Real Estate Investing: Rant: If you're asking for specific advice about your situation, be prepared to give specific information. |
- Rant: If you're asking for specific advice about your situation, be prepared to give specific information.
- Questions around the BRRRR method with a conventional mortgage
- Best Way To Change 100 Locks
- Mobile Home Park Valuation Confusion
- New Investor in Seattle with $100k: seeking advice
- Buying rental properties in Sacramento
- Allowed timeline for getting a renter
- Converting to Condo
- Has anyone done a new build specifically to rent / with rentals in mind?
- Student Rental vs MultiFamily
- Buying as owner occupied, how does refinancing work after starting to rent?
- First time investor
- Refi Appraisal came in higher than expected. What are some options?
- Tenant refuses to vacate property that is for sale
- Reasonable rate to charge for market research
- How far away do you look when looking at crime in a particular area?
- Tenant Screening: MI: Prior Criminal & LLC
- Cash Offer advice
- Waive the inspection clause, but do the inspection.
- Advice and recommendations ?
- Is anybody renting right now?
- Sub 2 Deal with equity
- Just pre-qualified for $190k and I'm feeling pretty hood rich
- Please Help! - Locked Out of a Seller's Market
| Posted: 29 Jan 2021 11:13 AM PST The number of people who come here asking for actionable real estate advice, but refuse to give the smallest detail is too damn high. A lot of new investors or people inherit property come and ask about out of state investing vs local investing. How the fuck are we supposed to answer that, if we don't know where you live. The first question I ask when someone asks for advice is, "What city?". This isn't because I'm trying to stalk you so I can sneak into your house and sniff your underwear. Or because I'm going to try to find the house you're looking at so that I can huff and puff and blow your house down. Yet, new posters will come in here guarding that information like it's the map to the holy grail. I need to know where you live because every market is different. Are you investing in one of the Primary markets(LA, NY, SF)? Do you live in a growing market(Austin,Raleigh,Durham, Tampa Bay)? Do you live in a rural market? These different geographic locations have different strategies. You could pick up the top 10 best selling real estate investment books and not one of them will apply to a primary market. They won't give you the tools and strategies to invest in a 4 cap market. People will ask if the 1% rule still applies. Sure it does, in a ton of different cities. But it hasn't applied to NY,LA, SF since the 90s. And when it did apply, it was called the 2% rule because that was the expected return from your real estate investment. For me personally, 2 things are going to happen when you ask a good real estate investing question: I'm going to try to give you advice that goes beyond a real estate investment book. If you can pick it up from reading a Bigger Pockets book, then you don't need to hear it from me. Like I just wrote in the previous paragraph, if you tell me you live in San Francisco and want to invest locally, I'll know that real estate books do not apply to the local market. The closest cities that might apply will be: Fresno, Stockton, and some areas in East Bay. But I'm not going to find you and sniff your underwear(I don't care how much crust and smegma you've saved up, I've been sober for 4 years and I'm not going to fall off the wagon, I've learned to resist the temptation). If you give me the city and I have time in my day, I'll take a quick look on Zillow, Costar, and maybe citydata to get a temperature of the market. Since, i'm harping on you guys to give information. Here's my data: I own 53 apartment units. The majority of them are East of Los Angeles in the San Gabriel Valley (4.25 cap market). I'm acquiring another 2 units this month and have plans in development to build another 10 units. I also own property in Central PA (7.5 cap market, workforce housing). I like both markets for different reasons, they both have their advantages and drawbacks. If you tell me your personal goals and financial situation, I'll also give you details on the specific +/- of different investments. I like talking about real estate. I hate answering repetitive questions or stuff that you really should be getting from a book. TLDR: If you're looking for actionable advice, be prepared to give us some additional information regarding your target market, goals, and financial situation. [link] [comments] |
| Questions around the BRRRR method with a conventional mortgage Posted: 29 Jan 2021 08:44 AM PST TL;DR - Buying a new investment property in a super HOT market on a conventional mortgage with 20% down and got a really good deal below the market price. The appraisal came in $25k higher than what I paid and I'm thinking about putting in an additional $10k in upgrades before renting it out. Also, another similar home nearby just sold for way above ($80k above) what I paid a week after my current appraisal. was done. Taking all this into consideration: ---------------- To elaborate, here are the details. Purchase Price - $440k The home is in great condition and I'm in a super HOT market right now but I got a great deal since the sellers were looking to sell within a day. I'm thinking about putting in an additional $10k in upgrades (i.e. wooden flooring) to bump up the value of the home. Also, another similar home nearby just sold for $520k and closed yesterday. Based on my understanding of things (which could be potentially wrong), getting the house re-appraised in the next 6 months should fetch a value of $500k+ so it could make sense to get a cash-out refinance and be able to pull out some of my down-payment for use towards another property. That being said, during the re-appraisal process, would the appraiser just look at nearby comps, market conditions and the current condition of the home while determining it's current value (which could lead to a $500k+ value of the home) or would they just look at how much I paid 6 months ago and add my $10k worth of upgrades for a $450k appraisal value? Based on this, I can decide whether a cash-out refinance would make sense in 6 months or not and that will help me decide how I should structure the terms of my current conventional mortgage i.e. buy down points for a lower interest rate or get a worse rate with some lender rebate since I will be refinancing soon. Thanks so much for much for any help on this! [link] [comments] |
| Posted: 29 Jan 2021 07:43 PM PST Guys, on a 100-unit property I recently purchased, we have this massive wad of disorganized keys. Whenever we have to get into a unit, we have to make sure we have all the "possible" keys otherwise you're running to the office to get more. Are there any cool upgrades I could do to replace the 100 doorknobs to some sort of a master key system? Of course, without spending thousands... ideas? [link] [comments] |
| Mobile Home Park Valuation Confusion Posted: 29 Jan 2021 09:14 PM PST Hey y'all, I am so confused on this. A client of mine asked for help in business valuations which I'm used to, but mobile home parks do not use the same valuation methods as service based businesses. This is what I have so far. True Value = [(Annualized NOI - POH rent) / CapRate] - immediate repairs +improvements + (0.75POH rent) The issue that I am having is in the divide by CapRate section. If I have two parks I'm looking at, both doing 250k NOI - POH rent, but one of them has a cap rate of 10% and the other 7%, the formula would give a higher value to the park with the lower cap rate. I get that this is because the land value would be higher, but would it not be smarter to just pay an assessor to find value of the land itself and pay a higher price for the one with the higher cap rate? What am I missing here? [link] [comments] |
| New Investor in Seattle with $100k: seeking advice Posted: 29 Jan 2021 08:10 PM PST I'm newly married and moving to Seattle in a few days. Just sold my old property in the Midwest and now have 100k in cash. We have a few months of corporate housing which means a few months to figure out 1. where to live and 2. How to invest. With regards to #2, I don't know what my options are and would appreciate any advice, especially since the Seattle market is a bit wild. I have experience with house hacking (renting out a room in my old property) but that's it. We are not scared of a SFH or multi family fixer upper purchase to live in as well but our options are limited with the 100k down payment. Basically what would you do if you had 100k in the Seattle area? I like residential real estate and would like to focus on it but I'm open to other investments as well. Personal info: My spouse will be working remotely but will soon look for new jobs with local companies. My job is downtown. Our current plan is to rent until we know where they will need to one day commute to. [link] [comments] |
| Buying rental properties in Sacramento Posted: 29 Jan 2021 11:25 PM PST Hey guys, I am a newbie to real estate investing but have been researching thoroughly for a few months, getting familiar with the fancy terms and how to analyze deals. I have found a couple where the comp checks out if I can get 100% of the rent. I live in Antioch and want to buy a single unit in the 175-200k range in Sacramento. I will be putting 20% down and I am looking at condos. I have a whole lot of questions but I guess to start off with:
That's all I have for now but I am sure more will come up. Would really appreciate some help and guidance guys! Thanks! [link] [comments] |
| Allowed timeline for getting a renter Posted: 29 Jan 2021 11:10 PM PST If I buy a fixer with 1031 money, how long do I have to rehab it? Say I'm doing all the work myself and it takes a year before I have a tenant. Did I break any rules of the 1031 exchange? I know if I was using the money from the 1031 for construction there's a 2 year limit. But I thought that was ground up only. I'd probably do rehab cost out of pocket. [link] [comments] |
| Posted: 29 Jan 2021 05:03 PM PST Has anyone tried converting an apartment complex to condos? How'd it go (am I stupid for even considering it)? Has anyone considered anything similar for their rental units? [link] [comments] |
| Has anyone done a new build specifically to rent / with rentals in mind? Posted: 29 Jan 2021 02:09 PM PST I'm wondering if any of you real estate investors out there who do residential rentals have built instead of buying existing property on the market? I don't mean building your personal custom home that you ended up renting. I mean building specifically to make it a rental (pre-hardening against tenants, appropriate finish levels, etc.). What was the experience like and would you recommend it? Where I live it's really hard to buy anything right now but I'm aware of a lot that would make a good rental location I could acquire. Thanks all! [link] [comments] |
| Posted: 29 Jan 2021 07:05 PM PST I recently saw a post here criticizing new members/ new investors for not giving enough background, so I'll try and avoid that. My husband and I live in Toronto, Ontario we own a duplex and live in one unit with our family, and rent out the basement. We also own a 2bed+den condo. We are interested in buying either a student rental or a multi-family home in a nearby city (e.g. 1 hour away, Hamilton or Guelph). Our budget is about $800K. It would likely be a 3 unit multifamily, or a student rental with 5-6 bedrooms. From my analysis both would cashflow well. To date we have dealt with high maintenance tenants in our condo and loud or late paying tenants on in the basement of our duplex, but overall it has been worth the hassle. We would not hire a property manager for this new property. I am curious to hear:
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| Buying as owner occupied, how does refinancing work after starting to rent? Posted: 29 Jan 2021 10:11 PM PST We are planning to buy our first property as owner occupied and live there for ~ a year (pending when pandemic ends and we may have job location changes that force us to move sooner). If we start renting it out, and decide to refinance in 3-5 years (while it is being rented out), will we then have to do it as an investment property loan (higher interest rate)? We are particularly concerned because it is a condo in a small complex which is likely to have more than 50% of units being rented out at any given time, making it unwarrantable for an investment loan review by fannie mae / freddie mac. That would mean difficulty finding a lender and also even higher interest rates. ETA: would it differ at all for a traditional refi vs cash-out refi? [link] [comments] |
| Posted: 29 Jan 2021 02:47 PM PST Okay I am a 23 year old who just got my license in September of 2020 in real estate. I've cleared 734,000$ in real estate up to this point and have nearly 10k for investment. I work a second job part time 5am-11am each day of the week before going to the office which covers my bills. Before this I was a college athlete so I have no credit history (I have one card I pay off monthly) and I also have zero debt. However, I don't know how I could finance an investment property without getting a mortgage? I also live in the Midwest in a upcoming city and some of the cheapest real estate in the country. My question is. How can I go about financing a property without an employment history? With around 10k for investment as of now. [link] [comments] |
| Refi Appraisal came in higher than expected. What are some options? Posted: 29 Jan 2021 04:03 PM PST My brother is in the middle of a refinance. His appraisal came in 185k higher than what he paid for the house a few years ago. What are his options? He is thinking of investing in other property or maybe even the stock market. Does it make sense to do a HELOC for these reasons since he's not sure if he will use the money? His ultimate goal was to lower his monthly payment in a refi so would the HELOC significantly change his monthly payment. No idea how it works. (If someone could provide a formula, would be very helpful!) Also does he close on the refi first then apply for the HELOC? He also locked in his rate already. I wonder if he could have gotten a lower rate since the appraisal came in higher. He already has about 45% equity in the house. Curious to know these answers since I may refi too. [link] [comments] |
| Tenant refuses to vacate property that is for sale Posted: 29 Jan 2021 07:05 AM PST The wholesaler that I use sent me an email of a property that has great appeal. However in the description, it is stated that "the tenant refuses to vacate" and the buyer will be responsible for eviction. It also says that the tenant is not under any lease. Any of y'all dealt with this while buying a property? I'm genuinely curious. Edit: this is in Texas [link] [comments] |
| Reasonable rate to charge for market research Posted: 29 Jan 2021 07:55 AM PST I recently did some research for an investor to see if I would be a good fit to further conduct more market research.I was asked what my rate to research would be and I have no idea what an appropriate rate to charge would be. Can someone give me some insight into what a reasonable rate should be. The research I'm doing is detailed but not hard. I don't want to sell myself short or insult them with a high number. Thanks so much! [link] [comments] |
| How far away do you look when looking at crime in a particular area? Posted: 29 Jan 2021 03:18 PM PST I've found an area that has a ton of properties that aren't very visually appealing. (No upkeep of property, yards have tons of vehicles or trash/items in them, paint coming off or wearing away, from the outside, it seems cosmetic but I'm definitely judging a book by it's cover right now) I've found relatively few crimes in the area (within a few streets and within the past 180 days). Nothing serious has occurred. 1 simple assault, 1 aggravated assault, and an instance of fraud. No narcotics or weapons charges. Obviously what's reported in the past doesn't guarantee anything in the future. But so far, the area seems decent. How far back in time should I look for local crime within a neighborhood? How far (geographically) should I check for crime in a potential area? Something to note is that a gated community was built in the same area, right down the street which is followed by more properties that I've mentioned before. So someone saw something of value in the location I assume, prices are cheap in the surrounding area, and if crime turns out to be relatively low then there could be potential. I haven't worked out any numbers or anything, I just drove through the area today to get a feel. It definitely seems like a low income area. I'm looking a bit deeper into the neighborhood when I get home. [link] [comments] |
| Tenant Screening: MI: Prior Criminal & LLC Posted: 29 Jan 2021 03:00 PM PST Hello, We have an applicant we are considering for our single family residence that we found through an agent. Tenant has 5 priors (including fraud, domestic violence etc.,). Most recent was 4 years ago for domestic violence and disturbing the peace. In addition, Tenant's income comes from his own company (LLC) The realtor is pushing us to take this tenant. Our home has been vacant for 4 months. We can bear the costs for 4-6 more months without issue but I'm wondering if we need to relax our rules a bit. Two questions
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| Posted: 29 Jan 2021 02:45 PM PST I have a property for sale for $425k. A comp in there area suffered from a horrible appraisal and sold for 25k less than offers received. Because of this I was hoping to have cash offers with no appraisal so that the comp wouldnt effect my value. I received an offer for $10k more than asking and was about to sign when another came in blind from out of state for $35k more than asking. All other offers require financing. Both of these are cash. My question is this. Is this too good to be true. I would hate accepting the larger offer for it to be a sham and then lose out on the other local offer from another investor who saw the property. I'm new to this so any input would be great. [link] [comments] |
| Waive the inspection clause, but do the inspection. Posted: 29 Jan 2021 03:14 AM PST Made an offer on a house this week, I've looked at several in the neighborhood by the same builder (30 year old brick homes), so after a walk through and a peek at the crawl space (I. HATE. CRAWL. SPACES.) we made an all cash offer, no outs except title examination or condemnation. Did an inspection anyway, house looked great. However, upon encountering the air handler (new Trane system installed in 2019) the filter door was laying on the moisture barrier and the filter was poking out. For the next few minutes I struggled with trying to fit the filter into the space and reattach the door to NO AVAIL. My guess is the tech who came out for the ANNUAL SERVICE brought the wrong size filter, and being unable to put the panel back he said "f*ck it" and crawled out. NOT. ONLY. THAT. One of the ducts had fallen loose so that dirty crawlspace air was being fed into the system and through the house. Contractors are liars. Always check their work. See, /u/GringoGrande, I can contribute. [link] [comments] |
| Posted: 29 Jan 2021 02:23 PM PST Hello to whomever is reading this, just for reference I am 18 years old and I'm a finance major at a university in New York. I know that one of the major ways increase wealth is to have multiple streams of income, my question to whoever is reading this is that what book can i buy that is a great intro to real estate investing and the world of real estate investing ? [link] [comments] |
| Posted: 29 Jan 2021 06:33 PM PST With money being cheap as is, why would anybody (with their financial house in order) not buy their own place but rent mine? If their financial house is not in order, do I even want them as tenants? I'm fortunate enough to be able to invest in an investment property right now and this question comes up to my mind every time I'm driving back home looking at an investment property. [link] [comments] |
| Posted: 29 Jan 2021 12:18 PM PST I got this email from a wholesaler. Here are the numbers: Pay $30k to take over payments on the house. This $30k includes the reinstatement fee, cash to the seller, and the wholesale fee. Monthly mortgage payments are $503. The mortgage balance is $74k. ARV is $140k. (this checks out) Rent is ~$1,400 per month. (also should be close to accurate) Rough math gives me a yearly CoC return of 25% plus. Am I missing something? [link] [comments] |
| Just pre-qualified for $190k and I'm feeling pretty hood rich Posted: 29 Jan 2021 11:38 AM PST I live in TX, I telework for a state govt agency. Our family owns a house on 2 acres, and we're buying a second house so one of them can be a rental or air bnb depending on location, and now it's time to narrow down our short list of towns. We're looking almost exclusively at LCOL cities to maximize the amount of house our money can buy. At 200k, I can buy a whoooooole lot of house compared to the depressing apartment you would get in Manhattan by comparison. The short list of cities include: George West, TX (can buy waterfront on our budget) Tulsa, OK (can buy into a highrise or condo with affordable HOA within walking distance of local breweries) Rural OK with preference for forest and mountains (I would apply for an mmj growers license) South Dakota (again, green rush) Valdosta, GA/Hastings, MN/mountain regions of AZ (advantageous for flipping trucks, RVs, & motorcycles) Any arguments for or against any of these locations are welcome. Also seeking suggestions for places with houses near forest, mountains, water, or walking distance to breweries and restaurants with preference to rec and med states in my price range. [link] [comments] |
| Please Help! - Locked Out of a Seller's Market Posted: 29 Jan 2021 11:20 AM PST Hi all, I'm currently trying my best to buy a home (to live in) in an incredibly hot market. It's to the point now where people are fighting over houses and I can't seem to get to a buyer quickly enough before they have 20 offers. Is there any way to get an edge on this kind of competition? Any tools or techniques that could help identify homes for sale before others see them? If you don't want to reply publicly, please send a DM. Just need a way to get to a house before other buyers snatch it up. Thanks for any pointers or help you can provide! [link] [comments] |
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