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    Thursday, December 24, 2020

    Real Estate Investing: Suspected drug activity

    Real Estate Investing: Suspected drug activity


    Suspected drug activity

    Posted: 23 Dec 2020 12:35 PM PST

    I have a newer tenant who seemed good, but has people over who I know have been in jail for theft, meth etc. My worker was a former meth head and can identify them all by name and I am creating a list of names of people who are over there. Coincidentally I'm working at the house next door to this building so I see people come and go all day. This is a 4 plex with college kids and a young woman with an infant child so i am very worried about the increasing activity over there. Any thoughts or advice on what to do would be appreciated.

    submitted by /u/theycallmenubs
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    Cash out refinance of my primary. Poke holes in my plan please.

    Posted: 23 Dec 2020 10:01 AM PST

    Please poke hole in this plan, let me know if I am making a mistake.

    - Currently owe about 110k on a 10 year mortgage with 7k outstanding on a HELOC I used for a new fence and upgraded landscaping. Home is worth 350kish. Current payment is 1450 and I am paying 200 a month on the HELCO.

    - Will cash out refinance 150k from this property into a 30 year at 2.75. (primary residence). Payment will be 1375ish.

    - Use 105K of that as a down payment on a new construction build that will be right at a year from now to close so I should be ok on the cash out refi being into a primary. 528K total purchase cost. $2200 a month estimated payment at 2.75% to 2.8%. ( I have to put 14k down initially but will not close till its finished. Keep the remainder of the money as emergency fund for both properties.)

    - My old property can be rented out for 1715 to 1750 a month. ( I have already spoken with a property manager that I know who estimated this for me based on my house and location)

    I make right at 100k a year before bonus and this will be my first foray into owning a rental property. I have no other debt besides a 200 a month student loan payment and an 800+ credit score. Is this a good idea? I look at it as a way to put my equity to work and get into a nicer home in a better location in my town while having a cash flowing rental and a adequate emergency fund.

    submitted by /u/10thourchewy
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    Noise canceling between floors?

    Posted: 23 Dec 2020 02:07 PM PST

    We're in the process of remodeling the upstairs of whats actually going to be our new primary home. I'd like to put in sound canceling stuff in between the floors (between upstairs and main level). Does anyone have recommendations or experience doing that? I've heard about Rockwool but not sure what else is out there. The existing floor is made with 2x10 joists, so there's like 9" or so to work with.

    submitted by /u/vfefer
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    Universal Basic Income effect on Real Estate Price

    Posted: 23 Dec 2020 03:23 PM PST

    What will happen to real estate price if government decide to implement universal basic income? Any thoughts?

    submitted by /u/AZeng1
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    Multifamily renovation playbook: Does anybody have a guide?

    Posted: 23 Dec 2020 03:17 AM PST

    I am looking at a marketing package and am looking to develop a framework/system for finding the value add opportunities in the deal.

    In the marketing package, I am looking at right now all 4 units are 1 bedroom/ 1 bathroom with a front and back door and balcony space.

    In total the property commands 3340 Sq Ft - Which equates to 835 Sq Ft Per unit. I know that this means I can add another bedroom because bedrooms are typically 200-250 SQ Ft.

    I believe 2-bedroom units are always more in-demand, easier to rent and the difference in rental income is very significant. It takes a very insignificant amount of time and money to paint 1 more bedroom.

    Overall - I am looking to develop a framework for the top elements to look at in these marketing packages that I can identify as value add opportunities.

    I hope this all makes sense - Thank you in advance!

    submitted by /u/Mmetr
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    Found a useful tool to analyze deals

    Posted: 23 Dec 2020 05:31 AM PST

    Hey gang - I was running the numbers on a few potential rental properties for fun and I came across a useful RE property calculator @ https://www.calculator.net/rental-property-calculator.html

    Ive seen a lot of calculators like this online, but I really like how simple and clean this is. It gives a very thorough run down of the numbers for years to come.

    My question to you - is there anything that you would add to make this calculator more accurate? Is there any particular fatal flaw that would make these numbers inaccurate? Do you have a different calculator that you rely on?

    submitted by /u/BAshoto
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    New to rei, start out with single family rental or refinance on permanent residence

    Posted: 23 Dec 2020 10:46 PM PST

    I currently own my own home with 220k left to pay on mortgage, making $76k a year. Looking to buy a single family 3br 2ba 1100sf for $120-140k with 20% down (already working on offer/negotiations). Does it make sense to go after this property or should I work on building more equity in current residence - refinancing with the low interest rates available during this time?

    submitted by /u/konked-
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    For those who have house hacked, how was/is your experience?

    Posted: 23 Dec 2020 03:06 PM PST

    I'm getting ready to buy my first house after winter. My plan is to buy a duplex, live in one half and rent out the other. On paper it seems like I can cover the mortgage, maybe even make a little profit if I get creative.

    Has this been the case for people who've gone through this?

    Did you like it? What were some unexpected difficulties you encountered?

    Is there any advice you would give to a first timer?

    submitted by /u/jack-grim
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    NYC Co-Op Financing

    Posted: 23 Dec 2020 05:39 PM PST

    Anyone know of hard money lenders who are willing to do coops in NYC? On what terms? Specifically looking to get a low down payment.

    submitted by /u/mharkin96
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    New to the sub, thinking of buying my first duplex out of state

    Posted: 23 Dec 2020 09:19 PM PST

    The only problem is that all the properties seem way overpriced. It could be because of low interest rates and the fact that I'm looking at a rentable area. For reference, the comp from 2016 is half the price. I'm really bummed out.

    submitted by /u/craigsl2378
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    Strategy to tap equity

    Posted: 23 Dec 2020 08:56 PM PST

    Could use some help figuring out if this is possible:

    Townhouse 1 - rental - Comps $265-$285 - Loan Balance $189 - Equity 31%, $30k - Rate: 2.75% VA loan

    Townhouse 2 - primary residence - Comps $705-$715 - Loan balance 636 - Equity 10%, $74k - Rate: 2.27% VA loan

    Thinking of refi'g townhouse 1 under a conventional loan at 20% down. Would that cash out the additional equity? That would pull out $30k before lender fees and would free up my VA loan entitlement.

    Next I would refi townhouse 2. The goal would be to us VA loan entitlement and cash out any remaining equity. Maybe I could do 3.5% down? Or even 0%. Equity is around $74k now.

    Correct me if Im wrong here, looks like 2021 VA loans allow up to an $822k loan, which would be more than the value of townhouse 2. This would allow me to cash out all of my equity excluding fees.

    So if my assumptions above are correct, I could refi house 1 under a conventional (even as a rental) and leave 20% of the equity in it. I could then refi house 2 and leave 0% equity in it. These two together would give me around $100k in equity cashed out that I can use for other investing or as emergency cash.

    Is this structuring possible? Would it result in accordance with my assumptions?

    submitted by /u/PsudoDog
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    Refi

    Posted: 23 Dec 2020 07:35 PM PST

    Can you refinance a home that you are owner financing?

    submitted by /u/Regular-Marsupial-57
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    Suddenly I have some property. Now what???

    Posted: 23 Dec 2020 02:13 PM PST

    (I hope this is the right place for this. This is my very first post, be gentle!)

    I've suddenly ended up with a 25 acre flag-shaped property due to a death in the family. It's on a sleepy-quiet and cozy little road in semi-rural central Alabama, but it's only 3-5 minutes from the interstate and right at 30 minutes from downtown Birmingham. It used to be part of a larger property that was mostly a cow pasture with mayby half the land covered in pines, oaks, and various other trees packed pretty densely in some places. The clear areas alternate between open fields of grass and rolling hills.

    It has zero utilities, but power and water won't be a problem I don't think. Connecting to a sewer isn't an option so if needed, it'll have to be septic. After comparing it with similarly sized properties of a similar type, I'm going to say it's only worth like, $60k. It's almost certainly worth more than that, but I prefer to underestimate if anything. I've got $20k in cash to put into this project, but I think I can entice someone to throw in with me and/or I'll take out a loan to have more options.

    Now, I'm embarrassed to say that this is where I'm hung up. I don't really know what to do with it! Ive got plenty of ideas for it, but I don't know what would be most ecconomical and profitable. I know that I can make some decent money off of any trees I clear. But I have no clue what to put there after I make the room.

    I've had people suggest everything from a paintball arena, to a trailer park, an off-grid, no-tech retreat, a tiny house village, studios for artists or people who need room for their hobbies, stabling horses and other livestock, and even a drive-in theater. Keep in mind these suggestions were all made by people just as ignorant as I am.

    I'm not really expecting some kind of get rich scheme or anything, but I'd like to eventually just live off this property and future ones if this works out! If I can manage $45k/year, I'd be ecstatic!

    tldr (sorta?)

    So! If all you had was a 25 acre property worth about $60k (conservatively) without any utilities or structures, sitting in semi-rural central Alabama- what would you do to make it a profitable income?

    Any advice, criticism, pointers, or reference material would be appreciated! Thanks for slogging through all that! And thank you in advance for any time or effort put toward helping me with this!

    ~ inept_inception

    submitted by /u/inept_inception
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    Refi out of Hard Money loan

    Posted: 23 Dec 2020 05:18 PM PST

    I have a simple question that for some reason can not wrap my head around.

    Situation: Have a distressed owner with property FMV of about $250k. He will sell to me with convention financing for $220k but will take cash offer of $150k if I close quickly.

    What would the mechanics be of hard money into conventional loan vs straight 5% owner occupied loan? I can not get straight how much more I'd have to come out of pocket in first situation.

    Option 1: Hard money loan at 12% and 2 points. When I refi into $250k loan, will I need to bring more money for down payment? How does it work? Can someone quickly do the math? I'm actually great at math believe it or not and will understand right away but this is my first time looking at a deal like this and I'm stumped and can't comprehend the order of operations.

    Owner occupied with 5% is obviously more straightforward but without a $70k discount.

    submitted by /u/DeletedMyFirst
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    What improvements to do on high end/luxury rental?

    Posted: 23 Dec 2020 09:15 AM PST

    Bought a 70's-funk but super cool house in nicest suburb in booming MCOL area. Many high-end attributes about the place like gated community, amazing schools, no lawn care, indoor atrium w/ a giant tree in it, on a golf course, etc. But it's also got some really old stuff to it like old funky bathrooms and kitchen, popcorn ceiling, 2 exterior decks that were poorly turned into leaking sunrooms w/ water damage. Which things are worth updating to get it ready for renters and which aren't? And how luxury to go with the upgrades?

    submitted by /u/ibanezdna
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    Seller Financing Help Needed

    Posted: 23 Dec 2020 11:26 AM PST

    Building a cabin + 4 park model homes in the mountains. Advice?

    Posted: 23 Dec 2020 10:16 AM PST

    Hi all,

    This is a unique situation but TL;DR look at my Google Sheet. Ask questions and poke holes in it, please.

    I wanted to share our plans with you to get any feedback you might have. Good idea? Bad idea? Pitfalls? Opportunities?

    We're closing on 1.5 acres of land in the mountains at the end of this month. There's a step elevation to the land so we're going to build a cabin on top and place 4 park model homes down below and rent everything out via Airbnb. We'll also enjoy the cabin as a family on occasion which is why we're not doing a straight-up multifamily deal.

    Power and water are already on-site, we've had a perk test done to the soil and will be installing two alternative septic systems - One for the cabin and one for the 4 park models.

    Funding

    Personal loan through family at 3%

    Construction loan at 3.625%

    Park Model loan at 5.75%

    Cash reserves: ~$50,000

    The estimated total cost of the project: $610,000

    Revenue, Expenses and all the other stuff

    I've published a Google Sheet of my plan with a number of researched assumptions. The county where the rentals will be is listed as A+ by AirDNA and renters in the area we've talked to say they're booking 6 months out at a minimum. We expect this to continue after COVID due to tourism of the area and it's very close to getting out of the valley where it hits 115 in the summer. Seasonal occupancy ranges between 30 and 90% so we've pegged ours at 66-75%.

    We're buying materials since my wife is an interior designer and gets better prices than contractors. The loans will fund construction and the park models including delivery, set up, etc.

    We're borrowing a lot which is why I'm reaching out to all of you for advice, but the investment plan is conservative based on occupancy rates and nightly rent costs for the area. We've got enough runway to fund everything for about 12 months before we really need to start generating cash flow.

    The rub

    7.75% CoC Return

    17.15% Cap Rate

    If our assumptions are correct...we'll pay off the personal loan in 3-4 years, the bank loans in 5-6 years, and will have a net profit of $175,000 annually after all the loans are paid. The end game is to turn around and do more real estate deals as an LP or otherwise and quit our jobs by our mid-40s.

    Questions

    1. Is my occupancy rate too high?
    2. What am I missing?
    3. Short-term rental pitfalls?

    Thanks

    submitted by /u/overintellectualized
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    How does a PM handle a large construction project?

    Posted: 23 Dec 2020 01:47 PM PST

    Considering some PMs don't even take a percent of construction costs, would you normally ask your PM to oversee a, for example, kitchen renovation? Or would you deal with that yourself? Wondering where the line is drawn between management and construction foreman and how to pay for the oversight. Thanks.

    submitted by /u/inspired221
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    Best options for me?

    Posted: 23 Dec 2020 10:00 AM PST

    I am looking at a duplex (~$200k), and I own a home (paid for) worth roughly 200k. I don't have much cash on hand. What would my best option be for a loan?

    Thanks in advance.

    submitted by /u/hrowaway321T
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    Best Sources of Trends & Analytics?

    Posted: 23 Dec 2020 04:59 AM PST

    What sources do use to stay in touch with the data, statistics, trends, prices, velocity, etc.? Both at the national and local level?

    submitted by /u/jack_bag
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    Need help with my mindset, is investing in North Jersey worth it or move?

    Posted: 23 Dec 2020 09:06 AM PST

    Ive been ready for nearly 3 years and been stuck by over thinking and being afraid.

    I save up a good amount, good credit and no debts.

    I wanna house hack and then move out to cash flow.

    Ive seen so many buy in other states where property taxes arent a problem but in north Jersey it doesn't cash flow due to high taxes and high property prices.

    Is my only option to invest out of state or to move to a new state?

    submitted by /u/Mario092992
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    What do you guys know ab Opportunity Zones?

    Posted: 23 Dec 2020 06:33 AM PST

    I've been researching buying my next property in an "opportunity zone" where apparently you don't have to pay Cap gains if you hold it for more than ten years. Anyone know anything about this? I'm just kind of getting into it

    submitted by /u/watsonthomas2
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    Favorite mileage tracking app?

    Posted: 23 Dec 2020 06:19 AM PST

    Need to be able to differentiate between mileage on different properties, but don't really need other expense tracking. Free or paid is fine if it does a great job.

    submitted by /u/rideorbuy
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    Conservation Easement

    Posted: 23 Dec 2020 05:40 AM PST

    Has anybody here ever done a conservation easement on their property and have any experience to share? What is the typical cost of an appraiser/attorney/filing fees?

    submitted by /u/eageruser27274
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