Real Estate Investing: How are you tracking your expenses, write-offs, and overall bookkeeping on your rentals? |
- How are you tracking your expenses, write-offs, and overall bookkeeping on your rentals?
- Managing a distant vacay rental?
- I need some House Hacking advice!
- Duplex during Coronavirus
- Question: Cash out ReFi and buying
- Just got my insurance lowered saving 50 bucks a month on my rental!
- How many hours/wk will real estate will require of me?
- Looking for duplex. Living in one side and renting other out.. tax big question
- If you were an accountant, how would you setup your real estate porfolio
- Considering foray into converting primary home into rental
- How could a college student invest 50k in real estate?
- Moving a House onto My City Lot
- Advice for Buying an Apt Complex
- Houston Market
- When can I use a HELOC/HE loan on a 3.5% down payment house?
- Do I need a realtor for wholesale deals?
- 1st Time Investor - Looking for first investment rental property
- Buying property in Eastern Europe’s Moldova...
- Nearing the end of my first BRRRR project and need some advice on the refinancing.
- Am I wasting my time in my local area?
- What would be some ideal leveraged real estate strategies in an idyllic market with no downturns whatsoever?
- In need of a lot of Real estate articles.
| How are you tracking your expenses, write-offs, and overall bookkeeping on your rentals? Posted: 14 Nov 2020 01:13 PM PST Title of the post pretty much sums up my question. Closing on my first rental Tuesday in Wisconsin. I'm super excited and feel like I have a good grasp on deal finding, strategizing, and calculating the financial costs. However, taxes and bookkeeping are a little unknown to me. My property management company composes a 1099-K for income statements each year - they also will invoice expenses through the owner portal when its an expense they incur. Is that simply it? Bring that to a tax professional and let them do their magic? What are you doing/using to track finances for yourself & what tax benefits are you utilizing to your advantage on your rentals? Thanks in advance! [link] [comments] |
| Managing a distant vacay rental? Posted: 14 Nov 2020 06:55 AM PST First a little background. Wife and I closed on our first rental, a 4BR townhouse, in Oct. Renter is in, all good. We are actively looking for a second, similar property. Both nearby. I work full time, the wife has a great part time consulting gig and no plans to change any of that. We are doing the REI thing for diversification and for retirement income, etc. But of course we are mindful of positive cashflow in the short term as well. To the question ... for our third investment, we are really liking the idea of a vacation rental, but probably one that's a few hours drive from home. Probably a single family property, waterfront or water access on the Chesapeake Bay perhaps. For us, this would be a 3 or 4 hour drive depending on exact location. Anyone have experience and tips for how best to manage something like this remotely? I seem to recall hearing that you can often hire a local, to help with marketing and cleaning for a cut, but maybe I'm making that up. [link] [comments] |
| I need some House Hacking advice! Posted: 14 Nov 2020 09:20 PM PST Hey guys I've been doing some research on house hacking for the past 3 months and I think I'm ready to get my feet wet. A little about me. I just turned 21 two months ago, I have a FICO credit score of 759 and I make 100k a year through w2 salary. I work as a software engineer in a pretty stable company so I'm not super concerned with losing my job. Even if I did, my expenses right now are pretty low and I am confident that I could use my skills to pay some of the property expenses myself if I had a high vacancy for some reason. I just recently moved to Milwaukee, WI to live near my mentor. The opportunity cost of staying in Houston became too much. MY GOALS:
PREAPPROVED LOAN DETAILS:
PROPERTY I AM LOOKING AT:
The property is sitting on a double lot and has a full basement. Unit 1 is currently occupied at $1000 rent, Unit 2 is occupied at $900 rent, and Unit 3 on the third floor is currently vacant but if I lived here I'd be living in the 3rd unit which is the smallest, and get a roommate in the 2nd bedroom for around $400 a month. THE PROPERTY EVALUATION: - Purchase Price: $219,000 - Gross Potential Income (GPI): $27,600 | Sum rents multiplied by 12 months - Vacancy loss: $1,380 | GPI multiplied by 5% as a fund in case there's unit vacancy - Gross Operating Income (GOI): $26,220 | GPI - Vacancy loss. This is the property cashflow after potential losses - Property Taxes: $4,905 | Purchase price * 2.24% Milwaukee county property tax - Net Operating Income (NOI): $20,260 | GOI - Taxes. Income after all expenses not including mortgage - Replacement Reserves Account (RRA): $7,000 | Long term repairs and costs. This is honestly just an arbitrary figure I threw in here. I have no idea how to calculate this (someone help) - Mortgage payment: $1,540 - Before Tax Cash Flow (BTCF): $11,720 | NOI - RRA - Mortgage. equals to the cash flow the property will produce before taxes (Note: These numbers aren't accounting for some operating expenses such as maintenance and utilities) Now, these next set of values are calculated without taking into account I am using an FHA loan. The calculations are made using 25% as the downpayment. The reason for this is to crunch the numbers as if it were a normal real estate investment, so I can get a more accurate picture. - Capitalization Rate: 9.251232877 | (NOI / Property Price) calculates return on investment - Cash on cash return: 21.4063926941 | (BTCF / 25% of Purchase Price) return on investment assuming you used leverage - Debt coverage ratio: 13.15597403 | (NOI / Mortgage) If anyone is wondering where I got this formula from, it's called the S.E.O.T.A formula from a book called "Buy it, Rent it, Profit". This is a "dumbed" down version of that formula. I failed math two years out of the four years that I went to high school. If someone could do a double check on these numbers I would greatly appreciate it. Also if you guys see anything that looks funny or know of a simpler formula I could use to evaluate properties please let me know. I scheduled a showing tomorrow. I'm going to give the property a walk around with my roommate who is a home contractor. I'm hoping he can help me spot some red flags. The plan is, if everything checks out I am going to put an offer at asking price and do my due diligence during the inspection period. I'm hoping everything checks out and maybe I can find a few cosmetic things that can help me negotiate the price right now. Or I might just back out completely if I don't like it. A FEW THINGS I AM CONCERNED ABOUT: - It seems like in a lot of markets homes are at an all-time high, I'm thinking it's still worth it to buy even if I pay a little bit of a premium. - I'm a little worried about the moratoriums on evictions that were placed during covid allowing tenants to not pay rent - By purchasing this property I am basically inheriting 2 units full of people. I need to do my due diligence to find out who these people are and how long they have left on their leases. I have no idea how much effort the current landlord put into screening these tenants. - The property only has street parking on a street that has a few bars down from the property. I'm a little worried about the parking situation for a triplex that has 8 bedrooms. - I'm not super sure about what things are going to need fixing on the property, there seems to be a lot of incompetent landlords out here in this county. But I guess I won't find out until I get there and check it out - I think I'm gonna need a CPA cause Idk what I'm doing at all MY PERSONAL FINANCES: - $10k in savings - $1k in actual cash - $17k in bitcoin (give or take at current price) - $3k in silver - $2k in a Capital One Roth IRA savings account (I did this by accident thinking it was a normal Roth IRA. I'm hoping I can liquidate this towards the house purchase and not pay taxes on it) - $3k in a Roth IRA (I know this looks weird. I just don't know wtf I'm doing lol) I'm probably going to need to have a way bigger nest egg in case anything goes wrong or happens to the property, my job, or me while I own a home. I would appreciate any advice you guys have on what I wrote above or tips on how to inspect the property, what to look for, etc. Also if you currently live in the Milwaukee area feel free to hit me up. I am currently working on a startup here with 3 colleagues and would love to network with you guys. [link] [comments] |
| Posted: 14 Nov 2020 10:38 AM PST I was interested in buying a duplex and renting out the empty half while my family lives in one unit. I'm not sure if buying one during our current health crisis would be a good investment. Houses are overvalued, and I'm not sure if I'd be able to easily find tenants to rent to since people are out of work and we may be going into a second shut-down. Should I wait a little longer before I purchase one? I live in the south in the USA if that helps. [link] [comments] |
| Question: Cash out ReFi and buying Posted: 14 Nov 2020 11:37 PM PST I'm currently in the process of cash out refinancing with the intention of buying additional units with that money. Do I have to wait till the process is complete till I can get approved to use those funds for a home purchase? [link] [comments] |
| Just got my insurance lowered saving 50 bucks a month on my rental! Posted: 14 Nov 2020 12:19 PM PST Made a few calls and switched my insurance saving me 50 bucks a month. That was probably the quickest way to get more cash flow I've ever done! Just posting to remind all you beginners like me to always get multiple offers for everything you do! [link] [comments] |
| How many hours/wk will real estate will require of me? Posted: 14 Nov 2020 03:10 PM PST I'm thinking of a hypothetical scenario here. $13000 down on a 3.5% mortgage + closing costs ($268k fourplex). I live in one unit, all others are rented out. I keep the cash flow and reinvest it every year into another FHA fourplex that is the same deal, adjusted for appreciation. I keep doing this process, moving into FHA fourplexes, and using any extra capital to make a 20% down payment on a SFH for $200-250k. I do this process continuously until I hire a property manager at year 8 or so, when I have about 25 units. Let's say I'm always living inside a rental fourplex for 30-40 years, and there is NEVER a market downturn (which is almost 100% not possible). Just hypothetically, how many hours per week would I realistically be spending on my venture before hiring a property manager, and afterwards? Thanks [link] [comments] |
| Looking for duplex. Living in one side and renting other out.. tax big question Posted: 14 Nov 2020 09:03 AM PST How much does tax in a town/city depend on your decision? I'm looking at places that have annual tax between 2500-2800.. the town that I'm really interested in, taxes are around 5,000-6,000 annual how much does this effect your decision? [link] [comments] |
| If you were an accountant, how would you setup your real estate porfolio Posted: 14 Nov 2020 04:06 PM PST I am purchasing my first out of state multi family. It is a 200k property in San Antonio. My question is - before I get into this and while an accountant is too expensive at this point, how should I set up my accounts for success today and the future. I just need the layman's version of how to get this done. [link] [comments] |
| Considering foray into converting primary home into rental Posted: 14 Nov 2020 03:16 PM PST I'm in my early 30s, low six figure income in low COL medium sized city of 300k. I own a home valued at 320k. I have about 35% equity in the home. Refinanced at 2% for 15 years. I'm considering buying another home, for myself, and renting out my current home. I think I may be able to get $2k a month in rent. It is a 3bd 2.5ba. It's in a really nice neighborhood, and next to the top school in the city. My next home would be 300k, with 20% down. What can I do better? [link] [comments] |
| How could a college student invest 50k in real estate? Posted: 14 Nov 2020 07:10 PM PST I'm 20 years old and after deciding to take a gap year from school I anticipate my net worth to be near 40 to 50 grand. I am lucky that most of my expenses are paid for but my dad did just lose his job. Is there any way to invest 50k while in school? My area is outside of Boston and extremely expensive, so that area would be out of question. I will not have a job next year at school. [link] [comments] |
| Moving a House onto My City Lot Posted: 14 Nov 2020 06:48 PM PST Cost to build 2000 sqft @ 135sqft or so in my area = $270,000. ----------------------------- Cost to move a house onto the lot: 2000sqft home renovated, but built the 1920's- $60,000 Cost to move the home- $35,000 Utility hookups, some repairs/reno/etc - $50,000 =$145,000 ------------------------- Have you moved a home like this? Is this a potentially profitable approach to add a rental to the portfolio and having something that'll appraise probably about 80-100k higher than the money I put in? When you factor in the value of the lot at 50k, the "net gain" would be 30-50k. [link] [comments] |
| Advice for Buying an Apt Complex Posted: 14 Nov 2020 06:47 PM PST Hi there, I am inspired by the apartment complex that the transgender advocacy organization GLITS just helped purchase. Their goal is to have a black transgender run apartment complex specifically so that transgender people in the Queens area can have an opportunity to find housing without facing the hurdles of housing discrimination. That being said, I would love to create a similar project where I live. However, I know very little about purchasing apartments and how I would even get started looking into this. So, I am wondering: For those of you out there who have purchased, own, or rent apartment complexes, how did you do it? What websites/agencies did find the apartment that you purchased through? Who would you recommend a noob like me to go to for advice for me to help achieve this goal? Would it make more sense to try to work with someone already in the real estate world to try to guide the process, or is it possible to do this on my own with other people (real estate noobs) who are invested in the project? Thanks! Any help and perspective would be so great! [link] [comments] |
| Posted: 14 Nov 2020 09:23 AM PST Hello everyone, I am looking for someone with some experience in the Houston market. I have 120k in savings and am looking to invest in one or two multi family homes and I have been on HAR.com for two months and I am way too gun shy. I feel like most of the properties don't even cash flow and it's a sellers market but I'm not sure if I'm missing anything or not looking in the right locations. I feel like all the good properties are snatched up before they even hit the market. Thanks in advance. [link] [comments] |
| When can I use a HELOC/HE loan on a 3.5% down payment house? Posted: 14 Nov 2020 12:42 PM PST How much equity do I need? And what would the LTV be? [link] [comments] |
| Do I need a realtor for wholesale deals? Posted: 14 Nov 2020 10:14 AM PST I've never bought a wholesale deal before. I'm a remote investor buying out of state. I have a property manager, realtor, and general contractor on location. Do I need a realtor when buying from a wholesaler? If so, what is the purpose of the realtor? [link] [comments] |
| 1st Time Investor - Looking for first investment rental property Posted: 14 Nov 2020 04:09 PM PST Hi all, I'm looking for some advice on a potential property rental, been doing a bit of research and having a hard time figuring out how to analyze all the different numbers. Not sure what all is pertinent information to include so let me know if more is needed. Thanks in advance for any advice! Looking for a yearly rental property Purchase Price $195,000 Gross rent (yearly)= $16800-1300 vacancy assumption Operating Expenses = $4,600/year I'll have to have a loan for this, looking at putting 20% down. Some of the numbers I'm coming up with are: Cap rate=5.5% [link] [comments] |
| Buying property in Eastern Europe’s Moldova... Posted: 14 Nov 2020 12:20 PM PST Moldova is holding an election in the next few days- and the pro West, pro EU candidate is set to win, freeing up the market and making Moldova a more economically prosperous country. Apartments are going for (I kid you not) an average of 8000€ in the City Centre of Moldova's Capital. I think this is definitely worth looking into. [link] [comments] |
| Nearing the end of my first BRRRR project and need some advice on the refinancing. Posted: 14 Nov 2020 03:18 PM PST So as the title suggests, I am nearing the end of my first BRRRR project. Last March, I purchased a single family HUD home at auction for cash. I purchased the property for $45K, have 8K into it right now, and will probably spend another 2k by the end of next March. I bought this property with the full intention turning it into a rental property at the end of my 1 year HUD home living requirement, but need more funds to start looking for my next property. The market is in the Midwest and it is currently very hot. I don't think it will have a problem appraising for at least 90k, so right now I am looking at a LTV of 61%. I don't really know where to begin with the refinance part though. Since I bought in cash, I'm technically not refinancing out of an existing mortgage, rather cashing out of the project itself to buy another property and rent out the one I'm currently living in. My question is can I cash out with a traditional 30 year mortgage and immediately rent out the property come next spring? Or will there be more living requirements or seasoning periods when I cash out refinance? In general, what do I need to tell lenders when I start calling around? I greatly appreciate any feedback. Thanks! [link] [comments] |
| Am I wasting my time in my local area? Posted: 14 Nov 2020 02:53 PM PST Thanks for taking the time to read this post. I appreciate any insight on my potential first investment. 21yo military guy looking to buy my first investment property with the VA loan. I am looking for a SFH in the Hampton roads area in Virginia. My plan is to live in the property for 12 months with a friend, then rent the property out on a standard 12mo lease. I have 15k saved up, and this mortgage would be my only debt. The property I am looking for would ideally be a 3/2, ~ 1400sq' brick ranch for about 185,000 on a ~ 2.75 loan. PITI would be around 950-1050 depending on taxes. After running the numbers, this area does not make the 1% rule, and the average rent for a property like this is around 1350-1500. The median cash flow I was able to calculate (with a PM) is around $0-75. I am a bit apprehensive in purchasing a property that either breaks even or barely cash flows, considering that I will be 100% leveraged, and who knows where prices will go from their current inflated state. Although more of my monthly payment would be going to the loan itself, my intuition is telling me that i should just rent and invest in a VTSAX brokerage instead. I'd be interested to hear some thoughts on this. Thanks again. [link] [comments] |
| Posted: 14 Nov 2020 12:46 PM PST I'm trying to do illustrations of different real estate strategies, and how they would look if the market never dropped, for 30/40 yr periods. I'm using this as a frame of reference, and then I'm going to do an illustration of what a single market downturn would do in terms of the overall damage done to equity/cash flow. Focus is on the long-term. [link] [comments] |
| In need of a lot of Real estate articles. Posted: 14 Nov 2020 08:01 AM PST I was considering investing in real estate, but lacked the knowledge. Fortunately, I have a week off from my work and will try to dive deep into real estate. Could you link any Real estate articles that you found useful? [link] [comments] |
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