Real Estate Investing: First True Investment Property and BRRR-ish |
- First True Investment Property and BRRR-ish
- Zero Salary tax through real estate depreciation?
- How many mortgages can you have at a time?(multi-family homes used as rental properties)
- Multi unit housing dilemmas in rural communities
- Any suggestions on how to move my money to make a deal happen -- IRA, 401(k), Universal Life, cash etc.....
- What is your evaluation process on a potential property like?
- How much NW into First-Time House Hacking Deal?
- Best Rental Real Estate Investing Books
- Anyone tried RE syndication through limited partnership?
- Finding an investor friendly buyer realtor
- I’m hungry
- Rental renovation
- ISO of a creative loan officer in SoCal
- Have second mortgage on investment property. want to refinance
- Finding Owners of Abandoned Houses in NJ
- Rental property or Racing build
- Where to store reserves? I'd like to make some interest
- Liston a property — Brokers listing contract says “Closing is not a prerequisite to the broker earning their fee” how unusual is this??
- Finding/keeping tenants
- Buying 20k homes with cash to rehab and rent
- Should I use hard money to build a duplex?
- Does anybody have a data source for homes in forbearance?
| First True Investment Property and BRRR-ish Posted: 22 Nov 2020 04:14 PM PST Hey guys, first real post. I just wanted to share the story of my first full renovation that I utilized a few strategies on and gather insight from the community! The numbers: I purchased a 1940s 3/1 home in the Florida panhandle that was severely distressed, but bones were solid. Purchase price was $40k and was able to find a HML that did 80% LTC precovid. I estimated renovations to be another $40k. We wanted to convert it to a 3/2 to add real value. They gave me $64k and I was able to secure a loan from my dad of $36k. The increased amount from my dad was to show reserves to the HML. I estimated the renovations to take 3 months. ARV estimated at $120k(this was a very conservative estimate.) This deal went south fast as the actual renovations took 6 months due to complications with my GC who did really shoddy work and covid hitting right in the middle. Actual cost of renovations turned out to be well over budget at $60000. In order to still make this work I fired the GC, moved into the house (original strategy was BRRRR) but due to the circumstances I needed to complete some of the work myself and hire other people and I wanted to oversee them so I opted to just turn it into my primary. I took my primary (200k new construction 4/2 with solar panels) into an investment property renting for $1925/mo. This was advantageous because I could get traditional financing. I decided the route I wanted to go was to put a HELOC on the property, pay off the HML and my dad with that, then "chunk" it using my day job income. Basically you put all your earned income into the heloc on pay days and then pay your bills from the heloc minimizing the amount of daily accrued debt. I'll do this until I move out and rent the property. Another setback, the appraisal came back for the HELOC only valuing the property at $80k. I reached out to the lender and provided them with multiple forms of justification for the home to be worth minimum $120k. This included comps I did of my own, all of which were in a 5 mile radius of this house. These comps valued at $136k, 157k, 160k, and $200k. I also provided the appraisal my HML did which included an "as repaired" value which was $120k. The appraisal the bank's third party did for the HELOC was based on "as is" properties, the first comparable he used required a hold harmless to be signed before entry. So ultimately they agreed the property should be valued higher. Their appraisal ended up coming in at 119k. In about a year I'll move out and finally turn this into my 2nd investment property renting for 1400/mo. I definitely learned a lot from this potentially disaster of a situation and managed to salvage it pretty well. Instead of having almost none of my own money into the deal I ended up with about 10k in it, which I'm not overly upset about. But, thanks for the read. Any criticism, questions, or feedback definitely welcome. Also if something doesn't make sense I can expound and edit this post to clarify. Before pictures: https://imgur.com/a/lBROrI7 After pictures: http://imgur.com/a/LAJIv3I I wrote this awhile ago and saved so when I hit the 15 karma threshold I could post. Since then the windows have been changed out and the outside had been repainted. [link] [comments] |
| Zero Salary tax through real estate depreciation? Posted: 22 Nov 2020 09:32 AM PST Just had a quick thought.l wanted to get everyone's opinion on. I currently make ~$125k salary a year working in finance for a bank. If I purchase enough real estate and depreciate it every year it's conceivable that I would not pay any tax assuming I showed enough loses (I.e. depreciation) from the rental properties. Is this possible? Does anyone else do this? Realize might not be possible to get to 0% tax rate but it seems like a good strategy to lower tax rate significantly? (At least temporarily, until have to repay when property is sold). Seems like a good way to grow income more or less tax deferred, kinda like a RRSP. Appreciate any thoughts, especially from my accounting friends :) Edit: thinking this through a bit more and realizing I would have to keep all rental properties under my personal name which might be a liability issue. Might just be easier to set up a corporation? [link] [comments] |
| How many mortgages can you have at a time?(multi-family homes used as rental properties) Posted: 22 Nov 2020 08:17 PM PST |
| Multi unit housing dilemmas in rural communities Posted: 22 Nov 2020 03:15 PM PST It seems to me that the cost of construction has outpaced what you can conceivably build and rent out for multi unit housing in rural areas. The rent levels are so low even though it's becoming more and more desirable to live in smaller towns and commute We were wanting to build duplexes or fourplexes in some of these communities that are 30 to 45 minutes from larger towns but it just doesn't seem to make sense financially. There is a housing shortage to a degree in this area as far as nicer multi unit housing but the cost to build is so high that it just doesn't seem to be feasible. For reference, a 2 bedroom apartment would max out at about $800 per month Any thoughts on this? [link] [comments] |
| Posted: 22 Nov 2020 02:33 PM PST Hello Does anyone have any experience juggling/moving money that is deferred -- 401(k), IRA, Roth IRA, Universal Life Insurance cash value -- to buy properties and perhaps start a rental business? I have a significant amount of money, but like 80% of it is deferred until I'm 59.5. I've thought about a self-directed IRA -- is that really my best avenue? In my IRA (pre tax), I probably have like 3x the cost of my first investment property, does anyone have experience going this route? I work in finance, and I am creative, I'm just sort of hitting a wall but I know there has to be some flexibility here. [link] [comments] |
| What is your evaluation process on a potential property like? Posted: 23 Nov 2020 01:54 AM PST Been doing as much research as possible before committing to a property. What is your evaluation process like? From finding the property to determining rent to buying.... I want to hear just how you approach this. I'm primarily looking at multi-family properties if that helps. Thanks! [link] [comments] |
| How much NW into First-Time House Hacking Deal? Posted: 22 Nov 2020 08:47 PM PST Hey all! I'm looking to get into real estate after a few years of reading up and saving for a downpayment. I'm nearing the point where I am ready to get serious. I've linked up with an agent and started working with lenders, but I'm having a hard time pinning down my budget. I live in Seattle (HCOL), so my dollar doesn't feel like it's getting very far. My question: What metrics do you use to budget? Right now, I'm targeting 30-40% of my NW into equity, ~10% down, $20-30k cash reserve for rehab, and looking so pay no more than $1000/mo out of pocket (i.e. negative cash flow, but I'm living in the house, and that's still cheaper than rent). For those in the Seattle area, does this seem reasonable? What neighborhoods have you been finding attractive deals? [link] [comments] |
| Best Rental Real Estate Investing Books Posted: 22 Nov 2020 05:48 PM PST Interested in getting into MF real estate investing. Currently have a background in finance, working for a large national bank in commercial banking and have a strong background in finance. I'm at a little bit of an impasse on how to really start and feel like I need to get my feet wet with a couple of starter books. Does anyone have any recommendations on where to start in terms of titles? We really don't have too much of a sidebar here. When you google some of the names such as Jack Miller, they have the look and feel of low quality information (potentially scammy?). Just want to get a solid 2-3 titles to start digging my feet into. For reference, I'm currently living in an HCOL and am closing in on saving up enough capital to get something out of state in a LCOL area. [link] [comments] |
| Anyone tried RE syndication through limited partnership? Posted: 22 Nov 2020 11:33 PM PST I'm looking into putting maybe 100k down for something to try out, as a way to get into larger multifamily apartment projects that I can't pull off as individual investor. Anyone tried this route before? [link] [comments] |
| Finding an investor friendly buyer realtor Posted: 22 Nov 2020 11:36 AM PST For local opportunities I can also possibly work with a seller agent directly, but for remote opportunities I do need a good agent to help me. Those who equipped with knowledge of dealing with multifamily (residential), tenant issues and distressed properties. These are much more complex than a typical SFH that a retail homeowner would be dealing with. I've worked with a few realtors, mostly getting leads off Zillow (not just premium agent ads, but through its agent search as well) for a new region I'm looking into, and then trying to vet if they're investor friendly. Almost always they're not. I suspect if they're good they must have been listing agents or too busy to pay for ads on Zillow. I might need to go another place to find them, or maybe it's just a numbers game i.e. there are way fewer of these than the total realtor pool. Thoughts? [link] [comments] |
| Posted: 22 Nov 2020 04:44 PM PST This time last year, I had no idea I wanted to buy a house. Sacrificed 6 months of my life and now have myself a pretty nice SF 3/3 in FL I want to hack in Jan/Feb. Any 'get started' advice would be helpful for living with the tenant. After a background check, the single person will pay 1 monthly rent bill and will have their own bedroom and bathroom. The below is what I'm curious on.
Looking to buy duplex or larger in 2022, so trying to financially speed that process up a little. Plus this is a good step into becoming a landlord. Thanks [link] [comments] |
| Posted: 22 Nov 2020 03:31 PM PST Bought my first rental and getting ready to renovate in January when it's vacant. Looking for any additional recommendations and things to look out for. Here are details: -Its a 2/3 townhome (1278 sq/ft)that the same models are renting for about $1300. So not high-end. In good condition, just outdated. My plans are to: -Repaint the whole house. Walls a flat edge comb Gray, semi gloss in bathrooms and kitchen. -LVP flooring downstairs in living room and kitchen (this will be dependant on price, the tile in kitchen is in good shape and other models that rent for $1300 have carpet in living area, I'm wondering about long-term maintenance vs cost here). -re carpet upstairs and the stairs, low grade. - painting kitchen cabinets white, and replacing handles with a black or bronze. -replacing door knobs with bronze -replacing baseboards throughout house. -repainting garage, closets, and ceiling with eggshell white maintenance paint -now stove and fridge. Looking to stay below $10k for this rental and get the most bang for my buck. Got bids so far on paying for $3k including coming back to do baseboards. I'm hoping to get flooring drive for <$4k. Painters will also patch the wholes and replace the cabinet door handles I'm kitchen. Bathrooms are in good condition. Planned on repainting one but not the other. Are there any recommendations or advice? Renovation ideas https://imgur.com/gallery/VGbbUBZ [link] [comments] |
| ISO of a creative loan officer in SoCal Posted: 22 Nov 2020 11:59 AM PST Someone who has an investor mindset and knows how to get around roadblocks that others just say it can't be done. Any recommendations? [link] [comments] |
| Have second mortgage on investment property. want to refinance Posted: 22 Nov 2020 08:42 PM PST what are my options ? this second i got when i was still living in the house- now its a rental. the interest rate is around 5%, i figured i could do better in the current mortgage rates. what lenders would do this ? [link] [comments] |
| Finding Owners of Abandoned Houses in NJ Posted: 22 Nov 2020 06:46 AM PST I have been making notes about seemingly abandoned or dilapidated houses in NJ and wanted to know what is the best tool to go about finding the information about who owns the house. Also, perhaps someone has some guidance on a good way to approach some owners and see if they are willing to sell. Thanks for any help [link] [comments] |
| Rental property or Racing build Posted: 22 Nov 2020 11:31 AM PST Hey everyone, I left the oilfield to be a phlebotomist and I'm actually making more money as a vampire than I did as a roughneck. I've been contemplating about investing in an F-1X/Built engine route for my corvette for over 3 years now. But, I've always wanted to invest in a home or maybe a triplex to rent out and get my feet wet in real estate investing. I'm just wondering if the time is right to be investing in rental properties in general right now or not. [link] [comments] |
| Where to store reserves? I'd like to make some interest Posted: 22 Nov 2020 08:01 AM PST Hi all, I'm under contract on my first duplex & would like to know where I should store my reserves. I don't like the idea of putting a sizable amount of money in a checking account that earns very little interest. I'm considering storing it in a high yield checking account, but that seems like it would be a hassle down the road as I would have to open an account at a different bank for every property. Also, there aren't any high yield banks/credit unions near me. Any suggestions? TLDR: Where do you recommend to store reserves so that you can still make money on your money (ideally)? [link] [comments] |
| Posted: 22 Nov 2020 01:27 PM PST Title says it all how unusual is this within a listing agreement? [link] [comments] |
| Posted: 22 Nov 2020 03:48 AM PST I'm in aspiring real estate investor. Just started my first job after college and have dreams of buying my first rental property a few years down the road. I've been spending a lot of time reading, watching videos on YouTube and looking at properties on places Redfin to try and learn as much as possible so when I hopefully have enough capital together I can already at least know a little bit about what I'm doing. My biggest question is the risk of vacancy? How do you guys mitigate that? Is this the most difficult piece to being a successful investor? How are is it to find and keep tenants and is it common to have to deal with a lot of vacancy? I guess initially my idea was I'd want a property that already had a stable long term tenant and even if that made it cash flow less per month I wouldn't be worrying about covering all the mortgage and other payments. Appreciate anyone's comments or opinions! Sorry for the long post [link] [comments] |
| Buying 20k homes with cash to rehab and rent Posted: 22 Nov 2020 04:07 PM PST Hello first time here and I just wanted to first introduce myself. I'm a 26 year old male who has been interested in getting in the real estate rental. I currently make in the neighborhood of 120k+ and really want to start investing my money smartly. I recently took a big hit in the stock market so investing in that is out of the question right now and I'm basically starting from square one. I really was interested in saving for rental properties and I have done some digging in my local area (savannah, Ga and surrounding counties) and I see some potential properties that could be had for no more than 20k. Granted these properties do need a rehab which I could do most of the work myself as I am familiar with trade work. So basically what I'm getting at would it be a smart move financially to purchase a project home and put in 15k of rehab work provided I do the labor myself, and then rent these homes out for 700-900 month range. I am familiar with the BRRRR method but I really do not want to take that route as I have not so good credit from mistakes I have made in the past and I really do not want to take on any debt. If anyone has any experience with this route your advice would be very appreciated. Also if there is anyone around the savannah, ga area that is looking for some kind of partnership I would definitely be interested as my job requires me to travel quite a bit. [link] [comments] |
| Should I use hard money to build a duplex? Posted: 22 Nov 2020 09:28 AM PST I own a single family residence on 11 acres outside Nashville, TN. Over the past year I've gotten it entitled to build 4 duplexes. The plan has always been to brrrr (build, rent, refinance, repeat) until I've got them all done. I figured it would take 3-4 years. I've got the money to build the first one and experience building/rehabbing homes. I've also got complete plans, takeoffs/materials lists, primary builder and subcontractors in place, and all permitting complete. But this past weekend I've gone the rabbit hole of doing it quicker. My initial thoughts were to get a hard money loan to build the first one and refinance to pay off the loan. This would give me hands on practice with a hard money loan, while I had the full amount in the cut should things get wonky. With the education of the build and the finance, get hard money to build the remaining 3. Anyone have any ideas related to this? Have a hard money lender you really enjoyed working with? [link] [comments] |
| Does anybody have a data source for homes in forbearance? Posted: 22 Nov 2020 01:09 PM PST I'm trying to find a source of addresses for marketing for people /properties in forbearance. Does anybody know of one? I think a lot of these will end up in foreclosure eventually and I'd like to find them before they get foreclosed. Suggestions??? [link] [comments] |
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