Real Estate Investing: Duplex or single family home? Quality of duplex tenants seems lower. |
- Duplex or single family home? Quality of duplex tenants seems lower.
- How much should I have saved before getting into real estate investing
- What are your instant turn-offs when looking at properties?
- New Construction Investment Help
- VA Loan with best-friend?
- FHA loan with 0 money?!?
- HELOC as a resource
- What happens to remaining amortization (taxes) of a refinance cost after doing ANOTHER refi?
- ADU construction
- Long Distance Inversting
- What do you think a Joe Biden presidency will mean to the real estate market?
- How do you all calculate cash flow on a potential purchase?
- Rental property with a tenant not paying rent for 2yrs
- Would this energy-efficient door add value to my house?
- Confused on taxes, new rental/condo owner.
- Replacement for paynearme
- Do I need to funding to start wholesaling?
- I have $60k in the bank, a good job, and a 750 credit score. Im looking into buying my first rental, however my job is commission only.
- Cash out refi or sell?
- Duplex Metering
- A lesson on leverage and debt courtesy of UBS
- Downgrading my expectations on first househack/investment from a duplex to a condo. Afraid I'm missing something crucial. More details in the text of the post just looking for any insight into whether there's some giant holes in my calculations or what.
- Have an offer to invest in property in Dallas... Few questions?
- How much should appreciation play a role in decision making?
- Investing in non-traded REIT vs. traded REIT. What are the "pros" of investing in a non-traded REIT?
| Duplex or single family home? Quality of duplex tenants seems lower. Posted: 17 Nov 2020 04:57 PM PST I own 3 single family homes and am in process of purchasing my first duplex. Most places I do my research at say that multi-family is eventually the way to go. But most multi-family units (duplex to quadplex) are in lower quality parts of the city. I'm concerned with having constant issues with duplex tenants because I'm not sure the quality of tenant will be great. I do understand that the scalability of multi-family is easier but I'm not sure that outweighs having bad tenants. Any insight would be appreciated. [link] [comments] |
| How much should I have saved before getting into real estate investing Posted: 17 Nov 2020 06:14 AM PST Hi, I'm a complete newbie. I'm curious, how much should I have saved if I'm getting into real estate investing. Like obviously the down payment but what else should I expect to have saved up before I start looking. If I'm looking at 150k houses and plan on doing an FHA loan (house hack if I can), how much should I realistically save up? Accounting for down payment, closing costs, unexpected expenses or emergency fund, vacancy fund etc. I wanna get a ball park so I can start setting some goals. I have lofty goals and I need someone to level with me and tell me what I should have saved so I don't do something stupid lol. I was looking at 150k houses and was like "well I can afford that down payment" but I know it's going to be way way more then that before I even see a dime of any rental income so I really need someone to bring me back to reality lol. Edit: I am also only looking at houses I would be able to afford on my income without any rental income. So other than mortgage and insurance what unexpected costs of home ownership should I keep in mind? [link] [comments] |
| What are your instant turn-offs when looking at properties? Posted: 17 Nov 2020 12:55 PM PST I figure what bothers me is also going to bother most potential renters or future buyers. For example, I just looked at a house that had 2 large flights of stairs from the detached garage up to the front door. I thought about hauling groceries up during rain or snow. I didn't even need to go inside the house to know I wouldn't buy it. [link] [comments] |
| New Construction Investment Help Posted: 17 Nov 2020 08:07 PM PST Newbie getting into the RE world. I own a home with my wife that we live in currently but looking to invest in Florida. Here's my situation: I'm looking at a new construction 3/2.5 for $331k. Property taxes are roughly $500/month. Based on my conversations with realtors in that area, I can probably get about $2200/month renting it out. I will NOT be living in this house. I'm thinking of putting down 25% and borrowing the remaining. Assuming that I can get a 4-6.5% loan, I would be paying $1,300-1,500 + $500 (property taxes) + $150 (homeowners insurance). Conservatively, I'd be looking at breaking even monthly. Maybe I would make a couple hundred if I can get more for rent, lower APY, more capital, etc. The neighborhood is growing rapidly with new construction homes and renovations popping up monthly. So I feel confident in my investment that it will only grow. My intention is to rent it out for the time being and then sell once the house appreciates and appraises 75k-100k over the next 5-8 years. Hopefully, as the neighborhood grows so do the rental rates. If you were in my position, what would you do? I still have a lot to learn so any advice is gratefully appreciated. [link] [comments] |
| Posted: 17 Nov 2020 03:49 PM PST I'm currently a college student pursuing a Biology degree. I already work part-time making about $25k/yr. I plan on doing a master's program in Biostatistics in 2022 (I have a merit scholarship to go to any university in my state for free, no debt!). During my gap year the goal is to work and go crazy at getting my debt down. Once I graduate my income at my current job will increase to about $45-50k. I'll have $27k in debt by January 2021 (previously $30k). I'll be living at home when I graduate and my only expenses will be my car, groceries, and car insurance (about $500/mo. total expenses) My best-friend is in the military and we want to get into real estate by leveraging her access to the VA loan. She is stationed in a different state. Where I currently live (I won't disclose just for TMI reasons) has a much better market. This is different but we were thinking about getting married so that we can get a MFH via a joint VA loan since not only is the market where I am better but also she may be getting deployed. Due to the occupancy rules of the VA we thought it would be lucrative for us to be married so we could still fulfill the occupancy requirements by me living in it. She'll also receive extra money a month that we would use to save toward our real estate business. We're seeking to get a property between $150-300k, preferably a quad or a triplex but a duplex works as well. We want to live in it (by we I mostly mean me since she will either be deployed in another country or in the state she is currently in) for however long is required with the VA stipulations, refinance into a conventional loan and start all over again. We want want to do this before I begin grad school in 2022. Our main focus right now is paying off our debt, getting our credit up, and saving toward the business (repair fund, vacancy, funding fee, etc.). Between the two of us we both have about $57k in debt. Hers is mostly from her car and mine is mostly student loans. We've been great friends since we were kids but we still plan on getting an agreement of some sort arranged just to avoid any issues down the line. Our partnership works because I am more the ambitious and creative one while she is more detail oriented. We're on the same page with our goals. We've created spreadsheets together toward how we're both going to tackle our debt. We analyze deals together, created a tentative plan, etc. I believe this will translate well when we eventually begin investing. My questions: Is it even worth us getting married? Is this legal (lol)? If this isn't the best way, what do you recommend? Approximately how much do you think we should save for a property between $150-200k? Any other advice would be very helpful! Side note: We're both women for anyone that's wondering lol [link] [comments] |
| Posted: 18 Nov 2020 01:23 AM PST Basically I'm 18 years old and I have been working with my parents to find a house for me to live in next year, as an invest property for the future. I don't have any steady income but I am getting a (normal small) job for winter break and summer. If I plan to live in this home, would I be able to basically have my parents co-sign, pay them the rent money of all 4 other tenants, and then they give me money to pay off the loan under my name? Sorry if this is dumb I just want to learn and this is too specific to find info online. [link] [comments] |
| Posted: 17 Nov 2020 05:05 PM PST Howdy! Just want to say how much I appreciate this thread. It's a relief to hear from a community of like-minded people that share similar goals and approaches. My question today is about using a HELOC. I have a SFH that's occupied and rented out. Additionally, I owner-occupy an old, ugly duplex that I am interested in rehabbing. Has anyone here used a HELOC on an investment property? I ask about a HELOC against the investment property because it has significantly more equity than the old, ugly duplex that I recently purchased and want to fix up. Ideally: HELOC against the investment property, fund the rehab of the duplex, move in renters at a higher rate, refinance, pay off the HELOC? I appreciate this group's collective wisdom! [link] [comments] |
| What happens to remaining amortization (taxes) of a refinance cost after doing ANOTHER refi? Posted: 17 Nov 2020 04:52 PM PST I have a rental SFH that I did a refi on back in 2017. Since then, I have been amortizing the cost of the refinance on my taxes by the useful life of the loan, aka 30 years. If I do another refinance now, what happens to the remaining amount of the 2017 refinance that I have not yet deducted from my taxes? Does it accelerate and I get to deduct the remaining amount, aka 26/27 years worth? I know this is a highly technical question so if there are any CPA or investors out there with prior experience doing this, I would greatly appreciate it. Thank you in advance. [link] [comments] |
| Posted: 17 Nov 2020 01:45 PM PST Need advice on what to do. Background: Constructing an ADU in California (LA area). Current property: Lot = 10,000sq, Primary property = 1200sq, 3 rooms, 1 bath. Adding an ADU = 1200sq, 3 rooms, 2 baths Total cost of construction of ADU is $180,000 (this includes all city permits) I am looking at renting this at around $2500/month Questions: 1) The ADU will have its own address (separate utilities except water) a. Will have Solar panels (paid in full already), how have you guys managed this? Some people recommended we pay for electricity to take advantage of solar panels and charge them a different rate. Or just leave it and is an incentive for them? 2) Per my basic calculations the ROI (30k/180k) = roughly 16% might be less to account for vacancy and maintenance and such. a. Is this a good ROI? b. Should I refi (since property value will increase with the addition of the ADU) and reinvest in other properties? i. Or should I sell and take profits to invest in other properties (BRRR)? I believe I should make more than $500k profit if I sell the whole property (not just ADU). c. Leave as is and rent both properties (primary and ADU) would be looking around ($5000 monthly for both units minus $2200 for mortgage). [link] [comments] |
| Posted: 17 Nov 2020 05:48 PM PST Any have experience in out of state investments? How did you get into it? What are some tips or things to avoid. How did you form your team? [link] [comments] |
| What do you think a Joe Biden presidency will mean to the real estate market? Posted: 17 Nov 2020 10:27 PM PST In many suburbs and rural area the market is still red hot despite COVID. Big cities are looking at a downturn. What do you think he will do to maintain a hot suburb market and curb the big city markets? [link] [comments] |
| How do you all calculate cash flow on a potential purchase? Posted: 17 Nov 2020 10:26 PM PST I am brand new to this. 31yo actuary in Idaho and newly-single, always wanted to buy a duplex or otherwise house-hack with my ex but she was uncomfortable with it and I couldn't sell the long-term benefits. But now I can do whatever I want, and I want to be smart. I'm considering a duplex, and I have all the time in the world to figure out how to calculate potential cash flow. I'm decent with excel but don't know what all to consider or how to start. Am I asking the right question, and if not, what should I be asking? What things am I missing? Any and all advice appreciated! My goal is to do the typical "buy a property every few years —> prosper" thing but recognize I'm a total noob. [link] [comments] |
| Rental property with a tenant not paying rent for 2yrs Posted: 17 Nov 2020 10:12 PM PST We don't see these every day, but here I am running into one. Scratching my head trying to understand how nasty this process could be to take care of this, if I take this property. I'm in CA. According to the seller, there's no lease. I don't understand how that happens, but I do know that:
Appreciate if anyone have experience / knowledge on this could share what they learned. [link] [comments] |
| Would this energy-efficient door add value to my house? Posted: 17 Nov 2020 09:45 PM PST While I'm planning to rent out my house by next year I'd like to know if I decided to sell the house I can get a good amount for it. Would this energy-efficient door increase the value of my house? (U-factor of 0.18) [link] [comments] |
| Confused on taxes, new rental/condo owner. Posted: 17 Nov 2020 09:44 PM PST This year, I bought two condos. Never owned properties before. Currently in CA. Both properties in CA. One I am living in, the other I am renting out. My full time job is 145k. (I have other income that is cash from the projects I work on and referral fees etc. so total income is 200k but my taxed income is 145k.) The one I am living in is 800k and the one I am renting out is 1.2mil. I'm paying 1.12% taxes for each. I am getting only $2,500 in rent from my cousin who I am renting out to. I bought it solely to help my cousin out, not for investment property. (In fact, I have to shell out more money for mortgage payments but I'm ok with it bc my cousin needs financial help.)
Tips, tricks, advice, explanation, resources would be appreciated! [link] [comments] |
| Posted: 17 Nov 2020 03:45 PM PST Anyone else impacted by them cutting off the service? What did you do about it? [link] [comments] |
| Do I need to funding to start wholesaling? Posted: 17 Nov 2020 03:35 PM PST So I want to start wholesaling real estate, I'm located in southern California. I keep hearing some people say that "you need to be funded to start wholesaling". My question is what exactly does this mean? Do I need to have money to start wholesaling? If so, what do I need more for? Thanks in advance! [link] [comments] |
| Posted: 17 Nov 2020 01:12 PM PST So I'm 22, I have $60k saved from my sales job thats commission only, I know I need 2 years at a commission job to qualify for most loans and I have 5 months to go. I make anywhere from $6k-$10k a month and just hit a 750 credit score. My plan this far is to buy either a duplex or triplex with an owner occupied FHA loan at 3.5% down. Live in one of the units while fixing it up and rent out the other unit(s) eventually moving through and renovating each unit so I can raise rents as I go. Do you guys know of any programs that could get me into a property sooner than 5 months or is seller financing my only option? Do you have any other advice for a first time investor in rental property? Thanks in advance! [link] [comments] |
| Posted: 17 Nov 2020 12:02 PM PST Wanting to get into real estate investing, sorry if this sounds repetitive. Currently own one home, the value has gone up by about 100k. Would it be smarter to cash out refi, use it as a rental for probably $1600-1800 a month, and then purchase additional rental properties with the money. Or just sell and start over? Original mortgage is $240k, market value is 350-370k. Steady market with low available houses and rentals. Not sure which would be the best choice. [link] [comments] |
| Posted: 17 Nov 2020 06:32 AM PST I am buying a single family home that is zoned for multi-family. The house was previously a duplex but was converted to single family 4/3. Plan is to revert it back to duplex 3/2 on one side and 1/1 on the other. Question is, how hard and/or costly is it to set up separate metering for utilities (electric and water) ? There are two A/C units and 2 thermostats. Feedback and help is greatly appreciated! [link] [comments] |
| A lesson on leverage and debt courtesy of UBS Posted: 17 Nov 2020 11:58 AM PST From a recent WSJ article
High leverage can juice your returns and allow you to diversify into more projects. But can also put you on a knifes edge if assets underperform. Low leverage and low debt payments can help you ride out downturns. But if things turn too far you are the one holding the bag, not your lender. Finding the right balance can be a difficult exercise. I'm partnered in a project right now I don't 100% believe in. But as part of the debt package, I'm getting my initial capital returned. After that, it's just riding on pure gravy. If it works out great if it fails spectacularly oh well. All I've lost out on is opportunity cost returns during the initial period. [link] [comments] |
| Posted: 17 Nov 2020 07:29 PM PST I make a pretty low income in a hcol state. All the duplexes I find in my price range do not qualify for conventional financing options. It's honestly shocking to me as I've lived in far less habitable homes and paid rent to do so. It seems most hard money lenders want investors with decent liquid assets not owner occupants. Condos have lower taxes, less cost for maintaining and are generally 20-30k cheaper than homes I've looked at. And while it's not the ideal place I'd like to reside... It's seeming like the safer choice financially. 28k income..at least according to lenders who won't count my part time 10k a year gig because I haven't been there long enough. 700ish credit score. 14k in savings. All the houses single or multi family in my target range of 80-90k don't qualify for financing. Somehow 60-80k condos with far cheaper taxes do. HOA fees I'm seeing around $200 a month. [link] [comments] |
| Have an offer to invest in property in Dallas... Few questions? Posted: 17 Nov 2020 06:59 PM PST I have a chance to buy a place in Dallas where the houses are cheaper than here in Cali. Agent I was in touch with offered me few neighborhoods where I can pick houses from so I can turn it into a rental property. (Anna, savannah, Aubrey and few more) Anybody who invested in real estate in Dallas have and insight on the market there? Also any good neighborhoods I should look into? Also any tips in general welcome! It's my first time investing on something big and I want to make sure I do it right! [link] [comments] |
| How much should appreciation play a role in decision making? Posted: 17 Nov 2020 09:03 AM PST I am thinking of buying a property for rental. The numbers work well with appx 10-14% ROI. However, the appreciation on property will be minimal, if any. Should I be concerned about appreciation in making this decision? [link] [comments] |
| Investing in non-traded REIT vs. traded REIT. What are the "pros" of investing in a non-traded REIT? Posted: 17 Nov 2020 09:25 AM PST While I am not new to investing, I have not previously invested in REITs. I understand the concept and am interested in diversifying into real-estate. Currently all my wealth is in stocks. (I am also looking into purchasing rental properties but that's another story). I also like the idea of some guaranteed decent dividends in addition to equity potential. My financial advisor has suggested in investing in a non-traded REIT from Black Creek Group that invests in industrial warehouses used by logistics firms and firms like Amazon etc. It seems like a solid area to invest in. My question is this: with this investment my investment will be locked in for an indefinite period of 5-7 years. With a traded REIT I could sell at any time. So what is the pro/con here - is there typically more upside potential with a non-traded REIT? Why would anyone investment in a non-traded REIT? Appreciate the insights in advance! [link] [comments] |
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