Real Estate Investing: Just finished my first flip! Profit is 66k between my partner and I after 4 months. This blows my mind! |
- Just finished my first flip! Profit is 66k between my partner and I after 4 months. This blows my mind!
- Apartment Multi-Family 1.5 million - Numbers not adding up
- If I have an investment property and I want to avoid paying capital gains when I sell in the future, can my family just move into the home for 2 years before selling so that it's my primary residence?
- Debating adding a minor in real estate to help make smart choices in home/property ownership after college
- Rehab Knowledge / Experience
- What is the best way to educate yourself on real estate investing?
- Financing a rehab
- Buying a house through "seller carry" financing and need help understanding terms. Is this a good deal?
- 1031 Title Requirement
- Investing in a "Rotting" Neighborhood?
- How to structure deals with Partner with someone as investor?
- What to know about investing in a single apartment unit?
- Am I ready to make a real estate investment?
- Container Home Post-Build Valuation
- Real Estate Partnership
- Need advice on a deal!
- I'm planning a bit of a risky a investment - outdated manufactured home in a popular recreation town
- Home purchasing advice
- Has the pandemic changed your opinion/ future outlook on investment real estate?
- Quitclaim deed for property that may or may not have a judgment against it?
| Posted: 27 Nov 2020 10:16 AM PST Hey all - 4 months start to finish on this deal. We bought it for 70k, closing costs 1.4k, cost of money borrowed was 5.3k, reno was 45k, and sale commissions were 12k. On a sale price of 200k, we made 66.3k. This deal still blows my mind away and I can't believe this was possible. Especially that I was able to do it part time while working a full time job with a family at home. Hope this inspires some new investors to take the leap and that everyone else is seeing great success out there! [link] [comments] |
| Apartment Multi-Family 1.5 million - Numbers not adding up Posted: 27 Nov 2020 07:39 PM PST Hey Guys I have been crunching numbers for an apartment building I maybe interested in but the numbers are just not making sense if its actually a good deal Price $1.5 million 16 units PER MONTH ANALYSIS 12 units = $840 per month 4 units = $725 per month Total rent collected = $12,980 Mortgage/Taxes/Insurance = $8000 (25% downpayment) Misc Expenses (10%) = $1298 Property Manager (10%) = $1298 Total cashflow = $12980 - $10596 = $2384 Annual 7.6% ROI Based on $375,000 downpayment Do my numbers make sense? Am I including everything? Any feedback on this will be greatly appreciated. Thank you Here is the updated docs I got from the realtor Collected Rents = https://www.dropbox.com/s/6mv28798ik1arp4/Screen%20Shot%202020-11-27%20at%2011.49.22%20PM.png?dl=0 P/L = https://www.dropbox.com/s/bfgkrmfde92xbtd/untitled-3%20copy.jpg?dl=0 [link] [comments] |
| Posted: 27 Nov 2020 10:00 PM PST |
| Posted: 27 Nov 2020 10:56 PM PST So my school offers a summer institute where I can get a real estate minor for $10k. I'm an architecture major so I figure it can't hurt to have that on my degree and to have knowledge of the field. However, I don't plan on relying on real estate for a job or major income, I mainly just want to have a good grasp on how to make the best choices for owning vs renting and things like that as an adult out of college. Would it be worth it to see if I can afford to take the minor? Any advice on how helpful it would be for my career as an architect and personal property ownership would be greatly appreciated. I don't wanna spend an additional 10k if it won't make a significant impact on my life. Additional Info: I have no clue about anything about home ownership or renting atm, but my Grandma worked as an agent and my boyfriend's parents own multiple properties and rent out one, so I do have people I could talk to for advice. I think getting a minor would give me better info and I'd have a place to start and I could go to them for additional questions, but again idk if the minor is a waste of time and money when I have these recourses. I really just don't know what to do. I want to be able to maximize profit when owning a home and really don't want to spend years paying rent on something I'm not gonna get any return on so I want to know what I'm doing if I plan to buy a house early. I just have no clue where to start and want to educate myself before I'm looking for a place to live and make a poor financial decision. [link] [comments] |
| Posted: 27 Nov 2020 10:15 PM PST Complete beginner here but how do you recommend getting more acquainted and literate with the rehab portion of real estate investing? Interested in BRRRR but I really am lost with the Rehab portion and don't want to get nickeled and dimed by contractors. Any good resources/channels/advice that you folks recommend? [link] [comments] |
| What is the best way to educate yourself on real estate investing? Posted: 27 Nov 2020 05:20 PM PST I'm in my early 20's and I'm interested in eventually owning properties. I'm not sure where to start to educate myself on real estate. Should I get my license and work at a realty company? YouTube and books? College? Any advice is greatly appreciated. [link] [comments] |
| Posted: 27 Nov 2020 09:00 PM PST How do you guys go about financing a rehab? banks typically lend based on the purchase price of the home so isint tough to finance the rehab purchase of an investment assuming we are talking about the brrrr method? would love to hear how you all finance a rehab for a brrrr [link] [comments] |
| Posted: 27 Nov 2020 11:10 AM PST I am in Arizona and going back and forth with a seller who owns many properties outright and is offering to provide seller carry back financing ("seller financing") on a house. I own one house already, with an existing mortgage, which I will call the "Scottsdale House" and this new house is a few blocks away. I have only offered them a 10% down payment. Here are the terms they are proposing and my questions. Any opinions or advice or answers would be really helpful, thanks.
Questions:
Which of these are realistic options for refinancing?
[link] [comments] |
| Posted: 27 Nov 2020 04:53 PM PST I understand that a replacement property must be held in same name the original property is held in today. I'm hoping someone can help me understand how I can exchange a residential investment property (held in personal name) and replace with a commercial property held in a LLC (owned by same person). Is this possible? [link] [comments] |
| Investing in a "Rotting" Neighborhood? Posted: 27 Nov 2020 04:08 PM PST Hi! I'm in a predicament. My town (county seat in a small midwest county) has a huge problem with neighborhoods going south after the older generation passes leaving houses needing TLC, with most of the houses then being inhabited by drug dealers or addicts, which is a major problem in the city. The market is practically flooded with 25-35k houses in a city that is growing and has a few major businesses spurring growth. The problem is that all the growth I'm the city is on the outskirts, exacerbating the "neighborhood rot" as I call it. I have a house in a neighborhood that already has low house prices but I'd really like to fix the rot that is plaguing the city. Fixing up houses as they come up would surely help alleviate some of the issues wouldn't it? I'm new to real estate investing but I can definitely afford to buy a new house outright and restore it every 3 years at the rate these houses go for. I thought I'd reach out and ask before I commit myself to something that could be a huge mistake but I really want to see my city get better. TL;DR My city is rotting away and I am unsure whether investing in real estate will fix any of its problems. Would really like advice. [link] [comments] |
| How to structure deals with Partner with someone as investor? Posted: 27 Nov 2020 11:49 AM PST I am interested in partnering with someone I know and trust to get into real estate investing. Partner has construction experience and will be the one doing the work in finding deals to buy rehab and hold. My main role is to confirm the deal, and be the $$$ behind buying the house. Our initial agreement is to rehab the house to do a cash out refi. I get my money back and we split the ongoing profits from rent 50/50. Has anybody done this? Is there anything I need to be aware of and think about? [link] [comments] |
| What to know about investing in a single apartment unit? Posted: 27 Nov 2020 03:30 PM PST I've been saving and planning on getting a down payment together for investing in a single family home for a long time now. However, HCOL area (in the US) and high RE prices are preventing me from investing in my first property. I've been looking around my area and found several apartment units that are in my price range, and I've been trying to figure out what the differences are between investing in single family homes and an apartment unit are. It seems like it would be very similar to buying a condo, but if anyone has any experience it would appreciated! How do apartment units appreciate compared to houses? [link] [comments] |
| Am I ready to make a real estate investment? Posted: 27 Nov 2020 10:41 AM PST I'm 24 years old, working as a portfolio analyst at a wealth management firm, and studying to pass the CFA exams. I have been looking a lot into investing into real estate for the last 2-3 years now (had this dream since undergrad that I'd build a nest egg of rental properties). I have the following questions, based off all of the provided information: Am I financially ready to be buying real estate as investment properties? Are the financials on this house good enough to warrant a purchase? Is my math right?? I account for maintenance and vacancy as 23% of GROSS rental income. Is this the right time to buy this house? What if property values fall? Will that affect my profitability if I plan on holding the property for decades? I found a duplex in a nice, suburban town which I grew up in, and feel very comfortable about the area in which I'm investing. I'm currently living at my parent's house in the same town I found this property. I moved back from where I used to live for work because of Covid, and have been fortunate enough to work from my parents' for the past few months. Now that I've saved up a decent amount, I want to diversify and own real estate, since I've always heard about it making the most millionaires. I've also watched a lot of my family friends on the wealthier side that have been buying properties in this area for quite some time. Before I get into the financials, I also wanted to mention that my girlfriend lives in town, and she is paying $800/month for her 1BR apartment. She and I have been discussing the purchase of a house that we can turn into a rental property once we have moved on (to a nicer house or out of the area in general). The town we live in has been developing ever since I can remember. We have 3-4 large companies in the area, as well as many small businesses that have been booming (from what I can tell). The area seems to be seeing constant development, and having lived here my whole life, I feel that I have enough knowledge of the area to tell a good investment from bad. The Personal Numbers: My girlfriend and I want to go completely 50-50 on this venture. I am making $45k at the moment, but expect this number to continue to gradually increase over the next few years as I pass CFA levels, and may apply for other jobs. I have about $30k in student loans, but I did the math on this, and I'm not worried about trying to pay them off fast. I'd rather use the money I have in my savings account to build a nest egg, which will return me more money over the long term than paying down this debt would be. I have $25k saved up in my savings, and another $25k in my Roth IRA and 401k. And a separate checking account I use for month-to-month bills like car insurance. I did the math on this duplex I found, and I could afford to continue maxing out my IRA, taking full benefits of the employer match, and saving 20% of my salary if I partner with my girlfriend. My girlfriend is currently only working part-time as she is finishing her masters. She's getting about $30k from her job at the moment. If she goes full-time that would double but that's uncertain right now. She plans to stay in this town until fall of 2022, at the minimum. I don't have any deadset timeline on when I plan to stay in this town, but I expect it would be similar to hers. I have a 2009 Honda which has been running great. It's paid off and I don't plan on purchasing a new car anytime soon. My girlfriend is driving a 2012 Subaru, also paid off, and also does not plan on purchasing a new car anytime soon. The Math on the House: The property is selling for $225k, and we want to put a 5% down payment for an FHA loan. Each unit would rent for about $1.1k ($2.2k/month GROSS income). My girlfriend and I want to take the side that's not as nice and try to renovate it ourselves in order to charge more. We both have about $10-13k EACH to work with, so if we do the 5% down payment, we should have some cash leftover to add to a separate business bank account for maintenance, vacancy, etc. I plan on managing the property myself while I live there. During that time, I want to learn as much as I can about property management so that when I do move out, I'm able to continue managing the property myself, and have reliable handymen and connections on dial. The property tax is about $3300 for 2019, and has been increasing, so I budgeted for $4k in property taxes in my spreadsheet. I accounted for $2700 annually for PMI (since it's a 5% down payment) as well as annual insurance premium. That leaves me with accounting for maintenance and vacancies. Currently, my spreadsheet accounts for both maintenance and vacancies at 23% of gross annual income. After accounting for all those things, the Cap Rate comes out to be 6.3% in the first year, and gradually increasing. I then accounted for debt payments to get the annual cash flows. The cash on cash return adds up to about 6%, with about $250/month in cash flow profits. The break-even ratio comes out to 90% using my methodology to account for costs. The debt coverage ratio is 1.25x The NPV of the project is also positive (approximately $30k). All of this math is done accounting for the fact that my girlfriend and I will be living there for almost 2 years. My spreadsheet accounts for the fact that we will essentially be paying rent, and thus, adding equity, to our own rental property. The total cash my girlfriend and I will have invested ends up being about $46k by the time we move out of there. I compared investing $46k to the S&P (using 7% CAGR), and the rental property would end up returning about 9% CAGR. Is the potential 2% CAGR large enough to warrant an investment? What about the headaches of owning the property? I do want to use this opportunity to LEARN about real estate however, so I feel more prepared to make bigger and better investments in the future. Is THIS opportunity the right one to dive into real estate? [link] [comments] |
| Container Home Post-Build Valuation Posted: 27 Nov 2020 12:43 PM PST Hey all. I'm building my first home and it will be a container home. Although it fits what I want/need, what does market valuation look like for these guys if I want to sell it? I'm happy to update with more information as it goes, but I will be sinking a large chunk of change into the bathroom and kitchen, and exterior siding remodeling to make it look nice and contemporary. For all intents and purposes, the lands should be about 20k with the building costs coming out to about 130k. Thanks everyone. [link] [comments] |
| Posted: 27 Nov 2020 11:50 AM PST I'm in the medical field and if 8-10 of my colleagues came together to partner on a deal what type of partnership would that be? And what would be the difference between a syndication and a bunch of Doctors coming together to buy an apartment building? Thanks [link] [comments] |
| Posted: 27 Nov 2020 11:04 AM PST I am currently in negotiations to buy a house and here are the details: - Listing price $255,000 (has been lowered several times in the past few months its been on the market) - ~1400 sqft - 3 bed 2 bath - Great area, new kitchen, appliances, other updates made. Current situation: We made on offer for the asking price of $255,000 but we are stuck in an apartment lease till next july so we asked for 6 months of rent payments at $1800 as part of the deal. So $10,800 in payments. Buyer countered with $265,000 + the rent payments. We countered with $260,000 + the rent payments and both parties agreed to it. However, the deal was stopped because the real estate agent's manager thought the rent payments were "risky" and wouldn't be allowed by the bank. So my questions are why isn't this allowed? And what are my other options are there to get this deal done? (already Looking into breaking my lease and the associated costs with that but my landlord sucks so likely not great). [link] [comments] |
| I'm planning a bit of a risky a investment - outdated manufactured home in a popular recreation town Posted: 27 Nov 2020 10:33 AM PST I would love to hear thoughts on this. Especially if you have tackled something similar. I want to make a bit of a risky purchase, and buy a property in a very popular market. There is hardly any inventory and prices are high. It is a few dividable acres for $350k. The property has a livable 1970s double wide manufactured home on it, but because the surrounding town is rapidly developing it would seem logical that in the next 5-10 years someone would remove the manufactured home and build one or two nice homes on it. I would move into the manufactured home, or rent it out for a while. I know with the growing work remote trend this area will blow up because it is 1.5 hours from a large metro area (where I live), and has tons of outdoor recreation. It might not present well on Air B&B because of the wood paneling, and outdated kitchen and bathrooms, but I could be the low cost option. A local bank told me I need a large down payment, and pay a 1% penalty on the mortgage because it is an outdated home, which makes it similar to a raw land loan. My main concern is that I see potential, and can think of lots of options, but I do not have a firm plan to recoup my expenses. Thanks for reading. [link] [comments] |
| Posted: 27 Nov 2020 08:06 AM PST Me and my wife are planning on getting our first home! In the next 2 years. We are in a debate to whether to purchase a starter home or a forever home. Any advice? [link] [comments] |
| Has the pandemic changed your opinion/ future outlook on investment real estate? Posted: 27 Nov 2020 07:42 AM PST I mean this in terms of profitability of investing in real estate. Is this similar to the 2008 crash? [link] [comments] |
| Quitclaim deed for property that may or may not have a judgment against it? Posted: 27 Nov 2020 07:33 AM PST [Florida] My neighbor owns half an acre in our residential neighborhood that they do not use nor maintain, I asked if they'd be willing to sell it for $100. The neighbor agreed. However, when doing a title search we found out there is a judgment of $43k and is owned by an estate, so the title company cannot issue a warrantied title unless that is paid off. I do not believe the property is worth more than $15k so it is not worthwhile to pay off said judgment. The judgment is 9 years old so far and more than likely forgotten about by the estate. The current property owner has fallen behind on the taxes for the past two years. I'd much rather transfer ownership via a quitclaim deed, so the property is not sold at auction, as I would then take over the taxes (less than $500/year). I figured if I transfer via quitclaim I would have to wait out the remaining 11 years left on the judgment to then be able to own it outright and build something on it. In the meantime, I would use it as an equipment storage lot. I figure if the estate takes claim of the property, I'm out what I paid in taxes and the original $100. Is my thinking correct? Or are there other ways of acquiring this property with a free and clear title? [link] [comments] |
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