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    Real Estate Investing: Monthly Motivation Thread: January 21, 2021

    Real Estate Investing: Monthly Motivation Thread: January 21, 2021


    Monthly Motivation Thread: January 21, 2021

    Posted: 21 Jan 2021 12:00 AM PST

    Monthly Motivation Thread

    Welcome to this monthly series. This post will repeat monthly, on the 21st of every month.

    This is your opportunity to share your successes, accomplishments, as well as provide us with an update on your goals and strategies as they pertain to Real Estate Investing.

    Example Questions:

    1. What are you hoping to accomplish this month?
    2. What method(s) are you using?
    3. Have you closed any interesting deals recently?
    4. What mistakes did you make, and what did they teach you?
    5. Anything else you learned and would like to share with others?

    Veteran investors feel free to provide useful tips and feedback to other people's goal, as well as some of your recent successes, or failures.

    submitted by /u/l3erny
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    I thought saving up was the hardest part about getting an investment property. Feels like just finding a place is harder. (Utah)

    Posted: 20 Jan 2021 04:14 PM PST

    I'm a noob investor looking for my first rental after saving up a pile of cash.

    I heard "for sale" house inventory is down 60% in Utah right now, which makes sense because it seems impossible to find a reasonable deal. Any property that stands a chance of making a decent cash-flowing rental is snatched up by cash buyers (and by decent cashflow I only mean like $200). Last week we offered $220k on a 90s townhome listed for $205k and were outbid by multiple cash buyers. Yowza!

    submitted by /u/imanoobee3
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    President Biden extends eviction protections through March, for now

    Posted: 20 Jan 2021 10:05 PM PST

    President Joseph Biden signed an executive order directing the Centers for Disease Control (CDC) to extend its federal eviction moratorium through March 31.

    The protections had been set to expire January 31.

    submitted by /u/kactuscrow
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    Has anyone flipped a heavy smoker house?

    Posted: 20 Jan 2021 08:12 AM PST

    There is a deal in my local market, great area, nice house that needs to be gutted, but it looks like it was heavily smoked in. Has anyone flipped one of these? Does the smoke smell ever go away even with a complete gutting?

    submitted by /u/ghostcaurd
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    My least favorite part of investing is the endless spam calls about purchasing

    Posted: 20 Jan 2021 10:24 AM PST

    I don't know how these people get my number, but every day I'm getting multiple people calling about buying my places. I have a few remote places in high growth areas which maybe is the cause of it. But it's driving me nuts! I can't block them fast enough!

    submitted by /u/MilwaukeeRoad
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    Scam alert: fake rental

    Posted: 20 Jan 2021 04:31 PM PST

    Hi! Just posting to share with you all. Found my property on Craigslist listed as for rent- by someone else. I'm assuming with covid they were asking for application fees or personal information before viewing.

    They used photos from Redfin from the last sale of the property which I am now removing. I reported it to the feds.

    But hey maybe just check your purchased property listings on Redfin and pull any excellent photos.

    submitted by /u/duckworthy36
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    Has anyone ever had a seller counter above listing, but not due to a bidding war?

    Posted: 20 Jan 2021 03:42 PM PST

    Curious if anyone else has ever had this occur. Went and saw a property last weekend about 48 hours after it got posted on the MLS. Multifamily in my area are super hot, so its not uncommon for a building like this to go in under a month, or even within a week. The seller had 10 showings including mine, and was expecting another offer. Because we knew they were expecting another offer, we offered at asking price with FHA financing and a 5k sellers credit. Despite being the higher of the 2 offers they received, the seller rejected the other offer and countered my offer at $5k above asking, no credits, and added an As-Is stipulation. He said the reason they went above asking was because they had so many showings.

    We turned down their counter and walked away, but I'm still just a little thrown off because this was the first property I've made an offer on. Just curious if anyone else has ever been in a similar situation.

    submitted by /u/PU18
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    Considering buying a 3bd townhome in Seattle at 750k. Putting 5-10% down. Im 23 and am super flexible. I don’t have a home to sell first and can wait/rent for another year or two if needed. Is it a good time to buy or do we wait for a crash/will there be one? What would you do?

    Posted: 20 Jan 2021 05:03 PM PST

    I'm buying with my cousin - we're creating an LLC. We'd rent out one of the rooms.

    The mortgage rates are great. We each make 110k and see that rising in the short (3 years)/long term to about 150 if not 175 pre tax.

    We can also hold cash for another year and rent/wait for a crash. What would you do?

    submitted by /u/boonkgang01
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    Owning real estate in an economically terrible country

    Posted: 20 Jan 2021 10:25 AM PST

    So I currently own 2 properties in turkey - 1 is a summer house in a popular area that goes for 15-20k Turkish lira per month in the summer worth 750-1mil Turkish lira and 1 in Izmir that brings in 1100 per months (a little below market price) that is worth 300-350k try. I live in the UK and want to expand but have no clue where to start. I'm 18 and these two properties came from my parents. What would be someones advice? turkey is worthless (compared to the UK). I thought of selling and getting a mortgage but I'm a uni student so that's out of question for now. any advice? Should I sell the summer house and invest in a more city place to have income regularly but I just don't know because the Turkish lira is constantly losing value. Thanks from now for any answers!

    Edit: 1GBP = 10TRY, 1USD = 7.5TRY

    submitted by /u/NicoMallourides
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    Richest Man in Babylon is recommended reading but which edition?

    Posted: 21 Jan 2021 12:52 AM PST

    Seems like there are a few different editions and updates. Any one in particular recommended? Thanks

    submitted by /u/Teflon_Rayder
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    Tactics to become knowledgeable in a New City: What would you do?

    Posted: 20 Jan 2021 11:23 AM PST

    I just arrived in a new city and my goal is to purchase MF real estate.

    In an effort to understand the path of progress and more generally the neighborhoods, I wanted to reach out to the community and hear some of the strategies and tactics I can take to become more knowledgeable on my market.

    I got a bike and was planning on going around the city taking notes on areas and developments. This is intuitive, but surely their are other things that I can and should be doing to become more familiar with my market. Below are some ideas I have:

    1. Attend Local Meetups
    2. Bike around the area and take notes
    3. Create a Google Map that outlines specific areas of interest

    Sorry if I sound like a robot lol. Looking forward to the responses!

    submitted by /u/Mmetr
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    How profitable is it to buy or build a unique vacation rental place? As opposed to traditional real estate renting (long term)

    Posted: 20 Jan 2021 04:28 AM PST

    How profitable is it to buy (or build) unique rentals? How does that compare to a regular real estate investment (not vacation)?

    How profitable is it to buy (or build) unique getaway homes as opposed to regular investment homes?

    How profitable is it to buy land and then put up unique rentals?

    I've just become curious with the idea of renting out extremely unique rentals on Airbnb. How profitable is this? Unique homes such as ones listed in this link: examples

    As you can see it's not your typical Airbnb, not your typical cabin, or country get away. These are really unique, some would say a few would qualify as 'luxury' unique getaways. Not a regular house or apartment or cabin.

    How profitable would it be to buy land, build one of these homes (or purchase if it's a trailer and totally re-vamp) and then rent out?

    Also please note: it doesn't have to be an actual house like most of the things in that list - it could be a simple glorified luxury trailer, or something other than what you would consider a typical home, but with added luxury and uniqueness.

    I've compared a few places in different areas and they all seem to be fully booked for the most part up until March/ April, and most nightly rates are anywhere from 200-500+ a night... even in the middle of no where.

    And since these are so unique, it's not like there's a saturated market of unique Airbnb getaways either.... And they always seem to be booked out for months in advance...

    Thoughts?

    And I guess just for discussion: how would ^ that compare to a regular investment property where it's long term rentals (apartments, small homes etc)? I know there's an actual necessity for long term rentals as opposed to fun vacation homes... so just wanting some opinions on if this could actually be profitable or if I'm just being too hopeful...

    submitted by /u/bellhop71
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    Question - do agents need to share offers immediately to seller?

    Posted: 20 Jan 2021 11:34 AM PST

    Hi,

    I'm in a sellers market and saw a house pop up that i'm interested in. I asked my agent if we can schedule a visit today and submit an early offer today or tomorrow. The selling agent responded that first showing will be saturday and that the sellers won't review offers preemptively. Also that they plan on setting an offer review date of next wednesday.

    My question is - if I submit an offer today, is the selling agent obligated to present it to the seller now or can she hold onto it and present it with the other offers at the offer review date? Just wondering strategically what's my best play here

    submitted by /u/datousteve
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    Live for two years and own for at least five for tax deductions?

    Posted: 20 Jan 2021 07:33 PM PST

    Providing documentation for the five year on ownership is easy as I only need the property sale date. But what about proof of residence? What is the minimum to show that you have lived there? Would utility bills be sufficient? What about changing your tax return address to that address? Would changing your ID primary residence be needed? Is there a form that needs to be filled out so that I can apply for the capital gains tax reduction for the profit of a home sale?

    submitted by /u/jason200911
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    Flipping cabins

    Posted: 20 Jan 2021 05:05 PM PST

    Any advice of things to look out for when flipping a cabin located in a remote area?

    submitted by /u/Noah_saav
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    Why is the typical hold period 5 years for apartment deals?

    Posted: 20 Jan 2021 07:10 PM PST

    Why do people typically hold an apartment deal for 5 years?

    Why don't they rehab it themselves and refinance?

    Why not hold for 30 years?

    I imagine the idea is to "move up" and increase units after they sell and buy the next deal?

    submitted by /u/nurse-usa
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    How to start investing into REIT from nothing ?

    Posted: 20 Jan 2021 11:33 AM PST

    Hello there,
    I'm 30 years old, have been investing into stock market for a few time, and I'd maybe like to extand my journey into real estates. Could you please, tell me how to start from ashes, especially with a low available capital.
    How much money do you need to start from? Do you absolutely need ot loan from banks to start, and so, how to assess the risks? What else do you need to do, and what do you need to know?

    If you have any nice URL about it to share, it'd be much appreciated.
    Thank you !

    submitted by /u/funk--
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    FHA question

    Posted: 20 Jan 2021 09:01 AM PST

    Hey all, I'm looking to invest in a multi family in NY in the near future. Question on financing this idea, I can provide 10-20% for a down payment. Credit above 720. I'm 28 not sure if my age is a factor at all.

    I manage commercial property for my pop and have been saving up for my own properties. I currently manage some commercial properties I helped him pick up in South Carolina. Looking to get a multi back home in NY. One unit will be mine which a buddy will room with me. The other units will be rented.

    My question is, since I'm going to be back and forth from states often would an FHA be viable for me?

    I'll be in NY for a week every month but the remaining 3 weeks out of the month in South Carolina. I know it needs to be owner occupied, would that be considered owner occupied?

    TIA

    submitted by /u/breeeeeeezzzy
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    Exterior doors on a 9-unit residential building.

    Posted: 20 Jan 2021 02:16 PM PST

    Hello! I have a 9-unit residential property that currently has some old wooden exterior doors. I was wondering if anyone has any recommendations on what type of replacement doors to get. Ideally, I'd install a historical looking solid door with windows that also has some sort of unique code (digital door knob) that I could give out to each tenant.

    I've installed some Home Depot digital door knobs before. But, I doubt those would withstand the use here. Also, I'm not sure if they can hold 9 codes plus any maintenance personnel codes that I hand out.

    Thank you for any recommendations!

    submitted by /u/RegressToMean
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    Owner Occupied Duplex Taxes

    Posted: 20 Jan 2021 10:47 AM PST

    Hi everybody, with tax season a few months away I wanted to ask if anybody has experience/advice on potential tax deductions/considerations in my situation. I bought a duplex in December and received prorated rental income as part of the sale. I've also been doing a full rehab on one side that I am going to be living in, and haven't touched the other side yet. I paid a point on my loan which I believe could be deducted, and also have private mortgage insurance. One specific question I have is whether the prepaid property taxes and insurance included in the closing costs can be deducted? Also wondering how it works with splitting things down the middle for rental vs. primary residence. Thanks in advance!

    submitted by /u/BronzeFlamingo
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    FHA to 1031 - A Couple's 2-5 year strategy

    Posted: 20 Jan 2021 08:04 PM PST

    Seeking thoughts on a plan we've hatched for a path to accumulate property over the next 10-25 years. Here's the background:

    - Currently own primary residence in HCOL area, though we may outgrow it in next few years. Owe ~550k on it, have a 10 year ARM at 3.25% that expires in 6 years. Currently paying ~$3675/month + utilities.

    - Think the house can rent for $4250/month, netting $425 after PITI and maintenance with the current loan.

    - Can't refi for lower rate currently, as I haven't had W2s in some time, though will begin to earn again this year.

    - My SO can qualify for an FHA loan, 2.75% 30 year fixed. max purchase 900k

    The plan...

    1) Refi the current primary house, new payment (PITI) to be $3286 + $200 maintenance = $3486 / month cost, as soon as I am able to in about 12-16 months. Hoping rates are still around 2.75%

    2) Find a home for 900k that we would be happy to live in, probably outside the city where we currently are. A house we can add value to by putting in 50-75k. (We have experience with renovation and design) Buy with FHA loan. Move there.

    3) Rent out the current home we live in at the $4250/month -> Net ~$750/month income'

    4) Either refi or 1031 exchange the 900k home into another property that is bigger, taking the hopeful profit we made from the added value improvements.

    5) And not sure what's next, but at this point now, we own 2 properties and continue to trade up.

    What ya'll think?

    submitted by /u/lurking_not_lurking
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    Seller not allowing tours (not even video)

    Posted: 20 Jan 2021 07:42 PM PST

    Been dipping my toes into the idea of buying a multi family property for a while and 2021 is the year i do it. but while searching the MLS i have noticed the lack of information / transparency in dozens of buildings i would otherwise would be interested in.

    Found a 4 unit building in Humboldt park, only 3 blocks from the park, within my price range. Currently fully occupied on MTM leases... i drove by and the building didn't look like trash and the street has other investors on it. I Reached out for a tour and the "motivated" seller isn't allowing it, not even video.

    Why? What should i be asking? Is this normal? Who buys blindfolded like that? Do you just assume the worst?

    submitted by /u/masondbarnard
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    Should I keep my current townhouse and rent it or sell it to get equity back to invest in mutual funds?

    Posted: 20 Jan 2021 08:59 AM PST

    I currently live in a townhome and moving to a single family house in a few months. My current house: Original purchase price: 400k (2015 built/bought) Loan term remaining: 14.5 yrs Loan balance: 310K Monthly payment : 2700$ (incl HOA, escrow and insurance) Current value if I were to sell: $550-$600K

    Now the maximum rent I could expect is around 2500$ per month including HOA. So I will be around $200 negative Atleast for an year or two. I also understand that there is this 1% rule which means I should look for 4K rent but 4K rent is not possible for this one. This house is in a very hot market and expect to go up for the coming years. No issues with the house and no major repairs expected in the next 5-8 years unless the tenants mess it up. If I were to sell and say invent about 250K in index funds, with modest returns, I might be at 600-650K in 15 years.

    What do you guys think? Any thoughts or recommendations?

    submitted by /u/NeoTrix45
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    Our home that’s 20min from Austin goes live on MLS tomorrow, are we making the right choice by selling?

    Posted: 20 Jan 2021 07:32 AM PST

    We live on the Manor / Elgin border and will be listing our home for 238k, I feel like with current inventory and how nice our home is (upgraded) it will possible go for more than asking which is great but my fear is we won't be able to get an offer accepted if we want to move to central or NW Austin.

    Our plan is to live on site at one of the apartment complexes my wife manages once the house sells and then start looking, our 1st choice in to live in Austin but we also really love Bastrop although the commute would we long. What do y'all think? Good time to sell or bad time to sell?

    submitted by /u/christawfer47
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    Second home / investment property

    Posted: 20 Jan 2021 07:49 AM PST

    I am buying a vacation home with my brother. I will be the first name on the loan. I want to apply for a loan as a "second home" but I I plan on renting this out to at least half of the year for weekend/ week renters. I want to state that this is a second home so I can put lower down payment. Is this possible ? Any suggestions? Thanks.

    submitted by /u/herewego718
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