Real Estate Investing: 2.5% APR on a 30 Yr. Fixed, No PMI, 5% Down. Should I take it? |
- 2.5% APR on a 30 Yr. Fixed, No PMI, 5% Down. Should I take it?
- Second rental property
- My Story - HCOL, low cash flow, good returns
- What are the best jobs to have while real estate investing?
- 15-20 Mobile Homes. Common pitfalls?
- Kansas City, MO Quadraplex $694,000. Monthly rents $5,200
- Rural South Carolina, $100,000 for three houses on two deeds.
- Anyone ever sell a property to the current tenants?
- Rental Property Evaluation Calculator
- noob question - What should I understand about neighborhoods?
- How many mortgages can I get?
- $45,000 Cash: How Would You Start?
- Anyone have experience with tiny home parks?
- Short-Term Rental Deduction For Furniture
- How to calculate the building value for depreciation purposes
- Reasonable returns for family and friend investors?
- Mortgage broker taking too long for refinance?
- Newbie here. About to rent 1st unit of duplex after complete renovation. "How to's" on avoiding a tenant who moves in and ceases to pay rent while avoiding eviction due to federal moratorium? Thanks.
- Selling a home I’ve owned less than 6 months
- New Construction Help and tips
- Is a cash out refi worth it? Is investing in SoCal really that bad of an idea?
- Cozy is now Apartments.com??
- What do you like about your accountant?
- Familial Purchase of Multi-Unit Building - What's our Best Ownership Structure & Tax Strategy
| 2.5% APR on a 30 Yr. Fixed, No PMI, 5% Down. Should I take it? Posted: 11 Jan 2021 12:20 PM PST First time home buyer/investor here. I applied for a home loan through Navy Federal Credit Union (NFCU). After they ran the credit it came back as for 2.5% on a 30yr fixed with 5% down, 1% closing costs, and no PMI. This seems pretty great to me, but is it really? Should I spend some more time shopping around? My long term goal is to earn passive income by purchasing multi family homes and renting them out. I currently reside in an apartment and will be moving when my partner and I find a home to purchase. Edit: This is not a VA loan. I've been getting that question a lot. --How did I get no PMI w/out 20% down? --The lowest rate from NFCU for a 30 year fixed was listed at interest of 2.125% and they offered me 2.5% with 5% down to cover the increased risk. This bakes the increased risk into the interest rate. [link] [comments] |
| Posted: 11 Jan 2021 05:27 PM PST Hello everyone, I recently purchased my first rental property. This is my only property. I live at home with my parents. I took out a mortgage to buy the duplex and then a heloc to pay for an adu to be built. I went to my limit on both the mortgage and the heloc. Living at home gives me the ability to afford all units being vacant. My question is in the future how do I qualify for another mortgage to purchase another property. I was strategizing on paying down the mortgage/heloc aggressively. Is this the wrong way to go about it? Should I be focusing more on a down payment for the next property? Thank you for any insight Manny from Canada [link] [comments] |
| My Story - HCOL, low cash flow, good returns Posted: 11 Jan 2021 12:11 PM PST I wanted to offer my story as an alternative to many posts I see here about LCOL areas with high cash flow properties. I have two SFHs in a HCOL city. Each worth about $750k. I bought the first with $100k down and the second with $40k down. They were purchased as primary residences, lives in for a year and then converted to rentals. Rental income just barely covers the PITI, plus I have to pay for maintenance, so my cash flow is negative. But I make about $50k per year on appreciation and principal paydown. With $140k invested originally and $300k equity now, it's a very good rate of return. I know appreciation isn't guaranteed forever, but I assume 2% appreciation per year and my city seems to deliver that pretty reliably. I feel very comfortable with my strategy and plan to buy more properties. Does anyone else here focus on principal and appreciation instead of cash flow? [link] [comments] |
| What are the best jobs to have while real estate investing? Posted: 11 Jan 2021 06:27 PM PST What jobs allow for the best lifestyle(to allow time for investing) and easiest time qualifying for financing by banks for real estate investing? [link] [comments] |
| 15-20 Mobile Homes. Common pitfalls? Posted: 11 Jan 2021 07:51 PM PST I'm targeting a small portfolio of mobile homes split between 2 parks. I've done a few SFHs, and even a single mobile home before, but what do I need to watch out for? Details: - homes and pads included - utilities are separate and tenant-paid - rents are collected monthly or weekly (first time I've encountered that) - trash is owner paid How does this deal bite me in the tail? The stated (no documents yet) financials work with room to spare. Basically what problems will I encounter that I wouldn't if I were buying a bunch of SFHs? Tia [link] [comments] |
| Kansas City, MO Quadraplex $694,000. Monthly rents $5,200 Posted: 11 Jan 2021 01:32 PM PST I would put 25% down. Monthly escrow would be $2,888 (including insurance, taxes and interest+principle). It is a newer build 2015, so low maintenance costs. In a nice area. The appreciation has been 5%+ the last 3 years. The only main operating costs besides PITI would be management fees (8%) and utilities ($520/month). I am have quads in CA, in a HCOL area, where rents raise at least 5% per year. In Kansas City, they said the rents only raise 2%/yr. Also, the price difference between newer, vs old buildings are huge. Is it worth buying a newer building in this area? I don't have any out-of-state rentals, but am really intrigued by the numbers. The Kansas City quad seems to be in a nice area. Does this seem like a good buy? The appraisal will be helpful, but those can be subjective, depending on the recent comps. Any helpful tips here would be great for an out-of-state investor. Thanks. [link] [comments] |
| Rural South Carolina, $100,000 for three houses on two deeds. Posted: 11 Jan 2021 03:50 PM PST Let me start by saying I know nothing, I have lucked into being a landlord of my former residence with the best tenant possible who basically acts like a property manager. I'm in the process of a cash out refi which makes my Colorado place slightly cash positive and gives me $160,000 to reinvest. My friend's mother passed three years ago and left him some rental houses in SC. Two of them are on 1.4 acres and another is in the neighboring town. Two of the houses need repairs, one of them is ready (I have to verify all of this, we are in the very early stages and not in a hurry). I trust my friend but I want to be smart. Is there a checklist of what I need to find out, Is a facetime walk-through acceptable? From what I can make out on Zillow this is about $230,000 worth of real estate that would rent for around $2300 a month once repaired. Is there anything to worry about on the two houses one deed situation? Is there an issue with the 1.4 acres as far as having a lot of land to keep maintained? If you were in this situation what would you be doing / asking? [link] [comments] |
| Anyone ever sell a property to the current tenants? Posted: 11 Jan 2021 02:35 PM PST I have a SFH that I'm currently renting. We bought it in October 2017 for $285k. We did extensive renovations to include landscaping, new floors, removing a wall, new paint, woodstove delete, added a ductless heat pump / mini-split, new counters, etc. More than that. Our town has also blown up and the last two months we've been averaging an insane 30k over asking and < 10 days on the market in my city. So. Based on comps in the area, I'm very confident we could sell the house now for around $400k. I like our tenants and they've been good to us even though they've killed my lawn and the place is messy. Nothing major though. No issues with them. I want to sell the place because I feel like I've learned enough to where I could re-invest the equity from a sale into a more cash-flowing investment. More than that, I want to sell it because I don't want to manage it anymore. It was our first home, we renovated it, rented it out, and now I want to be done with it and move on. Anything from this point will have a property manager. Anyways, I'd like to sell it to our tenants. They've expressed interest in buying it but they seem kind of lazy like they want someone to do it for them. Their lease is up in July and I already told them that we're selling the place. So they can either buy it or leave. My thought is that if I can sell it to them I can do it off-market and not pay all the extra selling costs. This would save me so much that I would give it to them for considerably less money than I could get through MLS. I think I'd sell it to them for like $375k and use that as a selling point for them; they literally could not find anything like that anywhere else in town. The bigger thing for me is that I would be saving myself the headache of waiting for them to move out, cleaning it up, staging it, and listing it. If I could sell it to them I could just do it before their lease ends and then be done with it. It honestly seems like a win-win to me assuming they want to own a house. They would be paying around the same amount on a mortgage as they do for rent. So. The trick is just...making it happen. I'm wondering if I am overstating the convenience of this idea? Anything to watch out for? Have any of you run into issues with this type of transaction? Any arguments for listing it on the MLS? Thanks for any input. [link] [comments] |
| Rental Property Evaluation Calculator Posted: 11 Jan 2021 06:04 PM PST A little help please. I had located a really useful rental property evaluation tool and had it on my laptop. Well, that laptop crashed and I can't recall where I found that calculator. Can you guys share some good online tools you use for evaluating properties? Thanks! [link] [comments] |
| noob question - What should I understand about neighborhoods? Posted: 11 Jan 2021 11:22 PM PST I've been getting up to speed on real estate investing and I hear some people saying that it's best to invest in areas that you know really well. I'll probably be shopping shopping locally, but most of the things I can think of considering are things like class, crime, demographics, accessibility, schools, and so wouldn't be hard to find out online if I'd never been here. I'm wondering what important factors you really need local knowledge to understand? [link] [comments] |
| Posted: 11 Jan 2021 11:11 PM PST I plan to purchase many investment properties. Is there a limit on the number of mortgages I could get? I currently have a good income, and plan to gradually increase my income with more rental properties. Could I get an unlimited number of mortgages if I increase my income from the rent of each new purchase? Am I missing anything here? [link] [comments] |
| $45,000 Cash: How Would You Start? Posted: 11 Jan 2021 05:14 AM PST Hey folks, Here's my situation. By the end of February, I should have about $45,000 to start with real estate investing. I know cash is king and don't want to hold onto it as much as possible. Also, I'm recently financially free (don't need a job from previous business partnerships), so I'll have a lot of time. How would you get started? What's the best way to hold onto as much cash as possible? Would you buy-and-hold? BRRRR method? What's the best way to use hard money if I need to? Save up more and just buy with cash? I'm not the handiest dude in the world so I'm not too keen on flipping. Although I'm currently in the Austin area, San Antonio isn't too far away (nor is Houston). I have family in St. Louis, as well, so I'm looking at that market. [link] [comments] |
| Anyone have experience with tiny home parks? Posted: 11 Jan 2021 05:45 AM PST I'm interested in building one, but don't know anything about the permits needed to subdivide the lot or anything like that. [link] [comments] |
| Short-Term Rental Deduction For Furniture Posted: 11 Jan 2021 07:22 PM PST Not sure how this would work - just bought a home I am going to use a short-term rental (VRBO/Homeaway). If I take furniture from my current home, and place it into service in the short-term rental, can I depreciate it? If so, do I just start with the fair market value of the used furniture? [link] [comments] |
| How to calculate the building value for depreciation purposes Posted: 11 Jan 2021 02:44 PM PST I want to utilize the 27.5 year depreciation schedule, should I use insurance estimates for value of the house construction or part of the appraisal for loan, or something else? [link] [comments] |
| Reasonable returns for family and friend investors? Posted: 11 Jan 2021 12:28 PM PST One of my 2021 financial goals is to start investing in real estate and am looking to purchase at least one or two properties by the end of the year, but I only have around $30k to invest currently. I would like to put at least 20% down to avoid PMI, but that limits my current options to pretty cheap properties ($150k or less). I earn around $110k annually currently in a stable position at a large company. If I wanted to raise an additional $20k to $30k from trusted family and friends, with a plan to pay them back over 3-5 years, what is a reasonable rate of return or deal structure to promise them as a return on their cash as opposed to them owning a percent of the property? I know the stock market is around 6-8% usually, while a bank can only do like 1% or less on CDs and things like that. Looking for ideas on what is an appealing and fair deal, or if the better answer it to save up on my own and avoid such arrangements. I suspect going it on my own is the better answer, but wanted to explore other perspectives if there is a way to accelerate things. Thanks! [link] [comments] |
| Mortgage broker taking too long for refinance? Posted: 11 Jan 2021 12:05 PM PST I started a refi application last month right before the holidays. Had a bunch of questions but decided to proceed. After some back and forth, seems like my file was ready December 30 even though it should have been ready earlier. It was the holiday season so letting it slide. I get a call from the mortgage broker asking if I am ready to proceed on Jan 5 so naturally I was pissed off because I thought it was clear I gave the green light. He said he was submitting everything that day and would have an updated lender estimate for me two days later. It is now Jan 11 and I have not received anything yet. I followed up a few days ago and he said my file is with the lender but their system is overloaded because of all the refis going on. He said it should not be much longer and he will contact me as soon as he hears from the lender so I can get my updated lender estimate. Am I being impatient? It's been a few weeks now. This is my first refi so not sure what to expect and if I am getting played. I really liked him because he answered a lot of my questions well but am wondering if I should just move on. [link] [comments] |
| Posted: 11 Jan 2021 04:56 AM PST |
| Selling a home I’ve owned less than 6 months Posted: 11 Jan 2021 05:55 PM PST I purchased a home on September 2, 2020 with the intention of living in it for a year then renting or seller financing it which I would rather do. I have a mortgage on it currently and I am wondering what the consequences are to seller financing less than 6 months from the purchase date. [link] [comments] |
| New Construction Help and tips Posted: 11 Jan 2021 05:32 PM PST I am looking to buy a home in mississauga ontario with a lot size of 50x130. I want to demolish that home and rebuild a larger newer home onto the lot to resell at a higher price for profit. The area i'm looking at is Mineola Mississauga and in the area there are countless homes that have been rebuilt, and some are currently in the process of being rebuilt. I found a property with a 50x130 lot for 900,000. There are rebuilt homes in the same block going for 2.7million with similar lot sizes (5000 sqft home). and rebuilt semi-attached homes with lot sizes of 25x110 going for 1.8mill with being 3000sqft So i demolish the home, rebuild a 3000 sqft home which should cost $600,000 ($200/sqft) And add another $100,000 (just to be safe for any unexpected costs) for any additional expenses such as permits, taxes, etc. At this point I would be all in 1.6 million. If i can sell this for 1.8mill or higher i would be happy. 1.8million is what a semi-attaches home sells for with a lot size of 25x110 with 3000sqft. The home i would have constructed would be on a 50x130 lot and also 3000 sqft. How can I afford this? My current home is valued at 1.15mill(maybe 1.2) I have another $200,000 in cash (plus a 50,000 emergency fund) So i'd need to borrow 250,000 for this project. What would be the best way to borrow this. Should I sell my home and buy the home i plan to demolish in cash, and get a loan for construction? Or should I get a loan in the property and pay for construction in cash? Or a mix of the two. And do banks let you tear down homes with a mortgage on them? if they do then I'm leaning towards the option where i buy the home with 20% down, demolish it and pay for construction with cash. This way I won't need to take out any construction loans and will have some spare cash for emergencies. Sorry for long post, i'm open to any opinions, i am very new to this. First time demolishing a home and never had any real estate investments aside from buying homes to live in. [link] [comments] |
| Is a cash out refi worth it? Is investing in SoCal really that bad of an idea? Posted: 11 Jan 2021 01:08 PM PST Hey guys! SoCal resident here (Los Angeles, SFV Area). 2 Years ago I bought my first property (townhouse) as a primary residence / investment vehicle. It wasn't a fixer upper but definitely needed a lot of improvements. I paid 450k for it and have been living and renovating for the past 2 years. I've put over 100k of renovations into it. Some of it was just for my own quality of life (like high end kitchen appliances) which I know I will probably not get back in value, but I made some pretty significant structural changes as well (all permitted). I added a full bedroom and bathroom and made the kitchen/living room an open floor plan. All things said and done my townhouse went from a 2bd/2.5bth to a 3bd/3.5bth at roughly 1500 sqft with high vaulted ceilings in an open kitchen/living room floor plan. My plan now is to do a refi with an appraisal hopefully to pull a good chunk of that renovation back out. My loan principal right now is $370k. With an estimate of being appraised at $600k ARV I believe that means I could do a cash out refi (if my lender allows it) at 75% of the appraisal value and get approximately $80k cash back? So to my questions: 1). Is getting this $80k+ in cash worth paying all the extra interest on the larger principal over 30 years? Considering I am using the money to re-invest in more real estate. 2). I don't like the idea of investing out of state using a PM because I have trust issues. But I see all over this subreddit and others how horrible it is to invest in SoCal because properties don't cash flow. Cash flow isn't as big of a worry for me because I have a high paying job already, however obviously I would want the rental income to at least cover the PITI. Given my circumstances, what is the best route for me to take to build my portfolio if my goal is just to grow my number of units. If out of state is a must I am willing to do it, I've been thinking about nashville or richmond, va (my hometown). [link] [comments] |
| Posted: 11 Jan 2021 06:31 AM PST So we are gearing up for a house hack but we want to manage things like a business straight from the get go. We don't want to hire a property manager until we have a few more units though so I was going to use Cozy to manage things professionally. I just went to set things up and it told me new landlords could no longer sign up with Cozy and would have to sign up through Apartments.com. Anyone have a compare/contrast between the 2? Likes dislikes? Or is it exactly the same just a different name? Are there better software out there? What are you guys using? [link] [comments] |
| What do you like about your accountant? Posted: 11 Jan 2021 10:32 AM PST This is more of a general discussion I don't think gets talked about that much. I've been working with my accountant for 7 years. He helps for my corporations and asks for things that help offset my tax bill (im self employed, typically have stock investments gains/losses). This past year I purchased an investment property and am looking to maximize on the tax advantages. I've read a lot of tax books and feel like I am always coming up with my own strategies around my taxes and feel like the accountant plays more in the reactionary side rather than being proactive. I'm wondering how the relationship works with done of the more successful real estate investor. Do you sit down at some point in the year and plan out your strategies? I did my own math for 2020 and looks like I may owe $20k in taxes, and feel like had I known that I would've bought a new car or something since I'll have to do that in the next couple years anyway. Is it normal to have more of a strategic relationship with your accountant? Same thoughts go with planning my next real estate purchase in 2021. [link] [comments] |
| Familial Purchase of Multi-Unit Building - What's our Best Ownership Structure & Tax Strategy Posted: 11 Jan 2021 10:19 AM PST Myself, my spouse, my sibling, and their partner are interested in purchasing a multi-family building in Chicago, IL. We plan to put 5% down, which I believe would exclude us from purchasing via an LLC. The tentative plan is to purchase the asset as individuals and have a legal agreement between us detailing ownership (25% to each individual). My sibling and his partner would reside in one of the units, which would have the added benefit of decreasing the property tax burden as the property would be "owner occupied". Is this the best ownership structure for us? I'm aware of the tax benefits (and other protections) of an LLC, but what tax strategies are available to us as individuals? My understanding is that we'd still be able to itemize R&M, etc. TIA! [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