Real Estate Investing: Should I reduce rent for one month as a holiday gift to the tenant? |
- Should I reduce rent for one month as a holiday gift to the tenant?
- Does depreciation on real estate begin when I purchase it or from when I start renting it out?
- Multi family Appreciation question
- People who rent out warehouses, what's your cap rate and what do you charge per square feet a year?
- First Duplex & looking for advice as I plan my FIRE stage 1
- How stupid am I for having put 20% down?
- Mold in crawl space concern.
- Purchasing my first home but it won’t be my primary residence
- Financing third investment property
- Insurance on Mhp/rv parks
- Cash Out Refinance on out of state investment property? Currently free and clear
- Renting out condo that plummeted/ what should I do in the next few years?
- Flippers, what's your buy formula/criteria?
- Why are garage walls often painted like this?
- How to start with $10k
- Hard time finding cash flowing deals
- Just bought my first SFR to house-hack! Question follows...
- Going into my first deal with a friend...what should I look out for?
- Anybody quitclaim deed their property from an LLC to self?
- Taking money out on property and reinvest?
- Finding Contact Data on Properties
- The most efficient way on get on wholesale lists
| Should I reduce rent for one month as a holiday gift to the tenant? Posted: 04 Dec 2020 03:24 PM PST My property management company suggested that we consider reducing rent for one month as a holiday gift to the tenant and as a way to let them know we appreciate their business. The idea sounds intriguing but I am considering whether it's a good idea to do so. The monthly rent is $1500 and I was considering allowing for up to 20% discount on rent for one month, both as a thank you and in recognition that we live in unprecedented times. The tenant has been at the residence for at least two years. There have been maintenance issues that I had to deal with, including putting the tenant up at a hotel for a night while the problem got fixed. However, I could afford the discount of up to 20%. But, I also didn't want to set an unrealistic expectation that this will happen every year. Finally, I note that there was no offer from the property management company to reduce our fees to show their appreciation to us owners. What are your thoughts? Should I reduce the rent of my tenant for one month? If so, by how much and why? If not, why not. Thank you. [link] [comments] |
| Does depreciation on real estate begin when I purchase it or from when I start renting it out? Posted: 04 Dec 2020 11:06 AM PST Does depreciation on real estate begin when I purchase it or from when I start renting it out? [link] [comments] |
| Multi family Appreciation question Posted: 04 Dec 2020 12:19 PM PST Theoretically if I bought a multi family property for $1,000,000 with 20% down ($200,000) and after all expenses Including debt payment I cash flowed $10,000 annually. With average appreciation rates of 3.8% if I had a below average appreciate rate of 2% that would make the property with about $1,115,000 at the end of year 5. So if you take the $115,000 appreciation + $50,000 cash flow collected over the 5 years then that means I am very close to 100% return in 5-6 years. Am I missing something? Is this too optimistic or is it actually this easy? [link] [comments] |
| People who rent out warehouses, what's your cap rate and what do you charge per square feet a year? Posted: 04 Dec 2020 06:13 PM PST In my area, A quality 3,500 to 5,000 sq. ft warehouse with good location only costs like 200k to build, including land, and are rented out at like minimum 7 dollars a square foot per year... That's like a 15 percent cap rate, seems too good to be true. [link] [comments] |
| First Duplex & looking for advice as I plan my FIRE stage 1 Posted: 04 Dec 2020 07:45 PM PST Thank you for any information you guys can give, the more minds the merier. With that said I am looking to buy a duplex/triplex for 150-200k. Putting 20% down.
With all of this said - a property I am looking at currently is 180k 2bd/1ba *2. Rented at 850, the second one is an AirBnb so unsure of the monthly income on that one. But for our sake, let's say both rents at 850. Therefore, 1700 gross rent/ 180k = .94% (@ 170k offer = 1%) Debt Constant = (PMT * 12) / (144000) ~ 4.6% (Financial calculator with 30 year mortgage @ 3%) Cap Rate = (1700 *12)/ 180000 = 11.3% (*.5 to account for vacancies) = 5.6% cap rate at the low end I am trying my best to make a strong financial decision and get myself out of the wage slavery lifestyle. It has served me these 5 years to accumulate what I have, but I need to level up and accelerate my income. Hopefully I find some experienced real estate owners on here & I really couldn't more in debt for the knowledge provided on here. Thank you all in advance. If I can add anything else to help out please do let me know :) [link] [comments] |
| How stupid am I for having put 20% down? Posted: 04 Dec 2020 07:21 AM PST So, I just bought a place and will be renting out the rooms and I had convinced myself that 20% is what's needed for safety. I also thought PMI was the boogeyman and should be avoided at all costs. It's still going to cash flow fairly nicely, but it seems like nobody is putting that much down. Do you typically just try to put as little down as possible? Why do some investors buy all cash? Part of me is trying to find solace in the fact that I might have put down tens of thousands more than I needed. [link] [comments] |
| Posted: 04 Dec 2020 03:59 PM PST Hello, so I'm using my Va loan to purchase a townhouse that'll be my first rental property. Problem is after the inspection there was mold found in all of the crawl space. My realtor said it can just be professionally rehabilitated and it'll be fine. The owners will pay for the rehab of the mold. However, I'm starting to get second thoughts. I'm in an area that gets a plethora of snow in the winter time. Apparently the pipe that was supposed to let the moisture out was covered so the moisture has been building in up the crawl space for about five years. Is there a chance that this could come back and be a major problem in the future? I'd add pics but I'm unable to add pics to this post. [link] [comments] |
| Purchasing my first home but it won’t be my primary residence Posted: 04 Dec 2020 12:11 PM PST Hey all. I'm looking to purchase my first home in another state but it will be an investment property. From what I'm finding, it's very difficult to finance investment homes. I'm looking in Gulf Shores, AL but live in Louisiana. Has anyone done anything similar? If so, what percent down payment did you pay? Were you required to show cash reserves that would pay up to 6mo of mortgage? And any other advice would be much appreciated. [link] [comments] |
| Financing third investment property Posted: 04 Dec 2020 08:32 PM PST Hi guys. First time posting. Thanks to all who have shared insight and knowledge – I appreciate it. The situation: I recently closed on my second investment property and plan to acquire a third in the coming months. I financed the first two with conventional, 30-yr fixed with 20% down from a mortgage lender. Both are generating positive cash flow. I have excellent credit score, solid salaried job and sufficient cash and asset reserves. My question: As I now carry mortgage debt from the first two properties, will this hamper my application for a third mortgage? Thank you for any guidance you can share. [link] [comments] |
| Posted: 04 Dec 2020 04:09 PM PST I made an offer on a small 9 space rv park in rural northern ca. Seller didnt have insurance. I've called around to a few insurance companies or haven't heard back yet. Wondering if any mobile home park owners would be willing to share what they pay for general liability. [link] [comments] |
| Cash Out Refinance on out of state investment property? Currently free and clear Posted: 04 Dec 2020 03:32 PM PST Considering a cash out refi for an out of state rental property that I own. Bought in 2018 for 200k all cash. Currently rents for $1300. Maybe worth 240k now with nearby comps. About $70 in monthly fees, $2500 in annual property taxes. I'd use it to get another property but low inventory in the area. Invest it in stock market? Wait on sidelines for an RE deal? WWYD? [link] [comments] |
| Renting out condo that plummeted/ what should I do in the next few years? Posted: 04 Dec 2020 11:36 AM PST Hello, I own a 2 bed 1 bath 821 sqft condo in downtown Baltimore city. I purchased it in 2017 for $207k and got a few tax credits for it being new construction(even though it was built in 2008 the building has 312 units and this one had never sold) totalling about 10k worth of savings in property tax. When these units were originally selling in 2008 they sold for about 290k, so I thought most of the downfall had occured. Enter covid. The biggest draw of the area is tons of offices and jobs nearby which some big ones are moving away permanently, still in the city but to a newer nicer area. So of course prices are shot for the near future. I moved out of the condo and now rent it for $1650. Realistically selling it now I could get 140-160k. There's a listing for $169k for my same exact unit type and it still hasn't sold in 60 days . I've made extra payments on the mortgage and have a 15 year with 3.5 percent interest, and with mortgage, property tax(stupidly high in Baltimore) and HOA fees I pay just over 2k a month for it. I owe about $156k on my mortgage and I'm paying about $700 of principal a month. HOA includes parking and water. The building has a pool, office, and rec center. I consider myself super lucky to be renting it out for $1650 a month (most likely id be renting for $1500). The lease ends in July, but Im hoping to keep the same tenant because he's been great paying his rent and has a job at a hospital nearby my condo. So the question is, at the end of his lease, should I just keep trying to rent it, hoping prices will recover, or sell and take my losses? Thankfully I'm financially ok so I could take a small loss on selling, but obviously want to make money off it if I could. My current plan is to rent it as long as I can for bare minimum $1500 a month. If I can't rent it for that and I don't have a renter for 6 months, I plan on selling it and just taking the loss. Like I said, Im financially fine, I could handle it being unrented for about 3 years and be ok, but would obviously want to cut my losses as quickly as made sense. [link] [comments] |
| Flippers, what's your buy formula/criteria? Posted: 04 Dec 2020 10:13 AM PST How do you evaluate deals from a "birds eye" view before actually getting bids? I've always heard you take 70-80% (depending on market) of retail value, minus repairs, to arrive at your buy price. How you you estimate rehab costs before actually getting bids? Are there red flags you check for (leaky roof, mold, etc.)? Do you only stick to certain areas with lots of sales activity? What items would kill a deal, and what would deal you a deal is good? As someone wholesaling, the last thing I want to do is bring you shit deals, and I'd like to put myself in your shoes as if I were keeping the property. Thanks! [link] [comments] |
| Why are garage walls often painted like this? Posted: 04 Dec 2020 06:16 PM PST Why are garage walls often painted like this? Perhaps related to drywall installation? [link] [comments] |
| Posted: 04 Dec 2020 08:21 AM PST Hi Friends, I graduated college last summer. Got my first job about 3months ago and managed to put aside little over $10k and was wondering a couple things: Is this enough to start in real estate? What are my options? I was thinking about maybe a SFH below 35k that I could rent for $1,200. But didn't find nothing on zillow and trulia for cook county IL. Im open to all advices as I don't know much about this business. Thanks [link] [comments] |
| Hard time finding cash flowing deals Posted: 04 Dec 2020 06:55 AM PST I'm in a relatively expensive market and it seems like every deal I've come across has little to no cash flow after I run my rough numbers. Does anyone with experience investing in small multi family in expensive areas have any advice on adjusting numbers realistically to find better returns? [link] [comments] |
| Just bought my first SFR to house-hack! Question follows... Posted: 04 Dec 2020 12:16 PM PST Is it legal to not claim the income from my roommates while living in the property? I was thinking of just having them pay me "under the table" for the first year while I am living with them. [link] [comments] |
| Going into my first deal with a friend...what should I look out for? Posted: 04 Dec 2020 07:18 AM PST I have a friend who is an experienced real estate investor that is open to partnering with me on my first deal. We plan on having a LLC contract, but what are some of the pit falls that I should look out for with a partnered investment? Looking to learn about what people wish they would have done differently? EDIT: He is quite handy and does most of his renovations on his own...lacks a bit of the soft skills though when it comes to business dealings. Where I can add value is that I have capital and would be staking 75% of the down payment and work in client facing/commercial roles- I would take on more of the front end of the business [link] [comments] |
| Anybody quitclaim deed their property from an LLC to self? Posted: 04 Dec 2020 10:57 AM PST How easy was the process? Can you describe it and was it worth it? Considering it for a refi. [link] [comments] |
| Taking money out on property and reinvest? Posted: 04 Dec 2020 06:54 AM PST With the low interest rate, anyone taking money out of their property to take advantage of the low interest rate. What are you doing with the cash out? Are you buying a new property? Are you using it as down payment or cash offer? Are you putting in stock market? I have 2 properties only. One is SFH rented, worth ~$250k current market price and I have $60K if loan left at 3.75%. I purchased it as primary home. If I refinance with cash out, my interest rate most likely won't change since it's investment property now The 2nd property is a duplex where I live in one floor and rent the other. It has no mortgage but current market price ~$150K. I am looking to buy my 3rd property as primary residence so my interest rate should be better than refinance and I have enough saved for down payment. but i saw few house asking for cash offer and Wonder if it's best to pull money out of the above properties & go in cash. [link] [comments] |
| Finding Contact Data on Properties Posted: 04 Dec 2020 10:33 AM PST Background on myself: I am a real estate investor from NYC. I'm attracted to the growth of the Austin, San Antonio, and Fort-Worth markets and I'm strongly considering adding any of these as my next out of state market. I am looking for small MF, 4-15 units in B areas with a value add strategy to raise income, decrease expenses or both. Now my Question: I am finding it very difficult to find deals on the market. I am actively looking to purchase, but all deals that I find on the market either get snatched up in seconds or do not fit my investment thesis. I am starting to think that a better approach would be to contact owners of properties that are not yet up for sale. Some initial thoughts were:
I would also like to preface that I have access to costar. Overall - I am looking for direction on how to gain access to these types of datasets. Would love to hear how others have gone about finding off-market deals. [link] [comments] |
| The most efficient way on get on wholesale lists Posted: 04 Dec 2020 08:44 AM PST What's the most efficient way on getting on multiple amounts of wholesalers lists? [link] [comments] |
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