Real Estate Investing: Advice For Living In A 4Plex That I Own |
- Advice For Living In A 4Plex That I Own
- Thank you all for posting here.
- New landlord experience
- Inherited 75k...where do I start?
- Keep a condo I own as a rental? Do the numbers make sense?
- Is there a wrong time to start investing in rentals?
- Proven track record flipping and selling homes, but partner in current business has totally tanked us.
- How bad is this..
- Off Market Foreclosure
- Any California Investors Out There?
- Real estate investing in NJ
- Anyone invest in NYC? If so, is it worth it?
- Financing for Rehab/Flip properties
- How to Find Multi-Family Home w/ Livable Basement unit?
- Are there any downsides to buying a vacation rental in the name of an LLC
- Help better understanding
- Analysis Paralysis
- 1031ing an owner-occupied MF
- 3 amazing countries to invest in. How to choose?
- How do you have multiple people on a mortgage loan?
- Downsides to reaching out to Selling Agent before your own agent reaches out
- House for parent... not sure of best path forward
- For those that send out mailers, what service do you use and why?
- Conventional loan or LoC for first rental property?
| Advice For Living In A 4Plex That I Own Posted: 21 Nov 2020 03:00 PM PST Ok, to the basics. I have my tenants pay rent online. Or a drop box. Most pay online. They also submit maintenance requests online as-well. I am doing a good job at laying low. The property is in my trust name and taxes paid by trust that I created. Any helpful tips to stay incognito? Thanks! [link] [comments] |
| Thank you all for posting here. Posted: 21 Nov 2020 08:50 AM PST Long time lurkers first time poster. I've had goals of FIRE for some time now but no idea how to get there. I was recommended this subreddit some time ago and have really learned a lot from you all posting. Weather it's the discussions about a certain topic or the flat out introduction to investing 101 all of you have provided great insight into this world for me. Because of your advice I've done the following, cut my daily expenses maxed my savings, boosted my credit score. I now have a nice HELOC loan that will be more than enough to cover my bases for real estate investing. I'm looking at deals every day and talking with other people in this world. [link] [comments] |
| Posted: 21 Nov 2020 05:33 PM PST Hello! I am usually more of a lurker than a poster, and since I gain lots of insight from people's experiences I wanted to share mine. I have long been interested in real estate, and a few years ago I finally purchased my first property. It was a single family home in a college town where I lived. After living there for a while, I had moved out of state and rented the property. I was lucky to have a tenant move in before the covid cluster f started and my tenant is awesome. Pays on time and is super nice. This fall I started looking for another property and found a nice duplex in a good area. One of the units was already rented. After offer, negotiation, inspection, financing, etc etc we finally close earlier this week. I received the tenant's security deposit, prorated rent for November, and the lease agreement. This tenant had moved in a few month ago. I contact the tenant to introduce myself and instruct how to direct future rent payments and the first thing I hear is that his job had been impacted by covid and now she is able to only pay about 60% of the original rent amount. I can relate and understand how covid has affected people's lives, but I find the timing extremely curious, as they had not mentioned it to the previous owner and I am hearing about it first thing. The state's eviction memorandum has expired, but I saw that there is a CDC eviction memorandum in place. Either still, I do not think that eviction is the best course of action at the moment. Some rent is better than no rent. It is also kind of disappointing to see that when I was researching about the topic of covid related housing hardship, first results were articles demonizing landlords and all the tenant help and resources that one can imagine, but nothing for my situation. I am a person as well. I have a family, more than one mortgage, property taxes due, insurance due, maintenance expenses and so on. I work very hard at my day job, often during odd hours, and I come home exhausted. I am an immigrant from a former communist country and I came to the USA hoping to find freedom and ability to enjoy the fruits of my labor. So far this country has been extremely kind and welcoming to me, but this trend of punishing the 'evil landlords' is extremely concerning. I am also concerned about the fact that legal contracts (rental agreements) are not being enforced. From my experience, a country without a strong legal system that enforces legal contracts is a country that is heading towards failure. Thank you for reading! Be safe, healthy, and God bless you. [link] [comments] |
| Inherited 75k...where do I start? Posted: 21 Nov 2020 09:20 PM PST I am 27, and like the title says, I just inherited 75k and have always thought about investing in real estate but don't really know the best way to start. I've done some research on the different ways to get into it, but with that amount of money is there a specific way anyone would recommend? Like most people the goal is to reach financial freedom. [link] [comments] |
| Keep a condo I own as a rental? Do the numbers make sense? Posted: 21 Nov 2020 07:56 PM PST I own and am moving out of my condo to a house. I don't need to tap into the condo for a down payment on the house (but obviously could make a larger down payment if I did - right now downpaying 10%, could do 20% easily if sold condo). However, I have only lived in the condo for 2 years and I know it's not great to sell it so short after buying it. I have about 35% equity in the condo. I know the rent I'd get would be about $1,500 per month and the monthly mortgage/tax/HOA/ insurance is about $1,200. $300 per month in earnings isn't appealing as worth the worry and hassle of being a landlord, but my understanding is that another reason people do it is because there are also "earnings" in the form of equity and you get to keep the property while it appreciates further. I guess the "start up costs" of this investment are pretty low because it's not buying an investment property, it's keeping a property I already bought. I could even cash out remortgage it to do 20% on the new house and seize a lower interest rate. Is this a good / bad idea at face value? What am I not thinking of? [link] [comments] |
| Is there a wrong time to start investing in rentals? Posted: 21 Nov 2020 02:52 PM PST Brief Background: 30 years old, 1 SFH rental in another town over. High career aspiration, most of my free time outside of work is spent on career progression/professional development. After studying the very basics of investing in the last few years (finance is my weakness), I learned about the 4 stages of the housing market. I fear that I'm giving myself a bad reason of not wanting to buy for another few years until the market crashes, because I'm afraid of buying right before the crash. I have a limited amount of time I can allocate. I'm struggling between dedicating 2-3hrs each day to my career/professional development so that once the market crashes I can study real estate investing more, and by that time I'll progress in my career so i'll be making more money that I can use to invest.. VS... taking the time to study real estate investing now, regardless if a crash is going to happen soon (I know we don't know this for sure, but regardless). Question: Is there a wrong time to start? Do real estate investors stop during the "hypersupply" phase of the housing market cycle? [link] [comments] |
| Posted: 22 Nov 2020 01:15 AM PST Hey everyone. I've been flipping homes for a few years now, and have created some beautiful stuff. I've had a partner I've had to tolerate this whole time, and I'm at my wits end now. He has constantly undermined in front of our contractors, I'm almost positive he's somehow siphoning money out of our business account (his duty is to manage financials and oversee parts of production), and has basically delayed, overspent, and half assed his portion of his duties leaving me in a precarious situation. Before he came on, I had systems in place and a tight ship. Of course there were mistakes, but I learned from them and kept going, having great success. My partner, who I should mention is a family member, joined in and wanted to help as he has a wealth of construction experience. In the past year my credit has dropped immensely, probably around 500 points because I had to max out my credit cards to keep progress going. I haven't been able to pay them back and have had other things go to collections due to info below. The crew he has working on projects that he's handling are unprofessional and have taken a project what should have taken two months an entire year. As of right now, he has driven our bank account to -$10,000 by mismanaging money, gambling, doing anything he pleases. There's some other personal stuff that happened in my life regarding my former wife and in that time he assumed a lot more control. It was a hard time in my life and it has really set me back. My former wife also had opened a few accounts in my name, and everything has gone to collections. I'm slowly working on my credit and it's improving very slowly. The anxiety is killing me, and I know what I have to do. Get out. My only two issues are that it's a very close family member, and I feel immense guilt leaving, like I'm abandoning him. I know it's necessary, and I still will. The other issue is that about a year ago I had a good friend who wanted to invest in a house. He did, and I need to make sure he is paid back in full before I leave, as I don't trust my partner to fulfill that duty. Sorry for the moping. I just thought the backstory might help give some insight. I've started a new business where I'm the sole member, to basically build back up what I've had before. I have 16 projects under my belt in the last two years. But since he's come along I've been left with nothing to show for it. I'm starting from nothing. I can do it, but I'm at a point where I'd like to ask for some advice from other investors. I have several homes I'm looking at, and all the numbers work out if I had the cash I originally had to purchase them. I'm looking into hard money lenders I've used in the past, they're great and we have good relationships. The only problem is that I may not have the money to put anything down. I have a great relationship with a lender who doesn't require any money down, and pays for everything up front. The only issue is that his rates are 18%. So each house I find that has great potential is totally killed by that high margin. I've been looking into other lending sources with much lower rates, but like I said, the money I would need to come to the table with can be a huge problem. It's so frustrating, building something from nothing, to watch it be destroyed in a matter of a few months. But I'll keep on doing what I can. Is there anyone out there with some words of advice, or maybe a potential solution? Any help would be appreciated. I'm not sure if any of you are private lenders who would like to connect as well. Feels like I'm at the end of my road here and the despair of watching my creation killed is despairing. I'm not sure if any of you are private lenders who would like to connect as well. Thanks for listening to me ramble. And a special thank you to anyone who offers any knowledgeable advice or just words of encouragement. I know this isn't a sub for this kind of discussion, but I figured the experts would know what to do. Thanks again I should add that he's a part owner of the business too. So I can't fire him [link] [comments] |
| Posted: 22 Nov 2020 01:05 AM PST Was able to see a house I've been looking into for the first time today. Appraisal & inspections should be happening next week... but anyways. Finally got to see it today and found that the back of the place looks like this: It looks very bad... but I don't know anything. Is this enough damage that I'd want to avoid the place all together? Would I only really be able to tell after having someone who knows what theyre doing look at it? Meh [link] [comments] |
| Posted: 21 Nov 2020 12:17 PM PST Hello Real Estate Team, I live up in the mountains in California and walk by a beautiful property several times a week which is overgrown and looks abandoned but in reasonably good shape. My fiance and I have fallen in love with this property and want to purchase it as a full time residence. I had a friend check the MLS for clues and owner information and it looks like this property is owned by Wells Fargo as 1st owner (no second). Looks like it is foreclosed, but its not listed on the REO foreclosure website for Wells Fargo. I wanted to give WF a call and inquire about the property, but then I decided to pump the brakes and check here if there was a better way to go about this. I dont want to end up in a situation where I pay more, lose my shot at buying the property, or some other blunder. My questions revolve around the first and next steps - Do I find a RE agent who specializes in foreclosures? Is there some best practice around making an offer or do you generally start with the cost of the delinquent mortgage? Is there some strategy to make sure they dont list it after I call out my interest in it? Any advice and strategy welcomed. For reference I have my CA real estate license but never hung it. I dont know if this changes anything. I am fine working with another agent, if it helps, but I have experience buying homes and can probably handle most of the handholding things myself (inspections etc..). I dont have cash outright to buy the home, but I do have 30+% down for a mortgage and another home owned free and clear worth twice the projected cost of this home. How do i structure this to win? [link] [comments] |
| Any California Investors Out There? Posted: 21 Nov 2020 03:38 PM PST I'm curious your experiences in an expensive and regulated state. My wife is from Orange County and would love it if I bought a place down there we could eventually use ourselves. I have enough cash for a basic 2-3 BR condo or townhome in Orange, Riverside, or San Diego Counties as long as it's a few miles inland. [link] [comments] |
| Posted: 21 Nov 2020 01:35 PM PST I am 26/M currently in the military. I am stationed in NJ which is also my home state. I just got here so chances are I'll be here for the rest of my contract which is 4 years from now. My question is, is it even worth investing in buy and hold real estate here with the insanely high prices and even higher taxes ? I want to start investing in rentals but idk if it'll even be worth it. If any of you own real estate in NJ I would appreciate your opinions/insight/advice. Thank you in advance! [link] [comments] |
| Anyone invest in NYC? If so, is it worth it? Posted: 21 Nov 2020 02:27 PM PST I currently invest on Long Island, and will be renting out my entire home as well. I'm thinking of possibly buying a 2bed 2bath condo in Brooklyn (multi family is out of my budget) and renting out one of the beds/baths while I live there also. I would pretty much house hack it and it's in a location where I want to live. Anyone invest in NYC? Just looking for some advice or suggestions [link] [comments] |
| Financing for Rehab/Flip properties Posted: 21 Nov 2020 11:22 AM PST I have a couple questions regarding real estate and house flipping. What is the best way to start with about $15,000? And when it comes to financing flip properties, do banks have some sort of floor to borrowing? An example would be like a house I found nearby that's selling for $15,000... has dropped twice in the past year. Needs repainted or siding, a new roof, painted inside, the porch needs some work and inside repainted. Houses around the same size and build sell regularly around $45-50K. I know the roof will be the largest expense but I could probably bring in my grandpa and brother in law to help get it done for a cut of the profit. Now if I go to the bank and offer something like 20-30% down, will they finance the rest so I can finance the repairs? Do they usually need more down or is that level basically a cash purchase? [link] [comments] |
| How to Find Multi-Family Home w/ Livable Basement unit? Posted: 21 Nov 2020 06:11 PM PST Hello! Cross-posting this here from BiggerPockets I am currently looking to house-hack a 4-plex, maybe a 3-plex if it cashflows well enough. I just want the house to be able to break even while I am taking up a unit, and then leave after the FHA-required 1 year to let the house cashflow normally. However, finding a unit like this is obviously hard, and I've heard others' suggestions about living in a sort of unofficial basement unit as to not take up one of the legally lease-able units. I am wondering if anyone had any experience searching for these kinds of properties. Is there a keyword people use, or do you really just have to ask the agent/seller if the property has such a unit? I am also wondering how much it would cost to take an existing basement and convert it into a livable space, either as an off-hand unit for me to live in, or as a fully legal lease-able unit. I am sure the cost to make the space just livable vs actually lease-able is quite different, so I'd love to hear if anyone has a ballpark number for either! I definitely don't want to dig a whole new basement, though, since that is way too expensive for my budget. Anything helps! Thanks in advance [link] [comments] |
| Are there any downsides to buying a vacation rental in the name of an LLC Posted: 21 Nov 2020 05:45 PM PST I have the option to purchase a vacation rental as an LLC. I will personally guarantee the loan. My question is, other than the cost of establishing and maintaining the LLC, are there any downsides to purchasing the real estate in the name of the LLC? My thought process is that if the mortgage is in the name of the LLC, then it will make me easier to qualify for another house (eg my primary residence) since the mortgage payments of the vacation rental theoretically won't count against me. Is that correct? I read that you can only have so much real estate in your own name before the banks will stop lending you money. Thoughts? [link] [comments] |
| Posted: 21 Nov 2020 05:17 PM PST When you sell a house, do you have to pay high taxes (30%, I believe) unless you live in it for a year. Is there a way to decrease this amount in taxes if you want to flip it within the year and sell ASAP? Any helpful information will be appreciated, thanks. [link] [comments] |
| Posted: 21 Nov 2020 07:04 AM PST I'm debating 🤔 on getting a multifamily property 🏠, I'm turning to reddit for advice . I was going to get a four plex, the price is above what I expect to pay, but I am enticed by the cash flow. People are telling me to avoid the area due to being a Class C neighborhood, with limited access to groceries and majority of people are lower working class. The purchase price is $489,000, my offer would be $460,000 (been on market 81 days), cash flow is 4.4k , expenses not listed assumed 1.5% of offer at $6900 yearly; mortgage is $2,750 (30k down)built in 1960. In terms of safety the neighborhood has relatively high crime rate. My assumption is that since they are across a high school it should be safer, but this might lead to teen loitering situations. I'm willing to put in the work to increase its value and find good tenants (currently occupied)but I'm scratching my head and wondering why anyone would not buy the property. Thanks 😊 any advice is appreciated. Attached is the listing realtor link [link] [comments] |
| Posted: 21 Nov 2020 04:27 PM PST I'm helping an older family member prepare for the sale of their primary residence that they've had for decades. It's mostly appreciation so they're looking at a lot of income that will be taxed even after deductions. The building is a multi family with an additional unit that has been rented since day 1. If I'm not mistaken, they cannot 1031 exchange their lived in, main unit. My question is: can they 1031 the value of the rented unit into other investment properties? I've read that they can but would like some other thought on this topic as it's very important to me to help them. I don't want to miss any steps. [link] [comments] |
| 3 amazing countries to invest in. How to choose? Posted: 21 Nov 2020 12:26 PM PST So I'm new to real estate investing and am truly in my learning journey and need some advice about my situation. I'm an American citizen living in Australia and will likely gain citizenship here next year. My wife is Canadian and our long term plan is to move back to North America, likely Canada at some stage. We currently own a townhouse in Australia that would be a great rental property in the future. We also have 2 condos on contract in Canada which will close in late 2021 and the other in early 2022. Given our international situation where should we focus our investments? Besides taxes, what factors should we be weighing up in our decision of where to invest? [link] [comments] |
| How do you have multiple people on a mortgage loan? Posted: 21 Nov 2020 04:08 PM PST Looking to buy a home, and my family wants to all chip in. 3-4 people. Am I able to have multiple people on a mortgage loan? [link] [comments] |
| Downsides to reaching out to Selling Agent before your own agent reaches out Posted: 21 Nov 2020 06:36 AM PST What are the downsides of reaching out directly to the selling agent before your own agent reaches out? Looking at a property that I'm assuming will move quickly, but I know my agent is going to have a busy day, so I want as much info as I can get ASAP, without cutting my agent out of the process. Bonus question: Why do some listings only show exterior pictures? Is it generally safe to assume that the inside is in rough shape or there may be something they're trying to hide when they make getting any additional information contingent on the acceptance of an offer? [link] [comments] |
| House for parent... not sure of best path forward Posted: 21 Nov 2020 01:54 PM PST It's a long story but I need to move my elderly mom to my city. She can't afford to buy a house on her own near me. She is on a fixed income; I'm willing to buy a house and rent it out to her for an amount she can pay. I'm not sure how to make the best of this. If I put 20% down and buy a house on 30 years, it will likely operate at a couple hundred dollar per month negative cash flow to me. I could put a lot more down. If I did that, there would be a positive cash flow. A negative cash flow isn't necessarily a loss in my mind. I'd be paying off a house for a very cheap to me amount per month. When I retire I would have a paid off house that I can rent to someone else for a good price that will be a nice amount of income for me. I'm not sure what the best path forward is, not sure of any tax implications this situation brings, not sure if I should quickly start an LLC, and am just looking for any advise if any of you have ever been in this situation before. I am planning to try to find a CPA that I can talk to virtually in the next few weeks. Thank you for any thoughts. Edit: My primary residence is paid off. I have also considered buying a new house that I would move into, and renting the existing house out to her. Still considering that option as well. [link] [comments] |
| For those that send out mailers, what service do you use and why? Posted: 21 Nov 2020 01:09 PM PST I received a letter the other day that by all appearances and touch the envelope was hand written with an ink pen. Curious if such services exist for this. [link] [comments] |
| Conventional loan or LoC for first rental property? Posted: 21 Nov 2020 12:57 PM PST Any feedback is appreciated. In the process of buying my first rental with a conv. loan. Purchase price is 62k and dp is 15%. I'm fairly certain I can get approved for a 50k LoC at my bank. I'm trying to understand if that's the better option. The down payment for myself is similar for both scenarios, but with the LoC I dont have the loan closing costs. I'm assuming for many of you the main factor for this decision would be what the ARV is. If its not high enough for a refi to make sense, would you just keep the conventional loan financing and forego the refi? Conversely, if it is high enough to pay off the LoC and give me some cash back, isn't that the correct play? For example, even if it only appraised after rehab at 80k, I can get a 64k refi on it and cash out well over 10k. That won't be all the money I have in it, but most of it. If I'm confident the ARV is 80k or higher, do I go LoC buy then refi route? Thanks! [link] [comments] |
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