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    Sunday, January 10, 2021

    Real Estate Investing: Worth it to keep starter home in expensive SoCal market for rent?

    Real Estate Investing: Worth it to keep starter home in expensive SoCal market for rent?


    Worth it to keep starter home in expensive SoCal market for rent?

    Posted: 09 Jan 2021 11:07 PM PST

    Bought 20% down for $785k 4 years ago. Have $633k left on mortgage at about 4% interest, $3100 P+I only per month, and saving for forever home. If we would be able to wait a few more years and pay cash on down payment for forever home, would it be worthwhile to keep it to rent?

    Tax is about $12k/yr. Rent would be about $3300/mo but the quality of renters here are generally stable (whatever that means now) young professional families.

    We would ideally do some cosmetic touch ups around $10k to fix it up for rent, but could sell as is without fixing.

    submitted by /u/PagingDrLumps
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    Self employed income

    Posted: 09 Jan 2021 09:07 PM PST

    Quick question. I'm looking to refinance an investment property but I have self employed income. Most years I make (and show) plenty of income, but last year I invested heavily into my business when relocating to a new office, etc.

    2020 was a great year but I haven't filled my tax return yet, and really can't until end of Feb. The loan officer gave me slack on the last tax return so I wrote a letter of explanation along with profit loss for 2020 and basically sent nearly all the info I will be sending my accountant.

    Do you find some banks are more lenient to the cycles of self employed income or is it pretty much the same standards everywhere? This refi isn't with a local bank, would that be a better bet if this falls through?

    submitted by /u/obie1cajoby
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    Those of you that invest in RE and stocks—is this a better market for stocks?

    Posted: 09 Jan 2021 08:35 PM PST

    Thanks in part to the low fed rate, real estate prices are skyrocketing. Meanwhile, with inflation plus stimulus packages, our stock market is seeing record growth (arguably artificial growth). Combine this with a few sectors that we can say with high confidence will see above market growth due to government investment (clean energy) and post-Covid rebound (airlines and other travel), and the stock market is looking like a very favorable investment this coming year.

    I'm currently looking for my next property, and I've had my downpayment cash parked in some ETF stocks while I house hunt. But after seeing such huge growth in my stock portfolio, I'm starting to think I might hold off on buying a property for another year or so and just focus on the stock market until it levels back off.

    I understand this is a real estate biased sub, but for those that have investments in both what are your plans for this upcoming year?

    submitted by /u/Harry_Coolahan
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    Stessa users - how are you collecting rent?

    Posted: 09 Jan 2021 07:42 PM PST

    I would like to move our tenants from checks to online payments. 11 units. What is your preferred online rent payment collection software?

    submitted by /u/Pinkpenguin438
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    Buying my first seller-financed home, advice?

    Posted: 09 Jan 2021 04:29 PM PST

    I have some experience, but this will be my first seller finance transaction. The term will be 30 years with a two-year balloon at 4.5%. I'm putting 10% down and wanted to know if there's anything to look out for in the contract. For reference, this is in Indiana.

    Thanks!

    submitted by /u/smellsliketoast
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    How to get started with flipping

    Posted: 09 Jan 2021 10:25 PM PST

    Hi all, I'm 23 living in NJ and I'm looking to purchase a property to flip within the next 6 months - year (maybe longer if need be). I have about 15k saved but I estimate I could save another 5-10k by the time I were to seriously start shopping.

    What do I need to know to start? How do I go about building a team so I don't get ripped off? Do I need one?

    I'm also considering purchasing in Philadelphia instead of NJ for cheaper prices and tax, would this be a good idea? I'm about 1.5 hours from there. Are there any restrictions or things I need to know about buying an investment property out of state?

    Any other tips you could share to help guide me along this process would be appreciated! TIA

    submitted by /u/bluescluus
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    Quick tax question

    Posted: 09 Jan 2021 12:20 PM PST

    Hi

    Very amatuer question:

    Suppose I have a main job and the net income is $1,000,000. NOT a real estate professional. Active participation but not eligible for partial losses since income is over the threshold.

    On the side, I have 2 properties and after accounting for everything (depreciation and all), I have:

    Property 1: Net income, 5k

    Property 2: Net loss 1k.

    Is the passthrough from rental income to total income property by property? Would my income be $5k and the $1k loss is carried over to the next year for Property 2. This means I pay taxes on 1.005M and 1k is carried to the next year.

    Or is the passthrough a sum over all these properties? In this example: The net gain/loss is +$4k and I'm paying taxes on 1.004M.

    I am quite sure it is the second situation. Is this correct?

    Many thanks in advance.

    submitted by /u/GoinGoinGon3
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    About to have my lender run my credit, is their any tips or suggestions i should know with working with a lender that can help with fees/rates etc?

    Posted: 09 Jan 2021 01:24 PM PST

    Hello

    My credit is 800 and 790

    Im using a mortgage broker from the recommendations of the agent im working with.

    Is their any tips or suggestions anyone has that can help with negotiating terms/rates/fees?

    submitted by /u/Mario092992
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    How would you invest $300,000?

    Posted: 09 Jan 2021 08:18 PM PST

    How would you invest $300,000 in real estate? I live in California. I'm guessing the common answer is put down the $300,000 as a 20% down payment for a $1,500,000 multi family in the MidWest and get a property manager. Any other ideas?

    submitted by /u/throwaway761575
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    Renting to relatives

    Posted: 09 Jan 2021 12:03 PM PST

    Have any of you rented to relatives? How was that experience?

    Edit: I'm not sure if this is the best place to post this. So if there's another subreddit to use, let me know! Thanks!

    submitted by /u/publizcity
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    Favorite Resource for Tracking Population Migration

    Posted: 09 Jan 2021 11:03 AM PST

    Hey Guys,

    What is your favorite resource for tracking "real time" population growth/decline in different markets.

    Thanks in advance

    submitted by /u/_turd_burgler
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    Converting a 3-family Rental to a Single family home for an investment property

    Posted: 09 Jan 2021 05:07 PM PST

    Okay so I know this sounds silly at face value but bear with me given the circumstances.There is a property very close to a ski resort that has been on the market for 6+ months.

    Every single family property in the area has flown off the market this year at very lofty prices. The market is easily 50% higher than this time last year. However, there is one 2,800 sqft 3 unit property that was listed at $250k months ago and has dropped down to $200k (most single family homes are price way above this price).

    Is there any way I could purchase this property with the intentions of converting it back to a single family home with 5-10% down? My concern is that I'd still need to put down 20%+ for a mortgage since it's a multi-family then not have as much money for the conversation.

    Any advice would be appreciated!

    (I really want to have a property I can use and rent out when I'm not there. When I am there I would like to cause a ruckus/ride Atvs/have bonfires which is why Im not a fan of renting out the other units)

    submitted by /u/rsilv18
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    In need of creative contract solutions

    Posted: 09 Jan 2021 09:51 AM PST

    My elderly neighbor and friend has a 1906 run down 3bed/2bath house in the San Francisco Bay Area that he can no longer take care of due to his age and health. He wants to pass it to his daughter in his will to avoid sales tax, but in the meantime the house sits vacant. He had a tenant for 30+ years vacate due to losing their business during Covid. The tenant used the house to conduct art classes, and so the house was not maintained for today's living standards. He's having a hard time right now finding contractors to fix it up to make it rentable, and he lives far away and is elderly so it's all a lot for him to manage. He's offered to let me live in the house for free to keep squatters out until he can get it fixed up, but I'd only live in it if I owned it. I'd like to buy the house from him and live in it and fix it up, but respect his wishes to only buy it from his daughter after he passes. It's a great opportunity for me to get a big craftsman house in a desirable Bay Area neighborhood where houses normally sell in the $M's. It needs A LOT of TLC, but that's what excites me about it.

    What, if any, creative contracting solutions might be available to enable me to buy the house from him now but the official transaction take place after his death so he can avoid sales tax?

    submitted by /u/AmberOctober
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    Investing out of state duplex vs singles, which better cash flow usually? Anyone has experience?

    Posted: 09 Jan 2021 09:29 AM PST

    Hello,

    I am house hunting for a house hack in northern jersey but am also looking at what markets would be good for cash flow duplex or singles. I dont care nothing for appreciation.

    Straight cash flow at 9% + cocr. Is what i am aiming for after paying

    8%- vacancy 5% capex 5% repairs

    If anyone has any experience in this ?

    submitted by /u/Mario092992
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    Furnished Finder and such

    Posted: 09 Jan 2021 03:20 PM PST

    I'm buying a house this week that we're not sure if we'll occupy or rent ultimately based on some subtleties of our jobs. But short term, it would be ideal to occupy like one room occasionally (basically to be able to be close to one job during peak work times) as we work that stuff out. So, anybody rent individual rooms to travel nurses or corporate groups over furnished Finder or similar and can tell me what works or does not?

    submitted by /u/Snoo_33033
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    [Future Landlord] Looking for advice

    Posted: 09 Jan 2021 08:53 AM PST

    I am planning on getting a property later this year with my current roommate. We're both actively saving, but I don't know how much she can save. I want to make this as easy and fair to both me and her. I have 2 options in mind that I want some advice on

    Option 1: Take her savings, put my name on the loan (leave hers out) and give her at least 1 year of free rent, provided we find another tenant to help pay for the mortgage

    Option 2: Put both of our names on the loan and get a real estate lawyer when one of us wants to back out.

    Open to other suggestions. I don't want to fuck her over but I also don't want to get screwed in the process.

    submitted by /u/actionboy21
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    PPP Loan v2 - Max amount for landlords?

    Posted: 09 Jan 2021 12:09 PM PST

    Has anyone received PPP loan? What's the max. amount for landlords if their income is purely from rentals?

    submitted by /u/taewoo
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    Lima One Capital/Corevest

    Posted: 09 Jan 2021 11:31 AM PST

    Does anyone have any experience with either of these private lenders? Are they credible? Also, does anyone have any more private lenders they would suggest?

    submitted by /u/AppalachiaBuckskin
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    City maintenance of roads?

    Posted: 09 Jan 2021 11:28 AM PST

    Will most municipalities maintain roads built within developed neighbourhoods?

    submitted by /u/billnyetherussiansoy
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    Are tax deeds a good investment?

    Posted: 09 Jan 2021 09:21 AM PST

    I've never invested in anything before, but I'm thinking about investing in a tax deed that is going to be close to where I live? Is there anything I should be worried about trying to go into it? It's a nice piece of property on about 2 to 3 acres of land, 5 miles from a huge lake, and about 10 to 15 minutes from two (smallish) cities! I also have no clue what I'm doing, and would like to know, if I do decide to go through with it, what I'm getting into. I'd appreciate any advice you'd have to offer. I'm from Georgia (the state) if that matters.

    submitted by /u/APupNamedScooby-Doo
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    Branching out into REI advice

    Posted: 09 Jan 2021 08:12 AM PST

    Breaking out investing advice

    So my wife and I currently own a 3/1 that we just refi. At 2.9% for 100k. Appraised at 155k. I originally bought this home before I got married as it is 5 mins from the local college (medium sized college that's growing). My wife and I do pretty well as she's a nurse practitioner and I'm a HVAC contractor. My original idea for the house was live in, rehab and then rent. I have basically done everything by myself. New hvac, new kitchen counters, cabinets, floors, all new trim. Rehabbed the sunroom etc. now the only thing not finished is a new roof and an updated bathroom. Our current bathroom is quite small so an upgrade I'm sure will add value. Mortgage for house is 775 (20y) but the insurance can be reduced due to roof and a new electrical panel. I'm sure the house could rent out at 1200$ even with the one bath. Now I have come into a point where my mother offered a spare home to live in for 5 years. It's much larger has a pool etc and all we'd have to cover is cost of living insurance etc NO RENT. Seems like a no brainer to save money! So I'm debating if I should sell our current house and get maybe 60k in profit or keep it and rent it out. I figure in 5 years without any debt and mortgage etc you could easily build a RE portfolio. So at this point idk if I should sell and try to purchase a multi or keep and rent out. Any insight would be great thanks!

    submitted by /u/LagunaLarryy
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    Real Estate API access

    Posted: 09 Jan 2021 03:19 AM PST

    Hi. I recently tried using Zillow's API for accessing it's data, which seems to have been free and accessible at some point, but no longer returns the data. In researching, it seems that management of this API was recently taken over by a 3rd party that only allows access to licensed real estate professionals.

    What APIs (if any) still provide access without having a license? Are there any that aren't subscription-based?

    submitted by /u/figgz415
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