Real Estate Investing: My first property - The ADU advantage! |
- My first property - The ADU advantage!
- Who’s on your investment team? Where did you find them?
- Real estate partnership advice
- Just bought an empty lot and found out the neighbors are storing vehicles on it. What's the best plan of action?
- Rising Landlord Insurance Premium Cost
- Trying to buy my first property in a hot market... should I even consider Twin homes with HOAs?
- Debunk My Idea
- What happens to rental prices during a market crash?
- Retirement tax benefits of RE investing?
- Have $250,000. Do you recommend buying one house as a rental with no mortgage or 5 houses?
- Planning our next move
- Do you guys think if I rented out a condo while serving in the military while someone was managing it I would be good?
- What's A Realistic Expectation of When You'll See Profit From Buy and Hold Properties
- Anyone here investing in notes?
- When I hear people say that you need to be making a lot of offers, do they mean formal offers through an agent, or just verbal offers?
- Covid - Schmovid!
- Can you sell a home that you’ve just mortgaged?
| My first property - The ADU advantage! Posted: 25 Dec 2020 05:30 PM PST Hello, I live in Colorado and decided to take the plunge. I found a cheap home (relatively) for 380k (2bd, 1000SqFt) and beat four other offers to get it. That being said it's a home moved in to its location in 1910, with very low ceilings and a lot of quirks, like uneven floors and other problems. It's in Downtown which I just love and you can walk to all types of local gems. The location is everything on this place. Anyways, I was able to get it rented at much higher than expected but still my cap rate is only about 4%. But here's my plan, as written in the lease, I'm going to use a HELOC and build a brand new 750SqFt ADU (accessory dwelling unit). The size is maxed out according to what the city allows. I'm going to build this thing so it looks like a nice ranch, accessible from the alleyway. It will cost about 175k and will certainly rent for $1750. So my math shoots my cap rate up from 4% to 10%. This way I can sit on it for ten years and then rip down the other home or sell the property. Does anyone else have experience doing this? I'm a little concerned about my tenants hating my guts once construction begins but oh well. [link] [comments] |
| Who’s on your investment team? Where did you find them? Posted: 25 Dec 2020 12:14 PM PST Hi All, I often hear folks refer to their investment "team," and wondering who is on this team and where did you find them? [link] [comments] |
| Real estate partnership advice Posted: 25 Dec 2020 06:28 PM PST Greetings and merry Christmas! I am a current Massachusetts resident and am looking at purchasing a multi family (3+ family) in New Hampshire with a fellow business partner (New Hampshire resident). We are both graduates of the same college (Massachusetts maritime academy) and profession (merchant marine). We are both financially comfortable and responsible and are willing to work together to build a partnership of real estate income. I am looking at suggestions in all aspects of what type of real estate we should be looking at. Real estate Management companies ( we both work overseas at parts of the year), and what type of partnership. We have been recommended to maybe look into a LLC. But I do not know too much in how to approach this situation or what to research more. Any advice will be great! Thanks! [link] [comments] |
| Posted: 25 Dec 2020 02:58 AM PST Basically the title. We're living out of country and bought a lot in Wyoming. We found out from one of our parents who drove by that there are vehicles parked on the lot, presumably belonging to the neighbors. What's the best plan of action? [link] [comments] |
| Rising Landlord Insurance Premium Cost Posted: 25 Dec 2020 05:28 PM PST My current insurer raised the insurance premium by about 37% this year upon renewal . When I inquired about the spike , I received a generic email mail about rising costs etc ... What do you guys recommend to obtain quotes for 3/2 SFH in Memphis , TN. I'm an out of state investor . Any recommendations/tips appreciated ! [link] [comments] |
| Trying to buy my first property in a hot market... should I even consider Twin homes with HOAs? Posted: 25 Dec 2020 10:17 PM PST Just throwing this out there as my market is really lacking MF and traditional SF homes. Some questions i have are: what happens when the roof needs new shingles? Do the owners come together to get it fixed? does the hoa decide when? What's appreciation like for twim Homes? Any other experiences you guys have? [link] [comments] |
| Posted: 25 Dec 2020 02:33 PM PST I see many lots for sale with decent prices in major cities. I was wondering why no has has started buying land and putting high-quality modular rooms (come with private bathroom/kitchen) and renting out each room? Seem like it could be very profitable due to small modular room sizes and "cheap" land. The only possible restriction I can think of is zoning laws (multiple tenants in a piece of land). Do you think there would be demand for these modular rooms? Why has no one done it? [link] [comments] |
| What happens to rental prices during a market crash? Posted: 25 Dec 2020 09:59 PM PST As real estate crashes and the value of houses go down overall, do the rental rates go down as well? If so, does this mean that real estate investing is more risky than stocks? I am a prospective investor looking to buy some rental properties with a mortgage. Wouldn't a market downturn cause me to not only lose money on the intrinsic value of the house, but also suck up my bank account dry as my potential rental rate drops below my mortgage? At least with stocks, you can buy and hold without worrying about bills coming in. Would my cash just be slowly depleted every single time the market crashes, with the problem getting worse and worse the larger my portfolio is? [link] [comments] |
| Retirement tax benefits of RE investing? Posted: 25 Dec 2020 08:30 PM PST Besides the goals that everyone talks about - income, asset growth and leverage - from owning rental properties,... Are there specific retirement tax benefits or strategies that people realize from owning rental properties? And also, it seems pretty expensive to cash out. Paying real estate commissions of course, but also recuperating depreciation at a fixed 25% rate when my marginal tax rate in retirement will likely be much lower than that. Cost avoidance tends to make people stay in the game... Are there specific strategies people use as they move through retirement and seek a simpler life? [link] [comments] |
| Have $250,000. Do you recommend buying one house as a rental with no mortgage or 5 houses? Posted: 25 Dec 2020 06:04 AM PST My sister makes a good living already, so if several rentals were vacant, they could afford to cover the mortgage. They have excellent credit and live in an area with less than 1 month inventory of houses on the market. They would hire a property Management company to handle things (asked me and I said no). There are pros and cons to both approaches. Her husband and her are split on which approach to take. They have more savings that can be used to cover any issues if something happens. Thank you for your advice! [link] [comments] |
| Posted: 25 Dec 2020 05:06 PM PST Hi all, I am a newbie investor and would like to thank this group for all the good info I come across. This sub has served me better than google. Long post ahead! My mom (business partner?) funded majority of the first purchase through a heloc and I covered the furnishings for our first airbnb. We started renting it at the start of 2019. We live in a very popular tourist destination and figured itd be interesting to give it a try. Our exit plan would be to sell the unit if things didn't go well but we're interested in buying and holding long-term and doing a mix of military rentals along with Airbnbs. Here's how the first year went: We ended the year with gross profit of $29,000 Purchase price: $ 167,000 (heloc on her primary house) Annual expenses: Heloc: $600 ** Land taxes: $322 Hoa: $4800 Power: ~$1800 Occ tax: 11% of gross monthly profit Insurance: $1000 Vacancy, capex, savings: 5% Other: $80-100 cleaning supplies and other small amenities/supplies for guests. **$1200 monthly payment towards heloc but the airbnb only covers half of that for now. I Should also mention that my occupancy rate usually lands at around 75-80% per month. January-June I kept the daily price very low but July and onward, I was able to rent the unit out for $160-$180 a night depending on demand. So I'd like this groups feedback on the numbers given the monthly fluctuating costs and income. I should also mention that covid really messed with our tourism industry so the unit has been sitting empty save for one guests this year but I know we will eventually bounce back. [link] [comments] |
| Posted: 25 Dec 2020 12:25 PM PST So I want to serve in the army and I would want to serve outside of the states and I have enough money on a down payment for a condo and I want to rent it out while I'm serving to be apart of the real estate market. I was wondering if I had someone manage the property while I was out of the country would it be a good idea? What is your advice? Any distaste stories? [link] [comments] |
| What's A Realistic Expectation of When You'll See Profit From Buy and Hold Properties Posted: 25 Dec 2020 08:25 AM PST So, I've been wanting to get into real estate investing for quite some time. I've done a ton of reading and research on the different methods of entering the market, what to look for, rookie mistakes, etc. The problem is, I can never seem to find a good deal, or at least a deal that I think is worth it in the long run. My goal is to get a multi-family property, make some renovations, and make passive income. This is a pretty straightforward method. However, I've noticed that the large majority of properties on the market are way overpriced (at least in my opinion). I'm starting to wonder if maybe my expectations for the rate of returns are just unrealistic at this point. Ideally, I'd like to find something that I could realistically pay off in less than 10 years. But with the pricing that I'm seeing on a lot of these properties, it seems like it would take me the better part of 20 years before the mortgage would be payed off and I see any type of return. I understand that you can have multiple mortgages and always refinance things after a year or so. However, to me it feels like more of a hassle than a benefit to have properties that will take more than 15 years to pay off, granting that we don't see a major issue in the market like we're seeing now with COVID. So ultimately I'm asking, for those of you who have invested in buy and hold properties, what did you consider to be a good timeline for when you began seeing some sort of actual return on your investments? My original preference was properties that I could pay off within 7-10 years. Is this unrealistic? Do you think this is preventing me from jumping on good deals? [link] [comments] |
| Anyone here investing in notes? Posted: 25 Dec 2020 07:43 AM PST it seems the asset has now become the mortgage/paper, and the liability is the actual house (upkeep, maintenance). i currently own a property and am looking to buy more, but i'm curious about just owning mortgages instead of the property. i know you can buy them, and you can buy distressed mortgages as well ie buying for pennies on the dollar, and then ideally turning that mortgage back into a cash flow stream, and then selling it for more than what you paid. does anyone on here do this?? for the short term i'll be actually holding properties, but if i can get over to holding notes instead of houses, that'd be awesome. i'd like to do it asap, to start getting more experience as well. any insights into this niche would be much appreciatted! merry christmas yall. haha. its not "working on a holiday" if you absolutely love it right? [link] [comments] |
| Posted: 25 Dec 2020 04:46 AM PST I am ready to buy my first investment property and have been evaluating some potential properties. I will probably make a lot of offers to make sure I get a good deal. I am wondering if I should be formalizing all of these through my agent. A lot of the properties say that I cannot view the property unless an offer is accepted, which seems crazy to me. I was thinking for those, I could just call and say "I think a fair price would be x" assuming the picture are reflective of the property. Always contingent on inspection... Side question: how many offers on average are you making before you land a deal? [link] [comments] |
| Posted: 25 Dec 2020 04:26 AM PST Don't listen to all those naysayers out there that say the housing market is crazy expensive when it comes to investing. If that's the reason why you're staying out, don't! Get creative, talk to people, drill down leads, hustle! I went from zero rentals in January of this year, to 5, during the pandemic ! All well over the 1% rule and cash flowing. You can do it ! I want to hear from the people who managed to expand their portfolios during COVID. Tell us your story ! [link] [comments] |
| Can you sell a home that you’ve just mortgaged? Posted: 25 Dec 2020 08:49 AM PST I have zero knowledge on real estate, but plan to become educated in the future. I had an idea of mortgaging a cheap home (maybe $20k-30k) and hen selling it to a company like webuyuglthouses and selling it for more than I put down on the mortgage. I don't know, though. Is this even possible? [link] [comments] |
| You are subscribed to email updates from Real Estate Investing. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment