Rounded to $954,000. [link] [comments] |
| Are you guys/gals increasing rents this year Posted: 21 Oct 2020 08:10 PM PDT kicking around the idea of increasing rents this year, would like to see what everybody is doing. Please feel free to comment you rational in comments [link] [comments] |
| Selling a property with title concerns Posted: 21 Oct 2020 11:32 PM PDT I bought a piece of bare land in California a year ago. I am now in escrow selling the property. The title company states that title insurance was not purchased for two previous transactions, including mine. They are requiring notarized affidavits from the two previous owners of record. There is no question about the fact that my name is on the Grant Deed in county records. These two people agreed to sign a week ago but now cannot be reached. What can be done in a case like this? Or what if a previous owner were deceased or had moved out of the country or was for some other reason unreachable? Is there some sort of a bond that can be purchased? For example, a few years ago I purchased a Ferrari without a title, for an amount similar to the sale of this property. The DMV required me to do a due diligence search, which included proof that I had tried to contact the last owner of record, who was unreachable. The DMV also required me to buy a bond. Then they gave me the clean California title. Have you been through anything similar? [link] [comments] |
| Posted: 21 Oct 2020 11:15 PM PDT Let's say a property has $1000 in back taxes and goes for auction, I win paying $1500. To keep it simple there are no other fees. If the owner wants to redeem the property, do they owe $1000 + interest, or $1500 + interest? [link] [comments] |
| How to have rental losses count against other income Posted: 21 Oct 2020 10:36 PM PDT Have a loss from my real estate investment via repairs, how can this be used to offset other income? [link] [comments] |
| Tax PRO for STR Investing and Normal Taxes? Posted: 21 Oct 2020 10:31 PM PDT I live in CA, my current account admits to not being that in tune with STR dynamics, 1031 exchanges etc. He does a good job on the "normal" personal income taxes. Is it hard to find someone that can do both? Any recommendations? If not allowed, please PM me. Looking for out of the box thinkers that stay in the real of legal and justified! More importantly - can maximize deductions etc. Thanks [link] [comments] |
| What would you do in my shoes? Posted: 21 Oct 2020 09:23 PM PDT Hello All, I am trying to get some outside input on a property i own that is in my rental portfolio. This is a 2/2.5 town house property i purchased for 68k back in 2009 as a primary residence and moved out in 2015. It was rented from 2015 until 2018, roughly 2.5yrs before the property burned down due to forest fires in the area burning down half of the units in the townhouse gated area. The HOA was only $147/month in 2018 and was renting out for $1250/month. Since 2018 there has been a million different hang-ups on the construction between city wanting all the new units rebuilt to new building code and such requiring new plans and lots of changes to the original building plans. The property is scheduled to be done in November finally as they are apply for Cert of Occupancy this week. I talked to my old property manager to get numbers on possibly renting it out again, but even though the value of the property has nearly doubled since 2018, its rental value has declined and HOA went up vastly due to the massive insurance claim by the HOA to rebuild more than half the area.... 2018 Numbers: Property Value $130k, $1250/month rent, $147/month HOA 2020 Numbers: Property Value $235k, $1125/month rent EST**, $322/month HOA This is the only income source i have from this state (Colorado), so its requiring me to file additional state for taxes. Should I move on from this property once completed and sell as brand new townhouse, or should I continue to rent it out and take less profit now than I did 2 years ago. Rental rates dropped in the area due to lots of businesses and homes burning down. Im debating between the 2 options, because i have been thinking of trying a 1031 for the first time and buy another rental local to me here in Florida, or hold the profits with the intentions of buying in 2021 after potential housing decline. [link] [comments] |
| For the most part is cash flow something you buy or create after you buy by adding value? Posted: 21 Oct 2020 08:49 PM PDT Just trying to figure out a general conciseness if the subject.. [link] [comments] |
| Posted: 21 Oct 2020 08:49 PM PDT Hi all, Reaching out for opinions on what your strategy would be as buyer and/or seller. Scenario: Top 20 metro area; very low inventory at the moment for both SFH and multis. An estate appears to be beginning to divest a long held portfolio of properties. Tax records indicate the estate may have as many as 20 - 25 doors (some SFH, some MFH) spread around the metro area. Specific deal: Row of 4 adjacent 2br 1 ba detached SFH. Bungalow style, circa 1950's. All appear in fair to good condition from exterior. At least 3 have been vacant with no utility service for past 6 months or more. Smallish lots that could potentially allow for addition of more units. (Note this is in an area of country that does not experience harsh winters.) Location is on B/C area of rapidly expanding metro area. Tree lined quiet street if mostly low-middle income families. Within walking distance to big box stores, 10 minute drive to downtown core, easy access to interstate. Prices for all houses range between 160k and 200k. Current rent comparisons suggest $1000/door is reasonable. Assume you as buyer have cash on hand and sufficient reserves to take on 25% down on all 4, closing costs, and between $20-30k in repairs for all units. Would you make a play for all units at once? 1 ata time? None? If so what's your strategy. If you represent estate (assuming if there are surviving heirs their wish is to cash out and not continue rental business), what is your willingness to offer bulk rate discount for taking a block of properties off books? Thanks and I hope the hypothetical scenario is fun for others to ponder as it has been for me. [link] [comments] |
| I just inherited a condo and I'm looking to turn it into a vacation rental. Posted: 21 Oct 2020 04:05 PM PDT This condo is completely paid off. I know a good bit about single family rentals, but vacation rentals are brand new to me. I'm looking for information about how to handle stuff like utilities, move in process, move out process, how much I should charge, etc... If there are any tips/resources you guys could send or link that would be great! [link] [comments] |
| Income property purchase with VA loan Posted: 21 Oct 2020 08:59 AM PDT My veteran husband and I are looking to make our money work for us. We are looking to purchase our first property (ever) for it to become our income property long term. In short we want to get a duplex, live in it (as required by VA loans) and eventually rent out both sides. The real question is to those with experience purchasing with VA loans what company did you go with? USAA? Navy federal? Veterans United? And why. Have any of you used your VA to "house hack"? Thx! [link] [comments] |
| Posted: 21 Oct 2020 07:11 PM PDT I have 3 rental properties for 10 years. I have a good experience on placing a long term good tenant. I'm thinking about starting up a tenant placing service. I'm not a realtor or property manager. I just want to help landlord to place a good tenant. Do you think there are demand for this type of business? [link] [comments] |
| Anyone have any ideas on where to get capital without going through traditional financing? Posted: 21 Oct 2020 06:55 PM PDT I would like to start buying homes to flip. I would like to purchase all cash. Is there a bank that offers unsecured lines of credit for use when needed? I have an 820 fico and a six figure income. I have about 100k In available credit over 5 credit cards, but I can't get a cash advance of say 50k from my credit cards. I don't have a home to take out a HELOC, but I would like to set up a 100k line of credit with checks. When I find a home to purchase, write a 50k check to my business account, then purchase the home. I'm not interested In a short term construction/flip loan. Does anyone know of an institution that offers lines of credit like this? [link] [comments] |
| Posted: 21 Oct 2020 06:52 PM PDT Hi all - Im looking to get started in real estate as an investment. Saved 50K, no debts, currently making 200K annually at my job. I've NEVER purchased a piece of property and must admit I'm a little nervous. Does anyone have a few tricks of the trade on what to look for for a first investment property or multi unit property where I also would live? I appreciate it and I must say the Zillow obsession has been awesome. Ty [link] [comments] |
| Biggest/Most Annoying Problems Encountered While Investing Posted: 21 Oct 2020 09:06 AM PDT Hey guys, I'm looking to start investing in real estate, just trying to get a lay of the land and learn about any future problems I might encounter with a long term rental business. What are some of the biggest or most annoying problems you guys have encountered? Any insight would be appreciated! [link] [comments] |
| What should I do with 200k cash in the Bay Area? Posted: 21 Oct 2020 08:34 AM PDT I'm wondering if it's worth trying to get a mortgage together to rent out a property in the Bay Area, or try and buy a property outright in a much cheaper area (maybe out of state) and get it into management. Any advice or material to read about the tradeoffs would be gratefully received! [link] [comments] |
| How do you find a good realtor? Posted: 21 Oct 2020 07:59 AM PDT Planning to buy my first house in March when my lease is up. Live in the DC area, but don't really know anyone here yet. How do I find a good realtor and what questions should I ask when interviewing them? [link] [comments] |
| Posted: 21 Oct 2020 06:07 AM PDT Just wondering if all of you who have real estate investments also contribute to a 401k/ira and what percentage of your income? I am not sure if I should increase my 401k (I dont get any type of company match) contributions or continue saving it all to be able to invest in real estate. [link] [comments] |
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