Real Estate Investing: Land-use designation on my property is proposed to be changed. What to consider about redevelopment? |
- Land-use designation on my property is proposed to be changed. What to consider about redevelopment?
- 1031: Final Regulations Out
- New owner of NNN investment grade property with 9 years left on lease with 3 5-year options. How do tenants typically approach owners for exercising option renewals? What is the timing and do they typically only renew 1 option (e.g 5 years) at a time or do they ever do 2-3 options at once?
- Estimating Rehab Costs
- Debating between cheaper neighborhood / higher quality neighborhood.
- How are rentals protected in a divorce?
- Making Introductions to core 4 team members as an out of state multifamily beginner investor
- Talk me out of an obvious bad decision
- Population density fluctuation causing local RE price to increase
- School me on hard money loans and HELOC
- Advice on 1st property
- Condo roof problems
- Good/bad idea to wish tenants happy thanksgiving/merry Christmas?
- Rental properties advice?
- Any fellow law students/attorneys here?
- Hi, please help me out with some information regarding my first RE investment.
- How much more is a house with a short term rental license worth?
- Who pays special assessment?
- Should I pay cash or take out a loan for this commercial property?
- [New Hampshire]Anyone know if ESA are protected under the FHA?
- Can I take the profits from rental properties and invest it into the stock market so it’s not taxed? And then cash out years later at a smaller tax rate?
| Land-use designation on my property is proposed to be changed. What to consider about redevelopment? Posted: 26 Nov 2020 03:46 PM PST My wife and I bought a house in an inner-city neighborhood in a city of a million plus people. It is a 70's house that has been well maintained. We bought it planning on making it our home. Earlier this year, I found a draft of a local area plan that was being prepared. Under this proposal the scale of my property would change from limited (capped at three stories) to low (capped at six stories). This would allow me to build a condo building on the property. To add to this the house next door to me is a corner lot and has been unoccupied for a long time. I have met the owner who lives outside of the city and we discussed his property and what he plans to with it. He indicated that he would be open to moving the property if his price was met. This would give me a 100'x110' of property the develop. I haven't been able to find a lot of information on low rise development cost in Canada to develop a budget or put together any kind of business plan for the redevelopment. Does anyone know of resources I can read up on to get some more information on what to consider in this kind of redevelopment? Thanks in advance. [link] [comments] |
| Posted: 26 Nov 2020 11:20 AM PST Here's the full 75 page document The spoiler has the most relevant information: WASHINGTON – Today the Treasury Department and Internal Revenue Service issued final regulations PDF relating to section 1031 like-kind exchanges. These final regulations address the definition of real property under section 1031 and also provide a rule addressing the receipt of personal property that is incidental to real property received in a like-kind exchange. The 2017 Tax Cuts and Jobs Act (TCJA) limited like-kind exchange treatment to exchanges of real property. As of January 1, 2018, exchanges of personal or intangible property such as vehicles, artwork, collectibles, patents, and other intellectual property generally do not qualify for nonrecognition of gain as like-kind exchanges. Also, like-kind exchange treatment applies only to exchanges of real property held for use in a trade or business or for investment. An exchange of real property held primarily for sale does not qualify as a like-kind exchange. Under the final regulations, real property includes land and generally anything permanently built on or attached to land. In general, real property also includes property that is characterized as real property under applicable State or local law. In addition, certain intangible property, such as leaseholds or easements, qualifies as real property under section 1031. Property not eligible for like-kind exchange treatment prior to enactment of the TCJA remains ineligible. Neither the TCJA nor the final regulations change whether the properties exchanged are of like kind. To report a like-kind exchange, taxpayers must file Form 8824, Like-Kind Exchanges, with their tax return for the year they transfer property as part of a like-kind exchange. This form helps taxpayers figure the amount of gain deferred as a result of the like-kind exchange, as well as the basis of the like-kind property received. Form 8824 also helps taxpayers compute the amount of gain they must report if cash or property that isn't of a like-kind is involved in the exchange. For more information about this and other tax reform changes, visit irs.gov/taxreform. [link] [comments] |
| Posted: 27 Nov 2020 02:22 AM PST |
| Posted: 26 Nov 2020 04:29 PM PST Hi all, how do you estimate rehab costs for residential multifamily (3-12 units). Do you always ask a contractor for a quote? Curious what range one could expect for a gut rehab vs just significant rehab vs touch up work (i appreciate that those terms have no real boundaries or clear scope). TIA [link] [comments] |
| Debating between cheaper neighborhood / higher quality neighborhood. Posted: 26 Nov 2020 07:45 PM PST Hi all, I live in the Midwest. The city that I live in is quite nice, but the surrounding towns are not nearly as nice. I'm looking to buy my first SFR, and I'm debating where to buy the property. My friend, who owns a few properties nearby, swears by investing in the lower cost neighborhoods. He's done very well buying $50k houses, fixing them up a bit (does it all by himself in a few weeks), and renting them out for $800-900 a month. He owns 6 properties. I'm more inclined to invest in my city. The homes that I'm looking at are around $160k and could be rented out for $1400 / month (little under the 1% rule). The reason I want to invest in my own city's houses are the following: 1) I know the area much better; 2) The types of people that move into my city will be easier to work with (my friend does have issues with terrible tenants sometimes); 3) I predict that the properties in my city will have better appreciation; 4) The properties in my city generally don't need as much fixing up. A big point is that I really value my time (I don't get much work life balance). I think, in my city, I could rent it out to a family that wants to raise their kids in the school system. They would likely stay long-term and be kind to the property. The types of tenants that my friend gets are much more likely to cause issues, and there will be higher turnover (meaning more work on my end to find tenants). Am I crazy for turning down the value of the 50k homes? Even if I outsource the renovations, the cash flow will be admittedly much better. I just feel more comfortable investing in a city that I've known my entire life, but maybe that's an irrational bias affecting my judgment? Would love your thoughts. [link] [comments] |
| How are rentals protected in a divorce? Posted: 26 Nov 2020 04:09 AM PST I am single, never married, but I'm seeing friends start to divorce, when 10 years ago they seemed perfectly committed. And it's dirty. I am nowhere near getting married although I guess I'd like to one day. That being said, how are my rentals protected in a divorce? My first is in my own name, my current second house is as well that will eventually become a rental as well. How does everyone protect their properties? [link] [comments] |
| Making Introductions to core 4 team members as an out of state multifamily beginner investor Posted: 27 Nov 2020 03:11 AM PST Hey everybody - I am looking to start developing my core 4 team as an out of state multifamily (4-40 units) real estate investor. I am looking to understand how to make impactful introductions to each of these team members that actually warrant responses. Looking for advice on what elements should be included within a short intro message to the following: The Property Manager
The Realtor Elements that to include in outreach message: (Excerpt From David Greene's Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties. )
The Lender
The Contractor NOTE: Not 100% sure how to navigate contractors at this point. Overall, looking for the elements to build honest and effective relationships with top producers in their respective domains. I am not here to waste anybody's time and I want to make that clear. So before I begin outreach, I want to crowdsource some ideas from the communities. [link] [comments] |
| Talk me out of an obvious bad decision Posted: 27 Nov 2020 12:43 AM PST I will start by saying, this is a bad idea, but.... I'm trying to figure out the points I'm missing. Feel free to not hold back. Situation: I bought a rental and did a lease back to the owner. Was able to sublease one of the other bedrooms to make good rent between the two but slightly under market. However, the previous owner has moved out leaving me with the sublet room/tenant. She's on a 30 day lease and I was paid through December so I told her she would have to move at the end of December, because she can't afford the place on her own. This stressed her out but I was firm. I already started getting bids to renovate this place and then get max rent at $1300. Renovation was only gonna be about $8k. Well the current tenant found a friend of hers who wants to move in. They agreed to pay the full $1300 a month between the two of them. Well the current tenant has good credit but low income. This new potential last has terrible credit but qualifies with income. They both agreed to co-sign a full one year lease at the amount I was hoping to get after renovating and since neither of these ladies qualify without each other I told them if I agreed, I'd get the carpets cleaned but no other renovations or upgrades. They both agreed, so I don't have to spend that renovation money and I'll be getting my target rent. But there's red flags all over the place with the new lady. Trying to mitigate some by making her pay a larger deposit. Looking for thoughts.... This is EXACTLY what you hear not to do. Red flags: she got a 30 notice to vacate her current spot. Talking to her old landlord is because she complained of black mold and he didn't think there was. He didn't want to take chances with her so after almost 2 years he decided to get rid of her. She did always pay her rent. Was late once. She also gets paid in cash a lot and shotes little in the bank which she says was because she doesn't trust banks after someone was able to hack her account. Somehow only broke people have those issues though. And the biggest red flag...she needs me to split the deposit up into a couple months "due to the holidays" [link] [comments] |
| Population density fluctuation causing local RE price to increase Posted: 26 Nov 2020 11:14 PM PST Does anyone specifically buy in expected areas to increase in population size? I witnessed an area in AZ over a year or two and the housing market in the county increased by over 100k. This might become a project for the next 10 yrs because I would like to retire in an area where I know/expect the population to boom. Any experiences? [link] [comments] |
| School me on hard money loans and HELOC Posted: 26 Nov 2020 09:19 AM PST How do hard money loans work differently from a traditional loan from a bank? And is it beneficial for someone without any capital? What is the best position to open up a HELOC? Any other info is greatly appreciated. Happy holidays! [link] [comments] |
| Posted: 26 Nov 2020 01:32 PM PST Asking for Advice: I am in my mid 20's and have a good paying W-2 job. I have saved up a lot of my money and have been investing 15% of my salary including employer match in a Roth 401k. I need advice on what would be of greatest benefit me? Should I house hack a home and try renting out the other rooms to a SFH? I am currently living with my parents. OR Should I buy a rental SFH that can cash flow approx. $300/month and continue living at home and then buy a house hack next year? My long term goal would be to buy one SFH for the next 3 years and then start to BRRR... (There aren't many duplexes in my area) [link] [comments] |
| Posted: 26 Nov 2020 06:07 PM PST Hello everyone! I recently signed a purchase agreement for a 4th(roof) floor condo for 200K, if fixed I could easily rent it out for 1300-1500. I had a home inspector come see the property and they said the exterior of the building has not been maintained at all since it was built in 1995. The interiors had some nice renovations and it looked decent but I am just really concerned. I can back out of the deal. When I asked the inspector if he would buy this place he laughed and said no!! Apparently the shingles needed to be changed 5 years ago and the whole roof is looking at a replacement soon. Does anyone have any thoughts about this? Right now I am probably just going to back out of the sale and look at other places. Thank you for your input! [link] [comments] |
| Good/bad idea to wish tenants happy thanksgiving/merry Christmas? Posted: 26 Nov 2020 08:36 AM PST Title basically sums it up, wanted to wish my tenants(they've only rented for one full month) happy thanksgiving but not sure what the norm is. [link] [comments] |
| Posted: 26 Nov 2020 06:02 AM PST Hi guys, I'm a 24 year old American, and I live and work in Ulaanbaatar, Mongolia. I've been looking into apartment prices and rent prices here a lot and from what I can tell I could become financially independent in less than 5 years from residual income by buying apartments and renting them out. I just want to get any advice you guys might have and also see if anyone can see something I didn't factor in. Each month I'm able to save 5 million Mongolian tugriks easily, and from everything I've been able to see just by looking around for apartments for sale and for rent I can buy an apartment outright for 40-50 million tugrik and then get 1 million per month by renting it out. So after 8-10 months I can buy an apartment and rent it out, and then every subsequent apartment purchased will take less and less time thanks to rental income from already purchased apartments. It's also worth noting that it's very commonplace here for people to pay an entire years rent up front, which would be useful in the earlier stages of buying multiple apartments. So, from everything I can tell it should take well under 5 years for me to own 10 apartments, at which point I would be making so much from rental income there would be no point in me continuing my job. Taxes of every kind are extremely low here too. Is there anything I'm not factoring in here that would make it take longer or be more difficult to successfully own and rent out apartments here? [link] [comments] |
| Any fellow law students/attorneys here? Posted: 26 Nov 2020 07:54 PM PST Like the title says, any lawyers here who've managed to successfully incorporate real estate investing into their lives? About to start a JD/MBA program in the fall and was wondering if anyone here has tackled this career path and if they have any words of advice. [link] [comments] |
| Hi, please help me out with some information regarding my first RE investment. Posted: 26 Nov 2020 04:20 PM PST To give a little back story. I am 20 years old. After building up, I finally have 25k saved up to use for any investments of my choice. I am doing research as to what, where, and when to invest in RE. Although I would like some input from investors with experience as to where I should put my money. Whether it is flipping, holding long term, to buy land, etc... (and of course if I even have enough money to start) Thanks in advance for the help!! [link] [comments] |
| How much more is a house with a short term rental license worth? Posted: 26 Nov 2020 04:05 PM PST I'm not in the US, but homes around my are around 200k, but what if you had a short term rental license and show them proof you're making around 30k a year through AirBnB, is the house still worth 200k or more, given the fact that it's a business who will make you money? [link] [comments] |
| Posted: 26 Nov 2020 01:54 PM PST Selling a condo in FL, after the effective date the HOA recommended a special assessment due next year. They vote just prior to closing date. If it's passed, who pays buyer or seller? [link] [comments] |
| Should I pay cash or take out a loan for this commercial property? Posted: 26 Nov 2020 06:51 AM PST The building I'm in the process of purchasing from a family member will cost me 40k and is assessed at 60k. The tenant has been there for a decade and plans to stay. After ALL expenses, I will net ~$550 per month in profit and anticipate I can easily raise the rent by a few hundred for the next tenant. I'm mostly buying this for the instant 20k in equity. I have 80k in a high yield savings, 155k in stocks, and about another 35k liquid. My business generates ~15k profit per month, and I own another rental that generates 1k per month. Should I just pay cash and be done with it? My high yield savings only generates .5%, so taking the 40k from there would provide me with better returns. Or should I take out a commercial mortgage & toss what I would've spent into my stock portfolio? [link] [comments] |
| [New Hampshire]Anyone know if ESA are protected under the FHA? Posted: 26 Nov 2020 11:39 AM PST My tenant has an Emotional Support Animal and I want to know if it's permissible in a condo association that does not allow "pets" on the premises. Should I challenge the condo association because the dog is a ESA and not a pet? There is a doctor signed certification as well for the ESA. Anything in New Hampshire statues that would prevent her keeping the dog? I emailed the the Governor's Commission office and this was my reply. "Thank you for contacting the Governor's Commission on Disability. I can tell you in general terms, that according to the Fair Housing Act, an ESA is not considered a pet. The FHA refers to emotional support animals with the term assistance animal." So federal law overrides any state and local laws, correct? She also gave me this link Thanks all. [link] [comments] |
| Posted: 26 Nov 2020 10:34 AM PST |
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