Real Estate Investing: Thinking of cashing out $80,000 equity from my current house to purchase two more rental properties. |
- Thinking of cashing out $80,000 equity from my current house to purchase two more rental properties.
- Does it ever make sense to buy a vacation/part time home first and continue renting a primary residence?
- How to scale in RE in an expensive, hot market?
- The stock market is giving me better numbers, according to my calculations
- Full time investors: how do you manage your day to be doing the most high dollar activities possible?
- Pay off mortgage or purchase 2nd income property?
- Officially closed my first rental property! How do I collect rent from my tenant?
- Think of Owner Occupied Loan for First Property Purchase out of College - What is a Good Return on the Investment
- Rules of thumb for BRRRR?
- Thinking about buying a $100k condo with 20% down and $1000 rent
- What kind of feasibility study required for land purchase
- Purchasing a property w/ an HOA under litigation. What are the risks?
- Real Estate investing timing?
- Where to find state laws concerning what work has to be done by a licensed professional?
- Calculating Cash Flow and Cash on Cash
- Bought a foreclosure two months ago. Still haven't received title.
- Buy a condo or live in one of my units?
- Any good books for different real estate strategies?
- HELOC financing for investment properties
- Are the wildly low interest rates changing your parameters on good deals at all?
- Worried about a crazy good deal
- Fastest way to estimate home owners insurance policy cost during due diligence?
- Should I hold or sell one of my SFH rentals
- Most reliable title search company online for Southern California market
| Thinking of cashing out $80,000 equity from my current house to purchase two more rental properties. Posted: 20 Oct 2020 02:59 PM PDT Any thoughts on why this may or may not be a bad idea? Would it be smarter to start with one or go for both? Pretty new to real estate investing but ready to pull the plug in my current job and delve into this full time. [link] [comments] |
| Posted: 20 Oct 2020 06:58 AM PDT Pretty much title. This is something I am considering because the vacation properties I'm considering are more affordable than homes in the area where I live. [link] [comments] |
| How to scale in RE in an expensive, hot market? Posted: 20 Oct 2020 07:55 PM PDT My brother and I (24) just bought our first property in Ontario, Canada. In my city, real estate has been going crazy the last 2 years. Average home prices are well over $500k. Bought ours for $410k with 5% down (I know, not ideal). Currently house hacking, renting out two bedrooms while we live in the other two, covers a good chunk of the mortgage. Both contractors so doing all renos ourselves. How can I scale our RE journey as fast as possible? With our mortgage payments, we'll barely, if at all, be cash flowing when the whole house is rented. After completion of the renos (values ~$50k) we will look into refinancing after getting some more equity into it. Any other ideas on how to kick this into high gear? [link] [comments] |
| The stock market is giving me better numbers, according to my calculations Posted: 20 Oct 2020 09:11 PM PDT So I ran the numbers on two scenarios. A: Using 60k to buy a rental property at 220k, with a 170k mortgage after closing costs B: taking that 60k and investing it into the stock market and comparing it at 8%, 12% and 15% returns. Ive averaged over 25% returns last 5 years. I know that is high and we had a bull run, but i'm confident that my picks will continue to grow. Lets just assume I can hit those numbers for arguments sake. When I run the numbers for 10-30 years i end up with a higher net worth with stocks. This includes appreciation of the house at 3%, principal paydown plus cash flow starting at $300. Rent also rises at 2%/year which is increasing cash flow. Repairs and maintenance cost are also adjusted with inflation and grow at a 3%. I have 4 rental properties and am thinking about doing a cash out refinance and purchasing 1 more rental. The thing is i love running random numbers and when I ran this quick analyses I am starting to think the market might be the way to go. In addition, stocks will not call me about a plumbing leak at midnight, and i can sell at the touch of a button. Wondering if there are others who thought of this and whether or not I am missing anything. [link] [comments] |
| Posted: 20 Oct 2020 08:16 PM PDT I have been investing in RE for 9 years and it is finally my full-time gig. During these years I have pretty much done all the work on houses, hiring out as little as I could. I also do all the property management. As I was mudding and sanding a wall today I had the realization (I've had it many times in the past) that I just shouldn't be doing this work. I should be doing higher dollar activities such as finding and negotiating deals or even just selling houses (I am a licensed real estate agent and find selling houses to be a very high hourly wage) I guess I'm just trying to figure out how to focus on the highest dollar activities possible and hiring out the lower ones. How do you all balance this or manage your days most efficiently? Any advice on this matter is greatly appreciated! [link] [comments] |
| Pay off mortgage or purchase 2nd income property? Posted: 20 Oct 2020 08:15 PM PDT I posted my question 3 months ago but only got 1 reply, and so am hoping for some more insight (with some slightly updated numbers from my end). My question is simple: do you think it makes more sense for me to be paying down my income property mortgage, or saving for a possible down payment on a 2nd income property. 5 years ago I purchased my first income property (separate from personal residence). 1-2 years after purchasing it, my business crashed and I stopped earning income - I only make a very small amount right now, only able to save around $20K-$25K a year, and I don't see that changing anytime soon. Since my income is extremely little and already have an existing mortgage, I'm assuming it'll be next-to-impossible to get another loan, but even so, I'm curious if it makes sense to pay down a low-interest mortgage instead of saving up for a down payment on another income property. I will provide my numbers below. Where I live, it's hard to get any real cashflow from a property. Earnings come primarily from appreciation. There was a real boom right after I purchased my property (some years were as high as 30%), but then the government imposed a lot of very strict purchasing and lending rules (I live on Vancouver Island, and Vancouver had skyrocketing house values which trickled in over here) which grinded that growth to a halt. And now because of COVID-19, things have really slowed down (-3.7% appreciation from last month, -2.7% from a year ago, +10% from 3 years ago). My property's conservative cap rate is 3.28% (value: $430K, income after property management fees + maintenance: $19.9K, insurance, utilities, property taxes: $5.8K (NOI: $4.1K). Taking the property management fees out and raising total monthly rents by $150, it'd be 5.8%). I currently owe $114K on the mortgage. 2.5% 5-year fixed rate. For a down payment, I can comfortably put a max. of around $50K, and then still have a good buffer with reserve cash for closing costs and safety nets. Assume 5-6% Cap rate on a new property. And so, I'm wondering if I should focus on paying down existing mortgage, or possibly look into buying another income property (if it's even possible with my non-income). I purchased my first one for $274K 5 years ago, and it's worth $430K now. But who knows what the market will do in the future - I don't think things will climb like they did before due to the government regulations, but who knows. I should mention that if purchasing a 2nd income property would only be slightly better on paper over paying off the existing mortgage, that I'd prefer to pay off the mortgage as it's less stress, and I have medical issues so I like to live as stress-free as possible. Thank you guys. [link] [comments] |
| Officially closed my first rental property! How do I collect rent from my tenant? Posted: 20 Oct 2020 08:11 PM PDT I closed on a duplex which I am occupying and live with a tenant has been in the property for 10 years. As a first time landlord, I am a bit nervous on how to have the conversation to set rules and establish how to collect rent. Any advice? [link] [comments] |
| Posted: 20 Oct 2020 11:27 PM PDT Hello all, Have a few questions. I'm starting to look into purchasing a 4-plex as my first real estate purchase. I graduated from college with about 20k of student loan debt. Fortunately for me, the job I got was a town over from my parents. I am currently living rent free there building up my IRA and Savings account. I'm making over $70k a year with my current job. Recently, a 4-plex came onto the market and I've done research on getting Owner Occupied Loans with 3.5% down (~$15,000). My father has agreed to help and would co sign for me, even though I can easily get the 3.5% down on my own. His credit is excellent. Mine is around 680 due to length of account. So a 4-plex is listed for $420,000, been on the market about 3 days. Each unit is a 2 bedroom bringing $700ea or $2800 monthly. I think with 10k into the unit, I could get $100 more in rent (washer/dryer, redoing floors). The current residence is full leased out. The 4-plex is not in a lower area of town near a small college. Realtor said it was mostly rented out to families. I want to offer $350,000 or less given the 4-plex was built in 1989. This would depend on the inspection of course. So my question would be at what price point would this 4-plex be a good investment/better than putting the money into the market? My parents would stay in the area long term making it easier to manage, which is a positive. Here's how I'm breaking down the investment with rough numbers Mortgage: $350,000 Interest rate: 4% 30yr monthly payment: $1,700 Monthly Income: $2100 (if reside there), $2800 (if I do not reside there) Monthly expenses: $200 Cash flow: $200 (if I reside there), $900 (if I do not reside there) So given this situation, I'm curious what you guys think of an investment like this after graduating college. I realize this situation is a little out of the ordinary, but I do hope to exploit it somehow. I've got to time to wait for a better one to come onto the market as well. Thank you guys so much. [link] [comments] |
| Posted: 20 Oct 2020 05:23 PM PDT BRRRR is described as a way to acquire more real estate faster than the traditional rental property approach of save, buy, rehab, rent or just buy, rent. I'm still trying to wrap my mind around it. Are there some rules of thumb that investors look for to pull a successful BRRRR opportunity? Houses that cost X that can be fixed up for Y that can be rented for Z to them refinance for W? Guess I need a lot of realistic examples to get it. Thx! [link] [comments] |
| Thinking about buying a $100k condo with 20% down and $1000 rent Posted: 20 Oct 2020 07:09 PM PDT I'm thinking about giving 20% down as a investment property for a $100,000 1 bed condo. With 5% closing costs it'll be $25,000 and rent for a 1 bed is $1000. Should I go for it? Thanks Edit I'm looking at mortgage, HOA ($300) and insurance to be $800. [link] [comments] |
| What kind of feasibility study required for land purchase Posted: 20 Oct 2020 09:42 PM PDT I am planning to buy large 44 acreage raw land, as investment with intention to develop residential lots and sell in future but not immediately. The county website shows future zoning as AR 1, meaning a lot size would need to be minimum one acre - hence I plan to do the same and make some profit in future like 5 years or I may sell to a developer / adjacent venture developer, etc So my question is what kind of due diligence I need to get done and is that really needed/recommended? And how much does it cost? From my end I have researched and verified certain things physically like road access, topography, flood area/FEMA, zoning details from county website- are these good enough or do I really need civil engineer or land consulting service for due diligence? New first time investor plant city Florida [link] [comments] |
| Purchasing a property w/ an HOA under litigation. What are the risks? Posted: 20 Oct 2020 09:03 PM PDT We just found out there is an ongoing (since July 2019) litigation against the hoa. Litigation is for personal injury within the community. We received a letter from hoa lawyers that they have insurance that covers any potential liability. Assuming the lender is okay to continue with the purchase, what are some of the potential risks associated with buying a property under such circumstances? Property is in CA [link] [comments] |
| Posted: 20 Oct 2020 12:08 PM PDT I'm 25 and about to pay off my student loans. I don't plan to buy any fancy cars or expensive toys. I want to save my money for appreciating assets, which real estate usually is. My question is whether there's any rush to getting into real estate investing? I want to live a frugal life well into my 30's so that I can save up a lot for real estate down-payments and such. Is it okay for me to wait years before getting into this? Or would you advise I start leveraging money early on to get a start in this? Closing thoughts: I also want to wait because it seems with the low interest rates, housing prices are going up. I don't think that will last long. I wouldn't say it's a bubble, but people who can't afford these houses are buying them. [link] [comments] |
| Where to find state laws concerning what work has to be done by a licensed professional? Posted: 20 Oct 2020 12:31 PM PDT I'm currently arguing with a city inspector over PEX water lines. My position is that it's a PEX water line into SharkBite fittings, and a trained monkey could do it. He's saying state law says that it still has to be done by a licensed plumber, which around here start at $200 just to come out and rapidly go up from there. Maybe he's right, but I'd like to double check it myself. Edit: I'm in Arkansas. [link] [comments] |
| Calculating Cash Flow and Cash on Cash Posted: 20 Oct 2020 04:16 PM PDT When determining cash on cash, do you deduct savings allocated for vacancy, repairs and cap ex from your net rental income? For example, I allocate 7% of rent for vacancy (I like to save at almost a month's rent) and 5% each for future repairs and cap ex. I feel like deducting those savings from my net rental income, hurts my cash on cash. Due to the fact that this money is not actually spent on those areas as of yet, it should still be considered income. Thoughts. [link] [comments] |
| Bought a foreclosure two months ago. Still haven't received title. Posted: 20 Oct 2020 02:24 PM PDT I bought a foreclosure a little over two months ago to this day and still haven't received the title. I've contacted the trustee attorney who has contacted the bank, however the bank still hasn't executed that the property has been sold. What are my next steps? Lawyer up? [link] [comments] |
| Buy a condo or live in one of my units? Posted: 20 Oct 2020 01:41 PM PDT Hello, I own a duplex with 3 units and I am looking to either live in one of the units or buy a condo and live in it. I would only be paying around $600 a month if I choose to live in one of my units. If I buy a condo it would probably cost me $1.2k a month at least. The thing is the unit I am looking to live in is in a basement and it is a little bit dark, is there any way of making it more illuminated? What would you do if you were me, save money or live with a peace of mind in a condo? [link] [comments] |
| Any good books for different real estate strategies? Posted: 20 Oct 2020 01:40 PM PDT I research about real estate a lot. My main goal is to invest in real estate but I find that there is a lot of different strategies. Is there a book that discusses all the different strategies that are available? I want to learn about each of them to learn about my options. [link] [comments] |
| HELOC financing for investment properties Posted: 20 Oct 2020 12:47 PM PDT Anyone know a lender who's offering financing for HELOCs on non-owner occupied investment properties? I've tried tons of places and no luck yet. Thanks! [link] [comments] |
| Are the wildly low interest rates changing your parameters on good deals at all? Posted: 20 Oct 2020 09:12 AM PDT I was just quoted 2.5% on a 30 year fixed. Much lower than my other property. Curious if this is slightly changing your prices when negotiating buys. [link] [comments] |
| Worried about a crazy good deal Posted: 20 Oct 2020 09:07 AM PDT Hey guys I'm a little bit wary of a deal I've found recently. I've been like a sponge for the last few months, absorbing all the info I can on REI. I just found a property in Atlanta Georgia that will apparently return 48% of my initial investment. With all three rooms rented, it supposedly cash flows 6200 dollars per year. The property is located within two miles of an extremely popular big name university all for the low price of $159,000. The area is fantastic. Plenty of job opportunities especially for healthcare. This all seems way too good to be true. I honestly feel like a fool for not jumping on it but there's something off I just don't know what. The property definitely needs love. Thought I haven't had a walkthrough I would not be surprised if it needed a new roof, plumbing, electrical or work on the washer dryer hookups. However, even after allocating $8000 dollars for repairs, 7% for management fees, and 12% on maintenance it still cash flows a crazy $6200. If I manage to fix it up as well, I could earn big on added home value. Now I'm worried that I'm either missing something in my calculations, or that there's more to this property than meets the eye in terms of it's condition. Are deals like this really out there? Is this a unicorn or have I made a mistake in my calculations? Does reddit have any advice for me? If it matters, I'm using Chandler David Smith's rental calculator to run my numbers. [link] [comments] |
| Fastest way to estimate home owners insurance policy cost during due diligence? Posted: 20 Oct 2020 09:05 AM PDT I am analyzing a bunch of properties and am wondering what the fastest way to get or estimate this information is. As it stands, it looks like every website I go to needs my user info to get a quote. [link] [comments] |
| Should I hold or sell one of my SFH rentals Posted: 20 Oct 2020 05:04 AM PDT I have a tenant moving out of one of my sfh rentals and I'm wondering if I should capitalize on an unusually hot market in my area and sell it. I'm in North East Ohio. Right now it rents for $1,100/month and I think that's the max I can get. I'm 3 yrs into a 15 yr mortgage and the rate is a ridiculous 6% but the numbers don't make sense to refi. After all expenses I'm clearing $780 for the year. But I look at it like a savings account that will be there for me in the future. Or is the future now? I could sell for $145,000- $150,000 and net $59,000-$64,000 before capital gains taxes (unless I 1031). So it seems like a no brainer but wanted a second opinion. I don't need the money and renting it again won't be a problem. Am I better off hanging on long term or make a quick profit? [link] [comments] |
| Most reliable title search company online for Southern California market Posted: 20 Oct 2020 07:53 AM PDT Can someone recommend a title search company online that I can use? [link] [comments] |
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