Real Estate Investing: If I am not even close to the 1% Rule, should I even consider an investment property ? |
- If I am not even close to the 1% Rule, should I even consider an investment property ?
- Can someone explain me their personal experience with remortgaging one investment property to fund another ?
- Will real estate prices be affected by the eviction memorandum ending?
- First property. How much does a co signer help?
- How did you build your real estate team?
- Rental property investors, are you still buying property in urban locations?
- What are go-to finishes and fixtures for apartments rehabs?
- How to determine to keep / rent out townhouse, or sell it and buy a different rental property?
- Looking to buy modern home in Miami for potential of appreciating. I am a retarded future’s trader. Is 2021 a good entry ?
- I need help! Family member giving me home that may be condemned, if I want it
- Advice for our thoughts?
- How to deal with a Property Management company that dissapeared?
- Sell or hold: property with 6% cap rate and 20% cash on cash return, but with $500K in equity and 6% return on that equity...
- A beginner's investment.
- Choosing mortgage company
- Gift of equity to tenant?
- Should I refinance? Need help!
- Thailand properties. Is this a serious offer?
- Primary residence question
- Is cash-out refinancing a right move for buy & hold
- Newbie here. How passive can renting out a home realistically be?
- Recommendation: Propstream??
- Are we nearing the 18 year Real Estate Cycle?
| If I am not even close to the 1% Rule, should I even consider an investment property ? Posted: 27 Dec 2020 05:51 PM PST So I am looking into buying my first investment property. The SF units I am looking are around $200K more or less, they are ~1500 sq ft 3 bedrooms 2 bathrooms. Now, houses with the same dimensions as these ones go for no more than $1400 a month in rent. This is Northwest Arkansas. My question is: should I even consider going into this kind of investment property even thought I am not close to the 1% Rule or should I look into other parts of the country that I am not familiar with but I can find a deal that 1% Rule applies. Thanks. [link] [comments] |
| Posted: 27 Dec 2020 09:49 PM PST |
| Will real estate prices be affected by the eviction memorandum ending? Posted: 27 Dec 2020 06:34 PM PST With the next round of stimulus being signed today with an extension of the infection memorandum to January 31 from the end of December. Does anyone think that the amount of people who are so far behind on their rent and are going to be evicted once they can legally be well affect real estate prices? [link] [comments] |
| First property. How much does a co signer help? Posted: 27 Dec 2020 07:56 AM PST Looking to purchase my first property. The property is a triplex. I want to house hack it. Property is listed at 269k Should rent for at least 800 per unit with 850 being market average for these size units. Doesn't need more than paint, which I can do myself. I'm 19. Still live with parents. I have 2 consistent years of making 19-20k a yr. I was self employed during most of that time though and just recently got my RE license. So now I'm on commission pay. I still do one day of work at my previous job a week averaging about $150-200 a week. I have a 709 credit score but only from 3- 4 months of building credit. No personal debt. I have 10k saved up for the 3.5% down on an fha and about 5k additional for any other costs/an emergency fund. So basically I look bad to a bank even though I have 2 yrs of pretty consistent income. So my question is, If I can get my parents to co-sign and they qualify, how much does that help? Bc I definitely don't qualify on my own. But can I still make it happen if I have a good co-signer? Or will that not be enough? I'm talking to two good lenders on Monday but I'd like to get an idea if I can even do it or if I just have to wait until my finances are better. If so I'll just work on building my sales business and try to do some flips. Thanks so much everyone! [link] [comments] |
| How did you build your real estate team? Posted: 27 Dec 2020 09:51 PM PST I absolutely love this sub and it has helped me grow my SFR portfolio to what it is today. This year, I am looking to make the plunge to purchase my first multi-family property. Read a ton of books, found a mentor, and just waiting to execute on the right deal that fits my buy numbers. However, my question for you all is how did you build your team around your multifamily/commercial deals? How did you find the following people: - Real estate agent - Tax accountant - Real estate attorney - Property manager - Contractors Were these people different from what you used in SFR deals? I would imagine they might be, but would love to hear your stories on how you built your teams and any suggestions on how you found them. In the past, I have mainly used things like Craigslists, referals, word of mouth etc, how do you do it? [link] [comments] |
| Rental property investors, are you still buying property in urban locations? Posted: 27 Dec 2020 05:48 PM PST Given the growing population shift to suburban America fueled by coronavirus, work-from-home, and other factors, I'm curious how this may (or may not) have impacted your views on urban rental properties. Obviously, if you price your rentals below whatever market is, you're going to have renters...but with that considered, would you still think buying a rental property near downtown is still a good purchase? I am in the process of buying a triplex located in my downtown area with the intention of house hacking, but I am having second thoughts given the current environment. Any thoughts or insights would be much appreciated. Thanks! [link] [comments] |
| What are go-to finishes and fixtures for apartments rehabs? Posted: 27 Dec 2020 11:29 AM PST Tenant gave notice they are leaving in the next month or two. I know the apartment needs alot of work before I can bump rent +$300-400 to get closer to market value. Tenant was inherited and in place for 5+ years before I acquired. When I do rehabs I replace the outlets and switches with a commercial level product for durability, decent paint (SW Emerald or Behr Marquis), probably replace floors with a decent LVP instead of carpet everywhere. I'm at a loss for a specific brand or model for faucets and toilets. Those are the items I don't have a set go-to for. I don't want cheap plumbing fixtures to cost me in a year or two. I like the sound of the American Standard Champions so I'm not getting calls for clogs. [link] [comments] |
| How to determine to keep / rent out townhouse, or sell it and buy a different rental property? Posted: 27 Dec 2020 08:47 PM PST The townhouse (current primary residence) is worth approx $151,000 and would rent out for about $1550 a month. Mortgage/taxes/insurance are $1440 a month, with a $180 HOA fee on top of that. I owe $128k @ 3%, year 1 of a 15 year mortgage, about $575 a month in principle being paid off each month right now. Included in the taxes is an SSA that has about another 15 years before it's done (about $100 a month). Timeframe for making a decision is probably 18 months out, but I'm trying to plan ahead... I'm also investing $4000 + adding $1000 a month separately I can eventually use to pay this down or use as capital towards the next purchase, along with any equity from this during a sale. Current plan would give me the capital to pay this property completely off in about 6 years if I wanted to. On it's face, I'd be losing $100-$200 a month before maintenance, vacancies, and a property management fee if I ended up moving further away.... but I can see an argument that could be offset by the equity being paid on the house and potential tax scenarios, and at some point in a few years refinancing once the balance is lower. The property is not likely to appreciate much in value due to many half built subdivisions in the area that will pick back up with new builds with any type of rise in property values. Units in my neighborhood do get snatched up either for sale or rent pretty quickly, the values just don't seem to go up. What are the key factors I need to look at to help me make decisions like this? Thanks! [link] [comments] |
| Posted: 27 Dec 2020 10:42 PM PST Factoring In rent freeze expiration and high mortgage turnover rate this coming year. [link] [comments] |
| I need help! Family member giving me home that may be condemned, if I want it Posted: 27 Dec 2020 10:15 PM PST Hey all! So a family member of mine just moved out of a home in bad, bad, condition. Like possibly condemnable. 2-3 bedroom on 3/4 acre in a suburb. He's (potentially) offering it to me for next to nothing if I pay some back taxes, fees, etc. that may range in the $6000 range. Gonna go look at the property next week but I've never owned a home before. I'm interested in fixing and renting or selling as an investment. I'm 27 and have the cash on hand to put $10-15k into it up front. The home is in the state of PA in a suburb 20 minutes from a big city. Can anyone give advice on if this is something to even consider, or is this a bad bet? I'm looking at 3 options: 1) Go in with a friend / home flipper and do as much work ourselves and put the house up to rent or sell. I imagine we'd be looking at tens of thousands in renovation cost, but still this would be cheaper than mortgaging a home in the long haul, in terms of investment property, no? 2) Pay the back taxes / fees and auction the home and/or land. This seems like more of a short-play and would be leaving a lot of potential profit on the table 3) Don't take the home, in which the state may condemn it as the property is in bad shape. Given the above, any tips or pitfalls to look out for? Would I be screwing myself over from a first time home buyers credit down the road? I don't live in the area, about 90 minutes away. EDIT: Found it on Zillow and they estimate it's worth around $150k. It's worth much much less in the condition it's in, but if Zillow's estimates are right it puts it in a decent neighborhood as it's only a 1,200 sq foot home. It's fully paid off minus back taxes. Thanks in advance! [link] [comments] |
| Posted: 27 Dec 2020 04:56 PM PST Usual lurker for information/insight/future ideas. Fiancee and I have been throwing around the idea of offering to buy the house we're currently renting. Landlords are elderly and have said they are going to be looking to fully retire in the near future. It would be our first house and we think a great rental property (she's been here for 3+ years so familiar with the current state of it). We're currently paying $750/month and I'm positive $850 is very attainable. Rentals don't last long in our area. We would obviously need to talk to the landlords to see what they would want to get for it but I'm thinking $110-115k would be a good offer in general. They purchased for $80k back in 2014 and have only replaced the oven, carpet and water heater to our knowledge. We're also assuming $3-5k in upgrades in the event we would purchase (small renovations and other projects) before renting to someone. Now the obvious. We would need to live here for long enough to save for a downpayment on a future house and we would be fine with that. A simple mortgage calculator shows we'd be paying less than $600/month if we were able to purchase, and obviously could end up being much more with unexpected maintenance costs. If nothing to very little went wrong, we would almost be saving money or breaking even with our current situation. What are we not looking at/thinking of? What are the flaws to this logic? [link] [comments] |
| How to deal with a Property Management company that dissapeared? Posted: 27 Dec 2020 01:03 PM PST I have a few properties in Indiana and one property near Kansas City, MO. I've owned them for a few years now. I bought all of these through turnkey companies that do the rehab and also do property management, and I hold on to them long term. Recently, over the past few months, the PM for my Kansas City property has been communicating less and less. They failed to fill a vacancy over the past few months, were not responding to most of my communications, and recently they went offline (their site is offline, and their email domain is also offline, emails bounce back). I have never even seen this property in person.( I hired my own trusted inspector when I made the purchase -- which gave me the confidence to purchase) -- but now I feel a little lost in this current situation. What are my options at this point? Find a new PM? I will have to re-read the PM agreement I have on file with them to see what my outs are. I admit I did not consider this scenario (ghosting me) when I made the purchase. [link] [comments] |
| Posted: 27 Dec 2020 08:14 PM PST Trying to look at one of my investment properties objectively in considering whether to hold or sell. Cashflows nicely but has a ton of equity and a cashout refi or HELOC would cut into the profits dramatically. I could sell, 1031 ex and re-deploy that equity, but unlikely to find as good of an investment in my HCOL area. Could maybe find a 4% cap and 15% CoC if the stars align. Also, I still qualify for 121 exemption on the unit I formerly occupied so would save about $50K in taxes and would only have to 1031 half of the profits. I feel like there isn't a great decision either way. Or may both decisions are great either way. Advice welcome. [link] [comments] |
| Posted: 27 Dec 2020 10:15 AM PST I am looking to begin investing and my initial plan as a beginner is to start with an REIT. Look to expand from there. Any education for a beginner? [link] [comments] |
| Posted: 27 Dec 2020 05:27 PM PST So I'm looking to buy more first home with a 30yr mortgage. How do you decide which mortgage company to go through? Should I just use the one with the lowest interested rates? [link] [comments] |
| Posted: 27 Dec 2020 09:26 AM PST I am looking to sell an investment property and my long-term tenant is interested in buying it. Between fixing it up, vacancy, and selling costs, this would save me quite a bit of money. I was thinking of offering it below the appraised value by about half of that difference. Seems like a win-win to me. Can my tenant use that difference as a gift of equity towards a down payment? I've seen conflicting things online, and a lot of conjecture but nothing concrete. A lot of the discussion online seem to be about the more common scenario of parents giving a house to their kids or somebody trying to use an inflated value to get a loan. Anybody have experience with this? [link] [comments] |
| Should I refinance? Need help! Posted: 27 Dec 2020 12:56 PM PST I'm currently at 3% interest on a 15 year loan. (Currently on year 2) Loan amount around 400k on a $1.3 million property. Primary residence. Located in CA. I've been sent emails and mail for rates as low as 2.125% with no closing costs or fees. Before I submit my social security and personal info, I want to know if it's possible to get such a low rate without additional cost. My past experience with mortgage lenders are that they have been deceitful (hiding closing costs into the total loan amount, adding fees right before closing, etc..) Would love some suggestions on if, and how I should move forward with trying to refinance to get a lower rate. Edit: Thanks to the suggestions in this post. Going with 30 year + investing the difference at an average 8% gain would net in an additional ~800k over 30 years. I will be planning to switch to a 30 year and am considering pulling out 200k to invest as well. [link] [comments] |
| Thailand properties. Is this a serious offer? Posted: 27 Dec 2020 03:47 PM PST I came across this offer from Thailand, Krabi. Does someone has experience with properties in Thailand or a contact to help out finding property? I am very interested in this one but fearing that it might be a fake offer. https://www.thailand-property.com/3-bedroom-house-for-sale-in-ko-siboya-krabi_6093822 [link] [comments] |
| Posted: 27 Dec 2020 01:30 PM PST I want to buy a house in my current state and use it as a rental. I will be moving to a new state in the summer for a job. The lender said I can qualify for the lower "primary residence" interest rate as long as I move in. They don't check if I live there after that. So I was going to move in for a month and then rent it out. If I get questioned I'll say I had extenuating circumstances because I had to move out of state for work, even though I'm not moving for several more months. Do you think I'll have problems? If the lender doesn't care it's fine right? Do lenders check on this? Mine said they didn't! [link] [comments] |
| Is cash-out refinancing a right move for buy & hold Posted: 27 Dec 2020 10:33 AM PST Bought it 3 yrs ago as remodeled but value has appreciated quite a lot. I'm not planning to sell, and I do have enough cash reserve to keep buying, but liked the idea of 'cashing out' through refinancing, to take advantage of the lower rate (below inflation rate), assuming i can get 2-3 appraisal to agree on that higher value which I think is likely. Two questions I have:
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| Newbie here. How passive can renting out a home realistically be? Posted: 27 Dec 2020 09:35 AM PST Hi, I'm interested in starting out buying a single family home or a multifamily building. Ideally I want to simply collect a check every month and not be bothered with anything. Is this even possible? I am considering paying cash upfront so that I won't have to deal with any debt and going to talk to a property management company. I know they usually take 10%, which is ok for me if they take care of renting out the place and fixing issues and whatnot. Also, what kind of insurance would I need? Homeowners and any other liability stuff? Thanks [link] [comments] |
| Posted: 27 Dec 2020 09:05 AM PST I am wanting to find off market deals and Pre-Foreclosures. I've had some folks recommend software like Propstream. Has anyone had success using software to help locate deals? What was your strategy? [link] [comments] |
| Are we nearing the 18 year Real Estate Cycle? Posted: 27 Dec 2020 09:00 AM PST Warning: i'm just a small time investor with 4 properties. A Redditor... I'm not espousing any predictions, just looking for some conversation and thoughts. It seems that conditions are ripe for the real estate cycle to repeat itself in 4-8 years. Our 2007 real estate crash followed stock market woes, and I personally don't have a lot of confidence that the runnup of late won't precede a significant enough correction, maybe not rivaling that of the early 2000's, but a correction none the less. Our 2007 real estate crash also followed job woes, which I hope we don't see again, but I can't say with any actual confidence that we won't. Those two potential nuggets, plus the fact that builders may soon be pressuring the market back into Hyper Supply in answer to our current tight supply market (in like... 2-3 years?) shows signs of the possible real estate cycle rearing it's head. Or not LOL. Could all be BS. Understand that I'm not predicting anything at all. I'm mostly curious to hear what others think. But I can see how potentially the Expansion phase right around the corner, and then shortly after, Hyper Supply would follow. From what i've read, in the short term, 1-3 years, significant enough growth seems likely to continue due to Millennials reaching buying and trade-up age, their savings being higher than average, and lower rates, and the current lack of supply. With the move toward 'work from home', folks also have more mobility, and may take advantage of it. Here are some good opinions: https://www.forbes.com/sites/brendarichardson/2020/12/16/experts-predict-what-the-housing-market-will-be-like-in-2021/?sh=6b84e57236dc What do y'all think? [link] [comments] |
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