Real Estate Investing: My mom is willing to sell my childhood home to me for 90% of its market value ($210,000) and I’m so tired of renting at age 24. Is it worth it? |
- My mom is willing to sell my childhood home to me for 90% of its market value ($210,000) and I’m so tired of renting at age 24. Is it worth it?
- Buying "duplex" but zoning restricted to single family houses
- Time to sell? Cash flow is $30K/year but could sell for $500K profit and not pay capital gains (2/5 years rule).
- What kind of commercial real estate lender do I need?
- How do I get Funding?
- Renter Abandoned. We have to keep belongings for 30 days. Is there a service that can remove it, keep it for 30 says, then dump it?
- How do you calculate your interest deduction AFTER a cash out refinance on rentals?
- How are you all surviving the loss of income from non-payment due to Covid?
- To buy or not to buy in the current eviction moratorium climate? Don't give up diamonds to avoid paying pennies?
- Water well is on adjacent property owned by a member of my family, what happens if I sell my lot?
- Buy a house or buy a rental?
- Paying myself as contractor?
- Deal Or No Deal? Crowd Sourcing Rental Property Investing Decisions
- Solar vs. Sub-metering for multi-tenancy utility billing?
- Entire street is getting taken over by Air BnBs, impact on property value?
- No seasoning cash out refinance lenders?
- Real estate investing Blue states vs Red States
- Operating a Laundry Room out-of-state?
- Curious what you all use for locks
- First Home, Do I LLC or No?
- Raising rent
- No-Doc Lender Held in LLC vs. Full-Doc in Personal Name
- How to get financing for first purchase with no employment history?
- How do you think the work from home trend will effect commercial office spaces?
| Posted: 16 Nov 2020 04:56 AM PST So, you've read the title. In one year I have enough to put down $10,000 (from my savings) towards the loan (4.7%), making the payments with taxes and homeowners insurance around $1300 most likely. I have pretty good credit compared to most people at 760. I believe after all is said and done I'll have $300 a month in money to save or spend a month until I get my professional engineering license. This is a really tempting purchase for me. I currently live with my best friend in a college town. I pay $650 a month in rent, and $150 in other utilities. I'm so tired of putting $800 a month towards property I don't own. Its stupid. Not to mention I may have my roommate move in with me for $500/month. Everything included. (Yes, its a deal.) Not because I need him to, but because I like money. He is constantly stressing about payments, b/c his college degree was not as useful as mine has been. He also, works 40 minutes away from his job, and this move puts him 20 minutes away. It brings me 10 minutes closer to mine, so its only 40 minutes away from mine. (I plan on changing jobs is 1.5 years.) I could also have a dog and a place for my motorcycle!!! ITS SO TEMPTING. Is it worth it? TLDR: Can put down $10k on my mom's house, which is being sold for 90% of the market value. I rent for $800/month, everything included. I'll likely put in what I can, and sell the home in 8 years anyways. Is this worth it, or am I blind? [link] [comments] |
| Buying "duplex" but zoning restricted to single family houses Posted: 16 Nov 2020 04:27 PM PST So I am looking at buying a single family house (legally) that is clearly a duplex and has been for what appears 50+ years. Separate entrances, separate electric meters, etc. I wanted to owner occupy and rent out the upstairs. Is there any legal workaround to this? I know I won't be able to get it rezoned for multifamily. Here's what I was thinking but looking for input. I know people rent rooms out all the time in SFH. Could I just call it "renting out a room" and give them full access to the upstairs? Could I airbnb the upstairs as a private guest suite? Looking for creative solutions. [link] [comments] |
| Posted: 16 Nov 2020 07:04 PM PST I know the question is whether I can get a better return on $500K than $30K (6% ROI). Is it just that simple math? What would others do? [link] [comments] |
| What kind of commercial real estate lender do I need? Posted: 16 Nov 2020 10:53 PM PST I am trying to get financing for a single-tenant restaurant property for a purchase price of 2.6 million in Los Angeles County, California. It will be an investment property with a current tenant in place, not owner-occupied. However, looking in the long run, I would love to operate out of it. My whole family is in the restaurant business and collectively we own and operate about 5 restaurants, all independently, and successfully despite Covid. It's priced below what its worth and the rent is below market. During the good times, these kinds of deals are just not there. I can do 25% down and maybe stretch to 30% (35% would be a complete liquidation save for the house) but the DSCR is abysmal, it does not cash flow. I looked into getting additional partners to increase the down payment but their money is all tied up. The only real strength here is that my business partner has a solid Covid-proof job. I can provide the down payment and his salary alone could easily cover the whole monthly debt with just half his salary (no other debt) even if the current tenant were to close or become unable to pay rent. If it became empty, I know a number of restaurant owners who would lease the space in a heartbeat if I couldn't use the space immediately. However, banks don't want to touch us and even commercial mortgage brokers keep asking if I could do 30 or 35% down. I am getting quoted 8% interest if they even bother to look at the full picture. A rock solid guarantee is only a secondary factor by most lenders. I understand that single-use is risky and restaurant property even more so, but is there a kind of lender that might work for my situation? Is hard money the only option here? [link] [comments] |
| Posted: 16 Nov 2020 09:55 PM PST Hello All, I bought my first property a little over a year ago. Duplex. I live in half and rent other half. An opportunity showed up where 3 duplex property came up for sale for 450k. I have about 45k cash in hand and would be short at least 45 -55k to put down 20% on the 3 duplexs. I also would need to figure out how to clear DTI. Is there any advice on how to manage this? Business loan? Properties should yield 5,400 a month and Mortgages should be around 2,400 - 2,800. Meaning as long as i keep half time rental i should have no issues early on. Additionally, my day job income will be enough to cover any emergency issues for first year or so. Suggestions on how I can accomplish this purchase? [link] [comments] |
| Posted: 16 Nov 2020 05:59 PM PST Hey guys, Just wondering if there is a good answer to this question. One of our units was abandoned. We did all the mailing and letter and posting a letter on the door and he never came back and let the power be shut off. Now that we have retaken ownership we have to keep his stuff for 30 days. We want to move the stuff out to clean and rent but we don't want to move it to storage then move it again to the dump. Are there any services that take care of this? Thanks! [link] [comments] |
| How do you calculate your interest deduction AFTER a cash out refinance on rentals? Posted: 16 Nov 2020 09:43 PM PST Let's say you do a cash out refi and hold the money for a while until you buy more rentals. Can you deduct ALL of the new interest on the new loan or only a portion? If only a portion, how do you determine the portion? The difference between the new and old interest amount? [link] [comments] |
| How are you all surviving the loss of income from non-payment due to Covid? Posted: 16 Nov 2020 11:50 AM PST The stock market keeps shooting up. REITs seem unaffected. I'm not hearing much in the news about bankruptcies in the sector. How? With all the moratoriums on evictions and rent deferrals, I can't imagine that property owners are getting good cash flow right now. Are YOU getting loan payment deferrals? Do you just happen to be in particular markets that haven't been hugely affected? Is the health and resilience of the real estate market real, or fictitious? Is there pain we don't know about, or financial tensions that are yet to unwind? I would love to hear some perspectives. [link] [comments] |
| Posted: 16 Nov 2020 09:15 PM PST Don't give up diamonds to avoid paying pennies... I cash out refinanced a few single-family rentals to 1) lower my rate by 1% 2) reduce the taxable income from them 3) use existing cash in real estate to buy more rentals instead of resources on hand. So I'm sitting here and A) waiting for the moratoriums to go away and B) waiting for a potential dip mid next year when foreclosures hit. If they hit. But I'm a bit hesitant to buy anything in this climate. Yes, the money is losing some value sitting, but it's far more expensive to get stuck with a bad tenant. Then again, if I add another 250K a year to my net worth increase from a few more rentals alone, and it ends up going up a few more years, that's a cool mil added to my net worth in just 4 years from THAT new purchase alone. I keep thinking about it, even if I get a bad tenant....surely the 250K a year is worth it...Like I have one right now not paying their utilities, which I'm responsible for. But I'm thinking $500 now or $1,000 in a few months, which I can take out of their deposit anyways, is peanuts to making 250K a year off a portfolio of cluser A of properties alone. Don't give up diamonds to avoid paying pennies... [link] [comments] |
| Water well is on adjacent property owned by a member of my family, what happens if I sell my lot? Posted: 16 Nov 2020 04:52 PM PST Long ago, granddad purchased three adjacent lots in a rural area and gave one to each of his three daughters. A water well was dug in the middle lot that pumps water to all three lots and a house was built on each. Fast forward to today. If I decide to sell my lot and the house on it, what happens regarding the water well? Can my aunt (who owns the middle lot, with the well and pump on it) charge the new tenants for water? Are they forced to drill their own well? Something else altogether? EDIT: spelling is hard on mobile [link] [comments] |
| Posted: 16 Nov 2020 04:35 PM PST For years I have been looking at rentals. I live in buffalo NY, and most rentals are shitholes that are overpriced. To boot taxes are high and nys govt makes eviction difficult not to mention the eviction ban. With my luck, i will end up with a shitty tenant that doesnt pay and their is little recourse I can have. So i was thinking about just buying a house to live in instead of renting. What are your thoughts? [link] [comments] |
| Posted: 16 Nov 2020 08:21 PM PST |
| Deal Or No Deal? Crowd Sourcing Rental Property Investing Decisions Posted: 16 Nov 2020 07:33 PM PST The question: Deal or no deal?We provided the following information: Purchase price: $50,000
The results
How would you vote? Take a moment to decide... deal or no deal? Full writeup: Deal Or No Deal? Crowd Sourcing Rental Property Investing Decisions [link] [comments] |
| Solar vs. Sub-metering for multi-tenancy utility billing? Posted: 16 Nov 2020 07:06 PM PST Would appreciate any best practices on this. I have a property with a duplex structure (up / downstair floors are separate rental units) but it's still technically a single-family house so it has one shared meter. This brings some challenges when it comes to billing. Right now I'm paying all the utility as a result, and it's not sustainable on the long run. I can negotiate to have tenants to share the bills, but I foresee possible issues down the road too with splitting bills. I'm thinking of these two and wonder which is better, but also open to suggestions on anything else:
With a similar cost range, solar system seems more of a value-add (where the money is spent in what I felt a meaningful way to be productive) vs. metering (solely for the purpose of billing). But there's clear downside as well. Curious to see thoughts of others what makes sense. [link] [comments] |
| Entire street is getting taken over by Air BnBs, impact on property value? Posted: 16 Nov 2020 10:18 AM PST We purchased our Primary residence in nov 2019. It's an older home, on the lower end in our area (250k with a median of 375k) in an area that sees very little inventory historically and has seen a lot of 250k homes taken down and 750k-900k custom builds put in. We put a full price offer in within 30 minutes of being listed on Zillow and won. Our street is the last street before a popular roadway and has been the last to see the 750k custom builds. We haven't had any tear downs or custom homes yet. Our street of around 20 houses, has had 5 home sales in the last year since we purchased (including us) All 4 home sales have gone to Air Bnb investors and have been purchased within 7 days of being on market. Currently 2 more on our street our beginning to list and we expect the same Air Bnb buyers to swoop in. What is the impact of this type of environment have on my homes value? What can we expect in the future? Thank you! [link] [comments] |
| No seasoning cash out refinance lenders? Posted: 16 Nov 2020 04:54 PM PST The title explains all. I've paid cash for a few properties I've bought in the last 1-2 months. They were all discounted more than 30% or more. I would like to refinance then (cash out) but I would really prefer to not wait the 6 months. Any lenders out there that do this? I know RCN isn't doing it anymore they're doing delayed financing but I would really like all my money back I spent on the properties if i can. [link] [comments] |
| Real estate investing Blue states vs Red States Posted: 16 Nov 2020 03:41 PM PST Not to get political and all but I have wondered if there is a correlation between real estate investing or cheaper cost of housing compared to states voting habits.. [link] [comments] |
| Operating a Laundry Room out-of-state? Posted: 16 Nov 2020 11:45 AM PST I'm closing on an 11-unit property equipped with a coin-based laundry room but my Property Manager says they won't spend the time going to collect the coins. What other options do I really have? I have heard about a company called Jetz but it sounds like it could be expensive and I would have to replace all the washers and dryers? Income from laundry is like $250/month. Property is in Kansas City [link] [comments] |
| Curious what you all use for locks Posted: 16 Nov 2020 11:43 AM PST What do y'all use for locks? Do you re key yourself? Curious what everyone else does. [link] [comments] |
| Posted: 16 Nov 2020 03:09 PM PST Hello, so I've been on the hunt for my first property for about 6 months and finally inked a deal about a month ago but the process has been prolonged due to finding out the property needed a little more work than advertised after inspection (thank god for inspections right?). The property is a triplex, fully occupied and all tenants paying, I decided to kick out the lowest paying tenant who also happened to be a single male, so no I don't feel too bad for doing that in a middle of a pandemic. Thankfully my lender was able to go FHA 203k with 15k for rehabs. My question is should I form an LLC for this? I have read other forums and have seen people setup Property Management companies for this purpose as well. I have heard of the tax benefits but don't know which route is better (sole proprietorship or LLC) All of the information I have looked up and found is a bit confusing and I would like to hear from you all what you would suggest in my situation for someone who is planning on owning multiple properties one day and is starting with a house hack. Just confirmed that my address is in an opportunity zone. How does this effect anything if it does at all? Regardless this is an obv benefit for stock purposes and tax incentives but does this change the status of what I should do as far as LLC or not? [link] [comments] |
| Posted: 16 Nov 2020 02:37 PM PST Hi everyone. My husband and I bought a triplex in May 2019. The 1st floor was vacant, 2nd floor was occupied by a man who has lived there for 25 years, who is probably in his mid 60s, and the 3rd floor was occupied as well. This building was owned prior by Doctors who simply used it to sleep near the hospital when there was a snowstorm and did not put any money into maintaining or updating it. Thus, the rents were not raised in quite some time. The third floor tenant moved out shortly after we purchased it. We put some money into it, and rented it out for $800(previously $650). We set $800 because there a lot of steps up, which we thought may impact the value, but we think it could possibly get even more. After research, my husband found the median value for a 1br1bath in this area goes for $900-$950/month. My question pertains to the 2nd floor (also 1br1b). It currently rents for $550/month which is unheard of in this area. We have put on a new roof, new fire alarm system (which was so out of date and out of code but the old owners never took care of it) as well as a new heating system. Water and heat is included in the rent. We gave him a year and a half, but we just told the 2nd floor tenant we need to raise the rent to $650 effective Feb 1. This is still so low for the market. If he moved out, we could renovate and rent it out for $900+/month. He started telling my husband about his medical bills, ect. and my husband apologized, explained everything we've upgraded to the building and explained we're not wealthy doctors who don't need the rent. I feel badly for this man, however it is important to note that he will frequently strike up conversation with us about govt handouts and how we better be careful or we'll wake up one day socialists - it's clear he doesn't believe people deserve welfare or government help or "handouts", which makes me feel a little less bad. What would you have done in terms of the rent? We're 26 and 27, just got married, and are trying to start our lives with good investments and hard work. [link] [comments] |
| No-Doc Lender Held in LLC vs. Full-Doc in Personal Name Posted: 16 Nov 2020 01:39 PM PST Looking for some advice here from people who feel strongly one way or the other about investment property financing. Bought a 4-family property in an LLC earlier this year. Finally finished rehabbing it and it's finally fully leased at market. I'm in the process of looking for a refinance. I have two Options: 1) Go No-Doc Lender, Continue to Hold Title in LLC, and pay 2 points + 5.5% over 30 years 2) Go Full-Doc Lender, Transfer to Personal Name, and pay 4 points + 2.5% over 30 years. I understand how to do the math on the loan. That's easy to quantify. What's hard to quantify is the difference between holding title in my personal name vs. an LLC. My thought process: - Go no-doc, get ok terms, no personal guaranty on the note, no personal liability going fwd. This seems safe, but expensive. - Go full-doc, get great terms, but expose myself to some unknown down the line. Can be mitigated with an umbrella policy that the difference in rate will more than make up for. Need a little help deciding. Would love to hear from anyone who tackled this decision in the past and feels good about their choice. [link] [comments] |
| How to get financing for first purchase with no employment history? Posted: 16 Nov 2020 01:27 PM PST Hi guys, I've been lurking here for a while after learning more about real estate, and I think I'm ready to buy my first investment property! The problem is, no one will lend to me I'm a 20-year-old college student with little/no employment history, but through birthday money, stock market gains, scholarships, grants, etc. I have enough saved up for a downpayment on a small duplex I'm looking at in Cleveland Ohio. I have a business partner, and we've set up an LLC such that we're each putting in the same amount of money for 50/50 equity. He's in a similar situation -- college student, but he has 2 years of part-time employment history I've tried looking at conventional loans, investment loans, hard money, etc. No one will lend to me. It's either that the loan amount is too small (looking for 75% LTV at a $75k purchase price), or I don't have enough income. The biggest problem, however, is that I have no employment history. I recently started a part-time job, but beyond that, have nothing. My partner has had a number of part-time jobs over the last two years. How can I, as a college student, get a loan for an investment property? [link] [comments] |
| How do you think the work from home trend will effect commercial office spaces? Posted: 16 Nov 2020 01:20 PM PST I'm interested to see what you all think will be the impact of the work from home trend if continued after the pandemic is over. Would many companies decision to give staff the option of working from home have an large or small impact on the commercial real estate market and if you think there will be impacts on the housing markets because of it? [link] [comments] |
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