Real Estate Investing: Building new construction doubles? |
- Building new construction doubles?
- Tenants offering to pay for upgrades?
- Pls explain seller finance like I'm five
- Should I split 1 larger lot into 2 smaller lots?
- How beneficial is becoming a Realtor for real estate investing?
- Where to start
- Estate Auction Advice
- HVAC not working 4 days after closing. Inspector says it was in adequate condition
- Using hard money for rentals
- Construction vs Rehab
| Building new construction doubles? Posted: 02 Dec 2020 04:46 AM PST Wanted to post the high level overview and see if anyone had any tips/ best practices, or has possibly done something similar and had any advice: Where I am (as I'm sure most places) inventory is getting scarce for 2-4 unit properties. People are paying well above what I would consider a good price. So we decided to purchase 2 off market lots and build brand new construction. I'm a Realtor and my partner om the project is a contractor, so we're able to do things a bit cheaper than normal. Still figuring out the specifics with the plans, but each double should be around 2000 sqft (3/2 each side). Idea is to build, keep for 3-5 years and sell- or possibly refi sooner into and 30 year mortgage and hold long term. I'll manage them myself. Lot purchase: $23,500 Construction: $198,000 ($98/sf) Closing costs: ~$4,000 Insurance, plans, etc: ~$3500 Est Total cost: $229,000 Estimated mortgage (20yr am): $1900 Est. 30 yr mortgage (if we refi): $1500 Gross rental income: $2500 Edit: Based on comps, it should be worth around $286,000 ($140-$145/SF) upon completion. [link] [comments] |
| Tenants offering to pay for upgrades? Posted: 02 Dec 2020 06:49 AM PST My gut feeling on this is that it's more trouble than it's worth, but curious if any of you have experience with tenants offering to pay for major upgrades to their units (like granite countertops, new cabinets, etc.). IF I did it, I would definitely have them pay for labor and use my contractors, but even still, it seems there is a lot of potential for misunderstandings/issues. On the flip side, it seems that kind of investment could inspire them to stay awhile/take care of the place. Thoughts? [link] [comments] |
| Pls explain seller finance like I'm five Posted: 02 Dec 2020 04:33 AM PST Hi real estate gurus- I'm going to likely sell one of my properties seller-finance. Can I pick your brains on the following please? Terms: the building is approximately 85k and the realtor suggested 50k down up front and we carry-back a note on the other 35k at 6.5% with 2 points up front, interest-only for a period of 18 months with a balloon at the 18 month mark. Does this seem reasonable? First time doing this, so please go easy if these numbers are crazy. I/O loan: Sorry, I'm not 100% understanding this this... if the buyer pays down more than just the interest portion of what he owes each month (thereby chipping down on the principal owed to me at the end), his next monthly interest amount will also decrease, right? Our realtor seemed to suggest otherwise (and/or doesn't 100% understand how loans work.) Nuts/bolts of this: how does one actually set up the interface for accepting loan payments? Do I just literally keep an excel spreadsheet and write down how much I received, what his principal is, etc., or are there third-party services that manage all this that you recommend? Please go gentle with these n00b questions, first time doing seller carry. [link] [comments] |
| Should I split 1 larger lot into 2 smaller lots? Posted: 02 Dec 2020 09:21 AM PST I have a residential lot (no covenant/no HOA) that I bought a few months ago but never really looked at *super* carefully until yesterday. Well it turns out that the lot has a natural ridge in the middle covered with trees and already has paved access to both sides of the ridge and electric pole/wiring on both sides, etc. Maybe it was 2 lots at one point in the past? Anyway, the question is this: should I keep it as one large lot for investment purposes or split it into two smaller lots and sell each separately? Each smaller lot will be big enough to build a house under the current zoning. I don't have any experience splitting lots so please forgive me in advance. To be more clear: I guess I'm NOT so much asking about the process and how to do it; I'm more asking if this is a good idea investment-wise from anyone who has done it in the past. Thanks! [link] [comments] |
| How beneficial is becoming a Realtor for real estate investing? Posted: 02 Dec 2020 07:00 AM PST I'm somewhat new to this. I have always played with the idea of becoming a part time Realtor. I love the housing market and find it fascinating. How beneficial would being a Realtor be for someone just starting in the real estate investment field? [link] [comments] |
| Posted: 02 Dec 2020 07:32 AM PST I'm completely green to the real estate investing world. I'm considering going in with my parents to purchase a property to rent out and if all things go well add to the list down the line. Where should I start? Should I get an LLC and run it as a business? Does this save me any liability of losing my personal residence if something goes wrong or it flops? Sorry for the cluelessness, just looking for some guidance on where to begin. TIA! [link] [comments] |
| Posted: 02 Dec 2020 08:47 AM PST Hello All, I am bidding in an estate auction for a single-family home. The plan is to fix and flip. I have funds ready for the bid, completed inspections, and know my max allowable offer. This is my first auction. Is there anything I should be aware of, advice, lessons learned, or items that have come up in your property auction experience that a new bidder should be aware or that aren't easily found through an internet search? [link] [comments] |
| HVAC not working 4 days after closing. Inspector says it was in adequate condition Posted: 02 Dec 2020 08:20 AM PST Closed on a rental the other day and after moving a tenant in they told me the heat was not working. I have a guy going to look at it later today, so I am not sure what the issue is yet or even if there is one. But is it odd that a furnace could break down so quickly after an inspection and closing? I mean its a 3 year old system.... [link] [comments] |
| Posted: 02 Dec 2020 05:33 AM PST I'm still new to real estate investing but I have just purchased my first house and will be able to refinance in a few months to pull out equity to buy another one once the repairs are done. Lately I've learned a lot about flipping and how to use hard money to get below market deals quickly. You would then flip for a profit after repairs. However, recently I have been thinking that is it possible to use hard money to buy a house well below market value and then fix it up and turn it into a rental, by refinancing with a bank? Essentially, I am looking for advice for people who can use hard money to get cash financing but instead of flipping the property, you are essentially selling it to yourself with a bank loan at a break even price. This would allow you to buy rentals well below market value. I am sure there may be a downside to this such as multiple closing costs or refinancing fees etc. but overall if you can buy the property at a low enough price, then who cares? Am I missing something? [link] [comments] |
| Posted: 02 Dec 2020 05:27 AM PST Think a lot of folks take the BRRRR approach or buy turnkeys, but has anyone ventured into new construction or gut rehabbing? Would love to hear about your experiences. TIA [link] [comments] |
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