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    Tuesday, November 24, 2020

    Real Estate Investing: Any way I can refinance my duplex (house hacking) without 2 yr work history?

    Real Estate Investing: Any way I can refinance my duplex (house hacking) without 2 yr work history?


    Any way I can refinance my duplex (house hacking) without 2 yr work history?

    Posted: 23 Nov 2020 05:30 PM PST

    Hey guys and gals, I want to capitalize on the low interest rates but I went back to school for my doctorate and now I don't have a current work history. I work periodically part time but nothing very regular.

    I bought a duplex in 2018, for 150,000 ish using an FHA loan. Current amount is 142k on the loan. One side has been rented out for $725 the entire time (rent for similar duplexes on my street is about 800), tenant is a peach and I live in the other side. Total cost a month in mortgage, taxes/pmi is about $1300/month.

    Curious if there is a way to refi into a low interest rate (mine is 5.5%) during this time or if I just need to wait until I graduate.

    Thank you to anyone who replies.

    submitted by /u/Biased1
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    Thinking about handing over to a property manager

    Posted: 23 Nov 2020 06:49 PM PST

    Got into owning rentals in 2016 and my wife and I now have 10 units across 5 properties (mix of multi family and SFH). I also have a full time W-2 job, I'm a Realtor (do ~10 deals per year to people within my circle), and we've gotten into flipping houses the past few years. Each of these 'jobs' are going pretty well, but I'm getting to the point where I can't juggle it all. I've managed my own rentals up until now, but I'm thinking that may be the easiest thing to give up to free up some time. Seems like the best "bang for buck" so I can focus time and energy in other areas.

    I've thought about it before, but always been afraid of taking my hand off the wheel. I think I've found a good local PM and the cost of managing will be offset by the reduction in price from refinancing all of my mortgages at lower rates.

    Wondering if any of you had success (or failure) stories handing over to a PM after managing yourself? Any tips or best practices? Thanks so much in advance!

    submitted by /u/mferna9
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    Best alternative to Cozy?

    Posted: 23 Nov 2020 05:22 PM PST

    I have a tenant moving in over the next few weeks and was planning to use Cozy given the great reviews. Turns out Cozy is now part of apartments .com and the platform keeps breaking for both myself and the tenant. Any good alternatives? I already have a lease so collecting rent in a more professional way is the main goal

    submitted by /u/somethingabout4
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    The Checklist Manifesto

    Posted: 23 Nov 2020 06:13 AM PST

    So I've recently finished reading The Checklist Manifesto i'm just wondering if any of you had applied checklists to your investment careers and where and when you use them? Also if you wouldn't mind maybe sharing some of the checklists you use and what they are for?

    submitted by /u/Hundred_P
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    New to commercial property development and concerned about a property with wetlands

    Posted: 23 Nov 2020 03:08 PM PST

    My partners and I are looking at two adjacent pieces of land to put a bar and park in. Building a simple metal structure.

    We just got the environmental study from owners where one property has .71 acres of wooded wetlands and .81 of non wetlands. But the wetlands is like a big "blob" that pretty much takes up the center of the land with the edges of the property outside of the blob. The blob in the study also ends at the property line but looks like it would extend into the next property as wetlands ( no study done for that yet)

    I've heard that you basically can't do anything with wetlands, even clear walking trails, unless you go through the mitigation process.

    We're not in any rush to get into a property with covid-19 and have other properties to look at, and wondering if the wetlands is just a big time and money suck as we've heard.

    Any advice?

    submitted by /u/Power-Bottom-Fudd
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    CARES Act Doomsday

    Posted: 23 Nov 2020 10:16 AM PST

    The CARES Act has postponed any holders of GSE backed mortgages from foreclosure until Dec 31st 2020. Non judicial foreclosures can take ~35 days. Are we going to see a massive influx of foreclosures and sales by delinquent mortgage borrowers in January and early February or are lenders taking actions themselves to mitigate the amount of foreclosures?

    The number of mortgages on forbearance programs is still about 7%. I haven't seen anything about a CARES Act extension on this.

    https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/mortgage-relief/

    EDIT: Its probably pretty rare that non judicial foreclosures will complete in the minimal time frame. Rephrased the original question to be around sales as well.

    submitted by /u/TurboStrat
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    Looking at a triplex in my area, whats your best guesstimate of the mortgage price?

    Posted: 23 Nov 2020 12:02 PM PST

    Im looking at a triplex in my area to purchase as a income property (buy and hold) my 2 options are either an owner occupied FHA with 3.5% down ($11,200) and pay PMI, or to just buy with a traditional loan at 20% down ($64,000)

    I have the cash to do either. My credit is as good as it gets. (751) My question is and I know that this depends on a variety if factors and there's no way to get a solid answer without talking to some lenders. What do the more experienced investors think the mortgage would cost monthly? Again I know I can't get an exact answer but what is your best guesstimate on monthly mortgage cost for both scenarios. Just looking for ballpark figures so I can guesstimate cash flow! Thanks.

    submitted by /u/DSTNCT-G35
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    Trying to get started

    Posted: 23 Nov 2020 03:40 PM PST

    I live in Southern California where the cost to get into the market is really high as some of you may know.

    I have family in the Midwest where homes are much cheaper. I was looking at a property in the 90-95k range. I have the means to put 20% down and with my income I should qualify for a loan.

    If I am looking at this correctly if the home is 95k and I am putting down 20k that should leave me with a loan amount of around 80k. The home has already been rehabbed so there isn't much work to put in.

    Loan payment would be around 400/month. Taxes around 80/month. Insurance let's say 50/month. So all in every month around 530$.

    When looking at the other properties for rent in the area I should be able to get around 1000-1100/month in rent.

    Is there something I am missing for why I shouldn't do it? Something else to consider?

    submitted by /u/Independent_Pace2796
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    Can you gift rental property to an INFANT child to save on taxes of rental income?

    Posted: 23 Nov 2020 02:34 PM PST

    Question is the title. What are the laws around this? If not able to give to an infant, then at what age would this be possible?

    The thought is that since they earn no other income, they would be taxed at a lower rate than me.

    Theoretically, would you also be able to put the rental money into a 401K for the child based on the rental income, thus further decreasing tax burden and also starting them early on tax free growth for retirement?

    submitted by /u/resetmypass
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    Mortgage lender didn’t provide me favorable rate - reason to be mad?

    Posted: 23 Nov 2020 10:34 PM PST

    Without getting into too much detail I'm closing on my first rental soon and my lender advised me to go with 25% down and no points.

    Sadly my credit wasn't great and somehow had a 5%+ rate. I was determined to get below 4% and asked how I could and was recommend I pay off my car loan etc. After spending a few grand more and not getting the credit improvement I wanted, I asked if I could put 20% down and buy points.

    After being told it wasn't wise, I still requested the rates and found out by going 20% and buying max points allowed, im coming to the closing table with less money owed and a low 3% rate.

    The literal only con is less equity. Amortization calculator shows I save over 25k my way. Investor friend agree and all.

    My only question is, why wouldn't my lender recommend this route? Do I have a reason to be mad he advised me to pay off good (and unnecessary) debt? I thought they were there to help the customer. Not look for their best interest...

    submitted by /u/soyerom
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    Refinance first or buy investment property?

    Posted: 23 Nov 2020 02:59 PM PST

    Need some guidance here. I recently got divorced and I am keeping the marital home we owned. The transfer of title as well as mortage is pending. My mortgage lender said that I can transfer the mortgage with a $2000 fee, keeping the same terms and the same lender said I can refinance with about $5000 fee, changing the terms of the loan. As the rates are historic low right now, I have decided to refinance. In the mean while, I am looking to buy an investment property on the side to take the benefit of the low mortgage rates as well. I need guidance on which one should I do first? And is there something I need to keep in mind before considering this? Thanks for all your help, in advance!

    submitted by /u/Hobbes898
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    Better mortgage - Refinance waiting for almost 2 months - suspicion

    Posted: 23 Nov 2020 08:49 PM PST

    I am ready to close but the closing team said it's on the last stage of underwriting, blaming the title company has been working very slowly. They said they've been checking with the title company on daily basis and there's no workaround or any way to escalate further.

    I am starting to worry. They have been automatically extending the lock rate for 2 months because this is a pending action from their end. Should I be worry?

    I am suspecting that they might be blaming the title company but behind they might be waiting for someone to purchase the mortgage instead of taking me to closing.

    Location: Chicago, IL

    submitted by /u/banana-nananana
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    Estimating how features affect home price (software, formulas, etc)

    Posted: 23 Nov 2020 05:03 PM PST

    My partner and I are planning on developing a lot into a community of around 20 single-family homes. For the buildings we will use modular/prefabs we can get very affordably, and we are trying to determine which features to include in each building.

    I was wondering if there is any free/cheap software tool or method to quickly estimate how much features like a garage, number of stories, number of bedrooms, etc affect the total price of the home in a given area.

    So far I've just been comparing listings manually but it is not time efficient and probably not too accurate.

    submitted by /u/TrendNowapp
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    Lots of questions - home warranty/CPA/refi with lien

    Posted: 23 Nov 2020 07:27 PM PST

    In have several questions, let me start with some backstory.

    I bought my first home in may of last year for $175k. I used a first time home buyer down payment assistance program that gave me 10% of the purchase price (I loaned another 10% from my 401k because PMI is dumb). The money given to me is in the form of a 0% interest loan that is forgiven over 5 years. At the time I would have qualified for about a 4.1-4.2% interest rate, but with the program I had to take a slightly higher rate of 4.75%. my mortgage/insurance/taxes are about $950, and I think I could rent for about $1300-$1400

    I am planning on buying another house this summer and renting out my current house. So here are my questions

    1) when we bought our house we requested a home warranty (through 2-10, if that matters) and it has been a lifesaver. In the first year we used it to replace our ac condenser fan, our HVAC control board, and our water heater for a $70 copay each time. Does anyone use one for their rentals? The house was built in 2004, so while it's not old it is old enough that a lot of the original appliances are starting to show their age. The ac unit was replaced about 5-7 years ago. But other than that, it was all the original appliances.

    2) at what point do you get an accountant to help with your financials? Does it have sense to get one the first year and then try it on your own? Or is it not worth the added benefit of paying for one with just one property?

    3) does anyone know how I might be able to refinance with the second mortgage/lien? The lender referred to it as a second mortgage, but after digging in deeper it looks like the program considered it a lien? Either way it means the same to the lender I'm trying to refinance with right, that they won't be first in line for money if something goes wrong? Or am I way off here?

    4) technically the program expects me to be in the house for 5 years, does anyone know if they will know that I moved? I know that selling it will notify them, but I can't see how renting it out will.

    submitted by /u/Siixteentons
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    LA County Housing Market

    Posted: 23 Nov 2020 09:43 AM PST

    Hello All,

    I've been on the hunt for my first investment property for over a year now and it's been insanely competitive. Mainly been searching for a multi unit property. I've been pre-approved for up to 900K and I'm trying to utilize my VA loan.

    As I'm trying to purchase at a discount, it's hard to even get considered when others are offering above asking price and using more traditional loan types.

    Any fellow California investors with some advice for a new investor trying to get his foot in the door in this type of market?

    Thanks for your time.

    submitted by /u/Either-Reality8274
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    How do I find cap rates?

    Posted: 23 Nov 2020 07:17 PM PST

    So I'm in the middle of a real estate finance class in uni and the cap rate is always given for problems. Like cap rate going in is 7% and cap rate going out is 11%. How do I get at these numbers in real life?

    submitted by /u/M1lls43
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    New Investor with a question on evaluating a flip

    Posted: 23 Nov 2020 07:10 PM PST

    I am a new investor. I own one rental property but it was a ready to move in.

    I am currently considering flipping houses (I have some handy many experience, and know some friends in the trade that are willing to help out) . I am also not afraid to get a GC or hire out for the larger projects. But I have some questions on evaluating a property to see if it would be a profitable flip or not.

    I have read two books on flipping houses, so I feel that I am understanding how to evaluate a flip.

    But when I am running numbers, it just doesn't seem right.

    I am living in Wisconsin to give some context on the area.

    Purchase price of the house is listed at $150,000

    In the listing they said the VRP is $150-$200k but will need new baths, kitchen, windows, and exterior doors, mechanicals, soffit, gutter, facia, siding.

    Below is what I have:

    ARV: $190,000 (is where I might be going wrong?)

    Repair Costs: $88,000 (The listing says the house will need new mechanics, siding, windows, kitchen, bathrooms, potential drywall due to smoker living in the house and flooring.

    Realtor Fees: $12,000

    Holding Costs:$1,800

    Closing Costs: $5,000

    So my offer would be coming in around $75,000. But that doesn't seem right to be $75k below asking (or does it?)

    Looking for some help on my evaluation and is something this large of a project be the first for a new investor?

    submitted by /u/AMMiddleclass
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    Trying to get a fha loan for a property I won't be able to occupy right away

    Posted: 23 Nov 2020 11:36 AM PST

    Looking to go through with buying a 3 family property which is currently fully rented. I wanted to go through with an FHA loan as i can only afford a 10% down payment at most, and wanted to live in one of the sections. However, due to covid and everything else...i wouldn't want to kick out any of the tenants without giving a fairly long notice, as they have been living there for a long time. The tenants don't have any leases and are on a month to month basis. FHA loan requires owners to occupy the property within 60 days, is there anyway around this?

    submitted by /u/The-WanderingBread
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    Reliable Handyman in Atlanta area

    Posted: 23 Nov 2020 06:40 PM PST

    Hi all,

    Anyone have recommendations on handymen /women in the Atlanta area that they use? Closing on a house in December and the house might need some light repairs.

    Thanks!

    submitted by /u/runnershigh1990
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    Is there any preference when it comes to real estate investing between condos vs single family vs multi family?

    Posted: 23 Nov 2020 06:18 PM PST

    Particularly in Boston

    submitted by /u/officialjoeshmoe
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    Naming companies?

    Posted: 23 Nov 2020 02:15 PM PST

    I am incredibly frustrated buying deals from wholesalers. I feel like it's not a mutually beneficial relationship most of the time. I feel like In my area there just isn't much meat left on the bone. So I decided I am going to try to source my own deals. I got a PropStream account and was going to make some mailers. I don't have a company name or website or anything. And I'm sure I'm over thinking this but I was thinking along the lines of "last name" investment group. I like the idea of a company with a website on my mailers. I get mailers all the time and they just say we want to buy your house for cash. Okay fine but who are you?
    So I want to list who I am and what we do on my marketing. I guess has anyone had a scenario where they had identifying info on real estate anything and it ended badly? Do I have any negatives marketing under my last name or should I just be all generic with the name?

    submitted by /u/n8_S
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    Loan options for investment properties?

    Posted: 23 Nov 2020 12:08 PM PST

    Hello, I am currently looking at my first property to invest in. The property is listed at 1.2M and has comps that sit between 1m-1.1m. Only debt I have is my mortgage for my current home, and I currently am working on sorting out my finances for a possible 10% for the downpayment. Is this possible? I do not qualify for a FHA loan due to the loan value being over 749k, so any suggestions on what loan type i can look for?

    Additional info- property is a 3bed1bath house in the front, with Two 2 story apartments in the rear. So i might be able to say I am owner occupying the front house?

    submitted by /u/Hobo840
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    A few questions for anyone who knows about investing in real estate as a 'company/business'.

    Posted: 23 Nov 2020 11:58 AM PST

    Hi all. Thinking about getting into real estate investment within the next year or so. I am hoping I could get some guidance from anyone who knows about buying property as a business. I have a few questions maybe someone could help with:

    1. Is it wise to buy a rental property as an LLC? I believe, theoretically, it offers better protection (i.e. personal liabilities). Any other advantages/disadvantages it would offer? We have also considered buying as an S-Corp but there are so many fees and rules associated with incorporating that an LLC seemed best for us as small scale newbies.
    2. If we purchase as an LLC, we were thinking of where to set up the business. I know Delaware, Arizona, Wyoming, etc have benefits, but I also read they are outweighed by the drawbacks for most businesses. Seems like people suggest incorporating in your home state to avoid double taxation. But this also seems to apply to companies that do business in-state. Investment doesn't really happen anywhere finite though. If our business is buying properties across state lines and investing in stock, would that make registering the company in one of those 'business-friendly states' preferable?
    3. We are proceeding cautiously as we are still beginners. We plan to use capital as a downpayment on a first property and take a mortgage on the rest. Our business has no credit line. Does anyone know if one of us can take the mortgage under our name on behalf of the company? Any specific types of loans/mortgages that would suit a first-time buys/ business?
    4. Is there any further advice or suggestions you'd offer based on what you've learned thus far?

    Thanks a bunch for any guidance you can offer!

    submitted by /u/MystaED
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    Change primary residence to investment property & upgrade to a bigger primary residence 2 houses down?

    Posted: 23 Nov 2020 11:47 AM PST

    Hi REI community, I'm reaching out for advice because I'm struggling with nailing down my 5 year plan! We are both frugal people & that can make it hard to make decisions that aren't rooted in a 'need'.

    About us: We both have credit scores over 750. I work in drug development research for $50K and will be moving to a new company by early 2021 to increase my salary to a minimum of $65K. My SO will be working as a nurse (a minimum of $50K) by summer 2021. We both have savings >$10K.

    Location: Midwest, urban city of 250K, 10 minutes from downtown. Neighborhood is up & coming with an influx of restaurants/businesses. Home prices for SFH have jumped, you can't even find a nice place for $150K anymore. We feel lucky to have bought when we did!

    My SO (26M) & I (27F) bought our SFH in 2017 for $150K. We put 10% down, used a 7 year ARM & our interest rate is 3.375%. Remaining mortgage loan as we speak is $126K. Our PIT is $915/month, homeowners insurance is $500/year. Tax assessed in 2020 at $170K, Zillow market value estimated at $200K. It's a 3 bed/1 bath 912 sq.ft. home with 2.5 car garage and full size unfinished basement. Something unique about this house is that it has all concrete block walls and foundation & the floor is spancrete! It would take some serious effort to do damage to this house as a renter lol.

    The property I have my eye to buy & live in is 2 doors down & Zillow estimates to be market value of $277K. Tax assessed at $223K. The current owner is an older lady planning to sell within the next couple of years. From what I can see it looks to be well taken care of.

    So, my SO's dad is mid-60s, healthy, and owns 2 SFH, 1 MFH & 1 4unit apartment building. Because of that, we've always had a plan to also be REI since we are familiar with the territory. Now what is confusing me & my 5 year plan is that we think our current house makes for a great rental property. BUT, my SO's dad wants us to buy any of his properties like anytime now.

    On to the 5 year plan:

    So knowing that I don't ideeeeally want to live in our house much longer (willing to do another 1-2 years) -

    Do we aim to keep our current house as a rental property?

    Or sell & aim to buy one of dads (I don't even know how that would work - but they are all valued between $200-$500K)

    Happy to hear any and all opinions!

    submitted by /u/opinionsofalice
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