Real Estate Investing: Closed on my 2nd Property (Here are the Details) |
- Closed on my 2nd Property (Here are the Details)
- Help with identifying potential foundation/settling issues
- Inherit or sell
- Can a tenant hold up the sale of a property during Covid in Washington, DC?
- Foreclosure Moratorium and covid.
- Helping a friend with a rental LLC
- Based on your experiences, would you still choose to buy a rental or instead put your $ in the stock market?
- Cash flow in the Arizona New Mexico markets
- Where should I store money I’m saving to buy real estate? (Cross posting from personal finance)
- Real estate professional status?
- Does installing a ducted stove hood increase a home's value in NJ?
- Buying rental property before a primary residence
- Buying Four plex problems
- New investor with buy and hold plans
- Analyze this house-hack deal
- Offer accepted!
- Why do people care about number of units over money made?
- Down Payments and Rates
- HOA Proposing New Amendment
- Can I avoid PMI on an investment home by using a home equity loan for part of the down payment?
- Job Offer Non-Compete Clause
- SFH size that gives you the best value?
- How do I make it to the next step, scale up my business?
| Closed on my 2nd Property (Here are the Details) Posted: 13 Nov 2020 01:21 PM PST Hey Guys, I closed my 2nd property. It's a Duplex I did a post on my first property. Here is the Reddit post to that Back Story I live in Toronto and invest in smaller markets outside Toronto (because properties barely cash flow here) When I went for an inspection here, there was a sign on this property that said "Slum lord's Bait Shop" (it's on the image). The tenant who put it up there told me that he was upset with the deferred maintenance on unit which is understandable. His unit has roaches, mice etc. His ceiling has a whole (swipe to see it). This property is need of some love! Some Number I was able to get a pretty decent deal on this. Here are the numbers: · Purchase price: 115K · Rent: $1,740 ($840 for the lower unit + $900 inclusive for the top) · Expenses: $1,100 (Taxes, Property Management, snow ploughing, vacancies etc) · Cash Flow: $640 The tenants living upstairs left on closing. His unit needs some minor renos about 5K to 10K. But once we do that, we should be able getting the following numbers · Estimated After Repair Value: 175K-185K · Estimated Rent: $1,940 (after redoing the upper unit we can slightly increase the rent) · Estimated Expenses: $1,000 (the new tenants will pay their own utilities) · Estimated Cash Flow: ~$940 A little bit of Motivational reason as to why As sappy as it may sound successfully finishing this is like a my dream of mine!! But managing renovations 400km will be tough! I am going to have many stressful days and sleepless nights. I have to have to sacrifice my evening and my weekends. And still I might fail. Shit! I heard Kobe once something like… when you have a real dream then you are willing to give it all and be willing to accept the possibility that you might fail even if you gave it your best shot and accept the fact that you were not good enough to achieve your goals and if you can do that… that's when you have a real dream.. Let's see how it goes.. If delete my reddit post in a couple of months that means this project probably when bad! Haha im Joking😉 Let's Connect! I believe Network = Net worth! If you guys want to connect with feel free to reach to me. Here is IG account: https://www.instagram.com/p/CHfxEq2BEfY/?utm_source=ig_web_copy_link [link] [comments] |
| Help with identifying potential foundation/settling issues Posted: 14 Nov 2020 02:04 AM PST House built in 2007. Trusted inspector found no foundation issues in 3/2 SFH with attached garage. However, there are the following signs. Hairline crack in master bath floor tile near door about 1 foot long across two tiles. 3 separate doors don't latch correctly due to deadbolts not extending. Garage, back exterior, and master bath. Exterior door rubs jamb. Also, 2 hairline cracks in garage ceiling about 1 ft long two different locations. Any thoughts advice appreciated. House numbers look great with about 15% ROI in A neighborhood conservatively. Appreciation should push ROI higher but running very conservative numbers. Cash flow 350 with 216500 purchase price. [link] [comments] |
| Posted: 13 Nov 2020 08:18 AM PST So my dad left me his house in his inheritance. He bought it a LONG time ago.. it's been long paid off and it's been well maintained and remodeled maybe 10 years ago so I don't foresee any massive investments for repairs short of what I'd like to do. According to Zillow it's "worth" $600k. (FWIW) I have no real estate investment experience nor cpa knowledge on this aspect of revenue and such. Where would you suggest I start? My concerns are: Manage myself or property management? How do I claim it for income and taxes? How do I minimize my tax burden (monies paid) I'm certainly onboard to learn it. Alternatively, I could sell it and keep the cash for well, cash. [link] [comments] |
| Can a tenant hold up the sale of a property during Covid in Washington, DC? Posted: 13 Nov 2020 05:22 PM PST Hey Everyone, I am in the process of buying my first property. This is a 3 unit row-house in Washington, DC. We are close to the closing date and everything looks good but a new problem has come up. The only current tenants are demanding $10,000 in order to approve the sale. They are saying that they can stop the sale as long they want due to this order: https://ota.dc.gov/release/ota-legislative-update-covid-19-emergency-measures. Can they really stop a property owner from selling their property to any party until the emergency legislation is lifted? Seems a bit insane. [link] [comments] |
| Foreclosure Moratorium and covid. Posted: 13 Nov 2020 10:31 PM PST Is the foreclosure Moratorium having an effect on Flippers? Are they not receiving any more inventory which in turn would cause them to flip a lot less? Also with BRRRR investing contractors may not necessarily want to work next to each other with covid going around , has this impacted investors? [link] [comments] |
| Helping a friend with a rental LLC Posted: 13 Nov 2020 06:45 PM PST So a friend of mine recently acquired an investment property and he asked me to help him out with some of the administration of his properties. Because he's not an American citizen, he can legally own the rental but he needs someone who is an American citizen to sign certain paperwork (he used the word CEO for the LLC). While I have dreams of owning rental properties of my own some day I'm still pretty ignorant of the laws and responsibilities of this kind of position, much less from the whole non-citizen angle. From what he's told me it's mainly fairly easy stuff, he would be taking care of everything financially, he just needs a go-between to have everything be above board legally. I also think probably some compensation is called for but I have no idea what that might be, since I'm unfamiliar with what this kind of role pays and still pretty iffy on what it entails, plus the personal relationship muddies things a bit. Would you accept this responsibility? If so, what would be a fair amount of compensation to ask for, I'm thinking maybe a certain amount per task? He has a lawyer and I've requested more information from her about the legal risks and responsibilities. I want to help this guy out but I don't really know what I'm signing up for currently. [link] [comments] |
| Posted: 13 Nov 2020 10:17 PM PST For all of you out there who have owned and/or currently own rental properties...
Whatever your answer is, it would be great to know what city, state/country you bought your rental in and if it was a success or total nightmare. [link] [comments] |
| Cash flow in the Arizona New Mexico markets Posted: 14 Nov 2020 12:41 AM PST Who here owns rental property in Arizona or New Mexico? Are you cash flowing north of 10%? Or at all? With or without property management in place? Just checking to see if it's even possible in these markets especially considering the ever increasing home prices [link] [comments] |
| Where should I store money I’m saving to buy real estate? (Cross posting from personal finance) Posted: 13 Nov 2020 03:23 PM PST |
| Real estate professional status? Posted: 13 Nov 2020 11:24 PM PST Wife is interested in getting her notary license, and becoming a full-time real estate signing agent (not Real estate agent/realtor/broker, but mobile notary who specializes in real estate paperwork). She'll be doing this full time starting next year. My ask is if we'll be able to consider her a "real estate professional" or not, and be able to leverage pass through losses into our married combined tax filings or not. [link] [comments] |
| Does installing a ducted stove hood increase a home's value in NJ? Posted: 13 Nov 2020 07:00 PM PST I'm planning to install a ducted stove hood and get rid of the ductless stove hood I have. I wanted to know if anybody can help me with this question. Thank you in advance! [link] [comments] |
| Buying rental property before a primary residence Posted: 13 Nov 2020 02:46 PM PST I'm currently in a HCOL area but am paying well below market price($600) since we're renting my fiancé's parents house. We love where we live but also want to get started in building a RE portfolio. We've thought about sticking to holding our properties and eventually flip some perhaps but we're interested in long term income. We currently bring in about 200k/year together and have about 100k in Savings. Given my situation would you advise to buy a rental property first? Thanks in advance! [link] [comments] |
| Posted: 13 Nov 2020 05:44 PM PST Just passed the option period on 4 plex. 1 unit is vacant. Realtor tells me 2 of 3 remaining tenants owe 1 month and 2 months worth of rent... Rents are also $150/ and $100/mo lower than what they originally told me. Only found out after pushing for them to show me the addendums for the rate increases that apparently never happened. No rent increases in 3 yrs for any unit. I still need to turn over tenants and improve the place. How would you handle this and move forward? [link] [comments] |
| New investor with buy and hold plans Posted: 13 Nov 2020 08:24 AM PST I created a post yesterday about considering starting REI in my situation, but it did not gain much traction, so I was thinking maybe if I could layout a potential plan I could get some critiques from those that know much more than me. Around here in Maryland in the farther out suburbs there seems to be no shortage on homes in the $100K-$200K range that could reliably cash flow (based on conservative estimates that include maintenance, PM, etc.) at least $500/month based on a traditional loan and 20% down. These are all fine middle income areas, with a steady working government and contracting workforce. Right now we live comfortably below our means with a combined $250K annual total family earning. I'm not too interested in the heavy leveraged plays that do work well for many of the folks here. Right now I'm motivated to take a cautious conservative approach where a big dip in the housing market does not stress me out. I just want to buy and hold and generate a consistent positive cash flow while setting myself up for retirement. I'm 38 years old. In my current situation, I could buy 2 of these $100K-$200K homes a year with reserves and emergency funding to spare. Is it realistic to build up a portfolio this way? What am I missing? I get excited to think of the potential, but I probably need my expectations tempered. I guess the goal is to eventually have a slowly growing steady flow of rental income and hopefully be able to back away from my 9-5 in the next 5 or so years. I have no delusions of getting rich quick. Also, we also have good equity in our current home, so the idea of renting it out at $3K/month after being free and clear in a few years is appealing. Appreciate any thoughts, advice, critiques. Thanks! [link] [comments] |
| Posted: 13 Nov 2020 07:08 PM PST Hi all, Looking for thoughts on a house hack I am thinking of doing on a 4 unit MFH: Purchase price: 1,280,000 (I live in a VHCOL area, this is actually a great price for the area and appreciation is very high (5-6% annual). Downpayment: 3.5% (FHA loan) -> 44,800 Closing costs: 2.5% -> 32,000 Mortgage: 5,042 (P & I) + 1,100 (FHA PMI) = 6,142 Monthly rent: Currently is 7k, but is severely under market value. Appraised rent is 9k. Operating Expenses for 2019: Property taxes, annual: 10,390 Water/sewer, annual: 1,442 Gas & electric, annual: 3,253 Insurance: 3,803 Total: 18,888 Monthly: 1,574 Income: 9,000 Mortgage + Operating Expenses = 6,142 + 1,574 = 7,716 This leaves me a cash flow of 9,000 - 7,716 = 1,284, which gives me a buffer for vacancies, maintenance, and other miscellaneous expenses. Given that I would be living in one of the units and not paying rent, I imagine I would basically break even, which is pretty good, right? Would love to know if I'm missing anything here or if there is anything I'm not accounting for. Please, poke holes in my plan! [link] [comments] |
| Posted: 13 Nov 2020 06:44 PM PST I got an offer accepted for a $50K 4 bed 1 bath in Kansas City. This is a remote deal. I'm estimating $50K of work with an ARV of $130K. Of course, my next step is to validate my estimates by sending an inspector and some GCs out. I want to BRRRR this. Only thing of note so far is that 1 of the bedrooms is actually a converted dining room, but the kitchen actually has an eat in area. Has anyone else dealt with this? Does anyone else have any tips on how to ace this moving forward? I am excited and nervous. [link] [comments] |
| Why do people care about number of units over money made? Posted: 13 Nov 2020 06:30 PM PST Something I've never understood is why people promoted the fact they own several units when no one brags about the money they've made per unit. For example, I would rather own 1 unit and make $2000/month off rent instead of owning 40 units that make $50/month each. It seems like way to much risk and headache for the same amount of money. I get that 40 units slowly appreciate over time faster than 1 but it also means you are 40x as likely to have a vacancy, bad renter or an expensive maintainence issue [link] [comments] |
| Posted: 13 Nov 2020 02:38 PM PST I have some money. I want to buy one place and I want to keep as much cash available as possible instead of buying it outright. I plan on living in the place for at least a year and then renting it out. Then paying off the mortgage with the rental income. I can make up any difference and even pay extra per month if needed. I'm trying to avoid paying interest and want to pay it off slowly. Is there some optimum down payment that lowers interests rates? Or anything like that? Paying points compared to putting the cash value into principal? I heard something about paying a month in advance And are there any tricks or anything to help add money to principal while lowering interest payments on amortizations [link] [comments] |
| Posted: 13 Nov 2020 04:19 PM PST My HOA just emailed me stating that in order to keep property values high, they want to start limiting rentals in my neighborhood. They are proposing a new amendment to enforce this. I have rented my property out for the past two years. No complaints or issues. I've been told by my leasing agency to research trends around ease of getting a mortgage in a mostly rental neighborhood vs owner occupied. They also advised I look at how highly rented neighborhoods vs non rented neighborhood compare in property value. Any tips on where to find this info? I'm joining the next HOA meeting to speak to their lawyer. Not sure what to ask? I want to be grandfathered in. Essentially allowed to keep renting my place rather than have to sell. My property is in a moderate cost of living city in TN. [link] [comments] |
| Can I avoid PMI on an investment home by using a home equity loan for part of the down payment? Posted: 13 Nov 2020 02:45 PM PST I currently have about 300K in equity on my primary residence, and I want to buy a two family investment home near me which will cost around 750K. I only have about $80,000 saved at this point but I would like to make a move sooner rather than later. Obviously to get to a 20% down payment I would need to borrow another $70,000, plus more for closing costs, etc. So my question is, will mortgage companies consider the money from this loan as a legitimate part of a full 20% down payment? Or will they see it is just as more loan that will keep me ineligible for avoiding PMI? The home equity loan rate would be approximately the same or a bit lower than the mortgage rate, and the local renter's market is still strong, so it seems like a win/win to me, if the whole setup is acceptable to the banks. Sorry if this is a stupid question, and thanks for any responses! [link] [comments] |
| Posted: 13 Nov 2020 02:17 PM PST Well, I have some great news! I have received a substantial job offer for a private equity firm for a FinTech role. However, I cannot accept unless the Non-compete clause is modified slightly. I have no intention to steal this firm's business, nor does my investing in RE create a conflict of interest. The firm invests a little in real estate too in the city I invest in(but it is a very, very large city), which technically means my continued investing into RE competes with their investment in real estate. I also have a good business partner who I'm planning on purchasing property with in the coming months. My plan is to buy many properties a year. The reason the firm hired me is because of my experience in real estate, tech, and accounting, and it would be bad for me if I were to be barred from investing for the next 4-5 years. I'm trying to as transparent as possible, and I hope that my first-hand experience doing my own activities will help the firm prosper, but I can't do that if I can't invest. How should I rewrite the non-compete to let me do this? Should I ask a lawyer? Should I rewrite the non-compete to exclude all real estate investing activities so long as I don't know the firm is looking to buy it? It should be noted that I invested in Multifamily and SFH that need a little work, while the firm buy properties for appreciation. [link] [comments] |
| SFH size that gives you the best value? Posted: 13 Nov 2020 10:15 AM PST Looking to invest in single family house in suburbs to rent it out. From your experience and knowledge, what sqft range (size) is best for rental. I have looked at 2000sqft +- 100 - this would be for family with kids making decent salary to rent. Tend to be in family friendly neighborhood 1000 +- 200 sqft for single dad or bachelor with roommate.. maybe couple without kids. But I don't know, is this too small to rent out? Ideally I feel most comfortable in 1500sqft house & I like to buy rental property that I can see myself living in. but there isn't many of those in my market and the few I came across seem to be priced similar to 2000sqft. Does size even matter and if so what is the best size. I am in midwest [link] [comments] |
| How do I make it to the next step, scale up my business? Posted: 13 Nov 2020 10:12 AM PST I'm a small landlord in a small town. I have 18 units, all group together within about a mile or two of each other. My units are all pretty nice, I have been updated somewhat recently and rent on the higher range of what's available in my town. We are located in an area with a booming population and increasing demand for housing and rental properties. I would like to continue buying more and continue growing my business. I just feel like I'm banging my head against the wall trying to find people to do stuff for me. Had a Carpenter who was working for me throughout the summer on a remodel, just stopped showing up and stop taking my phone calls. I asked if if he was pissed at me about something can you reply no, just too busy right now. He stopped right in the middle of a job so I got stuck finishing it. I met with somebody who does property management here a while ago. They want $100 per door to do the management. I know it's not a terrible price but for management alone I probably don't spend but an hour or two a week.... that's $1800 per month for some thing that takes almost no time for me to do. I don't have non-paying tenant or tenant problems and when you need to come up for rent get dozens of applications quickly. I tend to fill openings with just an open house and it typically rents on the first one. My biggest problem is maintenance. I just can't find reliable maintenance people. I sent an HVAC contractor over today to do a check up on a unit. The unit was five years old and he said it's in good condition but could use a capacitor and a new filter. The tuneup was $99 but the total including the filter and the capacitor was right at $300. I hate to be so freaking cheap but it's like $25 worth of parts and about five minutes worth of labor to do both. Seriously. It's that easy. I don't understand because I already paid him to show up and check everything, so it's not like he had travel time or anything. So I told him not to and I'll run by tonight and do both and then I'm sure eventually he'll get grumpy with me for being cheap and stop showing up to do my work as well..... What am I doing wrong here? I'd like to hire management and turn it over but so far the management companies I've talked to don't even have in-house maintenance. They're just using contractors like the guy above. I don't wanna be so cheap here that I miss out on an opportunity but that two or $3000 per month is the margin I've got on my properties. It feels like if I were to consider hiring property management I might as well just sell them because there's no risk that way. [link] [comments] |
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