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    Tuesday, December 1, 2020

    Real Estate: Finally closed on my first multi-family!

    Real Estate: Finally closed on my first multi-family!


    Finally closed on my first multi-family!

    Posted: 01 Dec 2020 06:51 AM PST

    Just wanted to share a success story amid the COVID market.

    I started my search, albeit not seriously, summer 2019. I started taking it seriously fall/winter of 2019. I toured so many houses I can't even count, in cities that were my ideal for my price range. Missed out on a nice looking flip project about 45 minutes from Boston at 380k because the seller "was concerned about financing". I have my own suspicions about why he was so concerned, considering I was already pre-approved.

    Nothing else stuck. Then a family tragedy hit early 2020 so my search was put on the back burner for months. Then my realtor (also my bf at the time) and I broke up. Another set back. Ex-realtor/bf referred me to a realtor he knew from college and the search began again late summer 2020.

    This time it was serious. I tried to stay in the same location but COVID had rocked the market and I was not about to settle for a money pit in my ideal location. I lost hope on scoring a 3-family as my first investment property and started looking at duplexes.

    I even came across a decently priced duplex in Salem (MA) but as one would expect, it was in rough shape with an undisclosed cockroach problem I only learned about by talking to the tenants. I have an FHA loan and don't have the needed resources, pass.

    Ultimately, I realized I'd have to start looking further out than I really wanted to if I was going to get my damn house in 2020. And I was going to get my house in 2020. I looked in Rhode Island but it was too far from home and ended up picking an area in MA I was comfortable with that still had good potential and prices I could afford.

    I was on Zillow daily. I had been checking often before but not daily. Idk how many houses I toured and come October, after an accepted offer on a 3-fam and abysmal inspection that lead to me having to back out, I was thinking if I didn't find another house in a week I'd put an offer on this pretty cheap 3-fam in good shape that I initially passed on. It was built into a hill with an extremely steep and long staircase to get to the 2nd and 3rd apartments. It also had a really weird set up in the first apartment and wasn't in the best city. Then we stumbled upon this 4 family house.

    I drove out to see it, it was in great condition, old roof though and an appearance I assume was somewhat unattractive. I assume this because even though my realtor and I were convinced it would be snatched up extremely fast for price + location + it's a 4-family, at over asking too from what we had experienced thus far, our offer below asking was accepted. Both realtor and lender were telling me to offer over asking because there were definitely going to be other offers, I wasn't able to make it to the initial open house so had to schedule a time the next day and even waited an extra day or two before offering, but it was accepted.

    I'm all for being competitive but I'm not about to over-pay on an investment property during a pandemic. Sorry guys. So, I offered over asking and requested the seller pay closing costs, which ultimately meant what they were getting was a bit under asking. Then the whole process began. Some mild annoyance on both sides, some concessions by the sellers, and a rocky close later (they did not properly perform on an agreed upon fix and were angry that I was not satisfied with it and threatened to back out while I was at the attorneys office) I am now the owner of a pretty solid 4-family home about an hour's drive from Boston.

    She needs work and maintenance, a couple rent increases that have been hard to hand out, but she's turn-key and in solid condition. She'll also be able to cash flow a decent amount after expenses and savings. Amid all the bullshit that has happened in 2020, all the setbacks and all the shitty things that have happened in my personal life this year too, this has been the one saving grace.

    submitted by /u/SaraNexa
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    Just had a 248k offer accepted on 259k list

    Posted: 30 Nov 2020 04:24 PM PST

    Just won a bid 11k under contract price on a condo. Comps are 245-250k, pretty happy in this market

    submitted by /u/CrankLee
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    Do I have to pay a Moving Fee if I have nothing to move??

    Posted: 01 Dec 2020 08:53 AM PST

    I just bought a condo and my property management charges a $300 moving fee for moving large furniture, moving trucks, etc. to cover the cost of any damages when moving in/out. I moved into my unit with literally nothing but a suitcase of clothes and a small boxed mattress that was ordered online from Tufts & Needle. I asked about their moving policy just in case they had a designated loading zone since my street has no parking allowed. I don't have any large furnitures or moving trucks/movers. I virtually moved in with nothing and have to buy all my furniture, kitchen, bathroom essentials from scratch since I own literally nothing. Based on their condo rules and regulations, a move is defined as delivery of large furnishings/equipments. Am I obligated to pay that $300 fee??? I see so many other residents here who order large items off Amazon, Wayfair, mattress companies that sit in our lobby and I'm certain they don't pay $300 fee every time they order things online.

    submitted by /u/takinganswers
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    My bid was accepted at the end of August this year. Finally closed yesterday and today I am on record as the official owner of the property.

    Posted: 01 Dec 2020 10:24 AM PST

    Listed $344k; Offered $355k. 1/1.5 condo 15 minutes from Boston, USA.

    Never thought the process would end and would sharing a positive post here!!! I'm so excited!!!!

    submitted by /u/findingparanoia
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    A nice descriptive book on real estate. Not on “hOW to INvEST” in real estate just the description of it. How it impacts the economy things like that. Please suggest me a book. I am a beginner ready to get those knowledge and wisdom about real estate.

    Posted: 01 Dec 2020 06:24 AM PST

    Thank you so so much I'm advance 🙏🏼

    submitted by /u/mr_robot003
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    Do I have a leg to stand on here?

    Posted: 01 Dec 2020 08:47 AM PST

    We bought a house and agreed with the sellers to close on Dec 8th. We sold out house and then agreed with the new buyers to close on the 7th.

    Today the house we boughts agent called us to say the sellers decided they want to enjoy one more Christmas and now they want to close on January 8th.

    Throwing a major wrench into everything.

    Is there anything I can say or do?

    submitted by /u/thebrooklynflash
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    Wondering if I should sell

    Posted: 01 Dec 2020 07:26 AM PST

    Hey everyone, I bought my first building in 2017, for 85k all cash. Put another close to 35k Into it, bringing me to 120 in equity (one of the improvements was a new boiler for 17k in 2017, not sure if i can declare the depreciation on sale or not). It's a 5 unit, 3:2 commercial/residential split in Cleveland, in which 4/5 units are rented out. The building is unlisted, but someone is interested in buying it, and my lowest price is 160k, which, after capital gains would probably be closer to 149, clearing around 15k in profit. I haven't had the building appraised and the buyer is motivated. The buyer is also asking me to declare the sale at around 90k, which is certainly a red flag, so wondering if thats something to avoid altogether. Thanks everyone!

    submitted by /u/DassaBeardt
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    What does one call a business or service which makes a house look good enough to sell?

    Posted: 01 Dec 2020 07:10 AM PST

    I have a house that has been rented for the last 8 years to someone with three dogs. At some point in the near future I'd like to sell it, but thinking about the cosmetic damage done by the dogs, and the general wear and tear of the house over a decade, has me feeling like I'd be spending months on this place.

    Is there a name for the service or industry which deals with providing the best ROI on home improvements, without real regard for our personal taste, since we're selling it? All of the as is offers I get on the house are ridiculously low compared to the houses value.

    submitted by /u/TheRealSquirrelGirl
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    TAX Q: Can I buy a 2nd investment property with pre-tax rental income?

    Posted: 01 Dec 2020 10:06 AM PST

    I have a property which I own outright in an LLC. I have earned enough in rents this year to buy another property in cash. Could I simply buy the 2nd property and write it off completely?

    To add math to the example (hypothetical numbers):

    -In 2020, Property 1 has generated $100k after expenses (utilities, insurance, property taxes, etc.)

    -That $100k is sitting in the LLC's checking account

    -I want to buy Property 2, which conveniently is $100k.

    -Instead of recognizing that $100k as pass-through income, I write a check for $100k and buy Property 2, and the LLC owns it outright.

    -Technically the LLC now has a gross income of $0, as all 2020 profits from Property 1 have been used to purchase Property 2.

    Is this allowable? Is Property 2 a fully deductible business expense?

    submitted by /u/debtinstruments
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    Seller countered 20k higher than offer AFTER checking with our lender

    Posted: 30 Nov 2020 03:05 PM PST

    We placed an offer on an overpriced FSBO. The seller called our lender to make sure we were good for the loan. We thought this was a good sign, even our lender said that this usually means the offer will be accepted, but we just received a counter offer 20k higher. Does this make any sense? Wouldn't you check with the lender after the price is agreed upon?

    submitted by /u/autumnbreeze2020
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    I think I fucked up

    Posted: 30 Nov 2020 06:57 PM PST

    TLDR: no final walk through, seller didn't complete repair

    I closed this morning but per contract, seller has possession until 9pm (PST). My realtor called me and said the seller is out and hid the key under a rock, house is empty, and I'm free to go over and start moving. BUT the seller's ex is still there. The house has a new fence and gates weren't up yet but in the contract, it said gates needed to be up before 11/30. And they were. But then the ex took them down with the intention of re-hanging them. He plans to do it tomorrow but isn't sure if he'll be able to finish. He's left all his tools and supplies inside the home (garage) and will thus need access until the job is finished. Here's my big issue (unrelated to real estate): I'm buying this home alone. I'm a single late 20s female with a long history of sexual abuse while I was in the military. The idea of a strange man having access to my home and hanging around the property is TERRIFYING to me. I understand that my emotions are not this man's fault and he's likely a fine person. But fuck. Half reason I'm buying this place is so my dog has a backyard, so obviously I want the gates up. But this just doesn't seem fair. The contract said it had to be finished. I don't want to be unreasonable, so please share what a reasonable response to this would be. Thanks.

    submitted by /u/mntldy
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    How to get specific property lines!

    Posted: 01 Dec 2020 09:37 AM PST

    New Homeowner here, in Michigan.

    I'm trying to figure out how to get specific property lines for my new home, so that I can put a fence in the backyard.

    Who the heck do I hire for this? Or is this a town/county service???

    Thanks for any help/advice

    submitted by /u/SundaySchoolBilly
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    Worried about low appraisal in California

    Posted: 01 Dec 2020 09:30 AM PST

    I'm in escrow on my first home. I had to beat out multiple offers in this crazy sellers market. Our appraisal was on Saturday & we haven't gotten the report yet. Here are some of the facts. Please weigh in on your thoughts—I'm really worried:

    1. Our offer was accepted at $27k over asking!
    2. Current sellers bought house last year for $64k under our deal
    3. Inspection came back great: new plumbing, new windows, lots of new updates etc. Only very minor fixes that the sellers will handle
    4. Comps are tough in my area because in the immediate neighborhood, all homes have sold for less but are far less nice inside and far less updated. This home is really updated
    5. The entire town is a safe and it's desireable neighborhood for families
    6. It's 2020 and home prices are insane this year
    7. One of the competing offers was higher than ours (I think ours was selected because we put that we'd cover $9k if appraisal is low)

    Am I worried for no reason because this is my first house or is this reasonable to stress about? I appreciate the advice from anyone more experienced than me! Thank you!!

    submitted by /u/Throwawayhere287
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    Preparing to sell with Smart Home stuff

    Posted: 01 Dec 2020 08:56 AM PST

    We are getting ready to sell our home, but we've got a good bit of smart home stuff installed:

    • Nest Thermostat
    • Ring Alarm system
    • Ring Doorbell
    • MyQ garage door opener
    • WeMo Light switch

    Should I...

    remove all of the smart home pieces and replace them with cheaper alternatives before showing? Or keep them all out and open?

    I will note that I don't mind including any or all of those pieces of tech in the purchase of the home. I'm just as happy to buy new for our new home. But I don't want to worry buyers with a perceived difficult home to maneuver and setup.

    On the other end of the spectrum, if a buyer does want to keep the devices, any advice on unlinking the devices from my account to leave for someone else?

    submitted by /u/brisonharvey
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    8 months looking and still no house

    Posted: 01 Dec 2020 08:52 AM PST

    Just want to rant, been looking for a single family home in the Norther NJ area for over 9 months now, and getting so discouraged we'll ever find anything.

    In that time, we put in two offers. One we walked away from due to terrible agent, another is a bidding war that we did not want to get into as the house was overprice to begin with and wasn't our "dream" home that barely checked off 1/2 of the things on our wish list at that price point.

    That was more than 5 months ago, since then, nothing! We have a health budget (up to $1MM), reasonable demands (4BR/3full baths, play area), reasonable taxes (up to $20K a year)...

    I'm really hoping it's because of the pandemic and most people are just not looking to sell right now. We don't have a hard deadline to move but of course want to take advantage of the low interest rate. Weeks and weeks of looking and expanding our area and just not seeing anything... why is finding a home so hard??

    //end rant.

    submitted by /u/tryaway321
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    Appraisal Question

    Posted: 01 Dec 2020 08:41 AM PST

    Recently closed on a house (yesterday!!), I'm hoping to gain an understanding of norms on appraisals.

    How often do you see appraisals come in low, high, right on the mark?

    The property I closed on was listed 300k, offered and accepted at 307.5k, and appraised at 315k.

    Primary reason I'm asking is both my realtor and mortgage broker say that the appraisal coming in "this" high is uncommon. All the resources I've read online don't really point in a definitive direction.

    For the record I love the home, and would have closed even if it came right at asking, but might have backed out if it came far (5-10k) under the offering price.

    submitted by /u/degeneratepsyche
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    Overthinking paint in garage and landscaping

    Posted: 01 Dec 2020 08:03 AM PST

    Alright. We are maybe a week or two from listing our home for sale. I wanna preface by saying it's not a high end home. We expect to list it for 65-75k and walk away with 15-20k of profit.We are going over the final oddball things. Two things stand out to me but I'm not sure if I'm not picking because it's been our home for so long.

    1. Is the landscaping. The front of the home has a standard style large front porch with concrete steps down the middle with a empty flower bed on each side and a stone path that leads to the driveway. We are thinking of keep it Simple here. Just straightening up the pavers for the flower beds, toss down some landscape fabric and enough rock to cover it, and basically do the same for the path.

    2. It has an oversized one car garage. It's attached but you have to enter from outside. The only issue here is the paint. It's painted an oddball yellow and has other colors of paint over the walls from years of painting projects. I'm thinking of just getting Lowe's or whoever to get a paint that close to matches and just cover the off colors.

    With both of these I'm torn between wanting to go way over board and keeping things cheap and simple with the mind set of the new owners will probably change the landscaping and paint anyway.

    The rest of the house is nice for our area with almost new everything and lots of updates( heat, ac, smart features, windows, flooring, appliances, ect) and fresh paint.

    I can try to grab some pictures here soon.

    submitted by /u/notorious-bil
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    (VT) Did I screw up for an offer? Getting representation after seeing open house

    Posted: 01 Dec 2020 08:01 AM PST

    Hi all,

    Not sure if I screwed up here. I went to go look at a house as a first time buyer, it was an open house. I told the listing agent I wasn't working with an agent a week ago but my neighbor is a real estate lawyer and said he could represent me. I just gone seen the house and I hadn't told the listing agent that I was working with a real estate lawyer, my neighbor said he could submit the paperwork for the offer and did it. Did I screw up?

    submitted by /u/Tpain2359
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    FL - First Time Home Buyer - Issues with Financing

    Posted: 01 Dec 2020 07:29 AM PST

    So my wife and I have decided we want to buy our first home together. We found a home we like and can afford but are running into a major financing problem.

    Here's the situation:

    My wife's credit is pretty much perfect and she qualifies for a very low interest rate. However, my credit is far from perfect (I even have a recent bankruptcy). Our initial thought was to simply file all the paperwork under just her name.

    The issue we're running into though is if we do this, they cannot use my income at all when factoring in DTI ratios which is messing everything up. If I were to cosign, we wouldn't get approved at all due to my bankruptcy.

    Is there any way to get around this? We have joint accounts and she has total access to my money coming in but for some reason they will still only factor in her income.

    Any advice would be greatly appreciated.

    submitted by /u/Tomcat2048
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    How long do title searches take for foreclosures?

    Posted: 01 Dec 2020 07:25 AM PST

    Hello! My partner and I have an accepted offer in for a bank owned property (foreclosure) where no one is living. It was a flip and the contractor ran out of money. We are in a hurry to move, and I was wondering what a normal leadtime would be for title searches for foreclosures? Wouldn't the bank already have the title considering it is a foreclosure? I am a first time home buyer so an advice or feedback would be great!

    submitted by /u/xnailed_it
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    Home migration Loan / Bridge Loan questions

    Posted: 01 Dec 2020 07:08 AM PST

    • I currently own a property (primary residence) valued around $225,000 and have a mortgage on it that is at $135,000
    • I'm interested in another property on the market for $275,000
    • I would be moving my primary residence and selling my current property

    How do bridge loans work? Or what would I need to look for to be able to go from one property to another property.

    I have $3,000 saved in an emergency fund, but otherwise no down payment money etc.

    submitted by /u/rdweaver95
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    How to buy an apartment complex

    Posted: 01 Dec 2020 07:07 AM PST

    I've been wanting to buy one because they're way better income and flipping than houses. Where do I start?

    submitted by /u/stingerspure
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    Does it make sense to buy a 1b condo in Chicago that doesn't have much appreciation potential?

    Posted: 30 Nov 2020 06:36 PM PST

    This is a prime location and easy to rent. I'd be purchasing for myself though as I'm looking to live alone for a while. The price looks low given the covid situation downtown, but historically the building has not seen much appreciation compared to other neighborhoods. Does anyone have input in this? Thanks

    submitted by /u/UncertainAccountant
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    Buying a house with pool

    Posted: 30 Nov 2020 12:11 PM PST

    We just put an offer in on a house that fits almost all of our requirements including having a pool. That wasn't something I was seriously thinking about before COVID but since pools have been closed I've really missed the exercise and time outdoors. The pool seems to be in good shape and we included an inspection contingency, so if anything is really wrong with it we could back out. After doing some more research, it looks like the additional costs for utilities, maintenance etc could max out our budget if they end up on the high end of the range. We're both steadily employed and WFH for the foreseeable future but spouse is worried that if one of us lost our jobs we wouldn't be able to live there comfortably and wants to keep saving so that we can have a higher down payment & lower monthly payment in a year or so, and thinks it's short sighted to make decisions based on COVID WFH fatigue. The market is very hot in our area (always but especially now) and I haven't seen many houses with pools in our price range. There are multiple offers on the house so might be a moot point, but curious to hear thoughts & if anyone else has experience with this?

    submitted by /u/Lulu_250
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