Real Estate Investing: Paying off rentals |
- Paying off rentals
- Closing On House Today. Title Company Accidentally Doubled My "Down Payment" of $15K But Didn't Add It To My Equity.
- Anyone here a digital nomad that invests in real estate to gain a large portion of income?
- Debating selling vs renting. Anyone care to look over my #'s and give some insight?
- Buying without a Realtor
- Is it smart to buy my first home through a LLC split with friends/business partners?
- Considering buying a storage unit with 0% occupancy - am I crazy?
- Anyone investing in the Providence, RI area?
- Does cash-out refinance make sense?
- The Real Estate Investing Bug
- Hard Money Rental property
- Buying townhome and then renting it out after a couple years
- Reminder: De Minimis Safe Harbor Election for 2021 must be completed by Midnight today.
- Need help figuring out my next move.
- Self guided rental tours - remote investing possibilities
- Is a securities backed LOC too good to be true? Poke holes in my strategy
- Expected returns (first time investment partner)
- What are some good episodes to listen to from the bigger pockets podcast?
- What's the story on Mastermind groups?
- Condo or a townhome for investment?
- Primary Residence LLC??
- Seller’s Market?
- Happy New year, Everyone!
| Posted: 31 Dec 2020 08:02 PM PST Hey. So my husband and and are in our mid 50s, so about 10-15 years until we retire. We have been buying rentals since 2003, so we have a lot of equity and good cash flow. I have been starting to pay off our properties because I want to go into retirement with no mortgages. Sine paying off 10 properties takes time, I am funneling my cash flow to principal. I figure if I need cash later, I can always sell a home or refinance. Just wondering what others feel about paying everything off by retirement? We are also do active land development projects to generate cash while this is going on. [link] [comments] |
| Posted: 31 Dec 2020 07:10 AM PST This closing company has been terrible. They are sketchy and don't seem to know what they are doing. Luckily my agent and lender have been helping them do their job because they can't seem to handle that. $15K oopsies? Really? Luckily we got that fixed. I never realized closing companies could be so bad since I always have used good ones up till now. About to go close now, wish me luck. [link] [comments] |
| Anyone here a digital nomad that invests in real estate to gain a large portion of income? Posted: 31 Dec 2020 05:50 PM PST |
| Debating selling vs renting. Anyone care to look over my #'s and give some insight? Posted: 31 Dec 2020 09:43 PM PST Summary: I have owned townhome in pretty hip part of Denver(sunnyside) for about 5 years now and am debating selling and collecting the 150k in equity I have made or renting it out and also capitalizing on even more appreciation. I am just a bit confused on how to tell if my cash flow is enough based on the equity I have, and my initial down payment. Here are some numbers, Let me know your thoughts and what I forgot to include! Mortgage, insurance, taxes- 960/ month, 11520/ year Interste rate- 3.25% Rental rate- 1500/month Cash flow- 540/month, 6840/ year, closer to 4400 after repair, vacancies Purchase price- 220k Initial down payment- 46K (20%) Current value- 330k Current equity- 170k Amount left on Mortgage- 160k, 25 years Appreciation last 5 years- 8ish% I am confused about what to compare my cash flow against... The cash Ive paid into it thus far or should I be considering the equity I now have. [link] [comments] |
| Posted: 31 Dec 2020 05:10 PM PST What needs to legally be done to buy without a realtor? Ive read about people signing a contract on a piece of scrap paper. Is it really that easy? I know should hire a RE attorney to close but is there anything prior to that that should be done? I know it probably changes state to state. [link] [comments] |
| Is it smart to buy my first home through a LLC split with friends/business partners? Posted: 01 Jan 2021 01:32 AM PST So I am in a interesting situation. I currently run a business with four friends. All our expenses are 60% paid for by a third party through a royalty program( complicated an not relevant here). Our plan was to buy a house through an LLC we make together and to rent it back to our current company. By doing this, 60% of the rent would be paid for because it would be expensed. We would live in this house ourselves. What are the downsides of buying a house with business partners for your first home? Any ideas or comments on this idea? Anyplace where I could get more information? We are in our early/ mid 20s and with around a 750 credit score average. Whether the third party is willing to pay for the 60% is irrelevant here. [link] [comments] |
| Considering buying a storage unit with 0% occupancy - am I crazy? Posted: 31 Dec 2020 05:25 PM PST Hey all! First, thanks for being such a great community. So I am 24 years old and this would be my first deal. I've been looking into real estate for awhile and just couldn't find a deal that made sense, but I finally found a self storage property that I think would make a lot of sense. As I mentioned in the title, the catch is that is has 0% occupancy. So obviously I was extremely curious why none of the spaces have been rented out and was asking a million questions to my agent about that. Basically the owner had a business (he did a lot of things in the business such as carpet cleaning, wood panelling, contracting etc) and ended up building the storage property in order to hold supplies and client's belongings while he was cleaning or working on their house. Now he has 55 units and he did not use all those units for his business, but apparently he was just too lazy and not interested in renting them out. Now it sounds a little weird that's the case but I visited the property and they seem like they are in great condition (built in 2001) and there is definitely supply in the area, I looked at other storage units in the area and all are at 90+% occupancy (and the city is growing in size). Also the owner is old + ill and is selling both his businesses (his cleaning business + the storage units). Now obviously the biggest question is can I fill the spaces, but I'll walk you all through some of the numbers. The price of the property is $650k. I cannot get a commercial loan from the bank since the property doesn't have any revenue yet, so I would have to get the property owner financed for the first year (then refinance). The owner is willing to finance at 25% down, 7% interest (crazy right!) -- That would mean that I have to put $162.5k down on the property. My agent is confident that we can get the first 6 months payments deferred (since that would give us time to fill some of the units, and then possibly a staggering interest rate. In addition, I still need to do my own research on my end to confirm this but my agent believes that $50k is needed in upgrading the property and installing the security/automation system -- this would include cameras, code lock on all the units, an electronic Kiosk at the front for self service -- basically all the still that is needed to automate the self storage property. Now in terms of revenue, using EXTREMELY conservative numbers, the property would generate $6k in revenue with all the units occupied. This is undercutting price with all the nearby storage facilities, just cause I wanted to be very conservative with my numbers. Lets have a recap: Thats a 11% CoC return without factoring in the fact that the refinance will most likely come in higher since the units will be rented out by then. Now I understand the numbers of the first year are a little funky because it will take time to get the units occupied, but my hope at WORST case scenario is that I will get 50% of the units occupied in 6 months -- is that reasonable?I have done research in the population and it seems like the area will continue to grow, and as I mentioned the other storage units don't seem to have occupancy issues. I know that was a lot but does anyone have any thoughts on this situation? [link] [comments] |
| Anyone investing in the Providence, RI area? Posted: 31 Dec 2020 07:39 PM PST A buddy of mine from Providence wants to get started investing in multifamily rentals. I'm wondering if anyone has any experience with the area and can shed some light on their experience thus far? I personally tend to shy away from the east coast due to anti-landlord laws, high taxes, and low cash flow [link] [comments] |
| Does cash-out refinance make sense? Posted: 31 Dec 2020 03:51 PM PST When I got married 17 years ago, I rented out my house. It's been a profitable decision in general and is now paid off and worth roughly $550k. I have purchased two other rentals since then which have mortgages of $165k and $270k. My 2 kids are going to college in 3 and 5 years and it is my intent to retire when I drop off the second one. I had intended to pay off the $165k mortgages and try to use the cash flow from those two paid of properties to find their college tuitions. I'm reconsidering... It feels like it might be a smarter play to do a cash out re-finance of the house that is paid for. Financing $400k, would be much more than I need to fund their tuitions. (They have most 529 accounts). It I put that cash into an index find, I can then use it each semester as need. Also once I am retired, I will be able to classify myself was a real estate professional. I will have no wages, and modest rental income. I also have other cash accounts I can tap into as well. Keeping my actual AGI income low could be valuable since I will be retiring early and hope to so some Roth conversions at a much lower marginal tax rate. What do you think about the cash out refinance, to increase leverage, earn cash today with that equity, and fund tuition when the time comes? [link] [comments] |
| Posted: 31 Dec 2020 07:04 AM PST Since starting to read about real estate back in July I've found myself obsessed with the subject. I think about it every free hour I get and dream about what kind of financial freedom it can afford me some day. I'm planning on starting to make offers in January but basically since this summer real estate investing is all I can think about. I may even get my license in 2021 because I plan to acquire multiple properties over the next several years. At this point in time my job is pretty flexible so there are pockets in the day when I can spend a couple of hours looking at deals or learning REI. It's not affecting my job as of yet but I'm worried it might if I don't give myself some structure. I'm not in the position to quit my job and i don't want to but I think I've found a new passion in real estate investing that I'm really excited about and can't shake. For those of you with full time jobs have any of you experienced anything similar or have difficulty with compartmentalizing your time ? How do you manage ? [link] [comments] |
| Posted: 31 Dec 2020 06:37 PM PST Hard money for Rental property I have purchased three houses in my life. One FHA, one VA, and one traditional 20% (rental property). I am planning to purchase my second rental property in February (Traditional 30 year 20% down). I was wondering if anyone uses hard money lenders to purchase a rental home (no or min repair needed) and then refinance after 6months into a traditional 30years loan? It takes my wife and me 4-5 months to save up for a 20% down payment and I would used this method to purchase a house quicker and bank on the appreciation and once I have the 20% in the property I would refinance to a traditional loan. Has anyone tried this method? What do you like about it what do you dislike about it? I would like to hear opinions and experiences. Thanks [link] [comments] |
| Buying townhome and then renting it out after a couple years Posted: 31 Dec 2020 05:07 PM PST Hello all, I live in the Bay Area, CA. I am looking to buy our first property and it is gonna be a townhome. Currently they are brand new and more are being built. I'm looking at the 3BR/2BTH at $393,000. There is an HOA of $290 per month. My plan is to live in it for a couple years with hopes of renting it out. I checked with the HOA and they stated they only allow a certain number of properties to be rented out. They didn't give me much else information. Currently everything else in our area is extremely expensive right now. These fit the budget nicely and give me and wife a lot more room. We are in a 1 bedroom apartment right now with a baby on the way. Avg rent for 3bd/2bth in our area is $2550 Am I taking a gamble buying this as an investment with hopes there will be availability to rent it out? Thanks for any help and advice! [link] [comments] |
| Reminder: De Minimis Safe Harbor Election for 2021 must be completed by Midnight today. Posted: 31 Dec 2020 10:09 AM PST If your accountant has not already reminded you to do this or has never mentioned it at all you may want to find a better professional to work with. If you are not familiar with what this election is for please conduct basic due diligence, it is not complex, and proceed as you see fit. As /u/signumsectionis correctly pointed out I am referring to the Accounting Policy not the actual election itself. Mea culpa. [link] [comments] |
| Need help figuring out my next move. Posted: 31 Dec 2020 04:05 PM PST |
| Self guided rental tours - remote investing possibilities Posted: 31 Dec 2020 03:53 PM PST So I was doing some research today and came across a '"self guided tour for rentals". After more research I found a tech company called Rently. It appears you can completely rent from out of state, but it doesn't give much info on their website. Has anyone experimented with this? How does pricing work and do your tenants like it? Have you had a better/worse time screening tenants when you don't meet them in person? [link] [comments] |
| Is a securities backed LOC too good to be true? Poke holes in my strategy Posted: 31 Dec 2020 09:47 AM PST I've done some reading about securities based lending (SBL) and the rates - Schwab, TDA - and it seems too good to be true. For background, I have a decently large taxable brokerage account (6 figures), but very little cash that isn't invested. Here's my plan:
Pros: I'll be able to move quickly and have an upper hand as an all-cash offer, I won't have to keep a large sum of money sitting on the sidelines, I won't have to pay capital gains tax on the security sale, and the rates are low (~2.75%). Cons: you tell me. The biggest risk I can see is the refi process taking longer than expected, but surely I'm missing something else. If anyone here has used this strategy, please let me know how it worked out for you. [link] [comments] |
| Expected returns (first time investment partner) Posted: 31 Dec 2020 02:25 PM PST Offered an opportunity to join as a partner to a large unit investment (bringing $ to the deal, not planning on being involved for any day-to-day). General partners are planning on holding the property for about 6 years. Timing seems fortuitous since I'm looking to diversify away from stocks since they are now taking a significant portion of my overall allocation. Curious what metrics and benchmarks you expect to be worth the effort (IRR, cash-on-cash, etc). Bottom line: How do you assess the risk to your capital and make the determination that the potential upside is worth "the plunge." Thanks! [link] [comments] |
| What are some good episodes to listen to from the bigger pockets podcast? Posted: 31 Dec 2020 02:11 PM PST Title says it all. I am 17 years old and trying to learn as much as possible so when I am older I already am ahead of the game. [link] [comments] |
| What's the story on Mastermind groups? Posted: 31 Dec 2020 10:25 AM PST Listening to bigger pockets, I noticed that quite a few guests are part of Mastermind groups. These seem to be basically support groups for business people. And, having looked at a few of them, they can be quite pricey. One I looked at, level up mastermind, didn't have much of a pitch but wanted $1,000 a month. And it doesn't even really seem on the high end. I'm intrigued that so many people join these groups, but, they also look like scams to me. Where does all that money go, is this just another kind of MLM or Ponzi scheme? I'd be interested in hearing from anyone who has experience with these structures. [link] [comments] |
| Condo or a townhome for investment? Posted: 31 Dec 2020 02:05 PM PST I'm looking at some Condos and Townhomes in the Seattle downtown area for investment. My primary aim is to put it on rent. I'm kind of torn between a Condo and a townhome. These are some of the stats for better comparison, their prices are the same. Townhome: 3 BR, HOA - None, Rent - $2500 per month, a couple miles away from downtown Condo: 2 BR, HOA - $1000 per month, Rent - $3000 per month, right there in downtown I pulled these rent estimates from Zillow for similar properties in the same area. The reason I'm torn is the hefty HOA. For a Condo, my rental income comes down to $2000 after deducting the HOA. This is still lesser than what I would get from a townhome. Another point of trouble might come when a renter moves out at the end of their lease. Till the time I find a new renter, the HOA will keep burning a hole in my pocket. I know that HOA is important for the upkeep of the amenities like Gym, Swimming Pool, Mail Room, common area maintenance but this would make sense when someone is living there to utilize them. So what would be a better option among these two for investment purposes? [link] [comments] |
| Posted: 31 Dec 2020 02:01 PM PST Can I put my primary Residence under an LLC? I currently finance my home, and plan to move out in a year or so and plan on renting out my home, however I want to put it under an LLC for tax write off purposes and business expenses. My brother plans on moving out soon so I have to refinance to buy him out, should I acquire an LLC at that time since I would most likely trigger a due on sale clause anyways ? What implications would that mean at that time ? 25% down payment? Any advice on this would be so appreciated thanks. [link] [comments] |
| Posted: 31 Dec 2020 04:29 AM PST I'm looking to buy some vacant land in California. No experience at all but having a great time doing the research. I assumed the market was already down bc of the mass exodus California experienced this past year therefore I could get something at a good price. But a buddy of mine told me it's "still a sellers market, Cali real estate is fickle" so should I wait? Or should I jump on what fits me and my budget bc there's never a better time than now when you find the right one. I rent an apartment and I'm not in any big rush to find a new home/farm/development project but I'd like to get started on that before some sort of upswing in prices limits my options. [link] [comments] |
| Posted: 31 Dec 2020 10:08 AM PST May the new year bring you amazing tenants and massive profits! [link] [comments] |
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