Real Estate Investing: 2 buildings, 15 garage units |
- 2 buildings, 15 garage units
- I was nervous
- Common things to ask a broker?
- Where can I find the "COL" ?
- New Lease Issue
- What's the best state to invest in real estate in.
- Finding Agents & Wholesalers as an Out-Of-State Investor
- Is it Illegal for Buyer to Pay Listing & Buyers Agent Commissions from Loan Proceeds?
- Tools for Vacation Home Rental Market Analysis?
- Why use a silent partner if you have capital?
- Gifted property now what
- First Property Advice
- How do I figure out if everything about a split duplex is all above board
- Hi All, I’m wondering what resources/process people use to determine consistent purchase to rent ratios in counties, cities, or neighborhoods. I’m in CA but think this advice could be applicable to all regions.
- Perks of having Real Estate license
- What one component of BRRRR do you think adds the most value?
- BRRRR method
- Is Long distance RE actually doable with a PM?
- Is the grass greener on the other side?
- Does the 250K home sale tax exclusion apply to total number of years live divided by total number of years owned and not total number of years lived in past 5 years divided by 5?
- Househacking using FHA but also Airbnb?
- Quick question about LLC
- Refi or sell?
| Posted: 09 Dec 2020 05:19 PM PST Hi everyone, First time posting here so sorry if I leave out any info. I am 22 and looking to get into real estate. I have a full time job so looking to start out and get some equity and some extra cash flow. My dad is also interested in going 50/50. I have been searching around for properties to try to get a feel for what they sell/rent for. I am also listening to some podcasts and keeping up in this forum to get familiar with all of the language. Anyway, in my town there are two buildings for sale by the same owner. They are a strip of garage units. One building has 6 garage units and the other has 7. They are listed separately at 170k and 160k respectively. Each garage unit rents for $185/month. After doing some quick math, it looks like the mortgage would be about $1500 including property/liability insurance and taxes. This would mean only 8/15 units would need to be filled to break even. If all units are full, it would bring in about $1200 above the mortgage (obviously not accounting for vacancy or maintenance reserves). One red flag is that these properties have been up for sale for over a year and a half. The properties started out at about 400,000 total (now down to 330). The lady selling is on the older side so I'm assuming she is ready to cash in, but the cash flow is good enough where she's not willing to settle for a lower amount. She has owned them for over 20 years. Am I missing anything here? When I talk to her, are there any questions I should definitely be asking? I plan on calling tomorrow as a renter to see how many units are available for rent. It seems like a great deal to get started, but I feel like if it was that good someone would have picked it up already especially since it's been on the market for a while. Any advice will be helpful and much appreciated. Thanks in advance! [link] [comments] |
| Posted: 09 Dec 2020 04:32 AM PST I was nervous, I have a 2/2 about to hit the market. I woke up yesterday in a panic. This is my 3rd house, 2nd rental (we house hacked twice). I haven't even listed it yet and my neighbor brought me a tenant. The deal worked both ways, and we got it done. Just jump, you'll figure out how to fly on the way down. Now, that doesn't mean don't maintain a reserve, account for maintenance and vacancy, and seek out good deals. But it does mean that this stuff though hard work, isn't overly complicated. Also, closing docs came back on house 3, cash to close and monthly came in 2 grand lower and 150 lower per mo respectively than anticipated. Don't over complicate it! Find a decent deal and pull the trigger. [link] [comments] |
| Common things to ask a broker? Posted: 09 Dec 2020 10:34 PM PST New investor here. I'm looking at a couple deals but wondering how/when to approach the broker. I'm curious about some of the numbers in the marketing package and am curious about how many offers a couple properties are getting. Is it common to simply reach out to the broker with those exact questions, or is there a way people go about the initial conversation to brokers and is there anything good to include in that first interaction? [link] [comments] |
| Posted: 09 Dec 2020 07:13 PM PST I have my real estate license in NY and am getting my real estate license in NJ as well. I was told to do out a waver form and add my certificate of licensure. I am not familiar with how I would go about obtaining this. Any suggestions for what I can do? Thanks [link] [comments] |
| Posted: 09 Dec 2020 02:03 PM PST Currently under contract for a duplex in Ohio, cash deal where I'll fix it up and bring it up to market rents. Finance it later. My realtor called today and said he got an email from seller agent saying that he just signed a new 12 month lease with one tenant. This was done after we were in contract and did our walkthrough. Obviously not something we asked them to do and we are especially unhappy that it's $250 less than what we could rent it for a month now. I've already asked to get the new lease cancelled. Don't see that happening since both parties signed. I asked to get compensated on the difference of new lease rents and what market rents are, $3000 total for the 12 month lease term. Wanted to see if anyone had any other suggestions or what other options I'll have. I won't be backing out of the deal. [link] [comments] |
| What's the best state to invest in real estate in. Posted: 09 Dec 2020 05:36 PM PST My parents plan on moving and they have a lot of money saved up. What state would be the best to invest in real estate in? From my own research somewhere in Texas or Florida would be best. thanks for anyone who comments :) [link] [comments] |
| Finding Agents & Wholesalers as an Out-Of-State Investor Posted: 09 Dec 2020 04:57 PM PST Hey all- I'm a California native looking into investing out of state due to the paltry returns that we experience herein CA to put it mildly. For the Out of state investor crowd, how do you all go about networking with agents and wholesalers across the country to find and close deals? I've been using BP, but I find it a bit weak in this area. Do you guys recommend any other online platforms? Thanks! [link] [comments] |
| Is it Illegal for Buyer to Pay Listing & Buyers Agent Commissions from Loan Proceeds? Posted: 09 Dec 2020 04:15 PM PST Hey All, We went under contract for a home with a purchase price slightly over $2M. To avoid the higher transfer tax that comes with transactions $2M and above, my and the sellers agents suggested we make buyer (me) solely responsible for paying commissions to both and that we lower the contract price by that same amount so it all evens out. I know typically it's no problem for the buyer to pay both commissions from loan proceeds but can a seller pay both commissions with the loan? Thanks for your advice. [link] [comments] |
| Tools for Vacation Home Rental Market Analysis? Posted: 09 Dec 2020 04:11 PM PST What resources / tools do you use or have you found helpful when performing rental market analysis for vacation houses? Thank you for your time! [link] [comments] |
| Why use a silent partner if you have capital? Posted: 09 Dec 2020 07:24 AM PST My SO and I bring in a good amount through our full time jobs ($100k+ per year together). I have a friend that I like, trust, and is somewhat familiar with real estate and has a high paying job who is interested in being a silent partner on ventures moving forward. Not worrying about his fitness as a partner or how to formulate said partnership, what are the perks of having him onboard if we end up splitting ownership and costs 50/50 but his capital lets us buy a property every year rather than every other year? (Info: generally buy slightly distressed sfh, fix up, and turn into rentals in a HCOL area with an eye on appreciation for the long haul, 20+ years) Looking for thoughts, experiences, and maybe even an example or two with numbers if you are so inclined. [link] [comments] |
| Posted: 09 Dec 2020 03:53 PM PST What could you do If you are gifted a property that is appraised at 500k-700k How do you tap into equity when it is 'gift' to purchase more properties? [link] [comments] |
| Posted: 09 Dec 2020 11:06 AM PST Hello guys, let me preface by saying I'm a complete rookie but I'm super interested in REI and I'm getting ready to buy a property next year, so I've been doing a lot of homework on my options and I'd love to hear some feedback from more knowledgable people than me. I'm located in South Florida so it goes without saying that the property prices are pretty crazy down here right now. With that in mind, I have about 3 options at this moment that I'm considering. 1) Buy a duplex here in and house hack it for a year using an FHA loan or a conventional loan with low down payment. Move out after a year, rent both sides and buy something else to continue. 2) I'm looking into the Cape Coral area (2 hour drive from where I live) with the possibility of buying a home there using a vacation property loan (10% down) and listing it with AirBnB for the foreseeable future. My intention is to do this for a while and then turn it into a rental down the line. I spoke with my lender and the AirBnB idea is okay in their eyes. I don't have the 20% needed for a pure investment property in this area. While I do this, I'll keep saving money to buy another property. 3) Scrap both points above and just look for a cheaper property elsewhere in the state that I can buy with a 20% downpayment. At this point, I'm really looking for some guidance on where I should focus my attention to. I've looked into all three scenarios and I'm not really sure which direction to go. Any suggestions is highly welcomed. Thank you guys! [link] [comments] |
| How do I figure out if everything about a split duplex is all above board Posted: 09 Dec 2020 11:06 AM PST I am buying a property with two units on it. It has one house (3 bed 2 bath) and what used to be the garage converted to a studio apartment (1 bed 1bath). How do I make sure that this was all done legally and won't come to bite me in the but. It has been this was for a long time and there are rental licenses for both units through the city. [link] [comments] |
| Posted: 09 Dec 2020 02:24 PM PST |
| Perks of having Real Estate license Posted: 09 Dec 2020 05:34 AM PST I currently am in the I.T. field as a Systems Admin (great job and income). Before I got into I.T. I was a auto salesman. I was salesman of the month plenty times and I also appeared in a commercial for the dealership. I say all that to say sales is natural for me and I once sold to a Realtor and she told me I was in the wrong field of sales (Hence I should become a Realtor). My question is what exactly are the perks of doing real estate on the side? I doubt ill leave my current job to become a realtor but what benefit would it realistically grant me if I obtained my license? [link] [comments] |
| What one component of BRRRR do you think adds the most value? Posted: 09 Dec 2020 09:49 AM PST In the spirit of The One Thing I am trying to think of all of the components of BRRRR which add value which one is the core competency or biggest driver of alpha? So first off I havent read any books on this I just generally understand the concept and finance in general. I see the main competencies as: *identifying market *identifying unit within market *securing good financing *efficiently rehabbing *finding good renters *refinancing rates So for example I am thinking of buying that book How to Estimate a Rehab because i have no clue how much any of that costs. By learning it myself i can generate value. Or i could pay someone else to do it. How much value can I had by having stronger domain knowledge of rehabbing? Is that the best place to focus my personal development or would it be better to e.g. focus on market research and just sub out the rehab and eat the cost difference knowing that i'm focusing on higher value areas? I am not looking to make this a full time job hence not trying to be an expert on every point here but I'd love to know where to start focusing because that will dictate the nature of my first investment. Curious to hear your thoughts about The One Thing that drives most value in BRRRR. Obviously everyone comes in with different domain knowledge. I know a little more about financial planning than baseline while another person may come in with a strong market knowledge. But assuming youre starting from scratch on all these competencies where do you think is the best to focus. And do you think I'm missing any competencies? [link] [comments] |
| Posted: 09 Dec 2020 01:31 PM PST Is there anybody on this platform with experience on the BRRR method? I would love to head your experiences! I'm currently deciding which one is the best option between flipping and the BRRRR method. [link] [comments] |
| Is Long distance RE actually doable with a PM? Posted: 09 Dec 2020 07:06 AM PST Can there still be decent returns? Ex: live in Cali invest in the Midwest. Does it require visiting the property ever? [link] [comments] |
| Is the grass greener on the other side? Posted: 09 Dec 2020 12:59 PM PST In my area there are lots scattered throughout the area, which have SFH built on them - pretty straight forward. However, these lots are large enough to hold 1 or 2 other houses, the same size as the first, on them. I am sure some of you may think that I want to buy someone's front or backyard, but that is just not the case. These properties are in neighborhoods and aligned with other similar SFH or townhouses where there is not this extra space. In summary, it looks as though a SFH or a duplex should be built there, but there isn't one. My question to those in this community is about the process of going about subdividing one of these properties and building a townhouse or duplex on it. What kind of questions should I be asking myself, or the listing agent, or the current owner? So far, I know that there are implications due to HOA, zoning, and the ground itself (is it capable of being built on), but what other implications could I run into? Thanks! [link] [comments] |
| Posted: 09 Dec 2020 08:55 AM PST I'm aware that to qualify for this exclusion, I would need have to had lived in home for 2 out of past 5 years. I had always thought that if I move into a property I've owned and been renting out for the first 8 years and live in it for 2 years then sell, I would get 2/5=40% of the 250K exclusion. 250K*40%=100K [link] [comments] |
| Househacking using FHA but also Airbnb? Posted: 09 Dec 2020 06:21 AM PST Good morning, everyone. So, I live in a region where the market is extremely hot and inventory is extremely low. Obviously I'm sure this carries across the states, however our market is densely inflated comparative to other local counties... I found a duplex that was listed on the MLS for not even 15< minutes and immediately contacted the agent. Toured the property the next day, found out that owner financing was not available, and decided to pursue an FHA with 3.5 down... So, my question is, I have a place of residence that is "essentially" rent free, so I would be staying there most of the time. However, my residential address would obviously be the address of one of the units on the duplex (with the other side being rented/leased out). Mail would be going there, my belongings would be there, etc... Would I be able to Airbnb MY unit on days "I wouldn't be staying there"? Not sure if this would be against lending terms as obviously it's required that I occupy the property for at least a year. Numbers are a bit dodgy when simply househacking— only way it would work is if I would be able to rent both units. Any insight? Thanks in advance. [link] [comments] |
| Posted: 09 Dec 2020 07:08 AM PST I am looking to form an LLC for purchase of my first rental property. My question is, when I go to apply for pre-approval under the LLC, are they going to look for income/financial history of the LLC or for me personally? Obviously the LLC would have no income as this is the first investment, it would just be holding the down deposit plus some extra cash to get it up and running, so I'm assuming I can use my income as proof of ability to pay on a monthly basis should I not find an immediate tenant? [link] [comments] |
| Posted: 09 Dec 2020 10:31 AM PST I've been in an internal battle the last few weeks and am trying to get any input on what future moves I should make. Background: I purchased a SFH that is now positioned as a rental property. It has appreciated substantially, and all signs point that it will continue to do so. My choices on what to do with it: If I sell the rental next year when all my tenants' leases expire I can pay off all of my student loan debt and have money left over for a small downpayment on another rental property. OR I could refinance for a lower rate and just reap the extra cash flow from renting. This also allows the property to continue to appreciate. OR I could do a cash out refi and pay off most of my student loans but probably end up with a slightly higher monthly payment. Any suggestions out there? [link] [comments] |
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